In online marketing, Key Performance Indicators (KPIs) are like signposts on an unfamiliar road that will lead to unprecedented success. Businesses must keep an eye on KPIs as it will assist them in improving their sales, obtaining customer service aims and planning the strategies for a successful ecommerce marketing campaign. Through this article, we will tell you ways to work on your weaknesses, enhance your ROI and know whether the product and shopping channels you are investing in are best suited for you or not. Stay with us to know the best methods that you can employ to track your ecommerce marketing success.
Return on Investment
It is important to keep track of your online marketing campaign measurements, including click-through rates, budgets, year over year growth (YOY) etc. Now the question arises, how can you achieve return on investment (ROI) goals? When you pay more for valuable sources in order to scale the volume, you can optimize each of your campaign source ROI. You should avoid those sources which don’t provide you any profit. You can track your monthly & yearly performance of your website by calculating ROI.
Cost of Sale Percentage (COS%) Method Can Have 100% Success
Businesses can make the most out of the cost of sale percentage method as it can help them decide the amount of money that they have to spend on a certain product for its sale. With this method, they will be able to know which are the products that are popular and driving more money and which ones are not so that they can easily redesign their marketing plan, decide what can be eliminated and regulate bidding.
Estimated Cost of Sale (ECOS%)
Estimated Cost of Sale (ECOS%) is another excellent method that preempts cost of sale by helping the businesses to have an even better insight by informing them about products that haven’t acquired a sale yet but are already accruing ad spend. With this method, businesses can predict the actual COS% so that they can work with the marketing and strategies of the products that have less potential for sales.
Average Order Value
The primary rule of thumb that every business follows universally is that they always seek opportunities wherein each transaction; the customers are spending as much as possible. It is likely for the cost of customer acquisition to be large and if it is so, then from every conversion businesses aspire to gain the most. For instance, businesses must track the websites where customers spend more per transaction and work upon their tactic in order to attract more and more customers on their ecommerce website. However, if you have an order value that is below average, then it means that you must plan out new ways to get over on the things you are leaving. You can always start with making sure that your ecommerce website has products of all sizes and styles and you do the cross-promotion of products.
Infographic Source: Marketizator
Return on Ad Spend (ROAS)
ROAS method enables the businesses to know the amount of money a certain product earns for the amount of money they pay for its advertising. It is an ingenious way to not only modify the campaigns for advertising but also eliminate the products that are not worth the cost that is being spent on their ads. It is also possible to juxtapose marketplaces by considering your earnings for the money that is used to market the website.
Average Cost per Click (Avg. CPC) is Immensely Handy
Businesses want to expand their customer base and this is where Average CPC steps in as it enables them to know the amount they are paying on average to attract customers and get clicks on their product listing by them.
Businesses can compare the price of the product to the amount of money they are paying, on average, to sell that product. This way, they can easily know the items that are doing well and the ones that are not. Eventually, they will know whether their cost per acquisition on one site is higher or lower when compared to a different website.
Revenue is the Best Measure of Success
Finally, it all sums down to revenue. The number of sales and the amount of money made are after all the final decisive factors to measure the success and failure of a business. It is also essential to analyze the annual revenue so that businesses can know where they are heading, how long they have come and how much more they have to work on their ecommerce marketing.
But this is not all. In order to have a successful ecommerce marketing campaign, businesses must strive to have effective data and fund in a product inventory that is best suited for you. Selecting KPIs begins with clearly stating goals and understanding what areas of business impact those goals.
Other Important Marketing Performance Indicators are:
- Traffic source
- First timecustomers vs. regular customers
- Day part monitoring
- Page views per visit
- Followers on Facebook, Twitter, Instagram Pinterest
- Blog traffic
- Newsletter subscribers
- Amount of Product reviews and their quality
- Brand or display advertising click-through rates
The methods mentioned above should be well assessed and employed by every business if they want to see the success of your ecommerce business in the times to come.
Zahoor Bhat has over 10+ years of experience as an online editor and media manager. He has worked with major online news and content sites as a media manager. He is well versed with major content management systems and web platforms such as WordPress and social media networks including Facebook, Twitter, Youtube, Google Business, Yelp, Instagram & Linkedin. He is an expert in content creation, proofreading and finally making it live. Being a social media expert, he is able to make relations with social media influencers and make sure to generate leads and grow business via different social media platforms.