Essential eCommerce KPIs and Metrics to Track in 2023
In 2023, there are several key performance indicators (KPIs) and metrics that are essential for tracking the success and growth of an eCommerce business. Here are some of the most important ones:
This metric measures the percentage of website visitors who complete a desired action, such as making a purchase. It helps assess the effectiveness of your website and marketing efforts in driving sales. On average, eCommerce websites should expect to see a conversion rate of 1% to 4%. These figures are a bit lower than the overall average of 3.65%, this due to eCommerce websites varying dramatically in performance based on industry, business model, shoppers, pricing, marketing, and products.
Average Order Value (AOV)
AOV represents the average amount spent by customers on each order. Tracking this metric helps evaluate the effectiveness of your pricing strategies and upselling/cross-selling techniques.
Customer Lifetime Value (CLTV)
CLTV measures the total revenue a customer is expected to generate over their entire relationship with your business. It helps you understand the long-term value of your customer base and guides your customer retention efforts.
Customer Acquisition Cost (CAC)
CAC calculates the average cost of acquiring a new customer. It helps determine the profitability of your marketing campaigns and allows you to optimize your budget allocation.
Cart Abandonment Rate
This metric tracks the percentage of customers who add items to their cart but do not complete the checkout process. It helps identify potential barriers or issues in the conversion funnel, allowing you to optimise the user experience and reduce abandoned carts. This can either be down to high priced goods or the lack of desirable payment options such as Apple Pay, Google Wallet, PayPal, and other digital wallets let customers shop online without surrendering their credit card information to retailers they might not trust.
The return rate represents the percentage of orders that are returned by customers. Tracking this metric helps evaluate product quality, customer satisfaction, and the effectiveness of your return policy.
Traffic Sources and Channels
Understanding where your website traffic comes from, and which channels drive the most conversions is crucial. Monitor metrics like organic search traffic, paid advertising performance, social media referrals, and email marketing results to optimize your marketing efforts. Depending on your eCommerce business model channels will be better for
Measuring customer satisfaction through surveys or feedback ratings can provide valuable insights into the overall experience customers have with your eCommerce business. This metric helps identify areas for improvement and gauge customer loyalty.
Mobile Conversion Rate
With the increasing use of mobile devices for online shopping, tracking the conversion rate specifically for mobile users is essential. Mobile eCommerce sales accounted for 72.9% of all eCommerce sales in 2021, which is almost three-quarters of the total market share. Optimising your mobile experience and addressing any usability issues can significantly impact your sales.
This metric measures how quickly you sell and replace your inventory. It helps ensure efficient inventory management, prevent stockouts, and identify slow-moving products that may require promotional activities.
These are just a few of the many KPIs and metrics that eCommerce businesses should track in 2023. The specific metrics you focus on may vary depending on your business model, industry, and goals. Regularly monitoring and analysing these metrics will enable you to make data-driven decisions and drive continuous improvement in your eCommerce operations.
If you are an eCommerce business who is established, or just starting out and want to focus on driving sales, cutting costs and time spent fulfilling your customer's orders please reach out to UK Fulfilment for a free quote, and see if you may be able to not only reduce costs but also offer your customers a better service.