eCommerce is growing at an unprecedented rate, specifically with the boost given by COVID; and is expected to continue at this pace for the foreseeable future.
Now, what does this mean for your uniform business? eCommerce is not just about selling your products online. It’s about driving growth and demand for your business and making it as seamless as possible for uniform buyers to buy.
KPIs, aka, Key-Performance-Indicators quantify the performance of your business in relation to the expectations of your customers, suppliers, competitors, and shareholders – this is specifically important in an eCommerce setup given the data being available from myriad sources.
There are an infinite number of metrics a B2B uniform seller, selling online could list as a KPI. It’s not uncommon for a small-business or even a large enterprise to miss the bulls eye on the KPIs they should be measuring.
It is necessary to categorize KPIs (e.g., marketing, sales, financials) to map and track a company’s growth clearly and more strategically.
The SMART criteria should also apply to eCommerce KPIs, meaning they should be;
The CRR or Customer Retention Rate measures the loyalty of customers – vis-a-vis, how long a customer stays with your business, and how many repeat customers your uniform business has. The churn rate, on the contrary, indicates how many customers you lose.
Here’s a simple equation you can use to calculate your churn rate as a percentage:
Churn rate = Total customers - # of customers (end month)/ # of customer (beginning of month) x 100
For usage metrics, the CRR can give insight into “brand loyalty,” or the proportion of repeat visitors (broken down into daily/weekly/monthly active users) who return or continue to purchase from you. Customer Retention Rate can give insights into the overall performance of your product or service.
The conversion rate is as straightforward as it gets, it is a desired action/event from the user – ranging from a simple click to a purchase and becoming a loyal customer. The simple formula is;
Conversion rate = Total visitors/number of conversion x 100
The cart abandonment rate is a conversation rate that gives you an insight into how often a user doesn’t complete a purchase after starting the checkout process. To find this, use the following formula:
Shopping cart abandoned rate (CAR) = Completed transaction/# of cart x 100
Conversation rates provide detailed insights into the effectiveness of your sales & marketing teams. For example. The unsubscribe rates tell you whether your messaging is meeting the expectations of your buyers.
Several factors impact conversation rates, from competitor pricing to customer experience. These are all factors to consider when looking for ways to increase your conversation rates and make decisions on email campaigns.
Average Order Value (AOV) is a metric that calculates the average sum of all orders made with your uniform business. Examining your online order frequency metrics can tell you insightful information about peak times and days customers are ordering from you or even which offers and promotions attract more buyers. Furthermore, you can examine the average time to process said orders, which can significantly impact customer satisfaction.
Every business requires certain financial goals to operate and track their progress. A B2B eCommerce business in the uniform industry is no exception. To help you stay on track, it’s essential to know what financial metrics are available to you. Return on Investment (ROI) is a term used to measure your money's efficiency. Use this simple equation to calculate your ROI:
ROI = Revenue/Cost
CPI = Earned value/Actual Cost
CAC = Overall costs to acquire customers/Total # of customers gained
The ‘Net Promoter Score’ has been one of the most popular indicators of a company’s customer loyalty and satisfaction, and it is used in countless industries, from banking to retail and uniforms too! It measures how likely a person is to recommend your company to others. The higher the NPS, the more likely that person will advocate for your company.
When calculating your business’s NPS score, you can place customers into one of three categories.
To calculate the NPS, use the following formula:
NPS = Total % of detractors from the total % of promoters
KPIs are the most important tool for comprehending your B2B uniform eCommerce business success and growth; then, addressing what the next steps are from the detracting results. . In other words, you want to know whether your business is moving in the right direction.