In the last blog we discussed the various aspects of e-commerce KPI metrics and why following the outward-driven-customer-centric approach is advantageous for those seeking high growth in terms of the charging-up the performance of e-commerce portal. In this blog, we shall explore the important Key Performance Indicators for your Magento platform.
Digital enterprises constantly look for ways to improve and optimize their sites to keep up with new trends and developments.
A key performance indicator is a type of performance measurement which evaluates the success of an organization or of a particular activity in which it engages. Using Magento and Google Analytics (GA) you have many ways to measure the performance of your website or application.
We've compiled a list of some of these KPIs for tracking the performance of your Magento GA features that will provide you with immediate benefits and increase your online sales. Though the list of KPIs is exhaustive, below listed are the KPIs one can’t ignore:
Audience Overview
With audience overview, you will get the clear picture of the below items:
- How many visitors are new customers?
- How many visitors are returning customers?
- The duration for which user is actively engaged
- Bounce rate
- Page level views
- If your site is multilingual, you will get the number of users per language view
After you get all these information, you will be able to easily decide on which customer section or group where more focus is required.
Acquisition Overview
After you spend money on promotional activities, you need to know from which channel you are getting the much-needed response. Accordingly, you can plan for next set of promotional and advertising activities. The insights coming from these channels can play a crucial role in giving you an acquisition overview:
- Direct channel - traffic is coming from the website itself
- Social channel - traffic is coming from the social website like FB, Twitter, G+ etc
- Referral channel - traffic is coming from referral websites.
Audience behavior
Audience behavior will give you the clear idea about total page views, page views per page, average page view time, bounce rate and search terms. With the help of this data, you will be able to focus on the pages where the bounce rate is too high and page views are less.
Also, according to search term patterns, you can configure the popular search terms per product or page from the Magento Admin section.
Search term configuration from Magento MBO:
Shopping cart abandonment rate
The customer often comes to your online shop looking for products categories that they want to buy. However, customers who add products in the basket/cart but may not place an order. Therefore, in this case you need to know how many cart abandonment happened and for which product categories. In addition, below are the usual type of abandonment like below:
- The session with product view: Means customer is only coming to view product details page and left from the website
- The session with add to cart: Product added to the cart and left from the website
- Sessions with checkout: Customer added his billing and shipping address but not making the payment to complete the order
- The session with transactions: Customer is trying to make the payment or redirected to the payment gateway to complete the transaction but not able to place an order
Inventory alerts
Sales forecasting is an ongoing process in an effort to avoid out-of-stock or overstock inventory scenarios. Magento's "Product Alerts" feature helps you manage these instances and help increase conversions.
With product alerts, your customers can request that they can be alerted via email when a product comes back in stock or when a product goes on sale.
Allow alert when product price changes – this permission will allow customers to sign up for price change alerts.
Allow alert when the product comes back in stock – this setting will enable customers to sign up for email alerts notifying them when the product is back in stock.
Conversions Overview
This is very important information for any online retailer as this is the definitive indicator of revenues. Total revenue and conversion rate has to match up and beat the total spends made on building the website.
Conversion overview report will get you to below details:
- Total revenue
- Sales/e-commerce conversion rate
- Average order value
- Number of transactions
- Product revenues