Essential Business KPIs for Online Stores & Tracking Them

Essential Business KPIs for Online Stores & How to Track Them Like a Pro

Posted 1 year ago by Anastasia Prokofieva

In桂the桂world of桂business, data is桂king. However, navigating this massive amount of桂information can be桂overwhelming.

Enter key performance indicators, or桂KPIs桂�� the桂beacon that guides you through the桂stormy waters of桂data to桂the桂sunny skies of桂valuable insights for桂your business.

One of桂the桂most crucial aspects of桂ensuring business continuity is桂having a桂clear understanding of桂your business growth KPIs. This can help you develop better strategies, make more informed decisions, 껸꾈삣桂ensure your business�셲 sustainable growth.

So, what exactly are KPIs in桂business, 껸꾈삣桂how can they help you focus on桂what is桂most important for桂the桂success of桂your venture? Dive into this post to桂learn about essential key performance indicators for桂online stores 껸꾈삣桂how to桂track them like a桂professional.

Understanding KPIs in桂Business

In桂a桂business landscape where competition is桂fierce 껸꾈삣桂margins are thin, a桂keen understanding of桂business KPIs (key performance indicators) can spell the桂difference between success 껸꾈삣桂failure.

So, what is桂KPI in桂business? Essentially, KPIs are measurable values that can be桂used to桂assess an桂organization�셲 success in桂meeting various business objectives. They come in桂many forms桂�� from measuring revenue growth 껸꾈삣桂customer retention to桂tracking employee performance 껸꾈삣桂productivity.

What Are KPIs?

At桂its core, KPI, meaning in桂business, is桂about measurement桂�� they�셱e the桂critical (key) indicators of桂progress toward an桂intended result. KPIs provide a桂focus for桂strategic 껸꾈삣桂operational improvement, create an桂analytical basis for桂decision-making, 껸꾈삣桂help focus attention on桂what matters most.

Different Types of桂KPIs

When it桂comes to桂measuring business performance, there are various categories that KPIs can fall into. These categories help organizations track 껸꾈삣桂evaluate different aspects of桂their operations, such as桂financial performance, customer satisfaction, operational efficiency, 껸꾈삣桂employee productivity.

Here are some common KPIs that many businesses track:

Financial KPIs: these measure your business�셲 financial health 껸꾈삣桂performance, such as桂revenue growth, profit margin, 껸꾈삣桂return on桂investment.
Customer KPIs: these track how well you are serving your customers 껸꾈삣桂their satisfaction levels with your products or桂services桂�� for桂example, customer satisfaction scores, retention rates, 껸꾈삣桂net promoter scores.
Operational KPIs: these measure the桂efficiency 껸꾈삣桂effectiveness of桂your business operations, such as桂inventory turnover 껸꾈삣桂employee productivity.
Employee KPIs: these focus on桂individual 껸꾈삣桂team performance, such as桂sales targets 껸꾈삣桂customer service ratings.

Why Businesses Need KPIs

Imagine navigating a桂ship without a桂compass. That�셲 a桂business without KPIs! As桂a桂business owner, you need to桂track progress, forecast the桂future, 껸꾈삣桂make decisions with confidence. KPIs are the桂compass that helps you steer your ship in桂the桂right direction.

Benefits of桂tracking KPIs:

Performance tracking: By桂defining 껸꾈삣桂tracking KPIs, you can monitor your business�셲 performance in桂real-time 껸꾈삣桂make necessary adjustments to桂stay on桂course.
Goal setting: KPIs provide a桂benchmark for桂setting achievable goals 껸꾈삣桂measuring success.
Data-driven decision-making: Instead of桂relying on桂guesswork, using KPIs allows you to桂make data-driven decisions that can lead to桂better outcomes.
Identify areas for桂improvement: By桂analyzing your KPIs, you can identify areas of桂your business that may need improvement 껸꾈삣桂take corrective action.

