You’re an E-Commerce executive. What metrics should you be tracking?

Es gibt natürlich unterschiedliche Aufgaben und Positionen im E- Commerce, dementsprechend auch diverse Führungspositionen, daher kann man hier nur diese Frage allgemein beantworten. Auf Online- Produktverkauf gemünzt, ein paar wichtige Parameter: 1. Produktionsvolumen / Warenverfügbarkeit / Lagerbestand 2. Marge / Gewinn (auf Artikel und Verkaufsebene) 3. Conversion Rate (auf Verkaufsplattformen, Webshop) 4. Marketingausgaben/ Einnahmen (Advertising) je Kanal (Meta, Amazon, Google) 5. Absatzkan?le: Auswertung Umsatz/ Kosten/ Reichweite 6. Retourenmanagement 7. Aufbau eigener Community mit echtem Produktfeedback

Particularly on Amazon, the best way to analyze the conversion rates is to do A/B testing on your creatives and the content to get an overview of CTR as well as the conversion rate.

Tracking the conversion rate to know what is wrong with us, is the important thing. You can continuosly improve your sales. In the end it will generate revenue.

Taxa de convers?o é um indicador chave para gest?o de e-commerce. Se você investe em mídia, quanto menor sua taxa de convers?o, mais cara será sua venda, pois você precisará trazer um grande número de pessoas para sua loja para realizar uma venda. Vários pontos podem influenciar na baixa taxa de convers?o, mas, baseado em minha experiência, recomendo come?ar sua avalia??o por dois pontos: 1. Direcionamento de campanhas: Estou direcionando minhas campanhas corretamente para o meu público alvo? 2. Usabilidade do site: Meu cliente consegue navegar com facilidade no meu site? As informa??es podem ser encontradas de maneira clara? A jornada está eficiente?

All Invesment should lead to business. Hence, I always like to put all the efforts on factors that will ensure higher conversion ratio.

Determine the average value of orders placed by customers. A higher AOV indicates increased consumer spending, contributing to higher revenue generation. Tracking AOV for etsy sellers in india helps in understanding customer spending patterns and the effectiveness of upselling and cross-selling efforts. This metrics also helps in strengthening the strategy behind category management and inventory planning which will ultimately impact the traffics and visibility of products. Upward graph give the sense of highly saleable products and it's demand into the market.

The Challenge of Rising Customer Acquisition Costs: With online advertising costs (CAC) on the rise, many D2C companies are facing a challenge: profitability on individual orders. This is where Average Order Value (AOV) becomes critical. By increasing the average amount customers spend per purchase, we can improve our unit economics and achieve sustainable growth. Strategies to Boost AOV: To address this challenge, we need to explore strategies that encourage customers to spend more. Here are two key approaches: 1. Upselling: Present customers with opportunities to upgrade their initial purchase to a premium product or a larger size. 2. Cross-selling: Recommend complementary products that enhance the value of the initial purchase.

Exactly, boosting AOV is crucial. Strategies I've used include: Upselling and cross-selling to increase cart size. Bundling products to offer better value. Exclusive offers for higher spending. Raising AOV is about providing the right incentives and making it easy for customers to find value in purchasing more.

Average order value is important, but not a first to know number for an executive. Yes, you want to improve that, but to understand how your business works and how well it is doing the overall number of revenue and sales compared to the previous time period, normally on a monthly base, is more important.

AOV is important for sellers and E-commerce platform due to the simple fact: - margin (%) is a relative value - margin (%) multiplied on AOV is an absolute value in $. Margin(%) * AOV * orders is an absolute value ($) for FIX/VAR cost ($) absorption.

If you are in a category that has a long CLV (e.g., CPG categories, etc.), where customers can purchase your product for more than 5 years, you should look at the annualized value & volume. I.e., within the space of 12 months, how many times does a typical shopper purchase my product, and how much are they spending per shopping occasion?

