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Discover the best KPI´s for e-commerce which will make you understand the performance of your online store. Get all the information and make the best decisions.
Once you have managed to set up Google Analytics and launch your online store, you have to know what to look for and where to find the data that will let you know if your e-commerce is being profitable or not (e-commerce KPIs). In order to make good decisions it is key that you analyse concrete data, which allows you to see if you are taking the appropriate actions or if you should take another path.
In this post, we will teach you the KPIs, Key Performance Indicators in English or Key Performance Indicators in Spanish, which you will have to manage and monitor at all times to increase the profits in your online store.
Total Traffic to the Store
Knowing the number of sessions and users that visit your site becomes a basic task for every webmaster. In the end, however useful and optimized your web site is, if traffic does not enter, you will not be able to close any sales.
Within the total traffic, we can look at different dimensions that will let you know a bit more. For example, we can divide the total traffic by country or we can compare the total traffic of new users compared to those who had previously visited the store. In this way, we can see which countries lack visibility or if users usually return to the site.
Traffic to Each Product Page
You need to know which products receive the most visits. This way you can understand which pages are the most interesting for users and if your product is attractive enough to attract conversions. We warn you that you can even have surprises! It is not uncommon to see that people are interested in products you did not expect.
The opposite can also happen: you may also have a great product, which you expected to get a lot of traffic, but are not visualizing enough people. Having analytics can help you come up with different navigability strategies, reconsider the placement of products within promotional banners or menus, or launch targeted campaigns to promote that article.
Conversion Rate
Perhaps it is one of the most important ways of measuring. It refers to the percentage of users that makes a specific action (a conversion), countering it to the total number of users who have reached your website. For example, if 100 users enter your site, and one makes a purchase, you could say that your website has a conversion of 1%.
In e-commerce, a conversion is usually a purchase (it is the one you want the user to carry out). However, it is the webmaster who decides what conversion goals there are, and can be from shopping, to downloading e-books or sending a form with your data. If we see that the conversion is low, we will have to take corrective actions.
We can take into account some segments to know more about the conversion rate. For example, we can divide the rate by acquisition channels, to know which campaigns or which promotion measures show the best results in terms of sales. For example, in this way, we can compare if the best-converted users enter through an Instagram campaign or another. Once we know, we can invest more budget in the campaign that works best, or mount the following campaigns based on which has worked best.
Exit Pages and Cart Abandonment Percentage
These measures will make you understand where at the point of purchase the customer stagnates. The exit pages indicate the pages on which the user finished their session within the web page. The percentage of abandonment of the cart indicates the percentage of users who, despite adding a product to the shopping cart, did not continue with it. This is due to many reasons, which you will have to analyse to optimize sales. It may be that the user leaves because you have given too much information (there are pages that ask for the ID to make a purchase); because the payment methods do not convince them; because suddenly you have shown costs that did not appear on the product page; or even that the navigation button to move from one page to another does not work.
Having all this controlled will allow you to detect factors to improve, to avoid elements that produce a break or block in the purchase process and, consequently, to increase sales.
Average Session Duration, Page Views per Session, and Rebound Percentage
These KPIs indicate traffic quality. The more pages and more average time spent navigating the page, the more interested potential customers who visit the domain are in what they see and read.
For its part, the rebound percentage refers to the percentage of total traffic that leaves the web before interacting in any way with the web. The most common reason why a user bounces is usually that he has not found what he expected on the web. Therefore, if you detect high bounce rates on any of the pages within your domain, rethink if they are well designed, clearly state what you want to convey, and ultimately if the traffic you are carrying is really appropriate.
In addition to all these ecommerce KPIs, you will need to take into account the traditional indicators of any business or store. We refer to typical data, such as total billing, average order value, net profit … All these indicators could also be displayed in Google Analytics, but require the tracking code to measure e-commerce through the Google tool.
Checking and reviewing the main KPIs of your online store should be a priority task on every webmaster’s agenda. After all, web analytics aims to offer all the available data so that the best possible decisions are made in each case. Knowing how to read and make sense of the whole dance of numbers can mean the difference between success or failure of your online store.
