eCommerce Key Performance Indicators
Why Do I Need to Establish KPIs or Metrics for My Online Sales?
Your ecommerce key performance indicators (KPIs) are business reference points to help you determine if you are meeting the online goals you set for yourself with your digital strategy and search engine optimization efforts.
Your ecommerce metrics are the individual touchpoints and numbers you are monitoring for that indicate success to you. It is important to understand the relationship of your website visitor numbers and the sales generated from those visits so you can plan and grow your overseas online sales.
What are ecommerce business metrics and KPIs?
- The units you are measuring to determine success (eg: site visitors, and site sales)
- The same data collected by web analytics for Search Engine Optimization (SEO) and digital marketing feedback
- Represents a “dashboard” of all online business-customer interactions
- Can be connected through customer relationship management (CRM) software to track the full sales cycle from online search, to email follow up, and the sale
Sales Conversion Rate KPI for Measuring eCommerce Sales Example
- You receive in-depth digital strategy counseling with our US Commercial Service Virtual Services over the course of several months, and you report an increase in overall sales during this counseling period;
- You see from your site analytics that you had 1,000 total site visitors for March alone; from that 20 prospects and leads were identified as coming from online channels;
- the result of the prospects and leads was 1 sale for the month. Using the formula, you had a sales conversion rate of 2% from your online efforts in March. You can also take this percentage from sales dollar figures to provide you with an actual dollar amount to online efforts for March.
CONVERSION RATE FORMULA
[Form submissions (+add) tracked calls (+add) tracked email (÷divided by) Total website visitors = Website Sales Conversion Rate]
Digital Marketing Return on Investment (dmROI) KPI for Measuring eCommerce Sales Example
- You do a Gold Key Matchmaking Service and partner with an overseas local distributor with a strong online presence, and your sales increase as a result;
- take how much you spent to support your overseas local distributor to sell your products (time spent on content, monies, etc.) and use that in the dmROI formula;
- For February and March you report $10,000 in online sales; you then subtract the $2,000 that you spent on digital marketing (services or fees), and then divide by that same amount again. You have realized a 4% return-on-investment from your digital marketing efforts.
[Total Revenue Attributed to DM (–subtract) Total Cost of DM (÷ divided by) Total Cost of DM = Digital Marketing ROI (dmROI)]