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39 KPIs In E-Commerce (To Swear By)

So in order to survive in such an intense and ambitious world as e-commerce, there’s one thing you must swear by: KPIs. KPIs is what allows you to measure your success in the form of milestones achieved on the road to your ultimate goal.

But what should those KPIs look like in e-commerce?
Have a look at this presentation that collects 39 most important KPIs in e-commerce!

(Based on an article originally published here: http://bit.ly/1RMCbaf)

39 KPIs In E-Commerce (To Swear By)

  1. 1. 39 KPIs TO USE All important KPIs explained and brought together in one piece. IN E-COMMERCE
  2. 2. "We're in the midst of a profound structural shift from physical to digital retail… and it’s happening faster than I could have ever imagined. — Jeff Jordan, General Partner at Andreessen Horowitz
  3. 3. E-COMMERCE IS A RAPIDLY GROWING MARKET 2012 — topped $1 trillion for the first time 2014 — increased sales 22.2% within a year 2020 — is expected to reach $3.5 trillions in sales Sources: http://www.emarketer.com/Article/Ecommerce-Sales-Topped-1-Trillion-First-Time-2012/1009649 https://www.internetretailer.com/2014/12/23/global-e-commerce-will-increase-22-year https://www.internetretailer.com/2015/07/29/global-e-commerce-set-grow-25-2015 BRIEF OVERVIEW:
  4. 4. WHAT DO PEOPLE
 BUY ONLINE?
  5. 5. GOODS Global average U.S. UK GERMANY JAPAN INDIA BRAZIL RUSSIA CHINA ELECTRONICS 77% 83% 84% 90% 53% 79% 86% 71% 96% SERVICES 76% 80% 76% 77% 63% 82% 70% 63% 87% FASHION & APPAREL 76% 87% 85% 88% 66% 84% 75% 64% 97% BOOKS 73% 82% 82% 80% 65% 70% 75% 52% 89% TICKETS 64% 74% 69% 63% 43% 79% 65% 51% 71% MUSIC & GAMES 62% 74% 75% 66% 46% 65% 62% 43% 69% HOME APPLIANCES 59% 46% 65% 58% 41% 67% 70% 62% 83% BEAUTY PRODUCTS 57% 50% 56% 58% 48% 68% 59% 53% 85% Source: A.T. Kearney Connected Customer Study
  6. 6. INTERESTING FACT: According to The Nielsen Company, fashion industry has the most engaged buyers (mostly women) that make up 46% of online shoppers from all over the world. …that’s why setting the right KPIs is a way to survive in the competitive market.
  7. 7. BUT HOW DO YOU SET THE RIGHT KPIs?
  8. 8. "Choosing KPIs begins with clearly stating goals and identifying what areas have a direct impact on them. — Ula Lachowicz, Marketing Leader at Styla
  9. 9. FOR EXAMPLE: GOAL #1: boost sales by 15% in the next 6 months RELEVANT KPIs: - number of leads - conversion rate - daily/weekly/monthly sales - shopping cart abandonment rate GOAL #2: increase email open rates by 3% in the next quarter RELEVANT KPIs: - soft/hard bounce rate - total opens’ rate - click rate - unsubscribed rate - deleted without reading rate
  10. 10. KPIs FOR:
 PRODUCT
  11. 11. #1 Product quality index Is the quality of your product/service as high as the customers expect it to be?
  12. 12. #2 Average time between failures (also known as MTBF, mean time between failures)
  13. 13. #3 Average number of breakdowns How many times does your product crash within a certain time frame?
  14. 14. KPIs FOR:
 CUSTOMER SERVICE
  15. 15. It’s been proven that 95% of customers are more likely to share bad service experiences than good ones. #4 Customer satisfaction rate
  16. 16. #5 Number of customer complaints Is it increasing or decreasing lately?
  17. 17. #6 Average resolution time How long does it take (on average) to deal with one complaint?
  18. 18. #7 NPS (Net Promoter Score) How likely will a customer recommend your service or product to somebody else?
  19. 19. #8 Customer retention rate (CRR) CRR = ((E-N)/S)*100 E = number of customer at the end of a period N = number of new customers acquired during that period S = number of customers at the beginning of that period
  20. 20. What do clients say about your service/product? #9 Customer feedback
  21. 21. KPIs FOR:
 SALES
  22. 22. #10 Sales by hour, day, week, month, quarter and year What is sales’ frequency?
