As you might know we at The Dot Society are true data freaks, there’s nothing we love more than analyzing the data of our clients and to be able to draw actionable conclusions out of it. However, we hear you coming, I cannot look at all those different metrics and KPI’s all the time while running my business at the same time. 

Well, it’s your lucky day,  we’ve made a list of must track KPI’s for every webshop owner. Ideally, you should monitor them on a weekly basis. 

Revenue per channel

Of course, you are investing a lot of time on different channels ranging from social to paid search and others. It might be useful to get insights on which channel drives you the most revenue so you’ll know better which channels to focus on and which ones to leave behind or optimize. 

Average order value

The average order value is a good indicator of what’s spent by a customer on average. You might set-up dedicated strategies to increase the average order value, in order to increase your overall webshop performance. It simply costs you way less to upsell an existing customer instead of attracting a brand new one. 

Amount of abandoned carts

Not only will monitoring this KPI let you spot potential issues that might arise at your checkout. Nothing that influences webshop performance more than a poor checkout flow.  It will also allow you to set-up a dedicated online strategy. As you know the users who added something to their cart are probably way more interested or likely to buy from you compared to people who just visited your website. You might set up an automated mail flow or dedicated campaign to get those users back to where they have left off. 

Newsletter subscriptions 

Starting brands usually pay a lot to get new customers to their website once f.e. through social media ads. It would be super stupid and not so cost-efficient to keep on paying for those users to get back to your website. A more cost-efficient way would be to let them subscribe to your newsletter. That way you can share your story with them, build a relationship with them, and get them back on your website without paying a penny. 

Conversion rate

I think this KPI might be the most crucial one of all of them to monitor. Since increasing your conversion rate with just a few percentage points will have a huge impact on your webshop performance. 

Customer life-time value

Calculate your customer live-time value by multiplying your average profit per order with the average number of transactions by one customer. The goal would be first to bring the CLV up by deploying strategies that foster upsell and cross-sell. Next to that CLV is also an important KPI to measure when it comes to determining how much you are willing to spend to acquire a new client. Your CLV should always be greater than the amount you spend to get a new customer on your webshop. 

% returning customers

As said before it costs you way less to get an existing customer to return than to acquire a new one. Focusing on the retention of existing customers is undeniable a super important KPI for future success. 

% returns

Especially in fashion but also in other industries you might want to track this KPI on a weekly basis. You can get all the orders in the world if 50% returns their order you might not be growing as strong as you might think you are. Lots of webshops are also setting up dedicated strategies in order to reduce this percentage. By for example providing the customer with a clear size-guide and detailed product description. 

Happy monitoring and growing your webshop!