Tricky to calculate and measure, that it is why often left out. Start simple here: + how many customers of first time buyers keep coming back and making a second sale? + after which time do they purchase a second time? + do they tend to buy the same product or different ones? Obviously there are differences in industries. In fashion you can have a lot of customers who keep coming back, so in FMCG. For computer hardware that can be a thing, but cycles are way longer.

CLV is crucial to track because it provides insights into long-term customer worth, strategic planning, customer segmentation, and fostering customer loyalty and retention. It puts a face to the number and ensures your brand has a customer-centric approach, driving long term profitability.

para algunos negocios es la clave para entrar en rentabilidad o para entender el valor real del cliente. En cambio con otros no tiene sentido ya que los clientes son efimeros

In the first 1-2 years of a startup the CLV often becomes the cheat metric to justify higher net negative customer acquisition costs (CACs). That’s a trap and in absence of own and/or industry peer data demonstrates limited knowledge about your target audience and behaviours.

CPA is one of those relations you should keep an eye on and know from the top of your head. How much do we spend on average per new customer? How much do we have to pay for it, what percentage of our price do we spend for a sale? This gives you a good idea when comparing different channels with each other - are they above your average or below? This helps in optimizing different channels as well evaluating new ones.

Tracking Customer Acquisition Cost (CAC) is crucial for E-Commerce personnel as it helps in understanding the effectiveness of marketing strategies. By calculating CAC, businesses can determine how much it costs to acquire each customer, enabling them to allocate resources efficiently. Moreover, monitoring CAC allows for the optimization of marketing campaigns, identifies areas for improvement, and ensures better ROI on marketing investments, ultimately contributing to sustainable growth and profitability.

El valor sera alto o bajo en funcion de la repeticion de venta del cliente o CLV. Puede ser muy alto, pero si hay recurrencia se diluye. y por el contrario, puede ser muy bajo, pero si solo nos compra una vez no tiene sentido.

Este factor, es super importante para tomar desiciones del negocio. Es uno de los KPIs que más se deben de tomar en cuenta para saber la rentabilidad del negocio. Lo importante es hacer que baje el costo de adquisición y eso lo podemos lograr con campa?as de remarketing y lograr que el cliente vuelva hacer recompras.

My experience suggests that for certain stages of business and product development, it's normal for not all marketing channels to have positive unit economics. It's crucial for the Blended CAC to fit within the economics; however, sometimes it's strategically important to attract "expensive" users, as they significantly impact key business metrics (for example, they consume more profitable goods and services).

Return on ad spend (ROAS) is an invaluable metric for e-commerce executives. Once executives have calculated the roas for their different marketing channels, they can then compare the roas for each channel. This holistic cross-channel approach allows executives to evaluate the effectiveness of their entire marketing mix and optimize budget allocation across channels to maximize returns.

Honestamente es un parametro complicado de calcular o de encontrar el dato fiable. Si yo invierto en un solo canal puedo conseguirlo, pero en las campa?as actuales, donde invertimos en diversas plataformas, es muy dificil ( por no decir imposible) asignar correctamente la inversion al canal y al cliente. Al final la cantidad de impactos que generamos al dia en diversos canales "suman", pero a quien se lo asinamos? al canal por el que ha entrado la venta? al que mas notoriedad ha generado ( pero que sabemos/podemos medirlo)

ROAS is great to compare different channels. It is calculated differently in some areas, but normally you divide the revenue attributed to your ad campaign by the cost of that campaign: ad revenue ÷ ad spend. If you would be 100% precise you would first subtract the costs of your ad campaign from your revenue and divide that by the costs, but no one does this these days anymore: (ad revenue - ad spend) ÷ ad spend Im market places, especially in Amazon, you have the ACOS: Advertising Cost of Sales. It is calculated in the opposite way than the ROAS and expressed as well in a %: ad spend ÷ ad revenue x 100

From my perspective, Return on Ad Spend (ROAS) serves as a vital metric in assessing the effectiveness and efficiency of advertising investments. A high ROAS indicates that advertising efforts are yielding substantial returns relative to the expenditure, suggesting successful targeting, messaging, and campaign execution. Conversely, a low ROAS prompts a reassessment of targeting strategies, ad creatives, or bidding tactics to enhance campaign performance and maximize ROI.

