E-book – Personalization in E-commerce
In this e-book, you will learn why personalization is important in e-commerce and what the term personalization actually means.
How do you know how your online shop can achieve the goals you have set? With key performance indicators (KPIs), you can accurately measure your company's performance and improve it in a targeted manner. We present the most important key figures in e-commerce.
Here's what you can expect to find in this blog article:
What are performance indicators?
The ultimate list of key e-commerce metrics
E-commerce metrics for measuring overall business success
E-commerce KPIs for measuring marketing
E-commerce metrics for measuring customer service
E-commerce KPIs in production
E-commerce metrics for measuring investments
Conclusion: The right KPIs are the cornerstone of your success.
KPIs are key performance indicators that allow you to measure the economic success of your company. They enable you to examine and improve business processes. Good e-commerce KPIs have certain characteristics. These include:
An effective KPI not only has the attributes mentioned above, but is also the appropriate lever for capturing and implementing your specific goals. One of the most common strategic mistakes is not choosing KPIs that drive a company's long-term goals.
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Key performance indicators are of fundamental importance in e-commerce because you can use them to continuously optimize your business success. You can identify undesirable developments more quickly and improve important metrics in a targeted manner. Whether you are measuring your shop performance or comparing the metrics of email marketing campaigns, they form the basis for improvements.
Below, we have summarized the most important e-commerce metrics for you. We distinguish between metrics that are particularly important for specific areas of the business, such as marketing, production, or customer service.
Nothing is more important than the key performance indicators that allow you to keep track of your company's success. That's why we start with the KPIs that allow you to see at a glance how well your company is performing.
The average order value shows you how much money a customer spends on average in your online shop.
Gross profit is your company's raw profit without deducting costs.
The conversion rate indicates the percentage of visitors to a website who have performed a specific action.
Percentage of shopping carts that were not only created by customers but also ordered.
Cost of Goods Sold indicates the direct costs incurred for products or services sold within a defined period.
Customer lifetime value shows you the total amount of all profits from a customer's purchases during the duration of the customer relationship.
The churn rate indicates how many customers, in relation to the total number of customers, no longer use a service.
Customer acquisition costs tell you how much your company spends on average to acquire a customer.
The percentage of customers who buy from you more than once.
The average profit margin shows what percentage of a company's revenue is profit.
Revenue per click tells you how much average revenue is generated by a click on your website.
This e-commerce metric indicates how often a customer has purchased from you within a specific period of time.
This KPI tells you how much time passes before a buyer places a second order with you.
This key figure indicates how often your inventory is sold during a specific period.
The inventory ratio tells you how much it costs to store goods before they are sold.
This KPI shows you how much revenue an average visitor to your online presence generates.
The net profit margin tells you how high the share of profit is after all costs have been deducted.
Sales boost or investment drain: Marketing is an important building block for your success. But only if you know exactly which measures are worthwhile will the investment pay off. With these KPIs, you can assess how successful your marketing measures are.
Traffic tells you how many visitors your shop had within a certain period of time.
That's how long users stay on your website on average.
This is the average number of subpages your customers visit while browsing your online store.
The bounce rate indicates the percentage of visitors who leave your website without visiting another page.
This metric indicates how many subscribers you have gained within a defined period of time, measured against the previous number of subscribers.
If emails are returned by the recipient's server, this is considered a bounce. The bounce rate is the percentage of the mailing list for which an email cannot be delivered.
The open rate indicates the percentage of recipients who opened the email.
The click-through rate for emails indicates what percentage of customers who opened your message clicked on a link in that email.
This metric helps you assess the effectiveness of your email marketing. It indicates how many of your email recipients made a purchase after clicking on a link in one of your messages.
The click-through rate describes how many users clicked on one of your ads after it was displayed to them.
This KPI indicates how many followers interact with posts on social media, i.e., like, share, or comment on them.
This metric indicates how many followers a social media channel has gained, measured against the previous number of subscribers.
Cost per click indicates the amount you have to pay for a user to reach your shop via an advertisement.
This e-commerce metric tells you where your traffic comes from.
The customer retention rate tells you how well your company is doing in building long-term customer loyalty. It indicates the percentage of customers who have purchased from you again.
This metric tells you which type of device (smartphone, tablet, laptop) will generate the most sales.
This metric tells you how many of your website visitors are converted into leads.
This KPI helps you estimate the percentage of leads that become customers.
Customer satisfaction is more important than ever thanks to online reviews. These KPIs can help you determine how your customers feel about you.
The Customer Satisfaction Score quantifies how satisfied your customers are.
The Net Promoter Score indicates whether customers would recommend your products or services to others.
This is the average time it takes customer service to process a complaint.
The value of returned goods in relation to total sales.
If you manufacture products yourself, it is important that your production is efficient. These KPIs will help you identify hidden potential and determine the optimal sales price.
The time between receiving an order and the complete manufacture or immediate sale of a product.
Overall Equipment Effectiveness measures the availability and performance of technical equipment and machines.
Overall labor effectiveness measures the performance and utilization of the workforce and its productivity.
Measurement value for evaluating the production process.
The initial yield is the proportion of goods that are fault-free after the first production run.
This indicator shows how often company policy was violated.
When you invest capital, it should make your business more successful. These KPIs help you determine which expenses are profitable and which are not.
Working hours that your workforce has spent on implementing a specific project.
The budget indicates the amount of money you have allocated for a specific project.
The return on investment indicates whether an investment is profitable for you and puts this in relation to the capital invested.
The difference between target, actual, and planned costs.
The Cost Performance Index indicates the value of a project in relation to its costs.
KPIs help you strategically implement your business goals. The various e-commerce metrics show you undesirable developments and potential for optimization, helping you put your business on a healthy footing.
Learn how you can improve your key figures with personalization.
Download our e-book on personalization in e-commerce!
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