Before any observation of KPIs, set goals!
At first glance, this may seem obvious. In any business, we set goals to achieve, which validates a good week, a good year or a good exercise.
At first glance, this may seem obvious. In any business, we set goals to achieve, which validates a good week, a good year or a good exercise. Using bulk url opener tool, you will be able to rank your site easily in Google.
Whether it is to better understand your website to improve it later, to better understand the behavior of its potential buyers or the evolution of its communication campaigns, it is crucial to set objectives "of learning” so that the statistical analysis is not limited to figures indicating the evolution of the business.
Thanks to these objectives, it is thus possible to go beyond the figures and to use its daily “tracking” to develop its communication, the structure of its website or its offers.
To guide the observation and simplify the analysis of its website , we have chosen to present 5 key KPIs of an e-commerce site , which make it possible to understand the evolution of its activity and its performance.
1. The bounce rate
Beyond the traditional indicators that can be observed on a website (traffic, turnover generated, number of page views, etc.), the bounce rate will make it possible to observe the behavior of visitors who arrive on the site.
The bounce rate is a quality indicator in the eyes of Google and in the eyes of analysts. Indeed, when it is extremely high (80% or more), it may indicate the existence of a spammy site that does not correspond at all to its description or the advertisement that is made of it.
You will be able to adjust the discourse, the structure or the communication that lead to them in order to be as transparent as possible with Internet users and prevent them from arriving on a website whose content does not interest them.
2. The conversion (or transformation) rate
The conversion rate is one of the essential KPIs in e-commerce. Where you have a number of visitors (or page views) and a turnover generated on the website, it is possible to obtain a conversion rate defining the ability to transform a visitor into a prospect (if he gives information to the company) or as a customer (if he buys a service or a product).
For example, a conversion rate of 5% indicates that 5 out of 100 visitors have purchased a product on the e-commerce site. This information then makes it possible to estimate its potential for the coming months and to observe the impact of marketing campaigns on the evolution of this rate.
3. The average basket
Indicating the turnover generated on average by a buyer on the site, the average basket makes it possible to realize the value associated with a customer.
This indicator must be linked to the conversion rate. Indeed, it indicates the performance of the company in a more global way than if it were dissociated from it. For example, during the sales period, the conversion rate may double or even triple, where the average basket will drop because of the attractive price reductions offered.
In fact, the developments must be considered together because certain irrelevant conclusions could be drawn without an adjusted view of the figures. One of the objectives that can be set is to increase the average basket of its customers. How ? By offering them, for example, associated sales, which make it possible to increase the turnover generated without seeking additional customers.
4. Cart abandonment rate
If you look at the conversion rate, then you have to look at the cart abandonment rate .
The e-commerce giants have understood this well. The conversion tunnel is one of the biggest challenges of the website. Indeed, it is made up of the critical phase of placing the basket, creating an account and the report on the final price that you will have to pay to place your order.
During this phase, many factors can negatively impact the Internet user and give him more reasons to abandon his basket than to place his order.
We could cite, among others:
- A slow website;
- A conversion tunnel that is not clear enough;
- Difficulties entering payment information;
- A lack of reinsurance on delivery or banking confidentiality, etc.
There are many reasons for abandoning a shopping cart. And this percentage must be at the heart of the analysis of the performance of the e-commerce site. Indeed, the website can perform extremely well until the final stage. But repelling 70% of people ready to place an order implies understanding, thanks to the exit pages and a behavioral study on its purchase funnel, what are the reasons which cause this withdrawal.
5. The cost of acquiring a customer
Let's get out of pure analytics a bit and try to understand more about how people come to the website to order.
What can be interesting here is to take a direct interest in the Internet user, the offers and the advertising that are put in place to attract him. By associating the budget expenditures with the offers in place, in relation to the number of buyers on the site, it is possible to obtain the cost of acquisition for a customer . This makes it possible to observe the profitability of the actions undertaken in order to keep only those that are effective.
This indicator can thus allow various interpretations and analyses, according to the business objectives and the evolution of the market.
