Essential Business KPIs for Online Stores & How to Track Them Like a Pro
In today's business landscape, data reigns supreme. Yet, managing and making sense of this vast information can often feel overwhelming.
This is where key performance indicators, or KPIs, come into play. Think of KPIs as your guiding star, helping you navigate through the tumultuous sea of data to reach the clear skies of actionable insights.
A solid grasp of your business growth KPIs is paramount for ensuring business continuity. Understanding these metrics enables you to devise effective strategies, make well-informed decisions, and drive sustainable growth for your business.
But what exactly are KPIs in the context of business, and how can they direct your focus to the most critical aspects of your venture's success? Read on to discover essential KPIs for online stores and learn how to track them like a pro.
Understanding KPIs in Business
In a competitive business environment with slim profit margins, understanding key performance indicators (KPIs) can be the key to success.
So, what are KPIs in business? Simply put, KPIs are measurable values used to evaluate an organization’s performance in achieving its business objectives. These indicators come in various forms, such as measuring revenue growth, customer retention, employee performance, and productivity.
What Are KPIs?
KPIs, or key performance indicators, are essential tools for measurement in business. They serve as critical indicators of progress towards specific goals. KPIs focus strategic and operational improvements, provide a solid foundation for decision-making, and highlight the most important areas for attention.
Different Types of KPIs
To effectively measure business performance, KPIs can be categorized to track and evaluate various aspects of operations. These categories cover financial performance, customer satisfaction, operational efficiency, and employee productivity.
Common KPIs Businesses Track:
- Financial KPIs: Assess your business’s financial health and performance. Key metrics include revenue growth, profit margin, and return on investment (ROI).
- Customer KPIs: Evaluate how well you are serving your customers and their satisfaction with your products or services. Common examples include customer satisfaction scores, retention rates, and net promoter scores (NPS).
- Operational KPIs: Measure the efficiency and effectiveness of your business operations. Important metrics include inventory turnover and employee productivity.
- Employee KPIs: Focus on individual and team performance, tracking metrics such as sales targets and customer service ratings.
Why Businesses Need KPIs
Runninga business without KPIs is like navigating a ship without a compass. As a business owner, you need to track progress, forecast the future, and make confident decisions. KPIs serve as the compass that guides your business in the right direction.
Benefits of Tracking KPIs:
- Performance Tracking: By defining and monitoring KPIs, you can assess your business’s performance in real-time and make necessary adjustments to stay on course.
- Goal Setting: KPIs provide benchmarks for setting achievable goals and measuring success.
- Data-Driven Decision-Making: Using KPIs allows you to make informed, data-driven decisions instead of relying on guesswork, leading to better outcomes.
- Identify Areas for Improvement: Analysing your KPIs helps pinpoint areas in your business that need improvement, enabling you to take corrective action.
Must-Have KPIs for Online Stores
With numerous types of business KPIs and metrics available, it can be overwhelming to decide which ones to focus on for your online store. The key is to select KPIs that are most relevant to your business goals.
For online store owners, certain KPIs are particularly impactful and can significantly influence your business's bottom line.
So, which metrics are crucial for your online store? Let’s explore the most important ones.
Tracking Traffic
To increase visitors to your online store, it's essential to understand where your traffic originates. By tracking website traffic, you can identify the most effective channels and refine your marketing strategy.
Key Metrics to Monitor:
- Number of Visitors: Track the total number of visitors to your online store.
- Time Spent: Monitor how long visitors stay on your site.
- Returning Visitors: Identify how many visitors return to your store.
- Device Usage: Determine what devices visitors use to browse your store.
Tracking these metrics helps you adjust your marketing strategy accordingly. For example, if the majority of your traffic comes from mobile devices, optimizing your website for mobile users could enhance their experience and boost conversions.
Tracking Orders and Conversions
For an online store, orders are the life blood of your business. Monitoring orders can help you understand customer purchasing behavior and make informed decisions to drive more sales.
Key Metrics to Track for Orders:
- Total Number of Orders and Revenue: Track the overall number of orders placed and the revenue generated.
- Conversion Rate: Calculate the number of completed purchases divided by the total number of visitors.
- Repeat Orders: Monitor the number of customers making repeat purchases.
- Average Items per Order: Determine how many items customers typically buy per order.
- Sales Over Time: Analyse how many items you sold during specific periods.
By identifying factors that lead to larger orders, you can implement strategies to encourage customers to buy more. For instance, if you observe a spike in orders after offering free shipping for a certain spending threshold, you can use this tactic again to boost sales.
