KPIs in e-commerce are essential to know if your business is attracting the interest of your target and is growing or, on the contrary, is generating losses.
At Kiwop we want your business to be a future-proof business. That is why we exploring russia's business landscape recommend that you continue reading this article about the essential KPIs in an e-commerce .
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What is a KPI and e-commerce
KPIs are key performance indicators , as their name suggests; Key Performance Indicators. Metrics, on the other hand, are numbers and percentages that inform us of specific data.
KPIs are usually a set of metrics grouped together to measure specific results. The great advantage is that you can set multiple KPIs depending on the objectives you want to track and measure in your e-commerce.
If you find this interesting, we recommend reading the Blog on how to attract customers to your e-commerce .
5 essential KPIs in an e-commerce
As we have said, there are multiple varieties of KPIs, but in this Blog we are going to teach you the most important KPIs for your e-commerce .
Conversion rate
The conversion rate allows you to know, in a quick and easy way, the percentage of sales in your e-commerce .
To know the conversion rate you must divide the number of sales by the number of visits to your e-commerce and multiply that result by one hundred.
Conversion rate (%) = (Number of sales / Number of visits) x 100
Acceptance rate
The acceptance rate is obtained by dividing the number of completed sales by the number of orders, multiplying this result by one hundred.
This KPI helps us to know how many orders are actually placed. This way, you can observe user behavior .
Acceptance rate (%) = (Completed sales / Number of orders) x 100
Return on Investment (ROI)
Return on investment or ROI is one of the most important KPIs for your e-commerce, and it provides you with information about the total profit of your business .
To find out the ROI, you must divide the sum of the income by the cost, then divide the result by the cost and multiply by one hundred.
formula to calculate ROI
ROI calculation formula
Customer Acquisition Cost (CAC)
The CAC provides information about how much money a customer or purchase costs , that is, how much you are paying in your business for each customer who buys in your e-commerce.
To find out this data, you must divide the number of investments made during the strategy by the number of clients acquired.
CAC (€) = Sum of the strategy's investments / Number of clients
Average Ticket
The average ticket offers the average data of how much they spend on each purchase from your e-commerce .
To obtain this data you must divide the total invoice value by the number of orders.
Average ticket (€) = Total invoiced value / Number of orders
How KPIs help in a marketing strategy
As we have mentioned, KPIs in your e-commerce allow you to interpret data quickly and easily. And how important is this? Well, a lot, because thanks to all the information collected we can know key aspects such as user behavior, if something is failing on the website, if you should invest more or less or if said investment is paying off.
Thanks to KPIs, and knowing how to interpret them correctly, you can make decisions to continuously optimize your digital marketing strategy and get closer to the goals you seek.
KPIs help you improve your e-commerce
Define and measure your e-commerce with KPIs
There are countless very useful KPIs to understand the performance and possibilities for improvement of your e-commerce .
Now it's your turn.
If you need help or would like us to answer any questions related to your business, we will be happy to do so.
