Hello! I'd like to say a few words about KPIs that you should track. E-commerce KPIs are crucial for any business. They give objective numbers about how your sales are going, how successful your production process is, whether your customers are satisfied, whether your digital marketing approach is going the way you are expecting, and how effectively your team works.
And if we speak about tracking the success of your app, I advise looking at these indicators:
- Sales rate: you should watch your sales progress while taking into account different parameters: time, type of customer, product, location, type of payment. This way will help you figure out useful information like profitable sales channels, the most lucrative period, best-sellers, and average revenue per sale. What are the best tools to track sales? HubSpot CRM, Thryv, Pipedrive, Freshsales, Zendesk Sell, Bpm’online.
- Customer Acquisition Cost or CAC: here you are counting the costs of acquiring a customer. By knowing this indicator, you can make a well-designed strategy to “purchase” your customers based on a number of required clients and approximate marketing budget. A tool to track the “CAC” indicator: Geckoboard.
CAC (the “cost” of one customer) = The cost of your marketing campaign ÷ The number of new customers
- Gross profit margin: indicates the percentage of your true profit, or, real income. Remember: it’s not the same as revenue. Profit is calculated by subtracting the total expenses from the revenue or total sales. The gross profit margin shows how much money your business brings you and how healthy it is. In order to calculate the percentage of the gross profit margin you need the following formula:
Gross profit margin= (Revenue - Costs) ÷ Revenue x 100%
- Conversion rate or CVR: being one of the main KPIs for e-commerce, this indicator reveals how successful your site is among visitors, and how many users are converting into leads or buying from your brand. All in all, you will know how your app is performing. To gain deep knowledge of the company’s progress, your team should monitor different types of conversions such as interactions per visit, new visitor CVR, conversions by device type, traffic source, and so on. Tools to track: Google Analytics, Geckoboard.
Conversion Rate = ( # of active app users ÷ # of downloads) x 100%
KPIs mentioned above are just a small piece of the cake. Here you may check other crucial metrics to track the e-commerce business success, read the article - https://whidegroup.com/blog/sales-and-marketing-ecommerce-kpis/. They are relevant to both websites and apps.
Finish it finally. And you feel peace.
Whidegroup - https://whidegroup.com/services/
