Running a B2B online business without measuring your performance is like driving blind. You’re doomed to fail if you don’t track relevant metrics, analyze your business performance, and use those insights to improve your business.
KPI for B2B ecommerce businesses are very important. They provide a way to measure the success of online sales, and help to identify gaps and areas where your business needs to improve. In order to assign KPI’s and have them drive meaningful change, we need to measure the impact of the online channel on your business.
B2B specific metrics can be used to boost revenue, retain customers, retention rateand increase efficiency for companies that sell online to professional buyers.
By assigning B2B e-commerce KPIs to individuals and teams within your business, you can make sure there is alignment and a focus on online sales.
What is a Metric?
A metric is a measurement of a website’s performance. Product pages, shopping basket abandonment, traffic sources, and homepages are just some of the many different metrics that websites track.
What is a KPI?
The key performance indicators are referred to KPIs. An indicator is a benchmark or goal and is used to track growth rate. These are critically important numbers that are usually how you evaluate ecommerce performance.
What’s the Difference Between a Metric and an Ecommerce KPI?
They are often used interchangeably but what’s the difference between a metric and a key performance indicator?
Metrics measure processes while the KPIs measure the performance of those processes. Performance indicators are subjective and you want your store to achieve specific targets.
You may be able to track the typical order value for your site. This is a metric, but it’s not a KPI on its own. Meanwhile, an AOV of $80 can be considered an ecommerce KPI.
If you want to shape the future of your store in the way you want, you should be able to track your metrics to do that. Your metrics need to be relevant to the business before you can assign them as KPIs.
How to Measure Ecommerce Success
Selecting the right metrics and KPIs to track for your business helps you stay focused on what matters most, and gives you an early indication of which areas of your business are performing well.
Set up your own scorecard. This index can be a helpful way to measure performance at an enterprise level.
You can assign higher weightage to indicators which you feel are more important to you.
Depending on your size; teams or sales team members can manage the specifics of the activities that affect your metrics and your achieving your KPIs.
Some Essential KPI for B2B Ecommerce
Online Customer Retention Rate – Percentage of Return Visits
You can use the B2B online sales KPIs to learn which B2B sales channels are working best for your company.
For B2B sales, repeat purchases are an important factor. It is possible that the number of customers returning to your store is as important.
The B2B KPI shows how well the sales portal is meeting needs beyond just placing orders. In a closed B2B web store, your online portal serves a purpose for your customers. a visitor is always a customer, and not just a casual visitor.
For example, if most of your customers prefer your B2B e-Commerce platform as an alternative to other sales channels, and individual customers order products online frequently, this could be a sign that your store is fulfilling their needs.
If customers shift back to online ordering after the initial use of your B2B e-commerce platform, this could mean that the web store is not meeting customer expectations and needs improvement.
Online order frequency
Measure online order frequency and compare it to the total amount of orders to determine the profitability of your online sales channel.
Small orders combined can make up a significant part of your business, but they consume a lot of your time and resources.
The best way to improve your B2B e- commerce operations is to take advantage of your e- commerce platform by making it easier for customers to place their orders.
This will allow you to process more orders without increasing staffing. Increased repeat customer rate also increases your customer lifetime value.
Customer satisfaction with your B2B Ecommerce store
There’s not as much adoption of online tools to measure customer satisfaction among wholesalers, manufacturers, and distributors.
You can track this in other ways. Wholesale buyers are more personal than B2C buyers, so you can conduct in-depth interviews to learn more about why and how online shopping works.
In business, customer retention is everything. And while the quality of the products you sell and the service you provide are vitally important, user experiences in the digital age are the thing that will separate your business from its competition.
Average order value for your online sales
Customers can determine if their online sales portal is changing buying behavior. The B2B version is different from the B2C version. B2B businesses can compare this performance indicator with other points in time and with offline orders placed by the same customer.
The cross-sell and upsell potential of your e-commerce platform should be indicated by this B2B e-Commerce KPI. It will let you know if you are helping customers find both the products they are looking for and the ones they need.
Your goal is not only to have a high conversion rate but a high AOV too. Needless to say, this also directly influences customer lifetime value with you.
