Whether you are new to your Magento business or already have some experience, you must have heard about KPIs.
In older times, mostly before the internet, sales numbers were pretty much considered the only measure of business success.
Things, though, have since then changed. Sales experts nowadays have come up with hundreds of Key Performance Indicators (KPIs) specifically designed to help entrepreneurs like you reach their business objectives fast.
In a sea of KPIs, understanding which ones are the most relevant to your eCommerce business can prove challenging. For this reason, we have come up with a list of the top-X KPIs to measure in 2023.
1. Website Traffic
Modern and sophisticated analytics tools are able to extrapolate the numbers behind your website traffic in a way that wasn’t possible not so long ago.
Thanks to these tools, today we can calculate not only the number of page views, but also the average time your prospects spend on your website as well as how likely they are to come back for more.
2. Sales Conversion Rate
This basic KPI is likely to remain among the most important elements to measure no matter the year we are in. As a result, expect it to run the show in 2023 and beyond.
In a nutshell, sales conversion refers to the percentage of your Magento store visitors that end up closing the sale.
How do you come up with this number? Simple. You take the value of closed deals and divide it by the number of visitors on your page over a certain time frame. A 1-2% sales conversion rate is considered very good, so you might expect yours to be a little below that if you are just starting out.
3. Revenue
Pretty self-explanatory, this value provides insight into the average earnings from a visitor over a given website visit.
4. Average Order Value
This KPI is good to track the habits of your average spender – things like what their budget is for a single purchase of one or more of your services or products at the time. The number is extrapolated by dividing your Magento earnings over a time period by the number of orders in the same window.
5. Conversion Rate
Hoping to transform your prospects and lurkers into customers? You may want to watch your Conversion rate. To calculate this, the number of visitors is divided by the total number of conversions.
6. Cart Abandonment Rate
Possibly one of the most frustrating aspects of running your eCommerce is dealing with the Cart Abandonment Rate. Whether it is for personal or financial reasons or because your competitors are offering better deals on similar products, CAT does happen over half of the time even among the most successful e-businesses.
Other reasons might include website errors or a less than straightforward purchase process.
Regardless of the cause, getting insight into these numbers can help you make the corrections your business needs in order to thrive.
The Bottom Line
The year 2023 is expected to be yet another eventful time in the eCommerce world.
If you are aiming to make your Magento business thrive, keep an eye on these important KPIs.
Need help tracking only the most important metrics that can be translated into clear and actionable advice? Our extension is there to extract only quality data from your Magento store, doing the heavy lifting so you can focus on what you do best: provide the best online products or services.
Want to know more? Get in touch with Razzo today!