Whether you’re a newbie or if you’re an eCommerce maven, you know that you need to be measuring your eCommerce marketing KPIs. The most useful part of KPIs is that they give you everything you need to be making data-driven decisions.
That’s essential to the quantifiable success of your business. But, where do you start? There are so many KPIs you could set your sights on, how do you know which ones you need to be tracking to assess your marketing performance?
Whoah, there – let’s stop that downward spiral in its tracks! Payflex is here to unbundle that mess for you. In this article, we’ll walk you through the most important eCommerce marketing KPIs that you should be keeping track of and why. In no time, you’ll be measuring your marketing performance like a pro!
First things first – what the heck is a KPI?
If you’ve been in the game a long time, you can keep scrolling. But if you’re the kind of reader that is feeling overwhelmed by all the acronyms that come with marketing lingo, this is for you. KPI, CTR, CAC, CLV, ROAS…you might be screaming from the rooftop, “What does it all mean?!”
Let’s start with KPI. KPI stands for “key performance indicator”. These are the details about your business that determine how well a business owner, a team, or a company at large is performing according to your overarching goals. There are tons of different KPIs, but the main ones have to do with:
- Sales
- Customer service
- Manufacturing
- Project management
- Marketing
In this article, we’ll be focusing on that last bullet point. Your eCommerce marketing KPIs are excellent indicators of your business’s current performance.
Let Payflex lend a hand
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Why should I be tracking my eCommerce marketing KPIs?
The more KPIs you track, the more insight you’ll gain into how well each stage of your funnel is performing. This is essential feedback. It allows you to adjust and improve your sales technique, your customer service, or your marketing campaigns. Ultimately, it allows you to improve your business and optimise it for success.
More specifically, measuring your eCommerce marketing KPIs can help you answer the following important questions:
- Does your advertising budget still make sense?
- Are you spending way too much on acquiring new customers?
- Which products are selling?
- Who’s buying them?
- How are they buying them?
- Why are they buying these products?
eCommerce marketing simply stops working after a while if you aren’t consistently measuring, adjusting, adapting, and improving your approach. Tracking your eCommerce marketing KPIs is the first step to refining your marketing strategy. But how do you know which marketing KPIs to be tracking in the first place?
The top three eCommerce marketing KPIs you should be measuring
It can be tough to decide which marketing KPIs to measure, especially if you are nearer to the beginning of your entrepreneurial journey. The truth is, there isn’t really a magic formula that everyone should follow to measure their eCommerce marketing KPIs effectively.
However, there are some basic metrics that you can start with to get you to grips with your marketing performance. Let’s get into it!
Conversion rate
Conversion essentially describes how well you are turning your site visitors into customers. Your conversion rate is more telling than other eCommerce marketing KPIs because, while hundreds of folks might be paying a visit to your site, not all of them represent a sale.
Shoppers still require a lot of persuasion once they’re on your site to make a purchase. The closer your number of customers is to the number of site visits, the stronger your conversion rate is. Congratulations!
Here’s a hack to help you maximise your conversion rate: see the sale from your customer’s perspective. Is the price of your product in line with market expectations? Do you offer return options? How secure is your payment gateway? And, finally, are you offering enough payment options? You could sign up with Payflex to offer your shoppers an interest-free buy-now-pay-later option.
Site metrics
What is the average session duration of a visit to your site? Furthermore, where are they spending this time on your site? These eCommerce marketing KPIs can give you insight into how well (or how badly) the design of your site is converting visitors into customers.
For example, if customers are spending a lot of time at checkout, that could signal a problem with that part of your site. Is it mobile-friendly? Does it take too long to checkout? Are hidden costs popping up at the last stage of the buyer journey? These eCommerce marketing KPIs could be impacting your sales.
Email metrics
The two most important metrics to consider when reviewing your email marketing are 1) open rate, and 2) click-through rate (CTR). So, your open rate refers to how many people are actually opening the emails that you sent them. Pretty straightforward. But, the CTR is actually more valuable information. This eCommerce marketing KPI tells you how many people are not just opening your emails, but clicking on the links therein and generating traffic to your site.
The more successful your email marketing is, the higher your CTR will be. Psst! You can check out our blog about eCommerce mail marketing tips to get you started on your email marketing campaign!
The bottom line on eCommerce marketing KPIs
There are so many different KPIs you could be measuring to determine the success of your eCommerce marketing. At the end of the day, though, less is more. Don’t just measure, measure what matters. If you’re looking for an ally in eCommerce marketing, look no further than Payflex. We’re here to build your business from the ground up, together.
