WHAT ARE KPIs
A key performance indicator is a quantifiable metric that reflects how well an organisation is achieving its goals and objectives. The name brings out its meaning. For example if your goal is to provide information on conversion of a particular platform, the best tool to track such events will have to be the conversion rate to track all users who end up completing a particular purchase or signing up on the platform. KPIs exist within numerous industries, across multiple roles and teams and carry similar weight regardless of who is monitoring. KPIs link organisational vision to individual action. Most KPIs measurement is assumed to be associated with numbers, however evaluations which have to do with service and customer experience often go beyond just numbers.
THE CONCEPT OF E-COMMERCE
Commerce has to do with the transaction of business activities. Simply put, e-commerce has to do with any form of buying and selling of goods and services via the internet. Let’s talk about how the two combine in helping business owners achieve set objectives. E-Commerce KPIs determine how well an online business owner, team or a company at large is doing against their set goals. They also support organisational strategy. Furthermore they allow you to focus on what matters most and help you monitor business progress and performance. Likewise it is expedient for E-Commerce businesses to take the right KPIs to enable owners make better decisions regarding conversions, revenue, marketing , customer satisfaction and well endowed business operations.
HOW TO CHOOSE THE BEST KPIS FOR YOUR E-COMMERCE BUSINESSES
There are alot of KPIS for business but in choosing you have to know the right one that suits your firm.
CHOOSING BASED ON THE TYPE OF KPIs
There are several types of KPIs available to monitor business activities. There are many types of KPIs but for the purpose of this article we will talk about the three main types. Basically we have qualitative and quantitative indicators which stand opposite in meaning. The former cannot be represented with numbers whereas the latter is represented with numbers. There are leading indicators as well which denotes the ability to predict the outcome of a process. Subsequently knowing the type of indicators to use is pivotal to the success of your business. Therefore when it comes to choosing e-commerce KPIs it is elemental to focus on the type that suits the business goals. This leads us to talking about the next thing to look out for in choosing indicators.
BASED ON BUSINESS GOALS
In choosing KPIs for an organisation it is important to select according to the set goals. The best method for determining future targets is to establish benchmarks in the form of KPIs. There is the need to break down goals into specific short-term actions that are more tangible and can be measured. For example, organising campaigns on a website to track particular user behaviour for decision making. KPIs aid in assisting strategic objectives and goals to enable real-time evaluation of business processes. Thus KPIs and business objectives depend on each other, your goals predict your indicators and your indicators will lead you to your goals.
BASED ON ABILITY TO MEASURE WITH EASE
It is advisable to choose indicators that are quantifiable and provide your team with unique insights into the progress and the results your business needs. When your indicators are easily measured with the required metrics it easily allows you to identify performance of a campaign. An effective KPI is a key fabric of achieving faster results in an e-commerce business. For example, easily measured indicators could be related to gauging goals relating to the increase of sales, improving the retention of investments and improving customer service.
In conclusion it is always important to have a well laid out plan to take cognisance of all the ways that help in choosing the right KPIs for your business. It goes a long way in determining the success of the organisation.