5 Key Performance Indicators For Every Shopify Store Owner
The beauty of e-commerce is that anyone can participate. No matter your industry or the types of products you sell, services like Shopify make it simple to create an online store and get your goods into the hands of paying customers. Though you might not have the big marketing and finance departments that large organizations enjoy, there are plenty of tools available to entrepreneurs for tracking critical key performance indicators (KPIs).
Understanding which KPIs are most important to your business is the first step in outselling the competition. Begin by monitoring these five measures of success.
1. Track Sales
The primary goal of any for-profit business is to create income. Of course, that’s only possible when your products are selling. The number-one KPI to monitor is your sales. When broken down into additional detail, for example, which products sell best and whether you primarily attract new or repeat business, you can better target your business strategy for greater effectiveness. Remember, it is far more expensive to bring in a new customer than it is to keep an existing one. Using the built-in Shopify discount code or gift certificate system will allow you to keep your top customers happy by rewarding them.
2. Sales Conversion Rate
Getting visitors to your site is an excellent start, but keeping them there long enough to make a purchase is an entirely separate challenge. Your sales conversion rate shows the return on investment for specific marketing tools as well as how effective you are at turning prospective customers into paying customers.
3. New Customers
While there is nothing wrong with building a loyal clientele and treating them well so they stay with you long-term, there is still value in measuring your success with attracting new business. You will always have attrition, even with the most loyal customers, and you have to be able to backfill those sales to maintain your current profits. If growth is part of your business objective, understanding where and how you attract new customers is even more critical.
4. Top Selling Products
Tracking your top-selling products gives you visibility into your biggest opportunities for success. With one glance, you can see which items your customers want most – and how those numbers match up with your social media campaigns. This allows you to adjust your pricing and marketing efforts to get the biggest return on your advertising investment.
5. Abandoned Checkouts
This KPI refers to the phenomenon in which your customers go as far as placing an item in their online shopping cart then abandon the effort. If you have attracted them to this point, you are clearly doing many things right. Now, it is a matter of getting over the final hurdle. When your abandoned checkout rate is high, start looking for root causes. Limited payment method options, high shipping and handling fees or an overly complex order page may be standing in the way of your sales. Fortunately, Shopify has a great abandoned cart feature that allows you to revive an order if your customer forgets to complete it. Using a simple link, you can bring the customers right back to where they left off. You can even automate that process if you’d like.
What does this mean for your business?
Databox is a Shopify owner’s best friend when it comes to tracking KPIs. This service gathers and analyzes the data from your site, then uses it to create a user-friendly KPI dashboard. It only takes a few minutes to get an overview of where your business stands on all critical metrics, thanks to this simple tool.
The Shopify Experts at Advancify have the skills and experience needed to help you make the most of your Shopify store. They use advanced technology to create a unique, customized site that will encourage your customers to stay longer and buy more. Once you integrate your Databox dashboard into your state-of-the-art site, your business will be unstoppable. Start today by using our template dashboard that inspired this article, it features the following KPI’s:
- How much does an average user spend on our website?
- Is your website sales team meeting their goals?
- What are the top performing products?
- How does this months performance compare with the previous period?
We love seeing our data on the wall when we brew our morning cup of coffee, it gives us insight into our recent campaigns and leaderboards too! Maybe one day we’ll start our very own Shopify store.
— Advancify (@Advancify) October 24, 2017