The term "KPI" comes from the English concept "Key Performance Indicator" and means Key Performance Indicators They represent methods of measuring success.
This term comes from the business management and direction sector, and is generally used in the context of profitability, liquidity, customer satisfaction indicators, and communication. Through KPIs, entrepreneurs establish the business objectives that must be achieved during a specific period of time..
KPIs in E-Commerce
To measure the popularity and power of an online store you can define different KPIs through tools such as "Google Analytics". Some factors to consider are:
The owners of an online store can estimate, based on the value of each order, how much investment in marketing, for example, they will need to make to increase ROI and thus profits. The key performance indicators can be optimized with measures such as "Cross-Selling", for example.
It is essential to determine these indicators based on the industry and business characteristics in order to be able to fit the margins correctly.
2. Conversion rate
Conversion rate = Sales / Visits x 100 = %
There are values that are useful when examining the Conversion Ratio of our business. The Conversion can also be analyzed not by sales, but for example in connection with the shopping cart to review the quality of the purchase procedure.
3. Bounce rate
The "Bounce Rate" informs the entrepreneur about the probability that a potential customer will end up becoming a buyer. The lower this value, the greater the likelihood that the visitor will convert. In spite of everything, it must be analyzed which pages are the ones that can generate a conversion and what measures to take to optimize them.
4. Orders per visitor
When reviewing the "Number of orders per visitor" you can calculate the mean value, which is a very useful KPI. For example, small changes in payment methods or the use of cross-selling are examples of factors that can help increase the number of orders per visitor.
5. Length of stay
The time of permanence is a very important indicator for the success of an online store. The longer the user stays on the web portal, the more likely they will end up buying. In the realm of conversion optimization and SEO, the length of the visit is a fundamental KPI.
6. Percentage of output
This value shows if visitors leave the store at the end of an order or through a page that has something wrong.
7. Ratio of new visits to recurring visits
This key indicator is very interesting for online stores because it shows the level of loyalty that customers of a store have, for example, to check whether a marketing campaign has been successful or not. The higher the number of repeat customers, the more likely they are to buy.
8. Pages per visit
The more pages the visitor reads, the more offers they will see and the more likely they will end up buying something. It is essential to review whether a particular offer has a negative effect on the user experience, that is, it reduces the number of pages per visit.
Relevance for SEO
In SEO the term "KPI" it is used very frequently. Some examples of KPIs in SEO they are: link popularity, traffic, Click-through rate - CTR, etc. Finally: all important factors that impact SEO can be called KPI.
Many of the indicators used in online stores coincide with the SEO indicators. It is no coincidence, SEO and electronic commerce go hand in hand and together with marketing strategies are carried out to achieve the best results and benefits from online stores. The time of permanence and the bounce rate are two of the most important KPIs for online stores and that have a lot of influence on the positioning in the SERPs.
Visibility provides information regarding the quality of the links that a website contains and the positioning it obtains for certain keywords. To establish visibility, the TOP 100 search requests are generally analyzed by search engines. The values vary because each search engine, software and SEO tools have different crawlers. The higher the visibility, the better for the web portal.
For a long time, PageRank was one of the most important SEO indicators to measure the value of a page. Today the PG is just one more indicator among many. It is fundamentally interesting to review this value when you see a sharp decline after an update.
3. Keyword positioning
The positioning of the keywords is an important KPI for SEO since the positioning is a fundamental factor that has a great impact on traffic and visits received by a web portal. Fundamentally important if the web portal is an online store and the success of the business is based on the sales that occur on the web.
4. Dwell time and CTR
The two values are very important indicators for the evaluation of a web portal and influence the positioning
5. Bounce rate
The higher it is, the less interesting the web portal is for the user.
6. Popularity of the links =
With the popularity of the links you can establish the number of incoming links, commonly known as Backlinks, which receives a web portal. The MOZ company was the one who first introduced this term - MozRank.
7. Domain popularity
The popularity of the domain usually replaces the popularity of the links for the following reason: it covers not only the amount of backlinks that a web portal has but also its quality and trust they cause in users.
8. Visits / Visitors
It is a very simple KPI that shows you the number of real visitors a web portal receives.
In SEO, this KPI is a controversial definition given that the influence that social networks have on the positioning of a web portal is not precisely known. It is clearly known that it affects but not to what extent or how precisely. Of course, it is clear that connecting your Google+ account to your Facebook account will generate more traffic. In this case, a measure is used to review the impact of social networks: "Social Return on Investment" '.
10. Organic search results
The KPI of the organic search results is a very useful indicator since it shows the presence that a web portal has in linking to relevant keywords.
11. Direct traffic
Through this KPI you can establish the strength of the URL and the brand. This indicator includes visits through organic searches with the brand name or directly through the URL.
Return On Investment '' it is the return on investment and it is a very important KPI for SEO as well. In spite of everything, it is an indicator that must be compared to previous data before being analyzed.
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