The biggest difference between online marketing and offline marketing is that it can be tracked, so it is possible to analyze the performance of the source and medium. Online marketing based on clicks can set various goals according to the operator's needs and analyze the results. In this post, we will learn more about the key performance indicators (KPIs) that can be set in online shopping malls.

What is a Key Performance Indicator (KPI)?

KPI(Key Performance Indicator) is a key performance indicator that is used to measure performance in proportion to a certain goal. When a marketing goal is set, it can be said to be the elements necessary to achieve that goal. For example, if the goal is to increase site traffic by 50% next year, KPIs can be UV(Unique Visitors), paid keyword advertising, display advertising, search engine optimization, etc. Most business goals can have various KPIs, but based on the "performance you set", you should select the 2-3 most influential indicators as KPIs.

​Without KPIs, it is difficult to measure the results of a marketing campaign, and the lack of measurement is proof that the operation is based on the intuition of the marketing manager or shopping mall operator. In this case, it is difficult to make strategic decisions. If you are an online shop operator, KPIs are an area that must be managed.

Sales related KPIs

I have organized KPIs related to sales in online shopping malls.

• Sales: Hourly, weekly, monthly, quarterly, and yearly sales analysis
• Average order size: The average amount a customer orders per order.
• Average margin: Average margin, average profit rate indicator
• Number of transactions: Total number of orders, as well as the number of visitors
• Conversion rate: The average purchase conversion rate is around 1% domestically and 2-3% overseas.
• Shopping cart abandonment rate: The lower the number, the more positive it is.
• New customer orders vs. returning customer orders: Comparison of new and returning customer orders
• Product affinity: A product preference indicator, an indicator of products that customers purchase together.
• Competitive pricing: A measure of price comparison with competitors
• Customer acquisition cost: Cost spent on acquiring new customers
• Churn rate: Brand churn rate, such as subscription cancellation
• Customer lifetime value (CLV): Customer lifetime value

Marketing Related KPIs

Key performance indicators for marketing tell you how well your marketing and advertising goals are being met. This also affects your sales KPIs. Marketers can use KPIs to understand what they are selling, who is buying, how they are buying, and why they are buying, which can inform future strategic responses and new product development.

• Site traffic: Total number of visitors to the site.
• New visitors vs. returning visitors: The ratio of new visitors to returning visitors
• Time on site: The time spent on the site per visitor. The higher the number, the more diverse the landing page and blog content.
• Bounce rate: The percentage of visitors who leave your site after viewing only the landing page or first page.
• Pageviews per visit: The number of page views per visit.
• Traffic source: Site traffic path
• Newsletter subscribers: The number of newsletter subscribers that form the basis of email marketing.
• Subscriber growth rate: Subscriber growth rate
• Email open rate: Email open rate
• Email click-through rate (CTR): The rate at which content is clicked through within an email
• Unsubscribes: The rate at which subscriptions are canceled over a period of time.
• Average position: Position within the search results page
• Blog traffic: Blog traffic. Compare with the visitors to your site.
• Number and quality of product reviews: Number and quality of product reviews

Customer Management Related KPIs

Customer service KPIs tell you how effective your customer service is and how well it meets expectations.

• Customer satisfaction (CSAT) score: Customer satisfaction score. Usually used through feedback email or survey program.
• Net promoter score (NPS): A score that can be used to recommend a brand. Used as an indicator of brand loyalty.
• Customer service email count: The number of emails received by the customer support team.
• Customer service chat count: Number of live chats in a given period
• First response time: The time it takes to respond to a customer inquiry. The lower the number, the more positive it is.
• Average resolution time: Average time spent resolving a customer inquiry
• Active issues: The number of customer inquiries currently in progress
• Service escalation rate: The rate at which customer inquiries are transferred to cases because they are not resolved at once.

KPI Template

Choosing KPIs means clearly stating your goals and identifying the areas of your business that will impact those goals. Of course, KPIs for e-commerce can and should vary depending on your goals, whether it’s increasing sales, streamlining marketing, or improving customer service. Here are some common goals used by e-commerce stores:

Goal 1: Increase sales by 10% next quarter
KPI examples: daily sales check, conversion rate, site traffic

Goal 2: Increase conversion rate on site by 2%
KPI examples: conversion rate, abandonment rate, competitive pricing

Goal 3: Increase traffic by 20% next year
KPI examples: site traffic, clicks on promotions, social shares, bounce rates

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If you run an online shopping mall, most KPIs can be managed through Google Analytics. Google Analytics is a web analysis program that is essential for running a shopping mall and is optimized for setting KPIs. Therefore, if you regularly measure KPIs through Google Analytics and supplement any insufficient areas, it will be a great help in increasing your shopping mall sales. Customer-related KPIs can be set using CRM tools such as Zendesk or Freshdesk, and most third-party CRM programs also provide this function.