Key Performance Indicators
KPI’s or Key Performance Indicators are quantifiable measures or metrics that are relevant to monitor how your website is performing against your business objectives. In a website, key performance indicators are “Page Visits”, “Page Views”, “Bounce Rate”, “Conversion Rate”, “Revenue”, “Average Order Value (AOV)” and so on.
Identifying KPI’s for an eCommerce website-
The KPI’s for an eCommerce website is fairly simple to identify and it includes the following-
Unique Visitors- This gives a quantifiable idea as to how many visitors your site attracts as well as helps in measuring the effectiveness of bringing back return visitors.
Conversion Rates- While there are multiple ways to measure conversion rates, the most common one is order conversion that give ratio of visitors to orders and the checkout conversion rate is the ratio of visitors who start the checkout process to orders.
Bounce Rate- It is the percentage of visitors landing on a web page and then exiting without visiting any other page. In order to find out the reasons for higher bounce rates, check if your website is being selected for a keyword that is not relevant. You should find keywords with high bounce rates and take action. Try changing the keywords that are generating irrelevant traffic by rewriting your content.
Average Order Value- This is the ratio of revenue for the site to orders and it has direct impact on site’s profit margin, so it’s an important measurement to consider.
Cost Per Lead- It represents the marketing and advertising cost your company has incurred.
Time Spent on Website- It is an important element that indicates how much a customer enjoys on your site, browses it and returns back.
Number of Pages Visited- It simply indicates the number of pages a person visited before leaving your site. Combined with your average Time-on your site, it will give you a measure of “stickiness” of your website or tells how engaging your site is.