Performance

February 23, 2024

Business Performance Measures #

source: https://www.skillmaker.edu.au/business-…

Business performance measures are a set of quantifiable metrics taken from various sources that together with an appropriate analytical process, allows the management of a business to track and assess the current status of a specific business, project or process. Business performance measures may be compared with pre-set goals and objectives or form part of a balanced scorecard that assesses financial or non-financial performance in the four primary areas of financial, learning/growth, internal processes and the customer. Business performance measures may also be known as organizational performance, results or key success indicators and are closely related to an organisation’s key performance indicators (KPI).

Key Performance Indicators (KPI) #

source: https://www.shopify.com/blog/…

Types of key performance indicators #

Sales
Marketing
Customer service
Manufacturing
Project management

What are KPIs for sales? #

Sales: Ecommerce retailers can monitor total sales by the hour, day, week, month, quarter, or year.
Average order size: Sometimes called the average market basket, the average order size tells you how much a customer typically spends on a single order.
Gross profit: Calculate this KPI by subtracting the total cost of goods sold from total sales.
Average margin: Average margin, or average profit margin, is a percentage that represents your profit margin over a period of time.
Average order value (AOV): The average value of an order from your customers.
Customer retention rate: Measures the percentage of customers a company retains over a specific period, indicating customer loyalty and satisfaction.
Number of transactions: This is the total number of transactions. Use this KPI in conjunction with average order size or total number of site visitors for deeper insights.
Conversion rate: The conversion rate, also a percentage, is the rate at which users on your ecommerce site are converting (or buying). This is calculated by dividing the total number of visitors (to a site, page, category, or selection of pages) by the total number of conversions.
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What are KPIs for marketing? #

Website traffic: Site traffic refers to the total number of visits to your ecommerce site. More site traffic means more users are hitting your online store.
New visitors versus returning visitors: New site visitors are first-time visitors to your site. Returning visitors, on the other hand, have been to your site before. While looking at this metric alone won’t reveal much, it can help ecommerce retailers gauge success of digital marketing campaigns. If you’re running a retargeted ad, for example, returning visitors should be higher.
Time on site: This KPI tells you how much time visitors are spending on your website. Generally, more time spent means they’ve had deeper engagements with your brand. Usually, you’ll want to see more time spent on blog content and landing pages and less time spent through the checkout process.
Bounce rate: The bounce rate tells you how many users exit your site after viewing only one page. If this number is high, you’ll want to investigate why visitors are leaving your site instead of exploring.
Page views per visit: Page views per visit refers to the average number of pages a user will view on your site during each visit. Again, more pages usually means more engagement. However, if it’s taking users too many clicks to find the products they’re looking for, you’ll want to revisit your site design.
Average session duration: The average amount of time a person spends on your site during a single visit is called the average session duration.
Traffic source: The traffic source KPI tells you where visitors are coming from or how they found your site. This will provide information about which channels are driving the most traffic, such as organic search, paid ads, or social media.
Mobile site traffic: Monitor the total number of users who use mobile devices to access your store and make sure your site is optimized for mobile.
Day part monitoring: Looking at when site visitors come can show you your peak traffic times.
Newsletter subscribers: The number of newsletter subscribers refers to how many users have opted into your email marketing list. If you have more subscribers, you can reach more consumers. However, you’ll also want to look at related data, such as the demographics of your newsletter subscribers, to make sure you’re reaching your target audience.
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