How to track the performance of your online store using key performance indicators (KPIs)?

A successful e-commerce business depends on the ability to accurately measure and analyze your e-commerce store's performance. Without the right data and indicators, you could miss important opportunities for growth or fail to spot issues that are holding back your development. Key Performance Indicators (KPIs) are an essential tool to help you take control of your business and make better decisions. In this article, we'll explain what KPIs are, why they're important, and how you can use them effectively to monitor and improve your online store's performance.

What are key performance indicators (KPIs)?

KPIs are measurable values that show how effective your business is in achieving specific goals. For e-commerce stores, these can be things like sales, visitor numbers or conversion rates. The importance of KPIs is that they give you clear data on what's working and what needs to be improved. Without them, it's easy to get lost in the vast amount of information your business generates.

What KPIs to track?

To effectively manage your e-commerce store, it is advisable to track the following indicators:

1. Revenue

A basic metric showing the total revenue of an online store. Track its evolution over time and look for trends.

2. Conversion Rate

The percentage of visitors who complete a purchase. This value shows you how effective your website is at converting visitors into customers.

3. Average Order Value

How much customers spend on average per purchase. If it's low, you can offer discounts on larger volume or bundles of products.

4. Customer Acquisition Cost

How much it costs you to acquire one new customer through advertising or other channels.

5. Cart Abandonment Rate

The percentage of customers who add products to their cart but do not complete the order.

6. Customer Satisfaction

Measured, for example, by ratings, reviews or surveys.

How to measure KPIs?

You need good tools to track KPIs. Some of the most used ones include:

• Google Analytics: Tracks traffic, conversions and other important metrics.
• Ecommerce platforms: Most modern platforms (e.g. Shopify, Shoptet) offer custom analytics. For example, Hotjar, Trustpilot or similar services.
• CRM systems: They help to track customer relationships and behaviour.

How to work with the data?

1. Set goals: Decide what you want to achieve (e.g. increase conversion rate by 10% in 6 months).
2. Analyze regularly: Tracking KPIs once a month is the minimum. Consider weekly reporting as well.
3. Optimize: Adjust your strategy based on the results. For example, tweak the UX, improve customer communication, or change pricing.

Our tip: Start with simple measurement. Choose 2-3 key KPIs that align with your main objectives and gradually add more. For example, track conversion rates and AOV to see if optimizing your product pages is delivering results.

Conclusion

Tracking KPIs isn't just about numbers. It's the key to understanding your business and achieving sustainable growth. Take the time to analyze the data and adjust your strategy based on what the numbers are telling you. Your success depends on how well you can react to the current situation.

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