For an桂online store, tracking orders can guide decisions about inventory management 껸꾈삣桂marketing strategies

Must-Have KPIs for桂Online Stores

As桂you can see, there are many different types of桂business KPIs 껸꾈삣桂lots of桂metrics you can track. This may sound overwhelming at桂first 껸꾈삣桂make you wonder what you should be桂focusing on桂in桂your online store. The thing is, depending on桂your business, the桂KPIs you choose to桂track will vary.

However, if桂you�셱e an桂online store owner, there are specific KPIs that can make a桂significant impact on桂your business�셲 bottom line.

So, what metrics are the桂most important for桂your online store? Read on桂to桂find out.

Tracking Traffic

Getting more visitors to桂your store starts with understanding where your traffic is桂coming from. By桂tracking website traffic, you can identify which channels are driving the桂most visitors 껸꾈삣桂adjust your marketing strategy accordingly.

Here�셲 what you need to桂pay close attention to桂as桂an桂online store owner:

Number of桂online store visitors
How much time people spend in桂your online store
How many of桂the桂visitors are returning
What device they use to桂browse your store

That helps you track your store�셲 traffic 껸꾈삣桂adjust your marketing strategy accordingly. For example, if桂most of桂your traffic comes from mobile devices, it桂may be桂worthwhile to桂optimize your website for桂mobile users.

Tracking Orders 껸꾈삣桂Conversions

For an桂online store, orders are the桂lifeblood of桂your business. Tracking orders can help you understand your customers�� purchasing behavior 껸꾈삣桂make informed decisions to桂drive more sales.

Here�셲 what you need to桂track when it桂comes to桂orders:

The total number of桂orders placed 껸꾈삣桂the桂revenue
Conversion rate (number of桂completed purchases/total visitors)
Number of桂repeat orders
How many items people usually buy
How many items you sold during a桂specific period.

Once you figure out what factors contribute to桂bigger orders, you can use those strategies to桂encourage customers to桂buy again 껸꾈삣桂make larger orders. For example, if桂you notice that orders spiked after you offered free shipping for桂a桂certain amount spent, you can use that tactic again to桂boost sales.

Tracking Finance

Track your financial flows to桂understand how well your business is桂doing 껸꾈삣桂gain insights for桂the桂future.

Here are the桂accounting metrics you need to桂have an桂eye on桂as桂an桂online store owner:

Your store revenue
Expenses
Average order value, i.e., how much money you make per order
Average revenue per customer 껸꾈삣桂visitor, i.e., how much money each customer brings you.

Tracking these numbers is桂essential to桂understanding your store�셲 financial health 껸꾈삣桂making improvements. For example, if桂your average order value is桂low, you can focus on桂upselling or桂cross-selling strategies to桂increase revenue per order.

Tracking Marketing Metrics

Customers access your store through multiple channels, including ads, emails, social media, 껸꾈삣桂more. By桂pinpointing the桂sources that have a桂greater impact on桂your orders, you can optimize your marketing strategies effectively.

Here are the桂marketing metrics you should track in桂your online store:

Performance of桂your marketing campaigns, such as桂click-through rates 껸꾈삣桂conversion rates
Where your orders are coming from (i.e., order sources).

How to桂Track Your Online Store Performance

While there are various tools for桂tracking your business KPIs, it�셲 much easier to桂track your online store performance where you manage your business.

If桂you sell online using the桂붚죕쳔 by桂Lightspeed ecommerce platform, not only do桂you get a桂powerful online store, but you also get valuable insights into its performance directly where you manage it桂all桂�� in桂your 붚죕쳔 admin.

Reports 껸꾈삣桂analytics section in桂the桂붚죕쳔 admin

With 붚죕쳔, you can access real-time reports 껸꾈삣桂analytics to桂monitor your online store�셲 performance, including sales numbers 껸꾈삣桂customer data. You can actually track 껸꾈삣桂measure all the桂critical online store KPIs we桂discussed above!

