Coming into the new year, global eCommerce Sellers can highly-benefit from the steady bounce back resulting from the lessening severity of the COVID pandemic; according to a 3rd party:
“Global eCommerce sales (2022) soared to an unprecedented US$ 4.9 trillion; this is forecast to double 2023-2027. Furthermore, it’s been proven that social media is merging into eCommerce channel sales – and will soon become completely integrated.”
A positive e-Commerce sales growth forecast ensures your global eSeller successful advantage of the opportunity by pinpointing areas your business is excelling at, areas it’s failing to meet your e-Commerce sales goals at – and, how you can use received knowledge from your customer & sales data to glean actionable insights & reap impactful improvements to your success.
Callnovo Contact Center, on customer service KPI, mentioned: monitoring key KPI ensures successful sales strategy improvement, improving customers’ satisfaction experiences & fortifying a stronger brand reputation & loyalty – resulting in next-level sales market competition. Let’s get into eCommerce KPI/eCommerce Metrics that guarantee steadily-increasing e-Commerce brand growth & sales conversion.
We’ll look at:
- 7 crucial eCommerce performance metrics to track, and
- how Callnovo’s customer-centric, multilingual & omnichannel call center outsourcing solutions help take eCommerce Sellers’ brand success to the next level.
Essential eCommerce KPI for Enhanced Brand Growth & Sales Conversion
No. 1: Average Order Value (AOV)
AOV refers to the average amount spent for each individual order placed by your customers; the formula is pretty straightforward:
AOV is important for setting sales benchmarks/goals for the future since – though increasing store traffic and/or optimizing your eSeller for conversions is costly – you can increase AOV without extra expenditure by motivating your customers to purchase more per order.
Here’s how:
- upsell/cross-sell products when possible,
- provide purchase discounts to customers – like “buy 3 – get 25% off,” and
- offer free shipping.
No. 2: Cost Per Acquisition (CPA)
CPA refers to the total cost spent per new customer – calculated using just the following formula:
To build profit for your eCommerce store, it’s crucial to ensure your AOV exceeds CPA; you shouldn’t have to invest more into customer acqusition than what they spend on your eCommerce-sold products. If you’re investing more than customer expediture, that’s counterintuitive – and you’ll lose money.
No. 3: Cart Abandonment Rate (CAR)
CAR refers to the percentage of prospective customers who’ve visited your eStore, added products to their shopping cart, and then decided to abandon the cart. Retargeting cart abandoners can boost conversions since these customers have shown interest in your products. According to a 3rd party: approximately 69.60% is the average shopping cart abandonment rate – meaning: 50%+ of your traffic will abandon the cart.
To mitigate this:
- Keep an eye on the CAR.
- Convert abandoners into buyers.
- Use a marketing automation platform to automatically-send emails to cart abandoners to catch those shoppers right away.
Here’s the formula for calculating CAR:
No. 4: Customer Retention Rate (CRR)
CRR refers to the number of customers repeatedly-purchasing from your eStore throughout a specific period of time.
To calculate CRR, understand three values:
- the number of existing customers at the beginning of the time period (S),
- the total number of consumers at the end of the time period (E), and
- the number of new customers added during the time period (N).
Once these values are obtained, calculate CRR via the following formula:
Important to know: the average CRR within the e-Commerce industry is approx. 30%; as such, try to keep CRR below 30%.
No. 5: Customer Lifetime Value (CLV)
CLV represents the total lifetime amount a customer is expected to spend on your products/services – and is crucial because it supports your decisions on investments for optimizing CPA & CRR. CLV is calculated as follows:
No. 6: eCommerce Churn Rate (ECR)
ECR calculates the percentage of customers your business loses in a given time period.
To calculate ECR, understand two values:
- the total number of customers at the beginning of the time period (S), and
- the total number at the end of the given time period (E).
Once the values are obtained, calculate ECR via the following:
No. 7: Net promoter Score (NPS)
NPS measures how many customers are disposed to recommending your products to others; this allows you to where your eSeller is at in terms of meeting customer satisfaction – as well as what your current brand loyalty metrics are.
To calculate the NPS, understand these two terms:
- promoters – your loyal customers that recommend your eStore to others, and
- detractors – unhappy customers who decide not to recommend your eStore to anyone.
Callnovo’s Customer-centric Outsourcing Solutions
Callnovo Contact Center enhances e-Commerce businesses with excellent, customer-centric solutions ensuring strong, global, long-term brand loyalty growth; as your e-Commerce business considers the above-mentioned eCommerce KPI & eCommerce metrics for steady-increasing brand growth & sales conversion, strong, long-term global market sales success – as well as an increased brand reputation & global customer loyalty – is guaranteed, leading to long-term, global market share and overall global sales success improvement.
Here’s key advantages to Callnovo’s solutions:
- High-quality Expertise – quality eCommerce personnel skilled in areas as:
- customer-centric enthusiasm/service attitude,
- strong communication & soft-skills,
- complex product/service knowledge/skills,
- acute management/operations skills, and
- more.
- Always-available Service – maximizing customer satisfaction/CX by continually meeting customers’ needs without limit.
- Omnichannel Support – accessible, rapid contact solutions through all comm. channels – guaranteeing always-ready support, leading to enhanced CX, influencing long-term customer brand ambassadorship/customer loyalty.
- Native Language Support – meeting customers’ needs efficiently, conforming to cultural expectations, improving customer loyalty.
Conclusion
To ensure stronger global, long-term eCommerce brand growth & sales success, its important to successfully-monitor the above-mentioned eCommerce KPI & eCommerce metrics to ensure your eSeller maximizes on net sales growth opportunities – resulting in reputable sales competition against competitors – and incrementation in your long-term sales success. Callnovo offers a customer-centric, multilingual, omnichannel outsourcing solution to help you meet high eCommerce customer expectations, improving your brand’s long-term growth and sales success.