Archive for September, 2010

Sep 18 2010

Key Performance Indicators for e-Commerce Websites

Published by under Ecommerce

Did you know during the last Holiday season (Nov 1 – Dec 23, 2009) online retailers sold $27 billion in products and services? That’s $354,000 transacted a minute.

Today, E-commerce is a growing energy in our global economy despite economic challenges each country roles in and out of as we work on the kinks.  As users become more comfortable with purchasing online, you can expect business to conform to the consumer’s desires thus increasing competition.  With that said, the measuring stick for e-commerce is slightly different than the measuring stick for your brick and mortar store.  So you ask, how do I measure my success on my e-commerce website?

Answer: Key Performance Indicators aka KPI’s. Below is a list of some common key performance indicators that are important for measuring success on your e-commerce website.  I recommend that you consider using some of these methods to track your success.  Of course, key performance indicators will vary with your strategic intent.

Reality is each business is different and you should consider some of these KPI’s into your conversion funnel.

  • Conversion Rate: is the ratio of converting casual views into a purchase.
  • Average Order Value/Size: is the sum of revenue generated / the number of orders taken.
  • Add/View Items in Cart: is the ratio of visitors with product in their cart / purchasers that have closed the sale. (cart abandonment)
  • Percent New Visitors: the number of potential new customers landing on your site each month.
  • Ratio of New to Returning Visitors: the ratio of new to previously acquired visitors as well as a measure of customer loyalty and repeat online business.
  • Customer Life-Time Value: the likelihood that satisfied customers will tell their friends resulting in an increase in online/offline sales. This is more intangible and may be difficult to track.
  • New Account Signups: how much time and money are these new account signups spending on your site?

  • Page Conversions (Aka Page “Stickiness”): the likelihood of successfully retaining a visitor who arrives at a key landing page.

No responses yet