Due to raised E-com penetration, ROAS this year is much higher to ROAS last years. Fair to say, that some products become successful due to low competition and attractive ROAS years ago. In some categories we have to consider ROAS as an investment plan in order to catch desired target audience. Personally, ROAS needs to be considered same way as ROI on CAPEX investments.

To reduce cart abandonment rate, e-commerce executives should optimize the checkout process by minimizing the number of steps required and implementing guest checkout options. Use retargeting strategies, such as abandoned cart emails to re-engage customers who have abandoned carts. Offer transparent pricing, including shipping costs upfront. Provide trusted and popular local payment options to reduce payment friction. Finally, executives should continuously monitor and analyze the checkout funnel to identify friction points and make data-driven optimizations to streamline the process further.

Based on our service's experience, the following practices have helped improve this metric: Conducting user interviews; Performing extensive QA tests; Carefully reading technical logs; The entire product team regularly walking through the user journey themselves on different devices. Through these methods, we identified issues with the inability to complete payment on a specific model of a major smartphone manufacturer. Additionally, we discovered that this metric was incorrectly calculated when a user left the checkout screen because they remembered they needed to add something to their order (ultimately, they still made the purchase).

A major contributor to a cart's abandonment rate is in the middle stage of the checkout, the Shipping stage. Wedged between 'Info' and 'Payment', it's a crucial touchpoint. There are many factors here that cause cart abandonment, things like- - Shipping costs too high a percentage of the order - Unclear or slow delivery times (in which case shoppers will often just go to Amazon) - A free shipping threshold that's just too high - Unexpected customs and/or tax fees

On Amazon, cart abandonment rate has become a crucial metric to track only within the last two years. We are now able to serve ads through DSP to these cart abandoners, using custom audiences with AMC. By better understanding why people are interested but not buying, can only help these cart abandonment rates decrease, making these ads even more effective. The product detail page must be optimized enough to push the customer towards that purchase stage, otherwise even targeting cart abandoners will be obsolete. By understanding what category benchmarks are for C.A rates, you can set monthly or quarterly goals on a product basis, to hopefully trend towards improvement over time.

Keep in mind that many people use products in a cart as a "list of favourites products" :) thus, shopping experience of "cart payment" should be as short-smooth-easy as possible.

You ALSO have to pay attention to costs across the board, - logistics - Fraud/payment systems - IT/Tools While some are fixed costs, many vary with volume, and before you realize this will limit your scale!

PPUPY is a great metric for eCommerce. It stands for Profit Per User Per Year. You get to PPUPY by looking at your (Annaulized LTV - Product COGs - CAC - Fulfilment Costs) / Total Shoppers. You can then cut and dice this data based on multiple factors, like acquisition channel and product type/segment, and determine where your most profitable users are coming from.

It isn’t just about what you measure, it is about how often and, most importantly, what actions to take from it. One data point actioned is 1 million times more valuable than 1 million data points ignored. Track sales and performance metrics daily to weekly. Track customer and activity metrics monthly. Track brand and consumer metrics quarterly. Action every insight. Measure nothing for interest only for action.

Other helpful metrics are: - Site Speed and Performance Metrics - Cost of Goods Sold - Bounce Rate - Traffic Sources - Inventory Levels and Turnover - Net Promoter Score (NPS) - Return Rate and Reasons for Returns - Sales & Gross Profit Margins

Click to Delivery (measures in Days or Minutes in fresh deliveries) is crucial to generate frequency. In order to increase e-com penetration we have to be competitive to offline availability. As long as same product is available in a neighbour store same day, e-com has to provide competitive solution. Meanwhile cost of C2D is a cost of infrastructure: fulfilment centres, last-mile, product localisation.