KPI tracking is critical for an online owner In order to evaluate performance.
The key performance indicators used must align with your main objectives. For example, if your main goal is to make $50,000 a month, You might want to improve your traffic to increase your chances of achieving your sales goal.
E-Commerce KPIs
Below are e-commerce KPIs that you should track to help you grow your business.
1. Sales-as an Important KPI, You should have an annual sales target, this goal is by measuring your weekly and monthly total sales.
If you don’t hit targets, Make sure you’re doing more marketing or providing superior delivery services, including express, same-day, or On-demand delivery.
2. Customer Retention — If you have a high retention rate then your KPI is achieving, your customers like the product or service you are Offering. As a Result, Lower retention indicates that you should think of more ways to keep customers happy.
A happier customer is likely to buy more products or services from you.
You may want to look into getting a better courier service as 87% percent of online consumers identified shipping speed as a Critical Factor to help them decide to go with an e-commerce brand again.
3. Churn Rate — Another important KPI is The churn rate at which your customers stop doing business with you.
You should aim for a lower rate — less than a 2% churn rate is ideal for an online retailer. Higher churn rates equal lower revenue and Profit — you need to do something about it. Perhaps look into your e-commerce delivery. How fast are your delivery options to your Customers?
Examine what caused your churn rates to rise and take action to reduce them. Having the best products and great delivery service can Go a long way.
4. Customer Acquisition Cost as a KPI- Find out how much you are spending to gain new customers for your online store. Look into Your marketing expenses and divide that by the number of new customers.
If your acquisition cost is high, try to lower it by providing user value, such as by upgrading your product or implementing customer Relationship management to attract new consumers.
5. Delivery Cost -This is the total cost to deliver the product, and it may include freight charges, customs, or other fees.
As a result, a business owner, aim for a cost-effective delivery service that also offers faster delivery to consumers and is another important KPI.
Flashbox Can Help You to Achieve Your KPIs
Last-mile delivery plays an important role in retaining customers. It’s also the most expensive and time-consuming step in the process. And that’s where Flashbox comes in.
We offer flexible, fast, and cost-effective Services to lower E-Commerce Delivery costs while increasing Customer Retention. We provide services to all industries. Contact us today to get started!
Sources:
