Ecommerce Ebook EN V2 (2) - Flipbook - Page 23
• Product relationship: This is which products are viewed
consecutively. Useful in formulating effective cross-selling
tactics.
• Inventory levels: This KPI could tell you how much stock is
on hand, how long product is sitting, how quickly product is
selling, etc. This is where the concept of the economic order
quantity (EOQ) comes in. EOQ, is a calculation designed to find
the optimal order quantity for businesses to minimize logistics
costs, warehousing space, stockouts, and overstock costs.
• Competitive pricing: It’s important to gauge your success and
growth against yourself and against your competitors. Monitor
your competitors’ pricing strategies and compare them to
your own.
• Customer lifetime value (CLV): The CLV tells you how much a
customer is worth to your business over the course of their
relationship with your brand. The greater the customer loyalty,
the greater is CLV.
• Revenue per visitor (RPV): Average of how much a person
spends during a single visit to your site.
• Churn rate: The churn rate tells you how quickly customers are
leaving your brand or canceling/failing to renew a subscription
with your brand.
• Customer acquisition cost (CAC): CAC tells you how much your
company spends on acquiring a new customer. This is measured
by looking at your marketing spend by customer segment.
KEY PERFORMANCE INDICATORS
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