The E-commerce vertical is unique due to its online nature, reliance on digital marketing, and the necessity for seamless user experiences. KPIs help businesses in this space to optimize their websites for better engagement and conversion, monitor the efficiency of their logistics and supply chain, and gauge customer satisfaction through feedback and return rates. By leveraging KPIs, E-commerce companies can adapt quickly to changes in consumer preferences, technological advancements, and market trends, which is critical for their sustained growth and success.
KPI |
Definition
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Business Insights [?]
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Measurement Approach
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Standard Formula
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Abandoned Cart Recovery Rate More Details |
The percentage of abandoned carts that are eventually converted into sales.
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Indicates effectiveness of strategies to recover lost sales and can highlight potential friction points in the purchase process.
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Tracks the percentage of abandoned shopping carts that are converted into completed sales.
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(Number of Recovered Carts / Number of Abandoned Carts) * 100
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- An increasing abandoned cart recovery rate may indicate improved retargeting strategies or more compelling offers to entice customers to complete their purchases.
- A decreasing rate could signal issues with website usability, payment processing, or overall customer experience that need to be addressed.
- Are there specific products or product categories that have higher rates of abandoned carts?
- How do our abandoned cart recovery rates compare with industry benchmarks or with our competitors?
- Implement retargeting campaigns through email, social media, or display advertising to remind customers about their abandoned carts and incentivize them to complete their purchases.
- Optimize the checkout process to make it as seamless and user-friendly as possible, reducing friction and barriers to completing a purchase.
- Offer incentives such as discounts, free shipping, or limited-time offers to encourage customers to return and complete their abandoned purchases.
Visualization Suggestions [?]
- Line charts showing the trend of abandoned cart recovery rates over time.
- Conversion funnel visualization to track the drop-off points in the checkout process and identify areas for improvement.
- High abandoned cart rates can indicate lost potential revenue and may lead to missed opportunities for customer engagement.
- Persistent issues with abandoned cart recovery may point to underlying problems with the overall e-commerce strategy and customer experience.
- Utilize e-commerce platforms with built-in abandoned cart recovery features, such as Shopify or WooCommerce, to automate and streamline the recovery process.
- Implement analytics tools like Google Analytics or Kissmetrics to track and analyze customer behavior and identify potential reasons for cart abandonment.
- Integrate abandoned cart recovery data with customer relationship management (CRM) systems to personalize follow-up communications and offers based on customer preferences and behavior.
- Link abandoned cart recovery with marketing automation platforms to create targeted campaigns that re-engage customers who have abandoned their carts.
- Improving the abandoned cart recovery rate can lead to increased sales and revenue without the need for additional customer acquisition costs.
- Conversely, a consistently low recovery rate may indicate a need for broader e-commerce strategy adjustments to improve overall customer retention and satisfaction.
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Ad Impressions More Details |
The number of times an advertisement is seen by users.
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Helps measure the reach of advertising campaigns and can correlate ad exposure to customer actions.
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Counts the number of times an advertisement is displayed to users.
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Total number of ad displays
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- Ad impressions tend to increase during peak shopping seasons or promotional periods.
- An overall decreasing trend in ad impressions may indicate ad fatigue or decreased relevance of the advertising content.
- Are there specific ad campaigns or channels that consistently drive higher ad impressions?
- How do ad impressions correlate with website traffic and conversion rates?
- Optimize ad placements and targeting to reach the most relevant audience.
- Regularly refresh ad creatives and messaging to maintain audience engagement.
- Utilize A/B testing to identify the most effective ad formats and content.
Visualization Suggestions [?]
- Line charts to track ad impressions over time and identify seasonal patterns.
- Comparison charts to analyze ad impressions across different advertising channels or campaigns.
- A decline in ad impressions may lead to reduced brand visibility and lower website traffic.
- High ad impressions with low conversion rates could indicate ineffective targeting or ad content.
- Google Analytics or similar platforms for tracking ad impressions and audience behavior.
- Ad management tools like Google Ads or Facebook Ads Manager for optimizing ad campaigns.
