Do you have a B2B eCommerce marketplace platform? Are you looking for ways to know if your marketplace is moving in the right direction?
There are specific metrics available that can help to measure your eCommerce store success.
You will get answers to your all questions from this blog. To provide your consolidated information, we have talked to developers who have experience in creating B2B eCommerce solutions. With their help, we have listed down the most important metrics to make any eCommerce solution successful in the long run.
Let’s get started.
KPIs (Key Performance Indicators) are the important measurements to check the progress and success of your eCommerce business. Having access to the KPIs helps to know your platform’s weaknesses and strengths and where your eCommerce business is heading in the future. KPIs help you to track and monitor your business’s growth, sales, conversions, and conversion rate ratios.
So, as you have a B2B eCommerce platform and its KPIs, know your specific platform goals. For example, you want to increase your monthly recurring revenue, increase customer retention rate, increase the number of orders, and lastly increase the overall conversion rate of your B2B software solution. Doing this will help to make your platform the best B2B eCommerce platform for your users in the market.
So as you know now, KPIs for B2B software solutions. Let’s understand the ways to identify KPIs.
To know the KPIs for your business, you have to ask several questions to yourself. Below are some questions to help you.
Answering the above questions will help you to know where you actually stand according to your goal and where you need to go in the future to achieve the goal. This way you will be able to take your team ahead as per your goal and motivate them to achieve the most.
Moving further let’s look at some of the important KPIs of B2B eCommerce software solutions.
If you running an eCommerce marketplace platform, ensuring it gets successful is not that easy. Satisfying the dynamic needs of users, offering a proper user experience, and managing profits simultaneously is difficult.
But, with the right actions by measuring KPIs, these problems can get sorted easily.
1. Customer Retention Rate on Your eCommerce Marketplace
This metric lets you know how many customers are repeatedly coming and purchasing products from your eCommerce business. In short, the CRR measures how long a customer stays loyal to your brand and how much time he/she continues to purchase from your business. Also, you can measure how many customers continuously left your brand within a certain time. This is known as the churn rate.
Here is a quick formula to help you find the churn rate percentage.
Churn rate = Total customers – X no. of customers at end of month/ no. of customers at starting of month X 100
CRR metric helps you know the overall performance of your eCommerce platform and lets you know how many average users are active on your eCommerce stores (daily/weekly/month). You can use the same formula to calculate the churn rate for weekly users. The churn rate helps you to know the average percentage of users who left your eCommerce store and how you can decrease your churn rate effectively.
2. Average Order Value of Your eCommerce Store
This metric helps you to know the average value a customer spends on your eCommerce platform to purchase a product or service. In short, an average order value that a customer spends. With this KPI, you are able to know if an individual is continuously spending a certain amount on your platform. In addition, you are able to know what is the average order value customers spend on your platform.
So, measuring this KPI helps you to know where you need to improve and how you can upsell your customers to make more purchases on your platform. Also, you can know if you are able to make upsell or cross-sells to potential customers of your eCommerce platform. This is possible when you bifurcate the customers on their spending and categorize them from higher spending to lower spending. So, the customers who spend higher on your platform are the potential ones.
3. Lost Carts or Abandonment Rate
This metric allows you to know the percentage of customers who add the item to the cart and left the store without making a purchase. So, you get an idea about items added to the card, the value of the cart, and how long they were on the platform. By this metric, you are able to predict that customers were interested to make the purchase but left the store somehow without making any purchase.
However, you can make strategies to reduce your abandonment car rate and increase the sales lifecycle to make your store more profitable in the long run.
4. Reorder Rate
With reorder rate KPI, you are able to know which products are being purchased by consumers the most. So, you can manage your store products according to and keep the extra stock of products that are high in demand during a certain period or season.
With this metric, you can reduce the bounce rate of your eCommerce store and increase your consumers’ trust in the platform to make new purchases. Having the right amount of products in the store helps you increase the store purchase and profitable in the long run.
5. Return on Investment
The most important KPI of your eCommerce software solution. With this metric, you are able to know whether your eCommerce platform is profitable or not. If yes, then how much percent of profit do you get on a certain amount of investment.
On the contrary, if no, then how much percent of loss you are facing from your eCommerce platform. This way, you are able to measure the money efficiency on your platform and how you can improve your eCommerce platform to make more profits. There are several ways through which you can measure your ROI.
ROI = Total Revenue Generated/Cost
With the following metric, you are able to know if the project is overall profitable or not.
CPI = Earned Value/Actual Cost
This metric allows you to know the difference between actual costing and the amount earned from the platform.
CV = Budgeted Cost/Actual Cost
With the following metric, you are able to know the cost of acquiring a new consumer on your eCommerce platform.
CAC = Overal cost of acquiring new customers/total number of customers obtained
To conclude this blog, B2B eCommerce KPIs play a vital role when you want to measure the success of your marketplace. Identify the KPIs of your marketplace and start measuring them. This will help you to improve your eCommerce store overall.
As a leading B2B software solutions development company, we have developed over 2500+ eCommerce solutions for our customers. If you are looking to develop an eCommerce platform for your business, book a call with us.
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