Your SlideShare is downloading. ×
Top e commerce kp is 2011
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.


Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Top e commerce kp is 2011


Published on

Top eCommerce KPIs

Top eCommerce KPIs

Published in: Business

1 Like
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. eCommerce eBookTop eCommerce KPIsEvery online business process is characterised by 4 main phases: reaching qualifiedprospects, engaging with them on site, converting their actions into sales/call to action, andthus offering those services ensuring their brand loyalty.Each phase has to be monitored analysing the historical (4-week, 3-month Moving Averageand %Y-on-Y) trend of bespoke KPIs.Successful eCommerce websites use some variation of the following metrics to convert avisitor: websites use some variation of the following metrics to convert a visitor: Repeat REACH ENGAGE Landing Page Targeting & ACTIVATE Effectiveness Acquisition LOYALTY Modifying & Testing Hypothesis 1. REACHAll eCommerce websites have as main goal to reach qualified prospects. Following the well-known Pareto rule, roughly 80% of the outcomes come from 20% of the prospects – thequalified ones. Technically speaking, segmentation process can be very complicated, thusits best to use advanced analytic tools. Luckily, most web analytics software currentlyinclude in their offer the use of behavioural segmentation variables which facilitate themonitoring of product usage rate, brand royalty, benefit sought, decision making units,ready-to-buy stage, and so on. The best KPIs to monitor at this stage are:KPIs Calculation Definition ReasonVisits to Purchase by Total visits by AS Shows the best traffic Manage MKT campaigns toAcquisition Sources leading to a purchase sources in terms of focus on sources producing on Total Visits by AS likelihood of converting the higher outcome1 ©Creative Digital Ideas 2010-11
  • 2. eCommerce eBookCost per referrer Total MKT cost per Shows the best traffic in Manage MKT campaigns toVisits referring source/Total terms of cost per visit focus on sources producing number of visits per the lower associated cost referring source per visitsVisits to Purchase by Total visits by Kw Shows combination of Manage SEM campaigns toKeywords/Key leading to a purchase keywords (both focus on Keywordsphrases on Total Visits by Kw considering the quality and combinations producing the the quantity) in terms of higher outcome likelihood of converting 2. ENGAGEIn eCommerce the term engage mainly refers to a set of measurements of the activities acustomer performs whilst interacting with the onsite marketing features. Typical old schoolKPIs were: 1) Click-Depth: defined as the number of clicks your customers completeswhilst searching onsite, and; 2) Duration: usually defined as the average time spentonsite. Whilst these KPIs are still valid, more sophisticate measurements have beendeveloped for describing how your qualified prospects engage with your site.The starting point is the landing page which represents the first page a visitor encountersafter a successful search. Few eCommerce sites still consider as a landing page their Homepage. Whilst this may still be true for users who bookmark your site URL in their browser oruse your brand name as a search keyword, the majority of your visitors will experience yoursite thought your product page, and so you should use this as a landing page.The landing page must contain a call to action, leading the prospect visitor into thebeginning of the buying funnel.To measure the effectiveness of individual landing pages, various calls to action, andlanding page designs, we need to monitor the following KPIs:KPIs Calculation Definition ReasonLanding Page Bounce Total visits to LP by Shows the lost opportunity Manage MKT campaigns toRate by AS AS viewing just one focus on sources producing page on Total number the higher depth of visits of visit to LP by ASShopping Cart Total number of Shows the funnel drop-off Show shopping cart roomAbandonment rate by purchase by AS on by AS for improvement both byAS Total visits to AS and Total2 ©Creative Digital Ideas 2010-11
  • 3. eCommerce eBook shopping cart by ASScoring Customer Visits from high score Show the effectiveness in Manage MKT effort inSegment ratios customers as attracting high score attracting engage proportion of visit customers (likelihood of customers, likely to be from low score buying the product in the product CONNECTORS & customers next 3 days, sharing info, CHAMPION …)Task completed Rate Total number of Shows the effectiveness of For design purpose, help in complete task on call to action features (my identify unnecessary call to Total visits lending basket, shipping costs, …) action page 3. CONVERTConversion is the most important action in an eCommerce website, and occurs when aprospect finally becomes a client.The most important KPIs that we need to monitor are:KPIs Calculation Definition ReasonConversion Rate Total confirmed Shows the percentage of Revenues. conversion on Total landing page visits that Landing Page Visits ends with a salesCost per acquisition Total MKT costs on Shows the cost of Used for determining the number of sales delivering one sales most effective source of traffic.Average Order Value Sum of revenue Show the value generated Usually this KPI is to be generated on Number per unit sold segmented by type of of Orders Taken buyers and helps focusing on the high revenue group.Days and visits to Number of days/visits Show how long it takes for When segmented by AS, itpurchase before an action a prospect to become a adds insights on the most client. effective AS.The second area in this stage is cross selling. Any visitor, who decides to buy one item, isreceptive to buying multiple items. Once the initial questions are answered and trust3 ©Creative Digital Ideas 2010-11
  • 4. eCommerce eBookestablished, the process of cross selling is many times simply the effort it takes to suggest itto the consumer. 4. LOYALTYThe eCommerce cycle doesn’t end with the purchase. After a product or service has beensuccessfully delivered, a series of services are offered to the customer to ensure theirstickiness with the brand.As such, the KPIs that need to be taken into account are:KPIs Calculation Definition ReasonVisitor Number of time a Shows the likelihood of It gives us insight intoLoyalty/Recency visitor visits your visitors to stick to your whether visitors have a website in a given brand. reason to come back timeframeMy Account usage Total number of visit Show the likelihood of Used to contained Call to My Account section clients in using My Member Centre costs. on Total Visits help.My Account CTR Clicks to services on Show the effectiveness of Used to contained Call Total visits to My My member content. Centre costs. Account Personalisation.Email Open Rate Total number of email Show the likelihood of an Improve upselling opened on Total email being read by your capabilities, number of email customer. Personalisation. receivedEmail CTR Clicks to services on Show how effective the Personalisation, Upselling, Total email opened email’s content is. repeat buying.4 ©Creative Digital Ideas 2010-11