Tracking Finance
Understanding your financial flows is crucial for assessing your business’s performance and planning for the future.
Key Financial Metrics to Monitor:
- Revenue: Track the total income generated by your store.
- Expenses: Monitor all costs associated with running your business.
- Average Order Value: Calculate how much money you make per order.
- Average Revenue per Customer and Visitor: Determine the average income each customer or visitor brings.
Tracking these financial metrics is essential for understanding your store’s financial health and making necessary improvements. For example, if your average order value is low, you can focus on upselling or cross-selling strategies to increase revenue per order.
Tracking Marketing Metrics
Customers reach your store through various channels, including ads, emails, and social media. Identifying the most impactful sources can help you optimize your marketing strategies.
Key Marketing Metrics to Track:
- Marketing Campaign Performance: Monitor metrics such as click-through rates and conversion rates.
- Order Sources: Identify where your orders are coming from.
By tracking these metrics, you can fine-tune your marketing efforts to maximize their effectiveness and drive more orders to your online store.
How to Track Your Online Store Performance
Tracking your business KPIs can be done using various tools, but it's most convenient to monitor your online store's performance right where you manage your business.
If you use the Rekisa, you benefit not only from a powerful online store but also from valuable performance insights directly within your Rekisa admin. This integration allows you to seamlessly manage and track your store’s metrics all in one place.
With Rekisa, you can access real-time reports and analytics to monitor your online store’s performance, including sales numbers and customer data. You can actually track and measure all the critical online store KPIs we discussed above!
On the Reports page, you can get a comprehensive understanding of your store’s performance through key metrics: visitors, orders, conversions, and accounting,which can serve as practical business KPI examples:
- Visitors Section: Monitor store traffic, the duration of visits, the devices visitors use, and the rate of returning visitors.
- Conversions Section: Track the percentage of visitors who make a purchase.
- Orders Section: Gain insights into the number of orders, revenue generated, new versus repeat orders, and the average number of items sold over specific periods.
- Accounting Section: Stay updated on your financial flows. Access valuable insights into store revenue, expenses, average order value, and average revenue per customer and visitor.
- Marketing Section: Analyze the performance of your marketing campaigns, order sources, and the effectiveness of marketing strategies that have led to purchases.
You’ll find line charts to analyze and forecast trends over different periods, tables for a detailed data examination, and interactive pie charts for a quick and insightful overview of key metrics.
Simply click on the dropdown and choose the time interval you want to customize the reports. To gain more insights, select a period for comparison. This allows you to see how current metrics have changed compared to a past period.
Benefits of Tracking Your Store Performance with Rekisa
There are many tools available for measuring your business metrics, but using Rekisa’s reports offers unique advantages:
- Unified Metrics Tracking: With Rekisa, you can monitor all essential metrics in one place, eliminating the need for multiple tools to gather different types of data.
- Automatic Updates: Rekisa’s reports are automatically updated and synced with your store’s data, saving you time and effort.
- User-Friendly Reports: The reports are easy to read and understand, featuring colorful charts and graphs that help visualize your store’s performance.
- Flexible Time Periods: You can choose any period for each type of report and compare it with the same period from the previous week, month, or year.
- Detailed Analysis: Each metric includes a range of specific parameters that allow you to dive deeper into your store’s performance.
- Weekly Updates: To keep you informed,Rekisa offers the option to receive weekly emails that provide your stats and offer helpful advice on growing your business.
With Rekisa, you can utilize the trends, statistics, and parameters provided in the reports to refine your strategies and ensure your business stays on the right track. Don’t wait—start tracking your online store’s performance with Rekisa today and use the valuable insights to boost your sales, enhance your marketing strategies, and achieve new heights in your business.
How to Start Using Reports with Rekisa
Runninga successful online store requires knowledge and insights, and Rekisa provides all the necessary tools to track and understand your store’s performance.
Steps to Start Using Rekisa’s Reports:
- Sign Up for Rekisa: Begin by creatingan account with Rekisa.
- Access the Reports Page: Open your Rekisa admin and navigate to the Reports page.
- Select a Report Type: Choose the type of report you want to view, such as visitors or orders.
- Customize Parameters: Adjust the date range and other parameters to generate detailed reports.
- Analyze Insights: Use the insights from the reports to make informed decisions for your business. Regularly check these reports to track your progress over time.
As an online store owner, understanding your financial and marketing metrics is crucial for making informed business decisions. Rekisa’s user-friendly reports allow you to easily track and analyze these metrics in one convenient place.
To learn more about using the Reports tool in your Rekisa store, refer to the instructions available in the Help Center.
