Key KPIs for controlling the performance of your eCommerce

06/05/2020

Angela de la Vieja

KPI’s, or Key Performance Indicators, are necessary for any type of eCommerce, and thanks to them it is possible for us to see what strategies are currently working and discover the real value of the investments we are making.

But first of all, what exactly are KPI’s? The term refers to key performance indicators or performance meters, those which are used to evaluate the results obtained from a campaign, they can tell us if we are on the right track and whether we are meeting the stated objectives. All of them have to have S.M.A.R.T characteristics: Specific, Measurable, Achievable, Realistic, Time-related, this way will help make them both possible and effective.

To perform a correct analysis of our KPI’s, it is very important to select the appropriate ones according to the criteria above and, in addition, buyers must be thoroughly analysed to get an idea how they behave.

Some examples of essential KPIs

Web traffic: Measuring traffic, or number of visits, is one of the basic KPI’s for any online business, in addition, it is better to be carried out at either daily, weekly or monthly intervals. This metric will allow us to understand why traffic has increased or decreased when correlated with our other activities.
Bounce Rate: Calculates the percentage of users leaving an eCommerce on the homepage without taking any action. This rate helps evaluate the functionality of a website. Abandonment can be caused simply by using incorrect keywords, or by the difficulty of finding necessary information, or by high loading times.
Conversion Ratio: Indicates the percentage of users who complete a purchase in an online store compared with the total visits to the website.
Web exit page: It allows us to know stats about how users leave our website (exit page URL’s, exit rate, etc) and thus look for ways to get them to continue shopping, reducing the number of exists before having made a purchase.
Customer acquisition cost: It is considered one of the most important KPIs, indicates the accumulated amount spent on the acquisition of a new customer.
Email open rate: Measures the percentage of users who open an email, if the open percentage is low you can test and use issues that are attractive, in addition, it is important to have an up to date list of subscribers.
Abandoned carts: The abandonment rate of the cart refers to the percentage of users who add products, but then leave the online store without completing their purchase.
Best-selling products: By analysing the orders of an online store it is possible to know what the best-selling products are. Obtaining this data is very important in order to know how to implement strategies in a practical and efficient way.
Site visit duration: Reflects the interest generated by the content of a website, this does not guarantee the success of an eCommerce, but it is a sign that the content is successfully connecting with users.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.