  23. 23. #11 Average order size (average market basket) In the U.S., average order size is $77.9 across the country, as reported by Statista.
  24. 24. #12 Shopping cart abandonment rate How many people put items in a shopping cart never to return? According to Baymard Institute, current shopping cart abandonment rate is at 68.55%.
  25. 25. #13 Checkout abandonment rate How many people abandon stop the purchasing process during the checkout?
  26. 26. #14 Product clicks i.e. the number of people that clicked on a particular product.
  27. 27. #15 Average number of products purchased together Grouping products together in a similar order lets customers see more variety, claims Shopify.
  28. 28. #16 Average number of products viewed Your products should be displayed cohesively.
  29. 29. #17 Average delivery costs How much does it cost you to deliver your product to a client? According to Statista, UK has the most expensive domestic delivery option on Saturdays, with an average cost of £9.19.
  30. 30. #18 Average return costs An IHL report has estimated that returns cost the global retail economy $642.6 billion each year.
  31. 31. #19 Repeat buyers A typical online store gets 43% of its revenue from repeat buyers, according to Bigcommerce.
  32. 32. #20 Number of transactions in a given time frame What are the peak times?
  33. 33. #21 Leads to customers ratio Lead is a prospective consumer of a product/service that is created when an individual shows interest and provides his or her contact information. (Def: Investopedia)
  34. 34. #22 Customer profitability score After deducting all the costs of customer attraction, on-boarding, maintenance, advertising expenses, etc, how much profit does that customer bring to your business?
  35. 35. #23 Return on investment ROI = (Gains – Cost)/Cost
  36. 36. #24 Revenue growth rate and net profit i.e. income minus expenses
  37. 37. KPIs FOR:
 MARKETING
  38. 38. #25 Site traffic How many unique visitors land on your website?
  39. 39. #26 Site traffic to lead ratio known also as the conversion rate.
  40. 40. #27 Bounce rate Bounce rate in e-commerce is 35%, which is a bit less than the average 40.5% on the web in total.
  41. 41. #28 Average time spent on website 55% of visitors spend less than 15 seconds on your website, informs Hubspot.
  42. 42. #29 Page view per user How many pages does one user explore in one session?
  43. 43. #30 New VS. returning visitors i.e. measuring the visitor loyalty.
  44. 44. #31 Newsletter subscribers How many people are subscribed to your newsletter?
  45. 45. #32 Number of leads (from different channels) What channel in particular (direct, organic, referral, etc) brings you most leads?
  46. 46. #33 Cost per lead How much does it cost to acquire one lead?
  47. 47. #34 Brand keyword value How high is the bid on your brand keyword?
  48. 48. #35 Social media followership How many followers does your brand have across all channels?
  49. 49. #36 Social media reach & engagement rate Engagement = (Number of likes + comments + shares) / total reach of the posts * 100
  50. 50. #37 Email marketing performance rate According to Mailchimp, the average email campaign stats in e- commerce stand at 16.77% opens and 2.53% URL clicks.
  51. 51. #38 Cost per acquisition It is 7 times more expensive to attract a new customer than retain an old one.
  52. 52. #39 Customer lifetime value CLV is a calculation of how much profit a business could make from one customer over the whole period that they remain a customer.
  53. 53. 39 Essential KPIs To Swear (And Live) By In E-Commerce Read the full article on the Styla blog. SUBSCRIBE HERE
  54. 54. SELLS STORYTELLING Styla is the world’s leading content commerce solution that creates shoppable content in a form of a beautiful magazine integrated into your e- commerce store.

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