Making the Most of Rekisa’s Reports
One of the greatest benefits of using Rekisa’s reports is accessing valuable insights into your online store data that would be challenging or impossible to track with other tools. Here are some key metrics you can track:
- Business Sustainability Metrics: Understand the long-term success of your business with metrics like revenue per customer or visitor.
- Expense Metrics: Track your store’s expenses to manage costs effectively.
- Conversion Metrics: Analyse conversions by customer segments, such as new vs. returning visitors or desktop vs. mobile visitors.
Managing Advertising Campaigns
Tracking revenue per visitor helps you plan your advertising campaigns efficiently and ensures you don't overspend. By understanding these metrics deeply, you can make informed decisions that drive business growth and improvement.
Start leveraging Rekisa’s powerful reports to gain actionable insights, boost sales, enhance marketing strategies, and achieve new heights in your business.
Strategic Insights: Optimizing Revenue, Expenses, and Targeting
Optimizing Marketing Campaigns
For example, if your revenue per visitor is R1, you can strategically adjust your marketing campaigns to spend less than a Rand to attract each visitor. This approach will help increase your profits over time.
Understanding Profits vs. Expenses
Metrics like revenue per customer are crucial for planning future income. If you know the number of new customers you expect to attract this month, you can estimate your revenue. This helps you set realistic goals and track your progress towards achieving them.
Additional metrics help you accurately calculate your expenses and project future profits. For instance, in your Rekisa store, you can specify the cost of goods (cost price), which is essential for calculating store expenses.
Targeting High-Performing Segments
Analysing conversions by segments, such as new vs. returning visitors, allows you to identify segments with high conversion rates. You can then focus on driving more traffic to these segments. Conversely, by pinpointing segments with low conversion rates, you can implement strategies to improve their performance.
By leveraging these insights, you can make informed decisions that enhance your marketing efforts, manage expenses effectively, and boost overall business growth.
Maximising Opportunities and Optimising Performance: Best Practices for Tracking and Measuring KPIs
Targeting High-Performing Segments
For instance, if you notice a high conversion rate among visitors who have previously visited your store, consider launching remarketing campaigns on Facebook to re-engage these visitors who have shown interest but haven't yet made a purchase.
Optimising Website Experience
Metrics related to conversions by segments also highlight areas for website optimisation. For example, if you observe lower conversion rates on mobile compared to desktop, it indicates a need to improve your website's design for mobile users.
Best Practices for Tracking and Measuring KPIs
In a data-driven world, your business's success depends significantly on understanding and utilizing various KPIs. Always keep an eye on these numbers,as they narrate the story of your business's past, present, and future.
Selecting the Right KPIs
Choosing the wrong KPIs can lead to misguided efforts. Here's how to select the right ones:
- Align with Business Objectives: Choose KPIs that align with your business goals and long-term strategy.
- Keep it Simple: Focus on essential KPIs that truly measure success, avoiding an overload of metrics.
- Ensure Relevance: Track KPIs that are meaningful and relevant to your business, not just because they're easy to measure.
- Monitor Trends: Track trends over time to understand changes in performance, rather than focusing on single data points.
Rekisa simplifies this process by providing easy-to-use reports that track your most important KPIs.
Tracking KPIs
After identifying the right KPIs, consistent tracking is crucial. Here are some tips for effective tracking:
- Set a Frequency: Decide how often you will track your KPIs (daily, weekly, monthly, etc.).
- Use Technology: Leverage software or tools to automatically track and analyze your KPIs in real-time.
- Visualize the Data: Use graphs or charts to create easy-to-digest visualizations of your KPI data, helping you quickly understand trends and patterns.
- Track Against Targets: Set specific targets for each KPI and monitor progress towards these goals.
Using Rekisa’s built-in reports provides a clear and concise way to track your progress and measure success against your long-term strategy.
Wrap-Up
Congratulations! You now understand how to use KPIs to measure performance. Remember, business KPIs are a compass, not a map. They guide you, but your strategy is what will ultimately lead you to business success.
Rekisa is your partner in navigating the waters of ecommerce. With Rekisa’s reports, you can track, analyze, and utilize insights to propel your business forward.
Sign up for Rekisa. Additionally, take advantage of Rekisa’s other features, such as inventory, order, and staff management, along with powerful marketing tools — everything you need to simplify the life of a busy business owner. Plus, you can sync your Rekisa store with social media and marketplaces to sell on platforms like Facebook and Amazon.
Create an ecommerce online store with Rekisa
Originally sourced from Ecwid by Lightspeed
