7 key performance indicators in eCommerce. What should you measure? How to improve them?

There are many ways to succeed in eCommerce. It may seem hard to choose the right path, but the truth is if you spend some time analysing all of them, you’ll find the right one for you. Anyway there are some key performance indicators that can help you choose the best way to optimise your eCommerce.



1. Average order value (AVO)

Your eCommerce has daily hundreds of orders- that’s amazing! However, why your bank account isn’t as good as it should be? The reason is that your average order value is low. The easiest way to check it is to use the right formula- total revenue generated within a specific time period/ the number of orders in the same time= average order value.

How can you increase this rate?

Average order value in eCommerce



a. Proper presentation of the products

Allow customers to find products that generate the highest income. It’s possible that in your e-shop customers can easily find the products at a low price. Are customers only buying the bestsellers (good quality, but low price), instead of the ‘recommended‘ one or ‘the high quality’ one (at a high price)? If you apply a good strategy of the products layout, you’ll increase your average order value.


b. Free delivery from a certain order value/ amount of products

If you offer a free delivery from a certain order value, you can increase your average order rate. This solution is based on people’s behaviour. Because, when the customer have to choose between the cost of delivery and the cost of the other valuable item. He’ll choose to buy another product. However, you have to find if it is profitable for you! You may find out that if customer buys another product and gets the free delivery, for which you have to pay, you’ll earn nothing. Calculate carefully! The information about how much more customer needs to order to get the free delivery can be a good way to convince them to order more. You can use pop up for that or place it below the basket icon on the products’ tabs.


c. Buy two products and get the third for…

It is commonly used, but still successful method. It encourage the customer to buy more. You can see it especially in fashion stores. Why don’t use it in eCommerce? The rule is easy- you have to buy three products at once and one at the lowest price, you’ll get with a discount or you’ll buy it for $5. It’s another situation when you have to calculate everything carefully, because when you don’t estimate your costs well, you can earn nothing or even lose money. In most cases this method works, especially in the industries where you can buy things without the expiry date


2. Bounce rate

Bounce rate can be easily found in Google Analytics. It represents the percentage of visitors who enter the site and then leave it (‘bounce’), not even entering the subpages.

What is the reason for that phenomenon?


Bounce rate in eCommerce



a. Wrong targeting

You spend thousands of money on the Google Ads and social media and  the rate of views is very high. Everything seems to be perfect, apart from the fact that 75% of the users increase the bounce rate (GA not modified). That means that they only saw your landing page, not even going further. The reason can be the wrong targeted advertisement. I’ll give you examples. Is there any point in advertising baby carriages to women who are over sixty? Or the nail polishes to the men? Not counting exceptions, the money you spent on these advertisements are wasted. You have to set the right and specific target to your advertisements, if you want to increase your sales.


b. Low page utility/ wrong layout

You have a great product, interesting content, optimised advertisement and good prices, however the bounce rate is still high? The reason of that can be the low page utility or the wrong layout. Users don’t feel safe and comfortable on your page, so they leave. you have to take care of the layout and utility and adapt it to your clients needs. You can use the data from Google Analytics or other tools (e.g. Usability Tools) for that. Ask your customers what makes it hard to use your page and what they don’t like about the design. You can’t rely on your own opinion. Measure, make research, analyse and optimise and focus on the data, not on your thoughts. UX audit and redesign of your website can help you in lowering the bounce rate.


c. Boring and worthless content.

The other main reason, why customers don’t want to interact with your page is the boring content of it. It’s the most important factor if you want to engage your client. The most competitive industries are coming up with various ideas, so you’d better create something interesting! You have to meet the customer’s expectation. Provoke needs and desires. Encourage him to visit another product site. The lower the bounce rate is, the higher possibility of conversion is. And conversion means profits.


3. Shopping cart abandonment

It is what haunts the owners’ of eCommerce. There was only one step left to finish making the purchase, however customer decided to leave your page. In 2015 68,95% (IBM) customers left their cart not ending the purchase process. How can you prevent yourself from  that? We analysed it, during the Webinar with SALESManago.

