ecommerce businesses

The 7 unspoken laws of ecommerce success

The landscape of ecommerce in India is growing leaps and bounds with every retailer vying for their unique space in the industry. While online marketplaces are getting their fair share of success, ecommerce a lot of potential for new businesses. Unlike marketplaces, retailers have a lot more freedom to integrate innovative ways of boosting their business and join the bandwagon of rising ecommerce trends. Besides the mainstream technical knowledge and market insights, there a few tips that can help retailers and marketers to succeed in the ecommerce space.

Treat your ecommerce business as a thriving offline business
Except for the tangibility of your store, there’s not much difference between the efforts and time that you need to invest in a brick-n-mortar store and your ecommerce business.

Find the right software for your business
While it is important to make your ecommerce website really stand out, you need the most appropriate platform to build it on. Look at software that supports your creative idea and is sustainable.

Be where your customers are
The old trick of the trade calls for tapping right into the needs of your audience and fulfilling it. To do the same you need to be visible in places where your customers are.

Build Buyer Trust
Empower your customers through personalized communication and allow them to share their experiences with your product/service through reviews, feedback featured blogs etc. This not only builds trust with them but also makes them your brand ambassadors.

Keep the checkout process easy
Majority of conversions drop at the checkout point. Integrating a popular payment method and minimizing the page loading time can help reduce friction at the point of sale.

Offer Excellent Online Support
Think beyond calls and emails and consider live chat support on your site, across the user journey to enhance your customer support strategy.

Partner with other brands
Even if they are small local brands, partnering with complementary businesses add value to your brand and enhances your reputation among your audience.
There is no ideal model for a successful ecommerce business. With innovative business ideas, trial and error, and steady growth, your business can see the future of ecommerce, provided you are ready to take the leap of faith.

10 KPIs to Measure eCommerce success + Free Resources

Key Performance Indicators are a measurable value to denote how a business is meeting key business objectives. Businesses segregate their KPIs into High-level KPIs and Low-level KPIs based on the impact they have on their business goals. High-level KPIs focus on the overall performance of the organization whereas low-level KPIs focus on performance of their departments.

Why set KPIs

  • KPIs help drive business to greater heights
  • They ensure that everyone in the organization is working efficiently to fulfil business goals
  • KPIs help meet strategic and operational goals effectively

KPIs for eCommerce

There are a number of KPIs you can set, but we have curated a list of 10 KPIs that are absolutely essential to monitor to tweak your eCommerce performance

 1. Return on Investment (ROI): One of the most thrown-around Jargon in any industry, Return on Investment (ROI) is one of the most important metrics to monitor when it comes to eCommerce. Return on investment may be measured per each important channel or per total marketing spends.

  How to Calculate: Revenue/ Costs

  Tools: Google Analytics & Measurable

 2. Year over Year Growth (YOY): Scaling your business consistently over time is a mandate if you want to succeed instead of merely surviving the wave of eCommerce. Year over Year growth can be measured as a variation of revenue, conversion rate, average order, customer lifetime value.

  How to Calculate: (Metric) Last Year / (Metric)Current Year

  Tools: Google Analytics & Measurable

 3. Customer Lifetime Value (CLV): Customer lifetime value is a prediction of the net profit attributed to the entire future relationship with a customer. CLV is one of the most important metrics for measuring gross profit and success over time. Generating new customers has been proven to be the most expensive endeavor for almost all eCommerce businesses and so CLV becomes an important metric to watch out for.

 How to Calculate: Profit/Customer/Year x Average number of years

 Tools: Google Analytics & Measurable

 4. Average Order Value (AOL): Average order value (AOV) is yet another important metric for your ecommerce store. Average order value (AOV) tracks the average amount spent each time a customer places an order on your website or mobile app.

 How to Calculate: Average Revenue / Customer

 Tools: Google Analytics

 5. Conversion Rate (CR): Conversion Rate is a metric to measure the efficacy of your marketing and eComm efforts. A high conversion rate reflects the success of a business. Though the benchmark over industries vary, conversion rate remains an important metric in every industry including eCommerce.

 How to Calculate: Conversions / Visits

 Tools: Google Analytics

6. Customer Acquisition Cost (CAC): Customer Acquisition Cost is the cost associated with convincing a customer to buy your product/service. This cost is incurred by the organization to convince a potential customer via marketing efforts. This cost is inclusive of the product cost as well as the cost involved in research, marketing, and accessibility costs

 How to Calculate: Traffic Cost + Discounts + Incentives + Prizes

 Tools: Google Analytics & Measurable

7. Cart Abandonment Rate (CAR): Abandonment is an ecommerce term used to describe a visitor on a web page who leaves that page before completing the desired action. Examples of abandonment include shopping cart abandonment, referring to visitors who add items to their online shopping cart, but exit without completing the purchase.”

 How to Calculate: Conversions / Cart Visits

 Tools: Google Analytics

 8. Purchase Intention (PI): Purchase Intention can be broadly defined as the number of visitors on your webpage willing to make a purchase

 How to Calculate: % of visitors that want to buy

 Tools: Marketizator

9. Search Penetration Index: SPI can be defined as the number of visits you are getting on your site from all search volume like PPC and SEO efforts.

 How to Calculate: Number of visits / number of searches

 Tools: Google Analytics & Measurable

10. Customer Satisfaction Index: CSI can be determined with post-purchase surverys. Customer satisfaction plays an important role within your business. Not only is it the leading indicator to measure customer loyalty, identify unhappy customers, reduce churn and increase revenue; it is also a key point of differentiation that helps you to attract new customers in competitive business environments.

How to Calculate: Monthly Surveys

Tools: email and Marketizator surveys

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