If you own a B2B eCommerce store, then you probably want to continuously measure its performance. Various KPI metrics are available to keep a close tab on the performance of your enterprise. The only challenge is that there is such a wide array of metrics at your disposal that it may be difficult to know which ones to choose.
This presents a few challenges. For example, not all KPIs will deliver value for the business by providing meaningful data. Generating useless data will be a waste of time and resources. So, which KPI metrics for a B2B eCommerce marketplace are most likely to benefit your business?
Customer Acquisition Cost
It will cost the business money to acquire each and every customer. To calculate your CAC, divide the amount you spend on marketing your business by the number of customers you have acquired. This will tell you how much it costs to attract a single customer.
For instance, you can keep a running total of the money you have spent in one month and divide that by the number of prospects you have converted into paying customers over the same period. The amount you spend on acquiring customers should not be higher than the returns you are going to get from them. Note that this is talking about the amount they will spend in the long term and not instant.
Customer Retention Rate
When a client is satisfied with your product or service, they are likely to come back. On the flipside, dissatisfied customers will probably not buy from you again. Nonetheless, sometimes it has nothing to do with the service you provide.
So how do you arrive at this figure? Take the number of customers you have accrued in a particular period. Subtract the new customers that you have added recently. Divide by the number of clients you had initially and then multiply the answer by 100 to get your customer retention rate.
Your customer retention rate is a vital metric for several reasons. First of all, keeping an existing customer is less expensive than acquiring a new one. A low customer retention rate means your products or services are not up to the standards your customers expect.
Percentage of Return Visits
Return visits play an integral role in measuring the performance of your online store. But what does this mean? When you launch an online platform, you may struggle to encourage your in-person clients to migrate to your online services.
Sometimes, some clients may purchase your products online one time and then opt to revert to the in-person method. This could mean that your online platform is not user-friendly. You probably need to tweak it and also educate your customers on its benefits. You can learn more straight from the source.
Online Order Frequency
The online order frequency metric (OOF) allows you to know how many times clients purchase directly from your online portal. Comparing this to how often they use other digital channels is illuminating. If your OOF has stagnated, then your customers prefer to make in-person purchases.
If you want your business to thrive, you need to keep an eye on all its performance metrics. This will allow you to strengthen many aspects of your business. Moreover, a lot of online stores are starting up every day. Some of these could be offering similar products to yours. As a result, you need to do all it takes to stay ahead of the competition.