  • Use an e-mail to remind them about their left cart (people tend to take time to consider if they really want that product)
  • Don’t hide any extra costs, it drives people away
  • Make sure your website is user friendly
  • Make sure your website works fast enough
  • Provide different kinds of payments
  • Make sure your e-shop is secured
  • Don’t make the process of buying too complicated


cart abandoment in eCommerce


4. Conversion rate

A conversion rate, which in eCommerce means a purchase, we measure by the number of transactions/ the number of visitors. You can find this data in your Google Analytics (if you have the right settings). The conversion rate shows how your business is doing. If you correlate it with another analyses, based on that you can optimise your eCommerce. How can you increase the conversion rate of your e-shop?


a. Importance of UX design in eCommerce.

The conversion rate depends, similarly to the bounce rate, on user experience design. If your e-shop website is clear, functional and user friendly, it’ll increase the number of orders and customers loyalty. Designing eCommerce you have to have in mind the experiences and needs of users. You have to focus on exposition of products, colors, information structure and many other important elements to make your e-shop user friendly. User-centered design is a basics if you want to win over the competition. If the conversion rate isn’t good enough, you should look for the causes in the utility of your website.


eCommerce conversion


b. Product description, blog, company image- copywriting.

Despite the fact that the design of your site is crucial, you can’t forget the importance of words.  Interesting content on the blog, inspiring descriptions of the products and compelling company characterisation can convince customer to make a purchase. The great copy is one that’s written from the customer perspective. The text should inspire and fascinate and definitely shouldn’t be just the simple call to action. That doesn’t work. You have to mix these two types and create an unique text, which will bring you an amazing profits.


c. Perfect advertisement

Create a buyer persona, analyse every information about your clients and based on that make the perfect advertisement campaign. Don’t forget about right SEO! Make traffic on your eCommerce. To achieve that, use personalised ads, automation marketing and an ability to specify your customers to reach them on Facebook or Google. User, who enter your site, can be already affected by your ads, last stage is about convincing him to purchase. This can be made by design, content, products, price of products and the high user friendliness.


d. Gain trust!

In Poland, customers were reluctant to idea of online shopping for a long time, however it has been changing.It doesn’t mean that you shouldn’t care about credibility of your e-shop anymore. Not only should you have a proper certificate, but also it’s recommended to have customers’ opinions on your page (social proof). Additionally, it’s essential to build a trustworthy community using social media.  Don’t forget to inform your clients about any inconveniences and always obey the rules. In some cases one negative opinion can have the same effect as ten positive recommendations.


 5. Cost per action (CPA)

The implementation of a complex marketing campaign increases the number of orders in your e-shop. You weren’t afraid of that investment- you divide money between Google Network and Facebook Ads. The sales’s increasing so everything is right, isn’t it? No, it isn’t, because your profits are decreasing. The problem is cost per action. This rate is crucial during the creating and optimising marketing strategy. How much does it cost you to have one more client?  The answer to that question is in that formula-  the sum of funds spent on marketing activities/ the number of conversion in e-store.

Analysing the effectiveness of our campaign, you should not only take into account the holistic view of all ads, but also check how effective is each of them. It’ll make it possible to find the most effective way of advertising for you and will save you a lot of money.


call-to-action in eCommerce


The campaign optimisation

When you want optimise your campaign, it’s essential to focus on every single channel. If you find one off them not effective, you shouldn’t leave it! Firstly, check if the target has been properly chosen  (you can use special tools). Then you should check if you didn’t make mistake setting a buyer persona. Remember the buyer persona isn’t exactly the customer, who is interested in you products! If you are sure that the target is perfectly match, the other thing is checking content and design of an advertisement. Is CTA put in a good place? Is it noticeable? Do you point out the advantages of your offer in a compelling way? We won’t be talking here about creating appropriate advertising materials, however copy and design are key factors. If you don’t have the knowledge about optimising ads in Google Network and social media,a good solution is to hire the agency that will take care of that. Why? Wrongly adjusted ads can not only waste a huge amount of money, but also damage your company image.

The aspect of optimizing the rate of cost per action is worth considering. Customers aren’t equal! During analysing and optimising, check if the CPA is worth customers value. For example, investing $600 in X ad, that made 100 customers with the average order value- $22, isn’t worth as much as investing $1200 in Y ad, that made 20 customers with AOV- $210. In calculation consider the number of orders and the average number of order from each source.

6. Traffic on eCommerce website.

Well set Google Analytics is currently the most powerful weapon  in the marketers’ hands. It allows us to find out who was on our site, how he got there, what device he used, how much time he spent there and what products he viewed. Analysing the GA data is believed to be a common practice, however many owners of e-shops don’t do it.

