Creating KPIs
Tracking KPIs consistently can be transformative for business owners, offering a comprehensive view across various business facets. KPIs do more than track revenue—they reveal insights into operational effectiveness and customer engagement. For instance, simply tracking monthly revenue increases provides limited context. However, tracking KPIs can highlight specific factors contributing to growth, such as marketing campaigns or improved customer retention, and enables businesses to replicate successful strategies. By analyzing trends over time, KPIs help create an actionable blueprint for sustained success and informed decision-making.
Now that we have established KPIs are a must, let’s think about what KPIs should be tracked and how to build out the data collection platform.
E-Commerce Brands
To create effective eCommerce KPIs, identify key metrics aligned with your business goals. Avoid selecting too many KPIs; focus on those that directly impact your business objectives. Start by choosing measurable KPIs across relevant areas, some examples are below:
Revenue: conversion rate, average order value, lifetime value
Marketing: website traffic, customer acquisition cost
customer service: satisfaction score, repeat purchase rate
Sales Team KPIs
Other than sales goals, there are quite a few additional Sale KPIs that should be measured and reviewed on monthly basis to help refine and define sales strategies. Each KPI points to different and important learnings.
Customer Churn Rate: Indicates customer retention and satisfaction.
Revenue from New vs. Existing Customers: Assesses loyalty and acquisition success.
Average Order Value (AOV): Helps maximize ROI through cross-selling.
Close Rate: Shows sales process health and team efficiency.
Monthly Recurring Revenue (MRR): Essential for subscription models.
Customer Satisfaction Score: Reflects service quality and loyalty.
Customer Lifetime Value (CLV): Projects long-term revenue from customers.
Net Promoter Score (NPS): Measures brand loyalty.
Opportunity-to-Win Ratio: Evaluates conversion efficiency.
Brand Awareness KPIs
While brand awareness may not lead directly to immediate sales, it plays a critical role for retail brands by driving visibility and influencing customer choice on the shelf. This awareness supports the brand's bottom-funnel efforts, enhancing overall marketing effectiveness and reinforcing customer loyalty and purchase intent over time. By building brand recognition, companies can create a foundation that feeds into their conversion strategies, ultimately boosting in-store and online sales as customers become more familiar with the brand.
Social Listening: Measures brand mentions across social media and tracks sentiment.
Branded Search Volume: Indicates how often people search for your brand name online.
Direct Traffic: Shows how many people visit your site directly by typing in your URL.
Backlinks: Counts links to your site from other domains, a good indicator of authority.
Share of Voice: Measures brand visibility relative to competitors.
Referral Traffic: Tracks visits to your site from other websites.
Pro Tip: I like to build out unique KPI trackers for different channels so I can spotlight the data points that are most important. You can download a sample KPI Tracker below.