To solve an e-commerce marketing platform problem, it is necessary to have certain skills and data that will help make an accurate solution as possible. The e-commerce ad business also works on this principle – it “loves” not only hard work but also exact figures that can take it to a new level.
In order to achieve success in the field of e-commerce ads, first of all, it is necessary to be guided by such immutable trade rules as a measurement of project performance indicators (KPI). Simply put, everything that can be measured.
There are a huge number of indicators that can be analyzed and taken into account when drawing up a business development strategy or when evaluating its economic component. Which of them to put in priority is up to you but you need to know by heart the key positions, building with them the basic principles of successful sales.
First of all, it is important to structure the goals, dividing them into directions. Key performance indicators of e-commerce are divided into sales KPI, marketing KPI and service KPI. Let us dwell on each of them and highlight for themselves the main points.
Average purchase check
This is one of the key indicators in any business. It is not difficult to calculate it – you need to divide the amount of income received by the number of orders, and the result will be the average cheque of your web resource. With this data, you can judge the effectiveness of the sales department, the relevance of the discount system and the overall work of the online store.
Sales are a figure that is put in a plan by managers for a certain period of time. Plans can be set for a month, quarter or year. This is a necessary indicator because if you do not have a clear number to which you want to strive, it will be more difficult to achieve the desired heights.
From the total income, we subtract all expenses and get a figure for which everything was started. To increase profits, you need to reduce costs: to revise all costs, eliminate inappropriate expenses, and provide control over the relevance of prices.
Marketing KPIs are:
Conclusion of a web resource in the TOP
An important indicator of a properly chosen marketing strategy is the output of a web resource in the TOP of search engines. How difficult it will be to achieve depends on the qualifications of the chosen specialists, the specifics of your business and the employment of niches.
Amount of traffic
Using analytic tools such as Google Analytics, you will find out which promotion channels work best, which resources lead more visitors to your site, how social networks work, and which channels you underestimated earlier.
As practice shows, the refusal ratio of the purchase at the stage of forming the basket can be up to 70%, depending on the specifics of the business. A rather high indicator. You can track the reasons for this behavior using Google Analytics tools.
Refusal to purchase
In order to understand how effectively the landing pages of your site are compiled and if similar measurements are needed.
A refusal is an option when a user, having entered your site, instantly leaves it. With the help of analytics services, you can see the percentage of failure and deal with the reasons that caused it. To calculate the failure rate, it is necessary to divide the number of visitors who quickly left the resource by the total number of users who visited the site. After analyzing the reasons – design, usability, content quality, you can reduce the failure rate and increase the flow of targeted traffic.
Conversion rate is a very important element of the sales system. It is important to estimate not the number of clicks but the number of targeted actions performed (that is, sales).
The conversion is the number of calls and the number of completed orders, the result of which is a sold item of a product or service. You can calculate the target audience who made the purchase by dividing the number of sales by the total number of visits.
According to research by the Nielsen Norman Group, the average return on e-commerce conversion in 2014 was only 3%. Acceptable conversion rates range from 1% to 10%. If it is below ones, you should look for the cause. To increase the percentage of conversion returns, analyze website usability, price relevance, response to order processing.