When calculating KPIs, the management team needs to track the number of new visitors, but it is equally important to analyze how many of them return to the site after placing an order. Such statistics indicate the constant interest of customers in goods or services.
In addition, attracting existing customers is cheaper than attracting new ones. Therefore, to increase KPI, it is important for managers to collect customer email addresses, use remarketing strategies, and actively interact with them on social networks.
Stagnation of this KPI indicator can be caused by two main reasons:
lack of a necessary product or service;
unattractive purchase conditions.
Online stores that offer boost your business with our doctor database durable goods or do not have the ability to upsell are typically characterized by low levels of repeat visits and falling KPIs.
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Income from each client
The KPI performance indicator is calculated simply: subtract expenses from profit. The criterion helps to evaluate the effectiveness of the online store. Too low a KPI value can prompt a revision of advertising costs.
Average order value
To find out this KPI of the management team, we divide the total sales volume for the period by the number of orders:
Average order = Revenue / Number of orders
Average order per customer = Revenue / Number of visitors
Analysis and compliance of the KPI parameter with pre-set goals encourages online store owners to create a strategy for its improvement.
And to increase the effectiveness of KPI, managers can use incentive offers of goods with an average discount inside the basket or the opportunity to buy products at a reduced price provided that the order amount exceeds a certain amount.
Number of abandoned carts
A significant business performance indicator that requires analysis. According to research by the Baymard Institute, the KPI can reach a fairly high 67.75%.
Reasons for such customer behavior:
differences in prices of products in the shopping cart and the catalogue, or the addition of delivery costs, which makes the purchase less attractive;
inactive promo code for discount;
lack of information about delivery to the country or region;
additional costs: taxes indicated on the checkout page;
lack of payment options for customers;
technical difficulties when entering payment data.
Your task for business KPI growth is to control the work of the basket. Master effective technologies that simplify ordering with payment.
Maintain active feedback to find out the reasons for unpaid purchases. Reminders via emails will help encourage customers to complete their order