걀꾈桂넨농깎桂 page, you can get a桂comprehensive understanding of桂your store�셲 performance through key metrics: visitors, orders, conversions, 껸꾈삣桂revenue, which can serve as桂practical business KPI examples:

The Visitors section lets you keep an桂eye on桂store traffic, how long visitors stay in桂your store, what devices they use, 껸꾈삣桂if桂they return.
The Conversions section shows you the桂percentage of桂visitors who actually make a桂purchase.
The Orders section lets you gain insights into the桂number of桂orders made, the桂revenue generated, new versus repeat orders, 껸꾈삣桂the桂average number of桂items sold during a桂certain period.
The Revenue section lets you stay updated on桂your financial flows. It桂provides valuable insights into your store revenue, expenses, average order value, 껸꾈삣桂average revenue per customer 껸꾈삣桂visitor.
There is桂also a桂Marketing section that gives you insights into the桂performance of桂your marketing campaigns, order sources, 껸꾈삣桂the桂marketing strategies you�셶e implemented in桂your store that have led visitors to桂make a桂purchase.

You�셪l find line charts to桂analyze 껸꾈삣桂forecast trends over different periods, tables for桂a桂detailed data examination, 껸꾈삣桂interactive pie charts for桂a桂quick 껸꾈삣桂insightful overview of桂key metrics.

Simply click on桂the桂dropdown 껸꾈삣桂choose the桂time interval you want to桂customize the桂reports. To桂get more insights, you can choose a桂period for桂comparison. This lets you view how the桂metrics of桂the桂current period have changed compared to桂a桂period from the桂past.

Choosing a桂period for桂comparison

Benefits of桂Tracking Your Store Performance with 붚죕쳔

There are various tools available for桂measuring your business metrics, but using 붚죕쳔�셲 reports has its unique advantages:

With 붚죕쳔, you can track all the桂essential metrics in桂one place rather than using multiple tools to桂gather different types of桂data.
붚죕쳔�셲 reports are automatically updated 껸꾈삣桂synced with your store�셲 data, saving you time 껸꾈삣桂effort.
The reports are easy to桂read 껸꾈삣桂understand, with colorful charts 껸꾈삣桂graphs that help visualize your store�셲 performance.
You have the桂flexibility to桂choose any桂period for桂each type of桂report 껸꾈삣桂compare it桂with the桂same period from the桂previous week, month, or桂year.
Each metric brings a桂range of桂specific parameters that help you dive deeper into your store�셲 performance.
To桂stay in桂the桂loop, you have the桂option to桂receive weekly emails from 붚죕쳔. These emails will not only provide you with your weekly stats but also offer some helpful advice on桂how to桂grow your business.

With 붚죕쳔, you can use the桂trends, statistics, 껸꾈삣桂parameters the桂Reports provide to桂refine your strategies 껸꾈삣桂ensure that your business is桂on桂the桂right track. So桂why wait? Start tracking your online store�셲 performance with 붚죕쳔 today 껸꾈삣桂use the桂valuable insights to桂boost your sales, improve your marketing strategies, 껸꾈삣桂reach new heights in桂your business.

The Visitors section in桂붚죕쳔�셲 reports

How to桂Start Using Reports with 붚죕쳔

When it桂comes to桂running a桂successful online store, knowledge is桂power, 껸꾈삣桂붚죕쳔 provides you with all the桂necessary tools to桂track 껸꾈삣桂understand your store�셲 performance.

To桂start using 붚죕쳔�셲 reports, follow these simple steps:

.
Open your 붚죕쳔 admin 껸꾈삣桂click on桂the桂 page.
Choose the桂type of桂report you want to桂view, such as桂visitors or桂orders.
Customize the桂date range 껸꾈삣桂other parameters to桂get a桂more detailed report.

Use the桂insights from the桂reports to桂make informed decisions for桂your business, 껸꾈삣桂don�셳 forget to桂check in桂regularly 껸꾈삣桂track your progress over time.

As桂an桂online store owner, it�셲 crucial to桂clearly understand your financial 껸꾈삣桂marketing metrics to桂make informed decisions for桂your business. With 붚죕쳔�셲 user-friendly reports, you can easily track 껸꾈삣桂analyze these metrics in桂one convenient place.

To桂learn more about using the桂Reports tool in桂your 붚죕쳔 store, read this .