Outside Business Hours E-commerce Orders
Another good KPI is conversion rates or orders placed outside of work hours. That clearly shows you are fulfilling a need for your customers, and builds your case for investing in your online store.
It’s a bit more challenging to track an average order value for customers who do their shopping offline but search online for your product before making their orders, as it doesn’t have to be on your site.
You could compare the AOV of those customers with customers who don’t do online research before placing their orders offline, to get a good indication of how well your web site is performing.
Number Of Customer Service Phone Calls And Emails
In this KPI, the time saved on answering customer queries and taking orders using a B2B portal is measured. If you want to calculate the number of customer calls and emails your business receives, you can use a fixed time period.
Customers no longer need to call or email your business to place orders with a B2B portal. The more phone calls and emails you get, the less time you have for other tasks.
If you don’t see a decrease in the number of phone calls or emails, you need to re- assess your website. Your customer may not be able to find a particular product or the interface may be difficult to use.
Average Time Taken To Process Orders
This KPI is calculated based on the average time taken to process an incoming order.
To calculate this, you would need to calculate the average time taken to process orders from when a customer has placed an order until the order has been fulfilled and delivered to your customer.
If your average processing time does not drop, then you should re-examine your workflow and see if any adjustments are required to make your B2B eCommerce portal work more effectively within your current process.
How Often Should I Check My Ecommerce Metrics?
How often should you check your metrics? There is no one fixed answer as it all depends.
Generally, it would be industry norm to check ok different metrics on a weekly and monthly time frame. This allows the effect of your actions to take place and show statistical significance.
Often, shorter time frames suffer from distortions due to spikes from random events.
You should regularly check on the metrics that measure the health of your internet business. These will inform you if you have technical issues with your portal. Examples include website traffic, impressions, click-through rate and social media engagement.
Monthly kpi for b2b ecommerce
It is crucial to measure your marketing or traffic performance on a monthly basis. If you want to make a monthly profit, you have to pay close attention to your performance for that month and how your marketing strategy performed. You should monitor your metrics, such as email open rate, AOV, Customer Acquisition Cost, and shopping cart abandonment.
How Do I Achieve B2B KPI Ecommerce Benchmarks?
Step one: Identify Goals or Issues to Solve
To set up clear, measurable goals for your business, you first need to understand what you want to measure.
Ecommerce KPIs should relate to your company’s business objectives, so that everyone involved in the strategy understands how progress will be measured.
For example, if your goal is to increase customer loyalty, you might consider measuring customer engagement and repeat business.
If you are trying to improve sales, you may focus on how many customers dropped off after they reach your ecommerce website or after they enter their credit card information.
Step two: Segment your Audience
Use web analytics to segment customers into groups based on their behavior.
Find out what motivates customers to come back to the site, what channels are most popular, what persuades them to purchase, and what makes people want to close the page.
With that information, you can decide how best to cater to the needs of each group better.
Step three: Measure Only That Which Matters
Organizations are constantly measuring their performance. There is often so much data that it can be overwhelming.
To be more successful you need to measure and understand what’s important to your business. Among the most commonly used metrics by online retailers are:
Bounce rate, Conversion rate, Average order value Shopping cart abandonment rate and Referral sources.
Step four: Devise a Plan
Analyzing data can help you identify problems with your sales process or marketing campaign, so that you can correct them.
Once you understand what’s working and what isn’t, it helps you communicate this information across your organization.
The success of a B2B eCommerce store relies on your attention in a number of ways, including building your store, defining your brand, creating your product, and providing high quality customer service.
Once you begin using even just a few of these marketing KPIs, you will find it easier to track the success of your eCommerce store. Once you measure the results, you will have an ability to measure the return on investment of the initiative.
Using value-added insights from these KPI, you can help drive sustainable growth for your business. The more detail you can get into your analytics reporting, the more you will understand what is going on with your business.
And while there are many different ways of measuring success, you should take into account how changing priorities and goals influence your business.
It’s not a “fire and forget” process, continuous testing, learning and revising is key to a consistent improvement.
Gathering, analyzing data and achieving continual growth using it requires technical skills and understanding of business strategy. Should you need help achieving your KPIs, contact Blazing Conversions. We are ready to help you.