Most relevant KPI's for eCommerce

Do you want to know in an objective and quantifiable way the performance of your eCommerce? For this, there are KPI's (Key Performance Indicators), quality indicators that provide us with valuable and useful information to analyze the productivity of our business.

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This week, in Planet's blog we will talk about the most relevant KPIs for eCommerce, taking into account that these indicators help us to measure the productivity and effectiveness of our actions, so, before analyzing the data of our eCommerce, we must establish specific objectives, and observe, therefore, if we have met them with our strategy or we must change it.

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There are all kinds of KPIs, and the choice of the right one will depend, as we have mentioned, on the objectives of the eCommerce, however, we can determine some key indicators that are fundamental for any eCommerce.

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Here are some of the most relevant business and sales KPI's for your eCommerce, which will be very useful to keep your eCommerce under control.

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Conversion Rate

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This KPI measures the relationship between the number of users accessing your site and the percentage of users who make a conversion, in the case of an eCommerce, the most relevant conversion is usually the sale, so we will focus on it.

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Therefore, the conversion rate helps us to know how many of the users who have accessed our website have purchased any of our products, which is usually the ultimate goal of an eCommerce (this is why it is important to set our goals in advance). In addition, we can analyze the conversion rate by categories or sections of the eCommerce, to make comparisons.

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It is a fundamental KPI, since we know that if our conversion rate is low, something is wrong with our eCommerce, and we have to fix it.

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When is the conversion rate low?

The truth is that there is no exact number, since the data will depend on each store and the specific period, but we do know that it is usual that the conversion rate in Spain ranges between 1 and 3%, which implies that a low rate would be lower than this data.

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In other words, it is usual that for every 100 visits to your eCommerce, at least one user makes a purchase of a product.

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‍Bounce rate

The bounce rate is the percentage of users who enter your website, but leave before making any interaction. It can be measured according to the page of your website, this way, it will be more specific and will let you know which pages of your website are more successful.

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This ratio will help you to know better the experience of users on your website, so you can redesign it taking into account the data obtained, put more striking CTAs that encourage users to interact, add relevant information, etc..

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When the eCommerce bounce rate is considered high, we must investigate why users abandon our website.

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What could be some of the reasons for a high bounce rate?

• The type of page the user is on, for example, blog posts tend to have a much higher bounce rate than the home page.
• The design of the website, because if the website is not visually attractive and clear, users may feel rejected.
• Excessive advertising, users tend to associate advertising as something negative, so the appearance of an excessive number of ads that "annoy" the user when browsing the eCommerce, can lead to abandonment.
• The speed of navigation, since users are less and less willing to wait, and abandon the website if the loading is slow (an optimal loading speed is 2 seconds).

Average purchase value

Popularly known as "average ticket", this KPI helps us to know what is the average price that users spend per order in eCommerce, it is a way to make budgets or future estimates.

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Through this KPI, we can know if we have met our profitability objectives and learn more about the buying behavior of our customers.

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It sounds logical, but the higher the average customer spending in your eCommerce, the higher your profits will be, since, for example, your return on investment (ROI) in advertising will be higher.

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A good way to get users to spend more money on your products is to offer discounts or benefits, such as free shipping, for higher purchases.

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Abandoned cart rate

This KPI indicates the percentage of users who have not completed the purchase after adding one or more products to the cart. If this figure is high, we will have to check whether our purchase process is optimized or may be the cause of this abandonment.

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In addition, it will help us to see in which products this rate is higher and in which phase of the purchase process the abandonment occurs more frequently, which can help us to understand the problem and find an appropriate solution.

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Do you already use these KPI's to better understand your eCommerce? If not, start using them now and measure your business results objectively.

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