No one doubts that data is crucial for your business’ success. In a recent survey, just 10% of participants said they will spend less on data and AI initiatives because of Covid. Yet, only 24% said they had created a data-driven organisation, meaning they rely on numbers to make decisions, even if it’s inconvenient. If you can sympathise with that view, you’re not alone. Companies now have access to more business and customer data than ever before. Ecommerce is no different. The question for many eCommerce businesses is not, if to use data; it’s what data to focus on. Here, we’re looking at the most important metrics - and the ones you might be missing (SPOILER ALERT: It’s the login success rate).
What is a performance indicator?
To gauge your company’s overall performance, you need performance indicators. They show you how your eCommerce business is performing in certain areas in relation to your business goals. You can interpret the data and draw actionable insights that can help you improve your business. A typical goal for eCommerce would be to increase its market share by 10% or increase website traffic by 50%.
What is a key performance indicator?
The so-called KPIs are your eCommerce business’s metrics to reach your individual goals. While key performance indicators are the umbrella term, KPIs are individual metrics chosen by each company to determine its success. To qualify as key performance indicators, they must be accurate and timely. That way, they can give you an overall picture of your eCommerce business’s performance.
What Is the Difference Between Metrics and KPIs?
Metrics are measurements of your overall business health. While some of them might be relevant to parts of your team or loosely tied to business goals, KPIs are the numbers that matter for your eCommerce business. Since they are connected to your overall business goals, they are a way of monitoring how close you are to reaching them.
Why are KPIs so important?
In a 2021 Talend survey, 36% of executives relied on intuition when making decisions. That can be a costly mistake. KPIs not only help you to separate the important from the non-essential, but they also ensure you’re in control of your eCommerce business. Without valuable data, you have to rely on your gut and guesswork, both not a way to guarantee long-term success.
Types of key performance indicators
There are many types of KPIs, but most eCommerce businesses decide to focus on three per goal to stay on track and not get bogged down by too many numbers. Typical KPIs eCommerce businesses concentrate on include:
- Repeat purchase rate ( purchase from repeat customers divided by total purchases)
- Cart abandonment (completed transactions divided by the number of carts)
- Revenue per click (average revenue divided by the total number of clicks)
- Average order value (revenue divided by total orders)
But one metric is missing: the login success rate of your customers. How many of them come to your site, eager to purchase, and then abandon the page because of login problems? If you don’t know that, you have no chance of improving your processes. And that will have an impact on your sales.
Why your login success rate is so important
24% of potential customers left the site because they were asked to create an account, and 17% found the checkout process too tedious. Abandoning extra security checks to speed things up would not be a good idea, though: 18% said they didn’t trust the site with their credit card information, so saving a few seconds on security could cost your eCommerce dearly long-term. What would happen if that changed? According to a Baymard study, improving the checkout experience can increase the conversion rate by 35,26%.
How MIRACL can help you increase sales
MIRACL has a 99.996% login success rate, most recently with one client showing only 2 login failures out of 50,407 authentications.
- Customers and employees can focus on their reason for logging in without the process getting in the way.
- Customers give up and shop elsewhere if it’s hard to access their account or basket. A slicker login means more sales.
- Login processes that require second devices or tracking down forgotten passwords put up unnecessary barriers that lower the incentive for engagement. Encourage interaction by making logging in easy.
More happy customers:
- If logging in frustrates your user at the beginning of their journey, it impacts their overall opinion of you. Our research shows that 56% of UK consumers harbour negative feelings toward a brand or website after a poor login experience.
A/B Test your login
If you’re unsure the significance of how your login could become your unique selling point, perhaps it is time to A/B test your login. Consider the current KPIs and conversion points you might be testing on your website currently, and build in the login process into your testing agenda. Not only should you be testing when to ask your user to login or set up an account, you can also test how they do so; in this instance substituting MIRACL Trust in your enrolment and login process as compared to your current ecosystem. Implementation is fast and there’s still time to test before peak shopping season commences.
MIRACL take the most frustrating part of every user experience – the multi-step, multi-factor authentication process – and replace it with a single PIN code (or biometric) that takes less than two seconds. It’s totally compliant, highly secure, and a quick way for companies to decrease churn, win lost revenue, and dramatically improve user experience. We call it single-step MFA, and it’s as easy to set up as it is to use. MIRACL is also inclusive - it can be used by everyone from six years old to 100+, so you can use it for every target audience and quicken your conversion rate throughout.
Our calculator can show you if you’re missing out on revenue- and how to reverse that. Just click here.