Harrison 
Are you having trouble keeping track of your monthly revenue? To make sure your business doesn’t incur losses, you may need to evaluate your business’ sales strategy. But getting the data to yield valuable insights for your business can be difficult.
Good news.
Sales performance metrics help you identify performance issues and optimize your sales efforts. These performance metrics also help you track your business’s conversion rate, customer acquisition cost, and average deal size.
Evaluating these sales metrics will help you create a robust sales dashboard based on factual knowledge.
Want to learn how to measure and scale your sales performance? e-commerce business?
Then keep reading to discover:
Basics of sales performance indicators
Sales performance metrics are measurements that can be used to monitor the activities of your business.. These data points can help determine the effectiveness of individuals, teams, or the business as a whole.
Sales managers use these key performance indicators to measure sales performance and determine whether the company is meeting its sales goals. Setting goals is very important to keep everyone motivated and accountable. This helps you manage sales activities and processes and identify potential bottlenecks.
Whether you sell offline or online, SaaS or physical goods, tracking sales performance metrics for your business allows you to:
- Improved sales performance
- Inform important decision-making processes
- Increase business profitability
- Build a more efficient sales team
- Improving customer satisfaction
What are e-commerce metrics and KPIs?
Like running any other business, a successful store requires monitoring and management in three areas: e-commerce KPIs:
- marketing
- sale
- Overall business health
Unfortunately, there are limits to what teams can do. How do you keep an eye on everything going on in your business, especially as you scale? This is where e-commerce metrics and key performance indicators (KPIs) come into play.
By identifying the metrics and KPIs that directly make a difference to the health of your business, you and your team can cut through all the noise and focus on the few numbers that really matter. Essentially, choosing the right KPIs will streamline your business operations.
Since e-commerce businesses are typically in the realm of products (rather than services), sales metrics are most important. More details in the next section.
What are the KPIs for e-commerce sales?
- Average trade size
- Percentage of salespeople who achieved their goals
- cost per acquisition
- net promoter score
- Churn rate
- customer lifetime value
- Average lead response time
- Winning rate
- conversion speed
Wondering what metrics are most important for product performance?
here are nine Top e-commerce metrics For sale:
1. Average transaction size
Evaluating this metric monthly will tell you if your contacts are increasing or decreasing. If the deal is declined, there may be something wrong with your sales team or your lead generation efforts.
To calculate average trade size, divide the sum of trades by the total amount of those trades.
Average trade size = total trades / total trade value
2. Percentage of salespeople who achieved their goals
The percentage of your sales team meeting sales quotas can indicate whether the quotas are realistic. For example, if only 40% of his team is achieving the expected close rate, he needs to determine why his team is underperforming.
If you’re achieving more than 90% of your quota, you may need to increase your individual sales goals. Tracking this metric helps sales leaders identify who is meeting quota and who is not meeting business revenue goals.
3. Cost per acquisition
This performance metric takes into account all costs associated with acquiring new customers, such as sales and marketing.Always minimize costs and improve your average by targeting the right customers Profit rate.
To calculate your CAC, divide the amount you spend to acquire customers by the number of customers acquired.
Cost per acquisition = Total amount spent on acquiring new customers / Number of customers acquired
4. Net Promoter Score
This data reveals how likely your existing customers are to recommend your product or service on a scale of 1 to 10.
Sales leaders can use this metric to measure customer satisfaction and loyalty to their business. A high Net Promoter Score significantly increases sales opportunities and increases market share.
5. Churn rate
Churn rate is the percentage of customers who leave your business. To maintain a good customer base, you need to determine why your customer churn rate is high.
Reasons why customers leave include pricing and customer service. Knowing that allows you to improve your customer retention strategy and increase your average revenue.
To calculate customer churn rate, divide the total number of customers at the beginning of the month by the number of customers who left.
Churn rate = Total number of customers at the beginning of the period / Total number of customers who left
6. Customer lifetime value
Customer lifetime value (CLV) is the total revenue a business generates from a customer over their lifetime as a loyal customer. This allows you to identify which customer segments are most profitable and worth your attention.
