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eCommerce KPIs: Tips of the Trade for Online Selling

By tthomas
Apr. 10, 2018

When it comes to eCommerce, there are many key performance indicators (KPIs), and the value of those indicators is directly tied to the goal progress measured in each area.

WIth Appnovation’s burgeoning eCommerce portfolio, it is important to identify and improve upon these, highlighting the reasons why this part of our digital solutions practice is enjoying a steady period of growth and success. Monitoring which page someone visited before initiating a customer service call, for example, makes sense as KPI, and is just one of many (as you will see outlined below).

With the idea that KPIs should differ based on the goal being measured, it is possible to consider a set of common performance indicators specifically related to eCommerce platforms, (such as Magento) elements which can directly impact online sales and, ultimately, the success of any online business.

Just by way of introduction, as we will be publishing many more blogs around this subject in the coming weeks and months, here are some of the most salient KPIs, as identified by the team here at Appnovation all of which, though quite common in terms of being known across the industry, are often overlooked, costing businesses real dollars, pounds, pennies and growth...
 

Sales Key Performance Indicators and Measurement Elements

Hourly, Daily, Weekly, Monthly, Quarterly, and Annual Sales

Measured by pure metrics, with each defined time period delivering one figure

Contributing Factors

Here are some elements and features which can directly impact eCommerce sales rates/numbers:

  • Product Quality

  • Pricing

  • Placement

  • Promotion

  • Ease of Checkout Process

  • Functionality of Basket/Continue to shop function

  • Online Reviews

  • Product/Service Delivery Times

  • Site Navigation/Overall UX

  • Reviews/Testimonials

  • Product Imagery

  • Product Specs & Descriptions

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Tips to facilitate KPI improvement

  • Improve User Experience

  • Deliver Superior Customer Service

  • Inclusion/Visibility of Valuable Reviews (ask for more feedback)

  • Competitive pricing/awareness of direct competitor offerings

  • Identify Content Marketing Strategies

  • Personalization

  • Cross-sell/Upsell

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Things to avoid (that could contribute to making the KPI worse)

  • Messing with brand identity

  • Ignoring sales trends

  • Not identifying potential new markets

  • Working with no marketing content plan

  • Avoiding product/service diversification

  • Garnering too many negative reviews (either at seller level or product level)

With so many contributory factors within in play for any eCommerce business, it is critical to not only select the correct platform, such as Magento, or Magento 2, but also to ensure that the appropriate amount of attention is focused on the most beneficial KPIs, something that our developers are acutely aware of.