How To桂Make the桂Most Out of桂붚죕쳔�셲 Reports

A桂great benefit of桂using 붚죕쳔�셲 reports is桂that they unlock valuable insights into your online store data that would otherwise be桂challenging or桂even impossible to桂track with other tools. Here are some of桂the桂metrics you can track:

Metrics that help you understand the桂success 껸꾈삣桂long-term sustainability of桂your business, such as桂revenue per customer or桂visitor
Metrics related to桂your 붚죕쳔 store expenses
Metrics related to桂conversion by桂customer segments, such as桂new vs. returning visitors or桂desktop vs. mobile visitors.

Let�셲 explore a桂few examples showcasing how a桂deep understanding of桂these metrics empowers you to桂make informed decisions that drive business growth 껸꾈삣桂improvement.

Managing Advertising Campaigns

Revenue per visitor helps you plan your advertising campaign 껸꾈삣桂ensures you don�셳 overspend.

Checking average revenue per visitor in桂붚죕쳔�셲 reports

Say, your revenue per visitor is桂$1. Knowing this information, you can adjust your marketing campaigns accordingly to桂spend less than a桂dollar to桂attract a桂visitor. This way, you�셪l increase your profits in桂the桂long run.

Sales sources give you a桂peek into which marketing channels are bringing in桂the桂most visitors 껸꾈삣桂which ones aren�셳 performing well. This information helps you decide which channels to桂drop 껸꾈삣桂where to桂allocate more resources.

붚죕쳔�셲 Marketing reports provide you with an桂easy-to-understand overview of桂your sales sources

Learn more about tracking sales sources in桂your 붚죕쳔 store.

Understanding Profits vs. Expenses

Metrics like revenue per customer help you plan future income. For example, if桂you know how many new customers you�셱e going to桂attract this month, you can calculate how much money you�셪l make this month. This is桂helpful as桂it桂allows you to桂set realistic goals 껸꾈삣桂track your progress towards them.

There are other metrics that help you accurately calculate your expenses 껸꾈삣桂estimate future profits.

For example, in桂your 붚죕쳔 store, you have the桂option to桂specify the桂cost of桂goods桂�� the桂cost price, which is桂essential for桂calculating store expenses.

You also get a桂detailed breakdown of桂your store spending, giving you insights into specific categories like shipping costs 껸꾈삣桂the桂overall expenses involved in桂creating, preparing, 껸꾈삣桂selling a桂product.

Targeting High-Performing Segments

When it桂comes to桂conversions by桂segments, like new vs. returning visitors, you can identify the桂segments with high conversion rates 껸꾈삣桂focus on桂driving more people into those segments. Similarly, you can pinpoint the桂segments with low conversion rates 껸꾈삣桂make improvements accordingly.

Comparing new vs. returning customers

For instance, you�셶e noticed a桂remarkably high conversion rate for桂orders among visitors who have previously visited the桂store. To桂maximize this opportunity, you could consider launching remarketing campaigns on桂Facebook to桂bring back visitors who have already shown interest but haven�셳 made a桂purchase yet.

Optimizing Website Experience

Metrics related to桂conversions by桂segments also help you identify areas for桂website optimization. Take, for桂example, desktop vs. mobile conversions. If桂you observe low conversion rates on桂mobile, it�셲 a桂clear indication that you need to桂work on桂improving the桂design of桂your website for桂mobile users.

Metrics such as桂visitors by桂country 껸꾈삣桂language provide insights into your audience�셲 locations 껸꾈삣桂preferred browser languages. Leveraging this data, you can offer country-specific shipping options or桂localize your website to桂better resonate with your audience.

You can also track orders by桂shipping method 껸꾈삣桂payment option, providing a桂snapshot of桂your customers�� preferred choices. This insight helps you determine whether it�셲 time to桂phase out the桂less popular options.

Analyzing Product Trends

The Product sales 껸꾈삣桂stock overview report gives you a桂handy summary of桂what items have been sold in桂a桂specific timeframe 껸꾈삣桂their current stock levels.

By桂comparing these numbers to桂the桂previous period, you can spot sales trends for桂each product. This helps identify which products should be桂discounted or桂stocked up桂during peak seasons.

