The success of a company lies in the economic benefits it generates. It is the metrics that will allow you to know if your investment is profitable because they measure the fulfillment of your objectives. Let’s see the best way to launch e-commerce website.
What Are Performance Indicators?
The key performance indicators or KPIs (Key Performance Indicators) in English are essential to measuring the performance of your company. With the KPIs, you will know more precisely and concisely the progress of your goals because they measure the status, effectiveness, and progress of your objectives.
Depending on your objectives, there are the KPIs that you must take into account to measure the areas of sales, marketing, and customer service.
What are the KPIs?
When you have an e-commerce, practically everything can be measured. With the metrics, you will be able to understand, control, and improve the process and result of your investment.
There are different tools with which you can carry out this process. Here you will find six of them with which, in addition to knowing the economic benefits they generate for you, they will also give you information on the behavior of your customers.
Cost of customer acquisition: These are all the expenses you incur in time and money to acquire new customers who come to your site. Some of these are: SEO, content creation and paid advertising. Let’s take an example, if you spend $100,000 pesos a year and get 1,000 clients, your acquisition cost will be $100 pesos.
Conversion rate: With this metric, you can determine the percentage of visitors who end up making a purchase. Therefore, you always want this to stay high. Suppose that in a month 30 people visit, 15 buy, the percentage is 50%.
Customer lifetime value: You will be able to measure the income generated by a customer over the time in which they have purchased from your e-commerce. It is a way of evaluating loyalty toward your brand.
Added to shopping cart: It is important to measure the number of times your customer adds items to their shopping cart. You will be able to measure different aspects, such as the ability of your site to attract people interested in your product.
Average order value: You will know the average amount of money your customers spend per order. To calculate it, you must divide your total income by the number of orders in a given period of time.
Organic repurchase rate: In addition to conversion rate to measure consumer loyalty, an important metric in e-commerce is the number of customers (those who have already made a purchase) who return to your site to buy from you.
We already know what the repurchase rate is, the word organic refers to the fact that it is done without investing money in it. You will know the ability of your site to make your customers return.
Another vital indicator of the success of electronic commerce is the return on investment (ROI). This indicator will let you know if you are on the right track.
First, you must know how much your sales volume amounts to, then make a list of all the expenses generated by your eCommerce and divide your total sales by the amount of your investment.
How To Increase The Profitability Of Your Company?
Today, there are multiple online businesses that make hundreds of products and services available to consumers. To attract new customers, traditional and online, you must make greater efforts and for this, you must need tools to analyze brand performance.
You will think that the first line of action is massive advertising, however, advertising, in addition to being expensive, does not always guarantee new clients that translate into sales; there are tools that generate greater profits.
One of the main reasons customers immediately leave an online store is the slow product result. So, one of the main goals that you must have and think of is how to make the customers stay on your website longer. You can take the advantage of ecommerce site search plugin like Expertrec which has a fast loading speed, thus higher customer retention on the site. The search engine has an autocorrect for the typos and wrong spelled words, and the auto-suggestion shows immediately as the customers search for the product.
You already know the importance of customer loyalty and the investments you make to achieve it. Inbound marketing is a non-intrusive methodology. It has the objective of making users find us when they carry out their searches.
With an inbound marketing strategy, you will be able to align the marketing and sales areas, have visitor records, increase your database with better-qualified prospects, optimize the relationship with the client, and improve your online presence, which is just some of the benefits What does it offer.
Now that you know the different metrics and how to carry them out, it’s time to calculate the profitability of your business. Start generating new and better prospects for your business!
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