As a good habit of operating a successful online business running on an ecommerce marketplace, you should be able to measure some aspects of the business. For now, let’s take the example of an ecommerce marketplace and discuss the quantifiable metrics entrepreneurs should keep in mind. The good thing is that the most quantifiable metrics are also key performance indicators (KPI) in a business.
According to seasoned entrepreneurs who run online web shops, gathering and analyzing this data helps in making informed decisions such as stocking products that move fast, improving poor-quality products, and developing marketing strategies among others.
That said, let us dive into the common KPI metrics for a B2B ecommerce marketplace and what they mean to a business.
KPI Metrics for a B2B Ecommerce Marketplace: Average Order Value (AOV)
This is a revenue-related piece of data where the B2B seeks to know the average value of all orders they have been selling. Simply, it is the total value of all orders divided by the total number of orders sold in a certain period. This way you can know when customers are spending a little or a lot per order. As such, it is an important piece of data you should always keep every month. Fortunately, a business can include this in the issued reports when customizing their ecommerce platform.
Online Order Frequency (OOF)
Whether a business is new or has years of experience, it is critical to track the online order frequency. Simply, it refers to keeping data related to how often customers buy from an ecommerce marketplace.
According to experts, an entrepreneur can automate tracking this metric through integrated tools or a native tool in an ecommerce marketplace. If it is an important KPI metrics for a B2B ecommerce marketplace on the platform, they will definitely let you know.
KPI Metrics for a B2B Ecommerce Marketplace: Customer Retention Rate (CRR)
A B2B should always track return customers. The customer retention rate is the percent of customers who make more than one purchase within a certain time frame.
Bringing new customers on board is more expensive than retaining old ones, and in this case, this KPI metrics for a B2B ecommerce marketplace should remain high. If it goes too low, ensure that you take action to increase customer satisfaction. Since it is an interesting KPI, you should navigate to this site to learn more.
Customer Acquisition Cost (CAC)
This is a straightforward KPI metrics for a B2B ecommerce marketplace you calculate by taking the total money spent on getting new customers divided by the number of customers you have acquired within that time. It is important for budgeting purposes and also to know whether you are allocating enough money for marketing purposes in your B2B.
Percentage of Return Visits (PRV)
This serves as a guide on how the ecommerce marketplace can attract new customers and ensure they come back again to buy products and services. It is essential for knowing how effective your efforts are and what more you can do to lock in additional customers.
All these KPI metrics for a B2B ecommerce marketplace are crucial to analyze if you want to make effective decisions in your business. However, they are not the only important metrics as there are many others. So, take a look at the ones above and consult to discover others.