For an E-Commerce business, KPIs and an effective dashboard are critical tools to implement.
With more businesses leveraging E-Commerce, it becomes essential to establish financial and operational goals and KPIs to ensure consistent growth and uninterrupted business.
Why are KPIs needed for my E-Commerce venture?
KPIs or Key Performance Indicators are critical for measuring store performance. They reflect the business growth and progress while also helping to optimize the business. Furthermore, as you begin to outline and define KPIs, the growth and progression strategy for your business also becomes more targeted. The E-Commerce KPIs assist in helping business owners to focus more readily on what goals your business is trying to meet.
Some of the most useful KPIs for an E-Commerce business include metrics on visitor statistics, time spent on your website, and time spent browsing products and product pages on your website.
In addition, the following KPIs have their own significance, ultimately contributing to fulfilling business goals. However, just as important is their role in functioning as financial and operational checkpoints for the E-Commerce venture, ensuring that the business continues to grow and move forward. Some important areas to monitor include the following:
- Profitability- The right KPIs will help you track profitability and identify areas that require attention in terms of sales and marketing efforts or other technical aspects. Furthermore, depending on the selected platform, you can organize critical information, such as your sales data, cost of goods sold, and related figures. This data, in conjunction with other input on manufacturing, sourcing, etc., can help you accurately track your income and profitability.
- Website Performance- How well is your website designed? As E-Commerce is reliant on website functionality, it is important that you have a well-organized store which includes effective product descriptions, easy-to-navigate features and a user friendly design template. Keep in mind that the average visitor can be impatient.
- Your Store- The above benefits depend on high quality E-Commerce store management. If your store is not well-managed, it can deter visitors. Ensure that your store is both appealing and also well-functioning to keep your business running effectively and efficiently. Statistics on store visits, customer behavior, important information on cart abandonment or payment problems, if any, can be revealed in a well-managed E-Commerce store.
Simply establishing KPIs is not enough. Monitoring them is equally necessary to ensure their efficacy.
A dashboard that helps you review the KPIs regularly can be extremely helpful. A dashboard can allow you to review indicators quickly, while simultaneously allowing you to look at other parameters such as customer preferences as outlined in newer registrations, conversions, click through rate, etc. Dashboards can allow you to integrate data better, thus helping you form decisions quickly and more efficiently. Depending on the type of E-Commerce platform you choose, a dashboard can help boost your business growth by providing intelligent inputs and critical business insights.
Jagruti Patel manages the application development division at Analytix Solutions which includes custom software, website and ecommerce site development. She has a diverse and cross cultural background ranging from working with startups to established brands across different continents.