To calculate a customer’s CLV, multiply the annual revenue you earn from the customer by the average lifespan of the customer, then subtract the customer acquisition cost.
CLV = (annual profit from customer × average lifespan) — customer acquisition cost
7. Average Lead Response Time
Lead response time is the average time it takes a sales representative to contact a lead who is interested in your product. This will tell you if marketers are acting urgently to keep prospects from running away.
Average response time should not exceed 5 minutes, as this reduces the likelihood of conversion. 80 percent After 5 minutes. Make sure your team responds within this time frame to avoid losing customers in your sales pipeline and drive sales revenue.
To calculate lead response time, subtract the follow-up time or date from the initial contact time or date.
Lead response time = time or date of first contact — time or date of follow-up
8.Winning rate
Close rate indicates the number of leads that end up becoming active customers. This is a great way to determine if a salesperson is successful and how effective they are. sales strategy.
An increase in average win rate means that sales performance is improving. If not, you need to identify where deals are leaking in your sales funnel and perhaps take a corrective approach.
You can calculate your win rate by dividing the number of deals closed by the number of deals created during the sales cycle.
Win rate = number of trades won / number of trades created
9. Conversion rate
your business” conversion speed The percentage of visitors who took an action that turned them into customers. These actions include creating an account, subscribing to emails, and purchasing products.
It will help you identify which techniques are most effective and which are not. A higher conversion rate means more revenue for your business.
To calculate your business’ conversion rate, divide the number of conversions by the total number of website visitors.
Conversion rate = total conversions / number of visitors
These nine metrics are important, but they only scratch the surface of the numbers you can track for your e-commerce business.Visit Next Glossary of e-commerce metrics You can learn more.
How often should you check your e-commerce metrics?
Once you establish KPIs for your entire business, it’s easy to get caught up in constantly reviewing them. You want your business to succeed, and you’ll want to know about small increases in numbers at first.
How often you review your ecommerce metrics ultimately depends on your business goals. That being said, a general rule of thumb is to check certain metrics daily, weekly, monthly, and quarterly.
every day
The numbers you should check daily are your website’s performance indicators. You need to monitor your website closely to make sure everything is running smoothly. Monitor your web traffic, bounce rate, conversion rate, and more, and resolve any pressing issues that may arise.
weekly
Sales and marketing should be reviewed weekly. Review your sales data to identify bottlenecks, identify agents who need support, and assess whether you need to completely overhaul your processes. Marketing campaign metrics like cost-per-click, ad spend, and conversion rates should also be included in your weekly queue.
monthly
Customer-centric e-commerce performance metrics should be reviewed on a monthly basis. This includes numbers such as cost per acquisition, churn rate, and retention rate. It’s also a good time to analyze customer feedback and behavioral trends to identify opportunities to improve your store.
quarterly
Quarterly reviews cover e-commerce performance metrics related to the big picture. The metrics and performance areas you view here should be focused on your overall e-commerce success. You need to consider your strategy, goals, audience, and budget. It also helps you perform competitor analysis, learn what others are doing, and bridge the gap between two strategies.
How to measure e-commerce success
Depending on who you talk to, the amount and variety of key ecommerce metrics can vary greatly. Different industry leaders may have different views on true e-commerce success metrics.
In general, when you get down to the nitty-gritty of how an e-commerce storefront works, there are two fundamental numbers that are important. Smart e-commerce owners need to keep an eye on conversion rates and average order size. If both are increasing, these are two healthy signs that your store is experiencing strong growth.
Final Thoughts: 9 Sales Performance Metrics to Track Business Growth
Improving sales performance metrics is important, but the process can be complex. It’s a good idea to have the right tools in place to help evaluate your sales performance.
In addition to tools like Glew and Metorik. Necessary sales performance monitor can help. Included in every WooCommerce plan managed by Nexcess, you can measure your sales against a predictive model based on your store’s past performance.
Our intelligence engine can send you alerts on sales trends and give you the visibility you need to get your store back on track if sales are slow.
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This blog was first published in September 2021. It has since been updated for accuracy and comprehensiveness.
