Whether you own or do marketing for an e-commerce business, you need to know which KPIs to track. These are some of the indicators that should be on your radar:
The first indicator is pretty obvious – sales:
- Sales And Customer Growth
Sales and customer growth are always the most important indicators of health for a business. Every business tracks sales on an hourly, daily, weekly, monthly and/or quarterly basis. You also want to track your sales by promotions and channels so that you know which acquisition efforts are working, where they are working and when they are working. This will help you to spend your ad dollars more effectively.
- Average Sale
You also want to track your average sale on a customer’s first, second and third purchase. Knowing this will give you insights at how purchasing changes over time, such as whether it increases or decreases after the first sale, so that you can develop strategies to improve growth.
- Profit per Order
Profit per order is something else you want to track. It’s important to understand who your high-profit clients are and where they come from.
- Retention Rate
The next thing you need to track is the retention rate, with a ‘retained customer’ being described as one who has purchased from you three or more times. Your e-commerce business’ retention rate is important because it helps you understand how customers feel about your brand and whether they will become advocates or not.
Retained customers are your most profitable customers. A great example is from Zappos: 70% of the company’s sales come from retained customers, in other words – those who have made shopping at Zappos a habit.
This infographic from KISSMetrics shares stats about an effective sales process. I hope you learn from it.
Do you have 20 minutes to work ON your business instead of IN your business? If so, reading this article will give you hands-on tips to double your sales.
In his fantastic book, The Ultimate Sales Machine, Chet Holmes (the late Marketing Guru), wrote about a strategy called Best Buyer, which he calls the “fastest, least expensive way for doubling sales.” This article is an adaptation of that strategy for small-medium sized businesses (SMBs) that serve their local community.
Before we get into the meat of it, lets quickly review the market for your product/service at any given time.
These numbers have been proven many times over. That means your direct sales efforts are only addressing that top 3% that are ready to buy now. Consider the immense amount of money and energy that is spent weeding out the 97% that aren’t ready to buy now. There is a better way. Continue reading “Best Buyer Strategy – The Fastest, Least Expensive Way To Double Sales”