How’s your business’s online performance? Is it getting a good conversion rate?
Are you achieving your goals regarding leads and sales?
To determine the correct answer, You must examine the variables to determine your progress in the direction of selling, marketing, or other objectives.
The essential elements will likely be conversion or revenue, sales and cart abandonment rates, etc.
Right?
In the marketing language, these elements used to measure and monitor any company’s progress are known as KPIs.
KPIs, also known as Key Performance Indicators, are measured in time of how well a team has performed towards achieving a specific goal. KPIs help teams set goals to reach, a benchmark to assess progress, and insights to aid in making an informed decision.
Simply put, it’s utilized to evaluate the progress of a business’s objectives.
In this blog, we’ll review some important KPIs you can use to improve your online business.
Conversion Rate:
Conversion rate refers to the number of visitors to our site, which eventually results in sales. The conversion rate is determined by subdividing the number of conversions total by the total number of visits.
Be aware that conversions will be contingent on the goal of our site. Therefore it will vary. It can come from downloading an ebook, a product catalog, a budget request, or through the registration (lead) and the subsequent registration to our email newsletter or the purchase of an item.
Suppose we are using Google Analytics to calculate this measurement. In that case, we should remember that Google Analytics calculates this metric using session count, which isn’t the equivalent of visits (since users can make multiple visits to the internet and make each session different). If we wish to provide information about the number of people using it, we need to customize it.
To maximize the benefits and the most value from the power indicator, it’s essential to break it down and look at the websites that generate the highest sales and the most effective traffic methods ( SEO, SEM, social media campaigns, and so on. ).
Life Time Value:
The value of the Lifetime Value (LTV), also known as the customer’s Lifetime Value, refers to an estimation of the amount of revenue anticipated to be earned per customer throughout its life.
Also, it’s the total value the client generates for us through our relationship. To determine the LTV, we have to divide the average price by the time of the relationship and the number of transactions made.
The number of transactions:
The sales are the total amount of transactions completed in the course.
This indicator can be measured by the day, week, or month, and even by hours if you have an abundance of sales. The most exciting part is tracking its growth in time and identifying the seasonality in your store’s retail sales to make the most of your digital marketing efforts.
ROI:
The Return on Investment (Return on Investment, also known as return on investment in Spanish) measures how effective the marketing strategies have been as it determines the amount of investment it has earned us.
This indicator’s formula used to calculate the indicator is
[ (Profit Obtained – Total Investment) / Total Investment ] x 100% = ROI
Because of this KPI, it is possible to evaluate how effective our strategies for marketing are and find out the areas we need to spend more money on to achieve better results. If we run ads on social networks, Google Ads, and Google Ads, it’s crucial to examine this indicator for every one of the campaigns we run.
Cart Abandonment Rate:
Abandonments are the proportion of visitors (or visitors) who begin a sale process but don’t complete the process. This is among the most important KPIs for online sales since it provides us with necessary information about the success of our buying process.
A high abandonment rate is typically due to one of these issues:
- The forms are long enough.
- The existence of any information or content that the customer does not want in the process of purchasing (such as extra costs) or which limits the possibility of closing your purchase (such as the infamous “we do not ship to the Canary Islands”).
- Technical failures, especially at the programming level, make it impossible for the customer to complete the purchase on specific devices or web browsers.
- Web usability issues hinder the customer from buying quickly and easily (essential buttons are not accessible, fonts that aren’t the correct sizes and fonts that are not appropriate, etc. ).
It is essential to determine in which phase of the process the higher number of dropouts occur to identify the problem and act to resolve the issue.
Income:
We use the term “economically quantified sales” to refer to them by this ratio.
By using this indicator, we can determine the amount each of the particular digital marketing channels or actions has earned us, as well as assess whether the investment we made in the campaign was productive or not.
Regarding the number of transactions, we need to appreciate seasonality and help increase its value by setting targets regularly.
Acquisition Cost:
The acquisition cost, also known as cost per lead, represents the amount we spend to obtain a new client. To determine it, we need to divide the acquisition cost by the amount of information acquired.
It is interesting to examine this value by traffic sources (SEO, Google Advertising campaigns, Facebook Ads campaigns, marketing via email …) and then see the cost to generate leads in each. This can help us improve the budget we allocate toward each marketing channel.
Ranked Keywords That Drive Conversions:
When we speak of keyword ranking, we refer to the terms associated with our products or markets that bring visitors to our website and lead to conversions.
It is among the more powerful source of traffic. It is the most efficient conversion when we position our website correctly. The users will find our site in the first search results of Google when they search for our products or services.
By using the help of this powerful SEO KPI, we can identify the keywords that generate income and those for businesses where we’re not correctly placed. So we will be able to implement a plan of action.
We suggest you review at a minimum and every month the keywords on the business you are displaying and, most importantly, the words that drive conversions and work to remain in the most influential positions.
Web Traffic:
Controlling and measuring the amount of traffic that enters our website is crucial to improve the number of conversions for our business.
In Google Analytics, We can track the amount of website traffic through each channel and observe its growth over time. It is also possible to analyze the quality of the traffic by analyzing the conversion rate for each channel.
