7 Key Performance Indicators Every Ecommerce Owner Needs To Understand


The world of ecommerce entrepreneurship is full of competition, and if you want your ecommerce business to stand out from the crowd, then you must be prepared to wear a number of different hats. One of the most important functions you must fulfill is that of data analysis. After all, how can you assess your ecommerce site strengths and weaknesses if you don’t know how to make sense of the traffic patterns and spending habits of your site visitors? Fortunately, you can learn how to make the most of the information available to you, as long as you are willing to put in some study time. Here are seven key performance factors every ecommerce owner needs to understand:

Clickthrough Rate (CTR). Simply put, your site’s CTR is the number of people who click through to your ecommerce site through a link placed elsewhere on the web (advertisements, blog posts, etc.). This is the most commonly referred to metric in the world of ecommerce, and can tell you a lot about the effectiveness (or ineffectiveness) of your advertising methods.

Qualified Reach/Qualified Visits. This performance factor is indicative of two things: It measures not only how many site visitors you have, but also whether or not those site visitors interact with your site in a desired way (to make a purchase, opt in to your newsletter, or request your free report, for example).

Engagement Score. If you want to know how effective (or engaging) your content is, either on your ecommerce site or in advertisements for your site elsewhere on the web, then the Engagement Score metric will provide the information you need.

Efficiency metrics. Part of successful advertising is gauging the cost-effectiveness of your marketing and making adjustments from there. Efficiency metrics pertain to the cost aspect of your ecommerce advertising efforts.

End Action Rate. Also referred to as the Conversion Activity metric, this performance factor gives you valuable information related to how many site visitors actually close the deal (make a purchase, opt-in to email correspondence, etc.) when referred by a particular advertising campaign you have in place.

Return on Investment (ROI). How much money are you making off of your advertising? The Return on Investment metric is the performance factor you should watch to determine just that.

Brand Perception Lift. As you well know, branding can make or break your ecommerce business. If you want to know how your branding is performing, then the Brand Perception Lift metric can provide you with that valuable information.

As you can see, there are numerous ways in which you can monitor your ecommerce site’s performance in order to make changes that can lead to your optimal success. Keep all of these performance factors in mind to make the most out of your ecommerce business.

About the Author: Erwin Canclini loves to build ecommerce sites and enjoys working with new business owners. He encourages everyone to read more about designing the best ecmomerce sites and solutions with minimal investment.

7 Key Performance Indicators Every Ecommerce Owner Needs To Understand

The world of ecommerce entrepreneurship is full of competition, and if you want your ecommerce business to stand out from the crowd, then you must be prepared to wear a number of different hats. One of the most important functions you must fulfill is that of data analysis. After all, how can you assess your ecommerce site strengths and weaknesses if you don’t know how to make sense of the traffic patterns and spending habits of your site visitors? Fortunately, you can learn how to make the most of the information available to you, as long as you are willing to put in some study time. Here are seven key performance factors every ecommerce owner needs to understand:

Clickthrough Rate (CTR). Simply put, your site’s CTR is the number of people who click through to your ecommerce site through a link placed elsewhere on the web (advertisements, blog posts, etc.). This is the most commonly referred to metric in the world of ecommerce, and can tell you a lot about the effectiveness (or ineffectiveness) of your advertising methods.

Qualified Reach/Qualified Visits. This performance factor is indicative of two things: It measures not only how many site visitors you have, but also whether or not those site visitors interact with your site in a desired way (to make a purchase, opt in to your newsletter, or request your free report, for example).

Engagement Score. If you want to know how effective (or engaging) your content is, either on your ecommerce site or in advertisements for your site elsewhere on the web, then the Engagement Score metric will provide the information you need.

Efficiency metrics. Part of successful advertising is gauging the cost-effectiveness of your marketing and making adjustments from there. Efficiency metrics pertain to the cost aspect of your ecommerce advertising efforts.

End Action Rate. Also referred to as the Conversion Activity metric, this performance factor gives you valuable information related to how many site visitors actually close the deal (make a purchase, opt-in to email correspondence, etc.) when referred by a particular advertising campaign you have in place.

Return on Investment (ROI). How much money are you making off of your advertising? The Return on Investment metric is the performance factor you should watch to determine just that.

Brand Perception Lift. As you well know, branding can make or break your ecommerce business. If you want to know how your branding is performing, then the Brand Perception Lift metric can provide you with that valuable information.

As you can see, there are numerous ways in which you can monitor your ecommerce site’s performance in order to make changes that can lead to your optimal success. Keep all of these performance factors in mind to make the most out of your ecommerce business.

About the Author: Erwin Canclini loves to build ecommerce sites and enjoys working with new business owners. He encourages everyone to read more about designing the best ecmomerce sites and solutions with minimal investment.


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