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7 Shopify Key Performance Indicators (KPIs) To Track In 2023: Shopify KPI Guide

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Are you running a Shopify store? Are you looking for ways to better track, analyze, and improve the performance of your online business in 2023?

If so, this blog post is just for you! Here we’ll explore seven key performance indicators (KPIs) specific to ecommerce sites on Shopify.

Whether you’re just launching out as a new business or need some direction and focus with an established site – these KPIs can provide essential insights into what is working and where improvements can be made. Dive in now to get started!

What Are KPIs and Why Are They Important?

In any business, Key Performance Indicators (KPIs) are like guiding stars that help navigate the path to success. But what exactly are KPIs, and why are they so important?

KPIs are measurable metrics that reflect the performance and progress of a business toward its goals.

They allow you to track and assess specific goals and objectives. By setting and monitoring KPIs, you can better understand your business’s health, identify areas for improvement, and make data-driven decisions.

Whether you’re an established business or just starting out, understanding and leveraging KPIs is crucial for achieving long-term success in the competitive world of ecommerce.

What Are Ecommerce Key Performance Indicators (KPIs)?

Ecommerce businesses also have specific performance metrics to track and measure their success.

Ecommerce KPI metrics are a group of metrics specific to ecommerce stores that measure different aspects of store performance. They could be related to your store’s sales, marketing, operations, brand awareness, overall business growth, or anything you want to measure.

These ecommerce KPI benchmarks are important tools to measure the success of your Shopify store and determine areas for improvement and growth.

So, what should be your Shopify tracking strategy? Which Shopify KPIs should you track?

Let’s uncover seven crucial Shopify performance KPIs and why tracking each Shopify KPI is important.

7 Key Metrics To Track For Your Shopify Ecommerce Store

1. Website Traffic

Traffic is a must-track KPI for any ecommerce store. Website traffic refers to the number of visitors who land on your site within a given period.

This number is an indicator of how many people are visiting your website and engaging with your products or services.

Why Should You Track This Metric?

Measure Performance: Tracking website traffic allows you to evaluate the effectiveness of your marketing efforts. It provides valuable insights into how well your store is attracting and engaging potential customers.

Identify Trends: By analyzing traffic patterns over time, you can identify trends and understand which marketing channels or campaigns drive the most traffic to your site. This information helps you allocate resources effectively and focus on strategies that generate the best results.

Conversion Optimization: Monitoring website traffic also helps you understand visitor behavior, such as which pages they visit, how long they stay, and what actions they take. With this valuable information, you get to optimize your website, improve user experience, and increase conversion rates.

So, track your visitors, page views, unique visits, and referrers (where the traffic is coming from) to understand how well you’re attracting customers.

Tips To Increase Traffic

  • Invest in SEO
  • Use Paid Ads
  • Run Social Media Campaigns
  • Leverage Email Marketing

2. Conversion Rate

Conversion rate is one of the most important ecommerce KPIs to track and measure the success of your Shopify store. It measures the number of visitors who take a desired action – such as making a purchase – divided by the total number of website visitors.

Why Should You Track This Metric?

Analyze Engagement: Tracking conversion rate helps you understand how well your store is engaging potential customers and convincing them to take action.

Reveal Deficiencies: By analyzing this ecommerce KPI metric over time, you can identify which pages or sections of your site have the highest and lowest conversion rates.

As a result, you can pinpoint areas of improvement and optimize your website for a better user experience.

Improve User Experience: Conversion rate is also an indicator of how well-designed and user-friendly your store is.

Tracking this metric allows you to identify potential problems or areas where you can improve the visitor experience, such as improving page loading speed, optimizing site design and navigation, etc.

Tips To Increase Conversion Rate

  • Use persuasive copy
  • Implement A/B testing
  • Offer free shipping
  • Optimize your website for mobile devices

3. Average Order Value (AOV)

Average order value (AOV) is another key performance indicator to measure the success of an ecommerce store. It measures the average amount that customers spend when they make a purchase on your website.

Why Should You Track This Metric?

Understand Customer Behavior: AOV is a great metric to track customer behavior and understand what products or services customers value most. It helps you know which items are performing well, how often customers buy, and how much they’re willing to spend.

Optimize Pricing and Promotions: AOV helps you evaluate the effectiveness of your pricing strategies and promotional offers. By analyzing the impact of different pricing tiers, product bundles, or discounts on the average order value, you can refine your pricing structure and promotions to maximize customer spending.

