Patrick Biddiscombe breaks down the five KPIs that matter for ecommerce: website traffic, conversion rate, average order value, lifetime customer value, and revenue. He walks through GrooveCommerce's ecommerce conversion calculator to model how changes ripple through your numbers, then maps strategy to the Inbound Flywheel stages.
Chapters
Although inbound and E commerce are similar, the two differ most when it comes to goals and key performance indicators, also known as KPIs. A KPI is a quantifiable measure to evaluate the success of an organization, employee, and so on in meeting performance objectives. E commerce campaigns often emphasize financial growth and direct attribution more than typical B2B inbound initiatives. GrooveCommerce's eCommerce KPIs include website traffic, ecommerce conversion rate, average order value, lifetime customer value, and online revenue. In our experience, creating a goal based approach using these KPIs has helped our clients better align specific tactics and strategies to their bottom lines. To help you with this process, we created an E Commerce conversion calculator. This tool lets you project how individual performance changes can affect your overall online revenue. Once you've clearly defined goals for your ecommerce business, your next step is to outline strategies to achieve them. Let's look at these using the Inbound Flywheel the first stage of the Flywheel is to attract during this phase, brands generate product awareness with strategies like pay per click advertising, search engine optimization, content creation, and social media marketing. Next, we move on to the Engage stage. This phase focuses on creating relationships with prospective customers and includes both micro and macro conversions. In E commerce, we refer to micro conversions as lead capture opportunities. Like a newsletter signup, these micro conversions nurture prospects and guide them toward a larger macro conversion like a product purchase. Finally, we move into the Delight stage. The aim here is to strengthen customer loyalty with memorable experiences. When this happens, the flywheel gains momentum. Customers refer more business by sharing social proof, user generated content, and ultimately referrals to help you grow better. To reach customers at each of these stages and to move them through the sales funnel, you'll need to develop a number of micro campaigns. These are made up of small, ongoing activities that support a larger marketing effort. To learn more about E commerce goals you might consider setting for your business, check out the article in the Resources section below.