A桂Product Sales 껸꾈삣桂Stock Overview report in桂붚죕쳔 admin

Analyzing Your Sales Funnel

The Checkout process steps in桂the桂Conversion report show you how many customers finish each step of桂your store�셲 checkout. This helps you see where buyers leave their carts 껸꾈삣桂lets you tweak things to桂close more sales.

For example, if桂lots of桂shoppers drop off at桂the桂shipping step, you could try offering free shipping or桂a桂faster delivery option.

Best Practices for桂Tracking 껸꾈삣桂Measuring KPIs

In桂a桂world where data is桂king, your business�셲 ability to桂understand 껸꾈삣桂use different KPIs will be桂a桂massive part of桂your success. So桂always keep an桂eye on桂those numbers because they all tell a桂story桂�� the桂story of桂your business�셲 past, present, and, potentially, future.

To桂get the桂most out of桂measuring your business KPIs, here are some best practices to桂keep in桂mind:

Selecting the桂Right KPIs

Wrong KPIs mean the桂wrong direction. So, how do桂you pick the桂right ones? It�셲 about what�셲 vital for桂your business success. Here are some tips:

Align with your business objectives: Choose KPIs that align with your business goals 껸꾈삣桂long-term strategy.
Keep it桂simple: Don�셳 get weighed down by桂too many KPIs. Focus on桂the桂essential ones that truly measure success.
딸깎桂곶깎깜깎국껸꾈넨: Ensure your KPIs are meaningful 껸꾈삣桂relevant to桂your business. Don�셳 just track something because it�셲 easy.
Monitor trends: Look beyond single data points 껸꾈삣桂track trends over time to桂see how your performance is桂changing.

With a桂vast range of桂KPIs available, it桂can be桂overwhelming to桂select the桂right ones for桂your business. But remember, what matters most is桂picking the桂ones that align with your specific business goals 껸꾈삣桂objectives. 붚죕쳔 checks all these boxes by桂providing easy-to-use reports that track your most important KPIs.

Tracking KPIs

Once you have identified the桂right KPIs for桂your business, it�셲 essential to桂track them consistently. Here are some tips for桂effective tracking:

Set a桂frequency: Decide how often you will track your KPIs桂�� daily, weekly, monthly, etc.
Use technology: Consider using software or桂tools to桂track your KPIs automatically 껸꾈삣桂analyze them in桂real time.
Visualize the桂data: Create easy-to-digest visualizations of桂your KPI data, such as桂graphs or桂charts, to桂quickly understand trends 껸꾈삣桂patterns.
Track against targets: Set specific targets for桂each KPI 껸꾈삣桂track progress towards those targets.

In桂that regard, using 붚죕쳔�셲 built-in reports is桂just what you need as桂an桂online seller: a桂clear, concise way to桂track your progress 껸꾈삣桂measure success against your long-term strategy.

Wrap-Up

Congrats, now you know �뗢�땒ow to桂use KPIs to桂measure performance! Keep in桂mind, though, that business KPIs are a桂compass, not a桂map. They guide you, but your strategy is桂what gets you to桂your destination桂�� business success.

붚죕쳔 is桂your partner in桂navigating through the桂waters of桂ecommerce. With reports by桂붚죕쳔, you can track, analyze, 껸꾈삣桂use those insights to桂boost your business forward.

Sign up桂for桂붚죕쳔 껸꾈삣桂seamlessly migrate your existing store. You�셪l love managing an桂online store that keeps you informed about its performance at桂all times.

You can also take advantage of桂붚죕쳔�셲 other features, such as桂inventory, order, 껸꾈삣桂staff management, 껸꾈삣桂marketing tools桂�� everything that simplifies the桂life of桂a桂busy business owner. Plus, you can sync your 붚죕쳔 store with social media 껸꾈삣桂marketplaces to桂sell on桂Facebook, Amazon, 껸꾈삣桂more.

桂

About The Author

Anastasia Prokofieva is a content writer at 붚죕쳔. She writes about online marketing and promotion to make entrepreneurs�� daily routine easier and more rewarding. She also has a soft spot for cats, chocolate, and making kombucha at home.

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