Technically, performance is one factor that businesses count on to measure the success of their E-Commerce Website Development in Pakistan. Perhaps, analyzing the multi-faceted databases of business is involved in this hassling process, which is error-prone. However, if we play smart, we’d measure all of them, including cost, customer experience, and revenue with the E-Commerce Key Performance Indicators, aka KPIs.
Even though the businesses in the world of Odoo ERP Implementation and Customization aren’t alien to the idea of measuring performance with KPIs, there’s still a lot that’s updating. For instance, Bounce Rate and Site Traffic are two newly introduced KPIs measuring how many visitors left your website at first glance and how many of them visited in the first place, considering a timeframe.
Today’s digital arena is Google-driven. Hence, without any doubt, it is one of the leading platforms where businesses get to track their website analytics, revealing the truth of how your audience is using your website along with the KPIs. And the cherry on top is the fact that these detailed analytics are the best approach for a business to learn, grow, and customize their future strategies according to their audiences’ behavior.
Xcentric Services holds on years of experience in providing the E-Commerce Website Development in Pakistan services. And perhaps, we’ve perceived that the majority of E-Commerce KPIs are surprisingly the same, which in-store businesses have been using. However, there’s a tech-tweak to the approach, and that’s ERP!
To make measuring KPIs more effective and to ensure data transparency, E-Commerce businesses have now driven towards integrating ERP Solutions with their E-Commerce sites, which are technically making data interpretation much more accessible than before. So, before you begin scanning for E-Commerce KPIs that an ERP can measure, we’ve listed down the crucial ones that you can directly measure, let’s look into them.
- The Cost of Goods Sold (COGS) KPI
Out of all other goals, E-Commerce businesses aim at a common one – Reduced Cost. However, here’s another facet to this story; unfortunately, some businesses have reduced their costs, but only after compromising on their customer experience and product quality, and that’s not the practical way to maximize the profit margin.
Hence, to ensure that you won’t be one of those businesses who compromise on these essentials, begin measuring the COGS – The most effective E-Commerce KPI that keeps a digital eye on all the costs a business incurs while selling a product, including the manufacturing costs, acquisition costs, labor costs, and any other miscellaneous expenses.
Rest assured, your ERP Solution integrated website will automate all the workflows that are costing you additional time and dollars, even though they aren’t very complex, and perhaps, decreasing operational costs.
So while your sales and accounting teams are overwhelmed by manually tracking and invoicing the customers’ orders, there’s a chance of human error. Hence, switch to an ERP Solution, eliminate human-errors, save your time and dollars, and reduce the costs you’ve been incurring for years.
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- Average Order Value; Site Visits converted to Purchases
Do you know how many of your site visitors convert into your purchasers? If you don’t, start measuring it today with Average Order Value – An E-Commerce KPI measured by ERP.
This KPI is precisely what the name states; The percentage of orders a business receives from its site visitors. However, this KPI works a bit differently than COGS KPI. While gradually decreasing COGS indicates better performance, an increasing Average Order Value symbolizes a maximum sales growth.
Businesses consider this KPI as an indicator of increased sales, however, there’s a lot more to it than just higher conversions. With this KPI, technically, we’re just trying to increase the time each visitor spends on placing their order.
As stated by savvy marketers providing Digital Marketing Services in Pakistan; Cross-selling and Up-Selling are two major strategies that can help a business increase their Average Order Value. Let’s look into how this works with an example; Assuming that a customer’s order on your website totals up to $20, consider directing some cross-selling strategies towards them so that when they order again, their invoice totals up to $25 or $30.
Moreover, if you’re looking for some ways to increase this KPI, we suggest, offer your customers a threshold discount. This way, if their order totals up to $80, and you’ve offered a discount stating 10% Off on orders above $100, the customer will surely buy more to get hit that jackpot, aka 10%.
Hint: How does FREE DELIVERY above $100 sound?
Summing up this KPI, let’s be honest that managing complex pricing structures while offering such discounts can be overwhelming, but perhaps if your website is integrated with an ERP Solution, there’s no ranting.
- Returning Customer Orders Vs New Customer Orders
If you’re a business struggling with providing customer satisfaction, measuring this E-Commerce KPI is crucial for you. With this KPI, you can analyze how many new customers you’ve acquired, and most importantly, how many of your previous customers you’ve retained once again. Though let’s make one fact clear, these are two different KPIs merged because they’re siblings, if that doesn’t sound cliché.
Firstly, retaining your new customers adds value to the Average Order Value KPI, and secondly, attracting new ones is equally crucial because retaining customers when you don’t have them in the first place makes no sense.
So the catch here is to attract new customers, all while focusing on building loyal relationships with each one of them, in the long run. Hence, if you’ve virtually set up a store, and you aren’t working on building relationships with your customers, things won’t work in your favor, let along generate profits. Start with offering your customers loyalty points t each purchase they make at your E-Store so that they have a whole new reason to return and make a repeat purchase.
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In this article, we’ve discussed three crucial KPI indicators which a business can measure with ERP Solutions. However, there are still lots of them which are essential for a business’s growth in the long run, and with ERP Solutions at your hands, it’s much easier to improve them, let alone just assessing them. So if your website isn’t integrated with an ERP Solution, consider getting E-Commerce Platform Integration Services in Pakistan by Xcentric Services.