Improve Sales and Profits: AOV is also a great metric to evaluate the success of promotional campaigns and strategies. By increasing AOV, you can boost sales and profitability for your store.

Tips To Increase Average Order Value

  • Offer free shipping
  • Bundle products together
  • Offer discounts or loyalty programs

4. Shopping Cart Abandonment Rate

Shopping cart abandonment rate is the percentage of visitors who add items to their shopping carts but don’t complete the purchase.

Why Should You Track This Metric?

Understand Shopping Patterns: By tracking this ecommerce KPI benchmark, you can uncover customers’ buying patterns and understand why they leave without completing a purchase.

It also helps you identify areas for improvement and optimize your sales funnel for better user experience and higher conversions.

Optimize Checkout Process: Shopping cart abandonment rate is an indicator of how well your checkout process is designed. Tracking this metric helps you understand what’s preventing customers from completing the purchase and optimize the checkout page to make it more streamlined and user-friendly.

Reduce Lost Sales: This KPI also reveals if customers are leaving due to high shipping costs, long delivery times, or other factors. By analyzing this metric and reducing the cart abandonment rate, you can reduce lost sales and increase revenue for your store.

Tips To Reduce Shopping Cart Abandonment Rate

  • Simplify the checkout process
  • Offer free shipping
  • Give customers the option to save items in their carts
  • Send follow-up emails

5. Repeat Customers

Repeat customers are an invaluable asset for any ecommerce store. These customers are the most loyal and profitable customers, as they’re more likely to make multiple purchases over time.

Why Should You Track This Metric?

Gauge Customer Loyalty: Tracking your repeat customers helps you measure the loyalty of your customers and understand how well you’re engaging them over time.

Improve Retention: This metric is also useful for measuring customer retention, as it reveals how often customers come back to make another purchase. Monitoring this KPI can help optimize your marketing strategies to encourage more repeat purchases.

Boost Sales and Profits: Repeat customers are more likely to spend more over time, so tracking this metric helps you increase sales and profits for your store.

Tips To Increase Repeat Customers

  • Offer rewards or loyalty programs
  • Send personalized emails
  • Leverage social media marketing
  • Provide excellent customer service

6. Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) is a very important metric to track in order to measure the value of a customer over their lifetime with your business.

It’s calculated by taking the average amount spent per purchase and multiplying it by the total number of purchases a customer makes over time.

Why Should You Track This Metric?

Identify Profitable Customers: Tracking CLTV helps you identify high-value customers and understand their buying patterns.

Understand Your Customer Base: This metric allows you to segment your customer base into different categories based on their lifetime value, so you can focus on the customers that are most profitable for your business.

Target High-Value Customers: By understanding your customer’s lifetime value, you can tailor your marketing strategies to target the customers most likely to make high-value purchases.

Tips To Increase CLTV

  • Prioritize customer satisfaction
  • Train your customer support team
  • Offer personalized service
  • Offer a loyalty program
  • Send targeted emails

7. Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is another important ecommerce KPI benchmark that measures how much it costs you to acquire a new customer. It’s calculated by taking the total amount spent on marketing and advertising divided by the number of customers acquired.

Why Should You Track This Metric?

Analyze ROI: Tracking CAC allows you to understand the return on investment (ROI) of your marketing campaigns.

Optimize Your Budget: You can also identify which channels are most effective at generating customers, so you can focus your budget and resources on strategies that generate the highest ROI.

Understand Your Target Audience: Tracking CAC also helps you understand your customer base better. You can identify which demographic is most likely to make a purchase from your store and create targeted campaigns for them.

Tips To Reduce CAC

  • Leverage influencer marketing
  • Create remarketing campaigns
  • Optimize ad copy and visuals

So, that’s a wrap!

These are some of the most important ecommerce metrics to track for your online store built on Shopify. Tracking these ecommerce KPI benchmarks will help you identify areas for improvement, boost sales and profitability, and build long-term customer relationships.

By understanding how these metrics affect your Shopify performance, you can better optimize your store and create more successful campaigns.

However, it could be a little tricky to set up systems and tools to measure these KPIs.

But fret not – Mongoose Media can help you with that.

Our team of experienced Shopify experts and marketers knows how to track ecommerce KPI metrics, analyze data, and recommend strategies to optimize your store and accelerate growth.

So, don’t miss out on the power of KPI tracking – start optimizing your Shopify store today for long-term success. Contact us today to get started!

 

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