Key Performance Indicators (KPI) are a type of performance measurement that help business owners and managers alike define and evaluate whether an organization is making progress towards their business goals or not. In a nutshell, KPIs are the backbone of any business and help those in charge to see if they are on the path to success or not. If the KPIs show that a business is missing the mark in one area or another, they will have a better chance of identifying the problem and making adjustments with the assistance of info from the KPIs. There are many different types of KPIs out there today, giving people the opportunity to choose those that are in-line with any given company’s goals, objectives, and overall strategy.
As a leading Arlington digital marketing agency, Tech-Critic is committed to using all the tools and resources available to us to ensure your company is performing at its highest potential. For example, we use important KPI benchmarks to measure the success of a client’s new website launch. If there is room for improvement in a particular area, we are able to make changes and increase conversions for our clients with the help of certain KPIs.
So, what’s the big deal? When used correctly, KPIs become an important part of a company’s strategy. They build upon one another and give company leaders the opportunity to better communicate the vision and focus of the organization to staff members, investors, and whomever else they deem appropriate. By carefully selecting a handful of KPIs that will support the broader business goals and intentions, you will be helping your business focus on common goals and ensure you never lose sight of those goals.
In order to give you, the client, a better idea of why KPIs are critical to the success of your business, we thought it would be helpful to look at several KPIs that are relevant to eCommerce businesses. If you have any questions or would like to learn more, contact Tech-Critic today.
Conversion rate (CR) is perhaps the biggest obsession of those working in the digital marketing field. In fact, conversion rate is the #1 metric in eCommerce. Conversion rate is the act of converting site visitors into paying customers. This also helps you see how you are doing in comparison to your competitors, however, it is important not to solely focus on this measurement.
2. Customer Satisfaction Index
This is a vital measurement tool that helps you determine how satisfied your customers are. Unfortunately, this is one of the few KPIs that cannot be tracked automatically. By sending out a customer satisfaction survey a few days after they have received their order, you will be able to catch the customer when their experience with you is fresh in their mind and will in turn be able to receive feedback to help you improve moving forward.
3. Repeat Visitors
With our help you will be able to find out how many of your visitors are repeat visitors. In a perfect world, more than ⅓ of your traffic should consist of repeat visitors. Once you have figured this out, reward your repeat visitors. A good option is to send them some kind of coupon or free gift. This will let them know they matter to you and that you appreciate their continued service.
4. Average Time on Site
This could be useful in order to help you determine how long it is taking customers to go through the content on your website and ensure that it is as engaging as possible. In many cases, consumption can be interpreted as engagement, even if people aren’t sharing, commenting, or liking the content via a social media platform.
5. Social Media Shares
How frequently people are sharing your content is an important indicator of the content’s popularity and your overall reach. If people find your content interesting and compelling, they are far more likely to share it with their friends and followers, which will help you increase traffic and boost search results positioning. Furthermore, you can determine your audience reach and social media influence by looking at the average number of visits per share. This will also help you see which types of posts are more successful than others.
6. Return on Investment (ROI)
Last but certainly not least, ROI is considered one of the best KPIs, no matter what type of business you are running. To get a better idea of how well your company is performing, ROI should be calculated and tracked on a regular basis. This will provide you with a baseline to compare campaign/channel performance and will also help you see what – if any – changes need to be made.
To learn more about KPIs and how your business can benefit from using the right ones, please contact Tech-Critic today.