What KPIs reflect Magento e-commerce performance
To measure the web performance of a Magento site , there are a very large number of indicators. These KPIs, essential for tracking and monitoring any online activity, must be grouped in a dashboard. In addition, they must be selected according to the company’s activity and its objectives.
But concerning an online sales site, what are the KPIs that reflect the performance of a Magento e-commerce ? What indicators should be analyzed to judge the effectiveness of a Magento store? Data related to sales, traffic or even customer service, discover the twelve KPIs to follow to measure the performance of your Magento site.
Sales KPIs to measure the performance of a Magento e-commerce
An online sales activity requires regular monitoring of key performance indicators. Thanks to this set of data, the company can manage its activity objectively.
KPI #1: the conversion rate of a Magento e-commerce
Conversion rate is the first indicator to follow to measure the performance of a Magento e-commerce, because it reflects the effects of the work of an entire company. A good conversion rate means that customers buy the product or service offered in the store.
They therefore find all the necessary information thanks to quality content , in a context of reassurance . The fact that visitors navigate on a high-performance site, offering a user experience and good page loading speed, contributes to increasing engagement and conversion rates.
KPI n° 2: the number of orders and its evolution
The main goal of an online store is to sell, and at the best price. To achieve this goal, a company sets up a marketing and communication strategy , acquisition campaigns, and promotes its product catalog and new collections.
The number of orders made each day, each week and each month is a KPI that therefore reflects the performance of a Magento e-commerce. For a more detailed analysis, it will be possible to follow the evolution of this data by comparing it with the data of the previous month, the previous year, etc.
KPI #3: Recommendation rate to assess customer loyalty
Product sales are a good indicator for an online store, which thus transforms leads into customers . But customer loyalty is another very interesting performance indicator. Loyalty allows you to generate additional turnover, and also helps to relieve the costs of acquiring new customers, as well as the budget for acquisition campaigns.
Another indicator that should also be closely observed is the attrition rate. Called “churn rate” in English, this measures the number of customers lost by a company and therefore complements the loyalty rate.
KPI No. 4: turnover and its evolution
The fourth performance KPI of a Magento store is the turnover. For a business, it is essential to track the turnover achieved each day and compare it to the previous day, the previous month, the previous year, etc.
Tracking sales trends also allows you to take seasonality into account for some online sales sites. Typically, sites specializing in children’s toys will experience a sales peak before Christmas; travel sales sites will experience peaks around vacations and public holidays, etc.
KPI No. 5: Calculating the average basket
Finally, the average basket is an indicator that is obtained by dividing the turnover by the number of orders. Some tools allow you to monitor this KPI in real time, such as Google Analytics.
Taking into account a promotional offer or a new option proposed in the basket makes it possible to explain a temporary drop or increase in the average basket.
Indicators related to traffic and performance of a Magento store
Just like a physical store, an online Magento store needs traffic to generate sales. The multiplicity of online sales sites on the web requires companies to closely monitor key performance indicators related to traffic, in order to best position themselves against the competition. This data also reflects the web performance of a Magento site.
Indicator No. 6: CAC or Customer Acquisition Cost
The marketing and sales campaigns implemented aim to transform prospects into customers . In its overall customer acquisition strategy, marketing needs to track the customer acquisition cost, which we discussed in the previous section. Thanks to this KPI, the marketing department can measure the effectiveness of a marketing campaign or adapt its strategy. The point is that it is as low as possible.
Note that inbound marketing and lead nurturing strategies help to optimize customer acquisition costs.
Indicator #7: Changes in the number of visits to the Magento site
Traffic tracking is a KPI that reflects the performance of a Magento e-commerce site. Also, the more visits an online sales site records, the more it can deduce that its reputation is important. Also, to sell products or services, it is necessary to have enough qualified traffic . Finally, thanks to monthly and annual monitoring of the number of visits, the company can anticipate peaks in visits and offer a user experience of equal quality throughout the year.
Indicator #8: Traffic sources
Visitors to a website can come from natural referencing , or SEO, from paid referencing, or SEA, from social networks, or SMO, etc. Visitors can also come from partner sites, from e-mailing campaigns, etc.
Traffic sources help to understand which recruitment campaigns are the most successful. In this way, marketing improves the management of its acquisition campaigns. Finally, key performance indicators linked to traffic sources also help to understand the state of the Magento store’s natural referencing.
Indicator #9: Cart abandonment rate
The cart abandonment rate is an indicator of the performance of the Magento site, because it can highlight deeper issues on the site, such as a long loading time , a degraded user experience, irrelevant content, etc. The cart page is a crucial page in an online sales site. It may also require specific technical development in order to improve its results.
If the company needs to analyze the behavior of its visitors more precisely, it can add other key performance indicators such as the bounce rate, the list of exit pages, the number of pages viewed per session, the time spent on the site, etc.
Customer Service and Sales: Performance KPIs of a Magento Site
Customer service is in direct contact with the customer, it is often one of their main points of contact. If the customer is looking for a specific product, requests the launch of a new collection or criticizes a product range, the company must take this into account and offer a suitable solution.
KPI #10: Top 10 Best Selling Products in the Magento Store
What are the best-selling products? Are there any seasonal products? What is the gross margin of the best sellers? The top sales are an indicator that the marketing, production and customer service departments follow very carefully.
By analyzing its customers’ favorite products, the company can expand its range by creating new or complementary products, offering original options, etc.
KPI #11: Return rate and cost of returns
Customers have the option to return their products purchased online for various reasons such as the withdrawal period, a size error, a manufacturing defect, etc. These returns represent a financial cost that the company must track to measure its sales performance.
In addition, it will be able to optimize its production chain, its storage space or the content of a product sheet to reduce the return rate and therefore the overall cost of returns.
KPI #12: Contact rate
The contact rate is a customer service KPI that provides two pieces of information to the company. First, thanks to this indicator, the company can determine whether a page on its website needs to be improved because it is not understood by customers. Second, it can anticipate peaks in visits and sales in order to strengthen the customer service team. Thanks to this anticipation, it will be able to take the necessary time to train new employees.
To conclude, on Prestashop, WordPress or Magento, the KPIs that reflect the performance of an e-commerce are indicators adapted to the company as well as to the products or services sold. Finally, these are data that the company will use to improve its results and develop its business.
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