- Integrate ad impression data with website analytics to understand the impact on user behavior and conversions.
- Link ad impression metrics with sales data to measure the direct impact on revenue and ROI.
- Increasing ad impressions may lead to higher brand awareness and potentially increased sales, but it also requires higher ad spend.
- Decreasing ad impressions could signal the need for strategic changes in advertising approach to maintain competitiveness.
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Affiliate Revenue More Details |
The amount of revenue generated through affiliate marketing efforts.
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Reflects the effectiveness of affiliate partnerships and their contribution to overall sales.
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Measures revenue generated through affiliate marketing efforts.
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Total Revenue from Affiliate Sales
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- A rising affiliate revenue may indicate successful affiliate partnerships and effective marketing strategies.
- A decreasing revenue could signal a decline in affiliate performance or changes in consumer behavior.
- Which affiliate partnerships are driving the most revenue, and are there opportunities to expand or optimize these relationships?
- How does our affiliate revenue compare with industry benchmarks or seasonal fluctuations?
- Regularly evaluate and optimize affiliate partnerships to ensure they are aligned with business goals and target audience.
- Experiment with different marketing strategies and promotional tactics to maximize affiliate revenue potential.
- Provide affiliates with valuable resources and support to enhance their performance and drive more revenue.
Visualization Suggestions [?]
- Line charts showing affiliate revenue trends over time and by affiliate partner.
- Pie charts to visualize the contribution of each affiliate partner to the total revenue.
- Dependence on a small number of affiliates for a significant portion of revenue can pose a risk if those partnerships falter.
- Fluctuations in consumer behavior or market trends can impact affiliate revenue unpredictably.
- Affiliate tracking and management software to monitor performance and analyze the effectiveness of different partnerships.
- Data analytics tools to identify trends and patterns in affiliate revenue data.
- Integrate affiliate revenue data with marketing and sales systems to understand the impact of affiliate efforts on overall revenue and customer acquisition.
- Link affiliate performance with customer relationship management (CRM) systems to track the quality of leads generated by affiliates.
- Increasing affiliate revenue can lead to higher overall sales and customer acquisition, but may also require increased investment in affiliate programs.
- Declining affiliate revenue can impact the effectiveness of marketing efforts and the diversity of revenue streams.
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CORE BENEFITS
- 70 KPIs under E-Commerce
- 15,468 total KPIs (and growing)
- 328 total KPI groups
- 75 industry-specific KPI groups
- 12 attributes per KPI
- Full access (no viewing limits or restrictions)
FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.
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$99/year
Average Customer Support Tickets More Details |
The average number of support tickets or requests made by customers.
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Enables assessment of customer support demands and can indicate product or service issues.
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Calculates the average number of support tickets raised by customers within a period.
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Total Number of Support Tickets / Total Number of Customers
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- An increasing average customer support tickets may indicate growing customer dissatisfaction or product issues.
- A decreasing number of tickets could signal improved product quality, better user experience, or more proactive customer support.
- Are there specific products or services that generate a disproportionately high number of support tickets?
- How does our average customer support tickets compare with industry benchmarks or with our competitors?
- Invest in improving product quality and user experience to reduce the need for customer support.
- Implement proactive communication strategies to address common customer issues before they result in support tickets.
- Provide comprehensive self-service resources to empower customers to find solutions on their own.
Visualization Suggestions [?]
- Line charts showing the trend of support tickets over time.
- Pareto charts to identify the most common reasons for support tickets.
- A high average customer support tickets can lead to customer churn and negative word-of-mouth.
- Consistently low support ticket numbers may indicate that customers are not reaching out for help, potentially masking underlying issues.
- Customer relationship management (CRM) systems to track and manage support tickets and customer interactions.
- Helpdesk software to streamline ticket management and resolution processes.
- Integrate support ticket data with product development and quality assurance processes to address recurring issues.
- Link support ticket metrics with customer satisfaction surveys to gain a more comprehensive view of customer experience.
