The eCommerce landscape is constantly changing. No matter what worked in the past, it might not work now or in the future, so we must always be willing to change and adapt. With that in mind, it’s essential to have a dashboard that can give you insights into the latest trends and help you make decisions accordingly. Here are 5 Must-have Metrics and KPIs for a Modern eCommerce Admin Dashboard.
Top 5 Metrics that need to be followed if you have an eCommerce Site –
If you’re willing to spend $100 per click on ads, it either means that you’re confident in your logic or you have a long-term vision that makes sense. Having knowledge of your average order value, total customer acquisition cost, and customer lifetime value helps you make better decisions regarding ad spending and other marketing expenses. With this understanding, you’ll be able to defend or explain your marketing strategy with confidence.
Metrics to look out for –
1) Average Order Value
Revenue from each order, on average, is an important metric to track for your business. AOV is calculated by dividing your total revenue by the number of orders completed. For example, if you earn $50,000 in sales from 250 orders, your AOV is $200. AOV reveals how much profit, on average, your business is making per order. This number is essential in understanding whether or not your business is sustainable and profitable.
2) Customer Lifetime Value
One of the worst things you can do from a marketing standpoint is only look at customers in terms of a single purchase. The CLV metric takes a broader perspective. It sees customers in terms of how much they’ll spend with your company over the entirety of your relationship with them.
To calculate the CLV, multiply the average order value by the average purchase frequency rate and customer lifespan. So, if your customers spend an average of $200 per order, place 5 orders per year, and patronize your business for 10 years, then your CLV would be 200 x 5 x 10 = $10,000.
3) Customer Retention Rate
If you’re constantly acquiring new customers while also losing them, then you know that something is wrong with your products or customer relation strategy. Keeping customers happy is key for eCommerce businesses, as it costs less to retain customers than it is to bring in new ones.
The CRR eCommerce metric helps you see how well you are keeping the customers you have. You can calculate this by taking the number of customers at the end of a period and subtracting the number of new customers gained during that period.
4) Bounce Rate
Though a high cart abandonment rate is disheartening, there is some silver lining—you’re not alone. The average Bounce Rate for eCommerce sites is 45.7%. So, if your website has an unusually high bounce rate, it could indicate a variety of serious problems occurring with your user experience. To calculate your site’s bounce rate, divide the total number of one-page visits by the total number of entries to your website.
5) Conversion Rate
It’s probable that your eCommerce business is already tracking some sort of Conversion Rate on its site, but it’s important to stress the value of tracking CR and how it ties in with the other metrics on this list. The conversion rate is determined by dividing the number of conversions by the total number of visitors who were given the opportunity to take the action.
KPIs to look out for –
1) Gross Profit Bargain
Ultimately, the goal of every business is to make money. So keep an eye on your Gross Profit Bargain and add it to your eCommerce KPI Dashboard. Gross Profit Bargain is what you have left over after selling your product and it tells you how much profit you make per sale. You can calculate the total gross profit margin as well as the gross profit margin per category to find which products aren’t making you any money. Track it using data visualization software on a line chart.
2) Net Profit
After taking all necessary expenses into account, Net Profit represents the overall financial success of your business. You have to keep a close eye on this financial KPI metric all the time, so you don’t run out of funds to keep your business going. Also, you can use a part of your net profit to invest back into your business. You can track your overall Net Profit monthly, in a column chart. Like with Gross Profit Margin, you can break down net profit by product category and marketing channels to figure out which products and channels are profitable.
3) Average Order Size
Worth noting is how much a customer purchases on average. The Average Order Size metric is one of the most useful measures on an eCommerce dashboard. This growth indicator demonstrates how much, on average, a customer spends a while on your website. Comparing this to the average marketing spend per customer will show you if you are overspending in your marketing campaigns. Because an e-commerce website sells various categories of products across a broad price range, it is more useful to break down the average order size for each product category, or even city.
4) Cart Abandonment Rate
The Cart Abandonment Rate is one of the most important metrics to include on an eCommerce KPI dashboard. It measures the percentage of customers who add items to their shopping cart but then leave your website before completing the purchase. A high cart abandonment rate can be an indication of problems with the checkout experience, such as insufficient payment options, that need to be addressed.
5) Customer Acquisition Cost
If your Customer Acquisition Costs are higher than the average order size, your business will run into losses quickly. In that case, you can either cut marketing costs or increase the prices of your products. However, acquiring new customers is essential for the growth of your business, so find a balance that works for you.
Want an Admin Dashboard that would suit and complete all your needs then here is an Admin Template that would give assistance to you in the best way possible for these Metrics and KPIs – Hope UI
Hope UI – Bootstrap 5 admin template provides an efficient solution for developers who want to create stunning visualizations of their data without coding knowledge. In other words, Hope UI is a user-friendly way for anyone to create beautiful, functional web applications without needing to learn to code.
If you’re in search of an admin dashboard template that’ll leave a lasting impression, Hope UI is most certainly worth your time. It comes packed with an array of plugins, widgets, tools, and a variety of UI components, all of which are built using the latest Bootstrap framework.
In addition, it employs cutting-edge technologies such as VueJs, Laravel, ReactJs, Tailwind, and more. Hope UI is designed to help you achieve your objectives, and its refined design system doesn’t disappoint, thanks in part to Figma, Sketch, and XD design files.
Hope UI Features –
- 400+ components
- 100% responsive
- 60+ Menu styles
- Entire Design System
- 360 product view
- Cross-Browser compatible
- Multiple customizable layouts
- 8 Dashboards
It’s essential to have a dashboard that can give you insights into the latest trends and help you make decisions accordingly. Here are 5 must-have metrics and KPIs for a modern eCommerce Admin Dashboard: session duration, conversion rate, average order value, bounce rate, and cart abandonment rate. By tracking these metrics, you’ll be able to make informed decisions about how to improve your eCommerce business.