Whenever you start an eCommerce business, you want to know how it is going after a while. Sure you might be making some sales or getting some good reviews, but that doesn’t give you everything that you might need for your performance. Whether you are a numbers person who loves to know all about the stats and figures of your business, or just someone who wants to see what their business is looking like, then you need to look at some of these key performance indicators.
Being able to look at all of these key performance indicators for your business will help you understand not only how well your business is growing, but also any trends that you need to keep track of for your business as well. Here are five of the key performance indicators you need to look at!
- Revenue Growth
Alright, first one of the things you need to look at is the growth of your revenue. If you want good performance for your eCommerce business, then the amount of money you are bringing in is going to be one of the best measures of growth. If you are consistently making money, and also consistently making more money each and every month, then your business is doing well with performance.
Now, you might have a bad month or even a few bad months depending on your business or the season that you are in. However, your revenue should get back to growing and you need to keep an eye on the money not just at the end of the month when your bills are due, but it also provides you with a big picture look at your business.
- Customer Satisfaction
Of course, the more successful your business is, the happier your customers will be! Take a look at what your customers are doing with your business and what they are saying about your products and your online store. If your customers are happy and are enjoying your products, that is always going to be an indicator of your business’s success!
- Customer Retention
Hopefully, your business isn’t going to be a one hit wonder with only one or two products or things they are selling. It is actually pretty easy to create customer satisfaction as they experience the products and services of your business, but it is much harder than customer retention. Keeping happy customers continually coming back to your business is going to be much harder to do, but if you manage to have a strong base of customers who keep coming back and you have good customer retention, then that can be a massive indicator of success.
Having a few dozen returning customers, is much much better for your long term success than having a few thousand one and done customers.
- The Traffic Coming To Your eCommerce Business
Getting eyes on whatever content you are creating on the internet is going to be a constant source of your success. If more and more people are watching your eCommerce website or storefront, then you need to know how many people are watching your site and also what they are interacting with.
If your customers are going to your homepage, and then instantly going away and they aren’t getting deeper into your website, then you can look at why your retention is so low. Traffic is going to be one of the biggest key performance indicators and you need to know how much of it is coming, and also where it is going on your storefront.
That way you get some idea of why your business is so successful and what to do to make sure that your traffic is contributing to your success!
- Your Business’s Inventory
Whenever you are looking at your vendor-managed solutions, you need to know that your inventory is a marker of success. If you are constantly having to manage your inventory and ship orders out to your customers, that is a marker of your business performing really well. Additionally, you might also find that you are making more sales and that is the reason why you are shuffling your inventory around!
Let Success Motivate You
An eCommerce business is going to be hard to start, and as you look for these performance indicators, allow them to motivate you. If you are getting a lot of customers, retaining them, and constantly growing your revenue, then give yourself a pat on the back because your business is growing. Plus, if you keep it up, the growth is going to continue!