ARPU is your company's average revenue per active user and is calculated by dividing total revenue over a period of time by the total number of active users.
The CAC or Customer Acquisition Cost is the calculation that tells you numbers (south korean tv series) how much it costs to attract a new user to your eCommerce. In this operation, you add up the acquisition costs of each channel you have and divide it by the total number of customers acquired to obtain an average.
In the end, the profitability of your eCommerce is due almost as much to the strategic level with which you manage each area of the business as to your ability to please your users. Or rather, one complements the other, but always using the best KPIs for eCommerce.
In terms of marketing, "you should always keep in mind everything from the most macro KPIs, such as ROI, to the smallest ones, which help us guide the customer through the funnel," is the advice of Natalia Vargas, former Marketing Manager for North Latam at Google. Examples of these small indicators can range from filling out a form, generating a call, to sharing an article.
Adapt your business to the digital ecosystem, taking advantage of the benefits provided not only by channels to promote your content on the Internet (SEO, SEM, Ads) but also by social platforms (Facebook, Twitter, Instagram, etc.) depending on the networks your users are on.
Put yourself in the shoes of your website visitor: how many times have you left a site because it took too long to load one of its pages? Or remember the times when a poor layout or design of the content has driven you away. The same will happen in your online store if you don't take care of these details. And once you make a bad impression on a visitor, there's no turning back.
Examples of KPIs for e-commerce
There are different KPIs to evaluate the performance of your eCommerce. Below I will give you some examples:
The Best KPIs to Measure Your Sales Performance:
Market basket average
Sales per day (you can also measure them by hour, week, month, year, etc.)
Conversion rate
Average margin
Abandoned shopping cart rate
Cost of sales
Orders from new customers vs sales from repeat customers
Inventory levels
The Best KPIs to Evaluate Your Marketing Strategy:
Site traffic
Time on site
Number of followers on your social networks.
Blog traffic
Subscriber Comments
Traffic sources
The Best KPIs to Measure Customer Service
Number of cases attended to
Number of cases resolved
Average resolution time for cases handled
Types of problems addressed
These are some examples of KPIs that you can use to measure the performance of your e-commerce. You can also design your own indicators according to your needs.
I suggest you use a few KPIs that allow you to assess your weak points and correct them in time. The advantage of using a few is that they are easier to analyze and give you the possibility to design an effective action plan. Then you can focus on other areas where you think things are not going as you expected.
I hope this list of the best KPIs for eCommerce helps you make better – and smarter – decisions when designing your strategies.
Remember that there is no way to know if your actions are giving the expected results if you do not constantly measure your performance. There is nothing better than detecting failures in time so that you can correct them and not lose benefits.
How do you measure the profitability of your eCommerce? What are the KPIs for eCommerce that are essential in your strategy? Let us know.