Three main sources of traffic are direct, referral and organic search. Nowadays, we can notice an increasing importance of social media in generating traffic. These aren’t only sources of traffic. If you invest in an advertisement, you’ll find also paid search, display and other.


SEO and SEM marketing


All these sources can be analysed and will bring relevant information about the state of your website. There isn’t the one perfect source of traffic, because it mainly depends on character of your site and marketing activities. This is why you can’t depend on one source, but you have to make different sources effective. It minimize the risk of failure in case of any problems due to SEO or advertising campaign.


To increase traffic in your e-shop, you have to check all the phrases and words, which can be used by users searching for your products or service. The outcome may shock you! In this case you also have to believe the data! Using the long tail keyword method will help you to build a successful strategy of content marketing.


What is the sign of the successful strategy in generating traffic? In case of eCommerce it is high or increasing proportion between conversions and visits on site. The equal number of new visitors and visitors that come back (when you have a new e-shop you have to focus only on new comers, however in the case of old eCommerce, you have to make them to come back) and the very low bounce rate- lower than 50%. If these 3 elements are on good levels, your eCommerce is nearly perfect. However, the process of optimising eCommerce is neverending story.


7. LTV

When someone’s life is in danger, every second counts. In case of eCommerce, customer’s life isn’t measured in seconds, but in months or years. His value has a huge impact on the success of the e-shop. What is LTV?

The lifetime value isn’t just a rate. It’s more like a complex marketing strategy, which is in opposition to methods of accounting  campaign profitability based on CPA (cost per acquisition). LTV is a long term process. Determining LTV we have to take into account CPA and the potential profit from it, which he generates in the right time. The proper analytics allows us to focus only on valuable customers.


The basic tool for that is Google Analytics, however you can also use the tools shared by marketing automation application. Anyway, let’s focus on GA and make the simple chart, where we can put our data. On that we’ll based our next steps. Firstly, we have to define the exact time during which we want to make our research. The best thing is to choose the same period of time as period of advertising campaign, sharing new products or service or just simply set the reliable time based on which we can have data and then analyse it. What do we need?


Let’s describe the average order value and based on it, differ users from each other. Group them by the money they spend in your shop- below or above the AOV. It’ll help you understand where from your revenue came from. It may be shocking when you find out that 10% of your customers generate 75% of your profit. So ask yourself, is it worth it to focus on every customer or only on the most valuable? There is no simple answer to that question, but there are some main strategies. You can: focus on the most profitable customers, try to ‘transfer’ some customers to the higher level or generally focus on increasing loyalty and AOV. All will be successful if done right.

You can’t forget about the long term profit. If you want your customers to buy in your shop regularly for a year (that time period is the most probable and profitable), your mission is to make a proper marketing campaign. What tools can help you?


Analysing sales


a. Personalised message and marketing automation

These are great tools that are perfect for all the actions connected with lifetime value.

Dividing users, delivering personalised messages to the specially selected target, analysing behaviours and geodemographics data, pipelines. All this things lead to the perfect content that fulfills the customer’s’ expectations and makes them interested in your products. One-to-one e-mail marketing, personalised banners and pop-ups- you can use it all to win the battle for the customer loyalty!


b. Omnichannel retail

Integration of sales channels which makes the positive image of your company and products. Flexibility and the perfect match for the 21st century customer’s needs. It DOES matter in increasing the quality of client’s life.  You can read about that here OmniChannel – many paths to one goal. The new dimension of sales.


c. Reward loyalty!

Special offers and discounts are a really good way, but you shouldn’t overuse them. Use them only on unique occasions or when you see your client is losing his interest. Appreciate the engagement and loyalty, remind how it all started, make an emotional story about products which he bought in your eCommerrce. You can also create a compelling remarketing campaign targeted to the people that used to buy from you, but they don’t do it anymore. You don’t have to offer them huge discounts. It is more important to remember about personalisation and the valuable content. Use the power of content marketing!


Measuring and optimising 7 key performance indicators will have a positive impact on your eCommerce. Additionally, we described some of the methods which will bring quick profits. The one goal and seven ways to get there- it’s a good image of eCommerce business. Because to achieve something you can’t focus only on one way. You have to be determined and have various tools to get there. Follow our blog and we will help you to get there. But, if you want to be there faster, you can contact us and we’ll help you with your project!