So what if you had a concrete KPI framework to follow for marketing. You would know exactly which marketing efforts work and what to focus on. All leading to skyrocketing sales.
That’s what this guide is for. Step-by-step it will show you how to systematically develop a marketing KPIs for ecommerce framework directly were obtained from your business objectives. No other tool besides Google Analytics will be necessary for this. At the end of this article you’ll also find a done-for-you custom report template, which you can instantaneously are in addition to Google Analytics in order to use your new metric framework.
This guide and framework relies heavily on the work from Avinash Kaushik and is adjusted for an ecommerce context. Be sure to check out his blog, if you haven’t.
One of the reasons why setting up a marketing ecommerce KPI framework can be so overwhelming is that there are hundreds of metrics to choose from. E.g. should you focus on ricochet rate or clicks? Are conversions the only metric to look at? Or are others equally important? In this guide you will reduce the large number of metrics you could look at, while focusing only on those, which are really important for your ecommerce business.
In general when setting up a marketing KPI framework you should always make sure to track and encompass all of the following areas of the interests of consumers journey with your metrics 😛 TAGEND
Acquisition: How will users be acquired?
Behavior: What should the users do on the website?
Outcome: What’s the final desired outcome you want to achieve?
These are the guiding questions you are able to alway keep in intellect when designing your new marketing KPIs for ecommerce framework. The setup of the framework itself then follows five steps 😛 TAGEND Step one is to identify the business objectives of your company. Why does it actually exist? Step two is to identify aims for each business objective. Think of aims as steps to take to reach the objectives. Step three is to define the key performance indicators. So basically metrics that help you understand how you are doing. Step four is to identify targets for each KPI, indicating, if you are succeeding or failing. Step five is to identify segments of people/ behavior/ outcomes that can be analyzed further.