Hello dear sellers of Shopee, Lazada, TikTok Shop, and to everyone who has dipped their toes into the vast ocean of e-commerce! Ever felt like you're fishing in this ocean, casting your net wide but not sure what you're going to catch? Well, let me share a secret. The right fishing gear, in our world, is understanding and tracking the right KPIs.
So, what are these mysterious KPIs everyone keeps talking about?
Why KPIs are the North Star for Sellers
Key Performance Indicators (KPIs) are basically the signposts on your e-commerce journey. They guide you, tell you if you're on the right path, and sometimes, even warn you of impending storms. Why are they crucial?
- Understand customer behavior: Like noticing that a fish prefers a certain bait, KPIs help you identify what your customers prefer.
- Boost sales: Think of this as finding the right fishing spot where the fish are plenty.
- Enhance marketing: Just as using the right bait matters, tailoring your marketing strategies based on KPIs can reel in bigger catches.
Must-Track KPIs for e-commerce success
Conversion rate: It’s like measuring how many fish you catch for every 100 times you throw your net. Low conversion? Maybe it's time to change the bait (or, in our case, the marketing strategy).
Average order value (AOV): Knowing how much, on average, customers spend can help tweak pricing strategies. If everyone's buying the small fish, maybe offer a combo with the big one?
Customer lifetime value (CLV): Think of this as the fish that keeps coming back to your bait. The more often they return, the more they’re worth to your business.
Cart abandonment rate: It’s like the fish that wriggles out just as you’re about to pull it in. Why did they leave? Was the checkout process too complicated?
In conclusion
Remember, e-commerce, like fishing, requires patience, strategy, and the right tools. KPIs are those tools. They don’t just measure success; they guide it. So, whether you’re a seasoned seller or just starting out, let KPIs be your guiding star.