- Reducing the average customer support tickets can lead to higher customer satisfaction and loyalty, ultimately impacting long-term revenue.
- However, a significant decrease in support tickets may also indicate that customers are not receiving adequate support, leading to negative impact on brand reputation.
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Average Discount Rate More Details |
The average percentage reduction from the original price at which products are sold.
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Provides insight into the impact of discounts on sales and customer acquisition.
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Averages the discount percentage offered across transactions.
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(Total Discounts Given / Total Number of Sales) * 100
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- Increasing average discount rates may indicate a need to clear excess inventory or a shift in pricing strategy to attract more customers.
- Decreasing rates could signal a decline in consumer spending or increased competition in the market.
- Are there specific product categories that consistently have higher or lower discount rates?
- How do our discount rates compare with industry averages or with our competitors?
- Implement dynamic pricing strategies to adjust discount rates based on demand and inventory levels.
- Analyze customer purchasing behavior to offer targeted discounts and promotions.
- Regularly review and adjust discount rates to stay competitive in the market.
Visualization Suggestions [?]
- Line charts to visualize the trend of average discount rates over time.
- Comparison bar charts to show the difference in discount rates between different product categories.
- Excessive discounting can erode profit margins and diminish the perceived value of products.
- Consistently low discount rates may indicate an inability to attract price-sensitive customers.
- Price optimization software to analyze market trends and competitor pricing to set optimal discount rates.
- Customer relationship management (CRM) systems to track the effectiveness of discount offers and promotions.
- Integrate discount rate data with sales and revenue figures to assess the impact of pricing strategies on overall performance.
- Link discount rate analysis with inventory management systems to align pricing with inventory levels and demand.
- Increasing discount rates may attract more customers but could impact overall revenue and profitability.
- Lowering discount rates may improve margins but could potentially reduce customer acquisition and retention.
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Average Margin Per Customer More Details |
The average profit margin that each customer brings to the business.
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Assesses profitability and value derived from the customer base.
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Calculates the average profit margin earned from each customer.
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(Total Profit / Total Number of Customers)
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- Increasing average margin per customer may indicate successful upselling or cross-selling strategies.
- A decreasing margin could signal increased competition or pricing pressure in the market.
- What factors contribute to the variability in margin per customer?
- How does our average margin per customer compare with industry benchmarks or competitors?
- Implement personalized pricing strategies based on customer behavior and purchasing patterns.
- Focus on improving customer retention and loyalty to increase the lifetime value of each customer.
- Regularly review and adjust pricing strategies to ensure competitiveness in the market.
Visualization Suggestions [?]
- Line charts showing the trend of average margin per customer over time.
- Pareto charts to identify the most profitable customer segments.
- Over-reliance on discounts or promotions to drive sales may erode the average margin per customer.
- Failure to accurately track and allocate costs may lead to inaccurate margin calculations.
- Customer relationship management (CRM) software to track customer interactions and purchase history.
- Profitability analysis tools to assess the impact of pricing and promotional strategies on margins.
- Integrate margin per customer data with sales and marketing systems to understand the impact of different campaigns on profitability.
- Link with financial systems to ensure accurate cost allocation and margin calculations.
- Increasing average margin per customer may lead to higher overall profitability, but could also require investment in customer relationship management and personalized marketing efforts.
- Conversely, a declining margin per customer may require cost-cutting measures or strategic pricing adjustments to maintain competitiveness.
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In selecting the most appropriate E-Commerce KPIs from our KPI Library for your organizational situation, keep in mind the following guiding principles:
It is also important to remember that the only constant is change—strategies evolve, markets experience disruptions, and organizational environments also change over time. Thus, in an ever-evolving business landscape, what was relevant yesterday may not be today, and this principle applies directly to KPIs. We should follow these guiding principles to ensure our KPIs are maintained properly:
By systematically reviewing and adjusting our E-Commerce KPIs, we can ensure that your organization's decision-making is always supported by the most relevant and actionable data, keeping the organization agile and aligned with its evolving strategic objectives.