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5 Important KPIs for Recruitment Agencies

Determining the right eCommerce KPIs is crucial for growth, but it's not easy. As an eCommerce organization, we have more and more data at our disposal. But do we also collect more information? Insights that we can really do something with? Nowadays, as an online retailer you can keep an eye on hundreds, perhaps thousands, of different data points. How do you find the key performance indicators in this jungle of options that really tell something about the growth of your organization? To help, we collected the eCommerce KPIs that you must follow on your route to maximum growth.

WHAT IS A KPI?

A key performance indicator gives a numerical representation of how you perform on an important variable. If we flatten everything, the most important KPIs in every organization are revenue and profit. Behind this, however, is a wider spectrum of measurable variables, all of which help explain how revenue and profit are achieved.

HOW DO I CHOOSE THE RIGHT ECOMMERCE KPIS?

Which performance indicators are ' key ' depends on the objectives. For example, eCommerce has a healthy obsession with conversion rates, but for pages that receive little (still) traffic, this isn't the most important indicator of success. Choosing incorrect KPIs for assessing (marketing) activities therefore creates a distorted picture. Or, in the words of Albert Einstein, "if a fish is judged by its ability to climb trees, it will regard itself as a failure all its life."

A good KPI dashboard contains a mix of 'hard' KPIs (number of purchases, average order value, number of visitors) and 'soft' KPIs that explain these hard figures.

For example, have visitors been staying on your website for a shorter time lately? Then this may explain why conversions are dipping. Are more product pages viewed on average after a redesign? Then this is probably the explanation for rising order values.

A KPI as a bare figure says little. The trend development provides more insight in most cases than a snapshot. Because eCommerce is a constant game of optimization, in which values ​​are never the same.

CONVERSION AND SALES

View details below:

CONVERSION RATE

The conversion ratio is perhaps the sacred eCommerce KPI. The percentage indicates how many visitors eventually leave the website after a purchase.

Is this percentage so high because you attract the right visitors? Or because your website works so convincingly? The fact remains: the conversion ratio proves whether eCommerce efforts 'work'. It's also the ideal KPI to optimize - attracting more visitors to a purchase is often more efficient than attracting more visitors.

NUMBER OF VISITORS

A conversion rate should be mentioned in the same breath as the number of visitors. Together these KPIs provide insight into the number of transactions. With a constant order value and conversion, a growing number of visitors is the way to more sales.

NUMBER OF ORDERS

Simple. The number of successful conversions. Together with the number of visitors, the input for calculating a conversion ratio.

AVERAGE ORDER VALUE

The average value of an order is a great KPI for marketers who strive for optimization. For many web shops, selling more to the same visitors is the quickest route to more sales. If the value of each customer increases, this also gives room to invest extra in marketing without affecting profit margins. Popular tactics to increase this amount are up-sell in the check-out (suede spray when purchasing shoes), bundling products into one offer, or setting up free shipping above a threshold amount that's (slightly) higher than the current one average.

COST PER ACQUISITION / CONVERSION

How much do you have to spend on marketing for each order? If these costs are lower than your average margin per order, then your marketing is basically profitable. Simple, but no less important.

CUSTOMER LIFETIME VALUE

Customer Lifetime Value is the total average value of a customer. This KPI is increasingly found to be more important than the average order value. Why? Attracting new customers is many times more expensive than repeat purchases to existing customers. E-commerce managers are therefore increasingly shifting their gaze to the long term, with a growing focus on customer loyalty. The Customer Lifetime Value is the perfect measure of success on these initiatives.

NUMBER OF RETURNING VISITORS

In line with the aforementioned focus on customer loyalty, eCommerce marketers are also paying increasing attention to the number of repeat visitors. The proof that your webshop was not a fluke for visitors, but a conscious choice.

BEHAVIOUR

View details below:

BOUNCE PERCENTAGE

The percentage of visitors who click away on the first page they view. If this percentage is (too) high, then this may indicate that your advertising network doesn't connect well to the underlying page, causing visitors to click away with a misled feeling. It's also possible that there are no clear follow-up steps on a page, or that the page simply doesn't hold the attention, so that visitors leave without action. Search engines rate pages with a low bounce rate better, so this metric is also crucial for SEO .

TIME ON A PAGE

If you want to zoom in deeper into the reason that visitors bounce or drop out, and therefore may not convert, look carefully at time-on-site. You can't read a blog post of a thousand words in thirty seconds. Is the average time visitors spend on a page disproportionate to the content? Then test with a different design or more catchy content.

NUMBER OF PAGES PER VISIT

Do visitors bounce little? Good. This means that they visit multiple pages on your website. This eCommerce KPI simply provides an overview of the average number of pages per visit. The higher this number, the better your visitors are. A good sign that you reach the right target group with your marketing and website.

ABANDONED SHOPPING BASKETS

The percentage of visitors who add a product to their virtual shopping basket without actually paying. In many cases this is due to innocent 'looking around', but there are also causes that you as a webshop have influence on. For example, many visitors click away when they unexpectedly encounter (high) costs for shipping. For many, having to create an account is also a reason to drop out.

NUMBER OF PROMOTIONS / TIME UNTIL A PURCHASE

We all do impulse purchases. Also online. But on average there is a little more time between the first visit and the final order button. Therefore, keep a close eye on how long it takes on average for customers to make the decision, and what actions they take in the interim.

ECOMMERCE KPIS ARE THE BASIS FOR GROWTH

KPIs are the core of modern marketing. To really grow your business, you must monitor the performance of your webshop. Bundled in a dashboard or spreadsheet, they provide the state of affairs at a glance.

This offers guidance, clarity and prevents assessments of feeling. Something that only further increases if you continue to follow these KPIs over a longer period with a growing data set.

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