09+Performance+Evaluation

Key Performance Indicators (KPIs) source [|Shopify] Marketing Strategy, Market Research, Marketing Plan..... are key marketing concept critical to the success of digital org. Performance Evaluation: Metrics, measures and tools CSF, KPI --

**Performance should inform business decisions** and **KPIs should drive actions.**

Key performance indicators (KPIs) are like milestones on the road to online retail success. ** Monitoring ** them will help identify progress toward sales, marketing, and customer service goals. **A performance indicator** is simply a **quantifiable measurement** or data point used **to gauge** __performance__ __relative to some goal__. As an example, it may be a goal for some online retailers to increase site traffic 50 % in the next year. Relative to this goal, a performance indicator might be the number of unique visitors the site receives daily or which traffic sources send visitors (pay-per-click advertising, search engine optimization, brand or display advertising, or a  [|YouTube] video). For some goals there could be many performance indicators — often too many — so often people narrow it down to just two or three impactful data points known as key performance indicators. KPIs are those measurements that most accurately and succinctly show whether or not a business in progressing toward its goal.

==Setting Goals and Identifying KPIs What's your GOAL? == Selecting KPIs begins with clearly stating goals and understanding what areas of business impact those goals. Of course, KPIs can and should differ for each of an online retailer's goals, whether those are related to boosting sales, streamlining marketing, or improving customer service. Here are a few examples of goals and associated KPIs:
 * GOAL 1 — Boost sales 10% in the next quarter. KPIs include daily sales, conversion rate, site traffic.
 * GOAL 2 — Increase conversion rate 2% in the next year. KPIs include conversion rate, shopping cart abandonment rate, associated shipping rate trends, competitive price trends.
 * GOAL 3 — Grow site traffic 20 percent in the next year. KPIs include site traffic, traffic sources, promotional click-through rates, social shares, bounce rates.
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;"><span style="font-family: ProximaNovaSemiBold,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">GOAL 4 — Reduce customer service calls by half in the next 6 months. KPIs include service call classification, identify of page visited immediately before the call, event that lead to the call.

I n [|internet marketing], the conversion rate is the proportion of visitors to a website who take action to go beyond a casual content view or website visit, as a result of subtle or direct requests from marketers, advertisers, and content creators. Successful conversions are defined differently by individual marketers, advertisers, and content creators. To online retailers, for example, a successful conversion may be defined as the sale of a product to a consumer whose interest in the item was initially sparked by clicking a banner advertisement. To content creators, a successful conversion may refer to a membership registration, newsletter subscription, software download, or other activity.

<span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; font-size: 15px; vertical-align: baseline;">It should be easy to see that there are many performance indicators, and the value of those indicators is directly tied to the goal progress measured. Monitoring which page someone visited before initiating a customer service call makes sense as a KPI for GOAL 4 since it could help identify areas of confusion that when corrected would reduce customer service calls, but that same performance indicator would be almost useless for GOAL 3. <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; font-size: 15px; vertical-align: baseline;">With the idea that KPIs should differ based on the goal being measured, it's possible to consider a set of common performance indicators for ecommerce. Here are 32 common ecommerce key performance indicators. Just remember that the performance indicators listed below is in no way exhaustive.

<span style="color: #191919; font-family: ProximaNovaThin,'Helvetica Neue',Helvetica,Arial,sans-serif; font-size: 26px; vertical-align: baseline;">Sales Key Performance Indicators:

 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Hourly, daily, weekly, monthly, quarterly, and annual sales
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Average order size (sometimes called average market basket)
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Average margin
 * Conversion rate
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Shopping cart abandonment rate
 * New customer orders versus returning customer sales
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Cost of goods sold
 * Total available market relative to a retailer's share of market
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Product affinity (which products are purchased together)
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Product relationship (which products are viewed consecutively)
 * Inventory levels
 * Competitive pricing

<span style="color: #191919; font-family: ProximaNovaThin,'Helvetica Neue',Helvetica,Arial,sans-serif; font-size: 26px; vertical-align: baseline;">Marketing Key Performance Indicators:

 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Site traffic
 * Unique visitors versus returning visitors
 * Time on site
 * Page views per visit
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Traffic source
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Day part monitoring (when site visitors come)
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Newsletter subscribers
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Texting subscribers
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Chat sessions initiated
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Facebook, Twitter, or Pinterest followers or fans
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Pay-per-click traffic volume
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Blog traffic
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Number and quality of product reviews
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Brand or display advertising click-through rates
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Affiliate performance rates

<span style="color: #191919; font-family: ProximaNovaThin,'Helvetica Neue',Helvetica,Arial,sans-serif; font-size: 26px; vertical-align: baseline;">Customer Service Key Performance Indicators:

 * Customer service email count
 * Customer service phone call count
 * Customer service chat count
 * Average resolution time
 * <span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; vertical-align: baseline;">Concern classification

Once you have set goals and selected KPIs, monitoring those indicators should become an everyday exercise. And most importantly: Performance should inform business decisions, and you should use KPIs to drive actions.

<span style="font-family: ProximaNovaLight,'Helvetica Neue',Helvetica,Arial,sans-serif; font-size: 15px; vertical-align: baseline;">Read more: [|http://www.shopify.com/blog/7365564-32-key-performance-indicators-kpis-for-ecommerce#ixzz2XOhxSAa0]