The adage goes “What gets measured gets done”. Set your eCommerce team up for success in 2017 by making sure you’re measuring the right stuff!
Where there once was little or slow data to work from, retailers are now drowning in data. The sources are varied and sometimes poorly understood, so it is incumbent on the eCommerce Manager, or the member of your team that can tell you about the health of your business, to consolidate the numbers and present a holistic view of your business.
Unfortunately, tools like Google Analytics create a false sense of security that the metrics presented are the most important measures for your business. GA dominates the Fortune 500, but all of those companies do different things, have different needs, and therefore depend on different metrics to measure their health. Seth Godin might have put it best:
Is maximizing the convenient number actually going to produce the impact and the outcome you wanted?
If not, please read on.
In the data age, gathering information from data is still two steps removed from an actual prescriptive action that will bring about a new outcome.
My list highlights the key eCommerce KPIs for retailers I measure for our retailers that guides strategic planning and monitors the overall health of the business.
Our 25 eCommerce KPIs are broken into 5 categories. You may already be reporting numbers from one or more of these categories.
A note: I do not advocate for specific thresholds for each of these metrics – after all, even for a simple metric like conversion rate, a site that sells luxury coats will have a lower eCommerce conversion rate than one that sells baby toys AND THAT’S OK.
What I will advocate for is ensuring this data is reported consistently and benchmarked against itself over time.
There are a number of tools that can report various sources of data into one eCommerce Dashboard for consistency and ease of understanding. My suggestion would be to let the first few cycles of running these numbers be painful in Excel/ Numbers/ Sheets and operationalize them with Gecko Boards or Grafana over time.
eCommerce Managers, I hope this makes your life a little easier and lead you to have better conversations about the health and growth opportunities in your business.
If there are other eCommerce KPIs you depend on in your business, please share!