Online sales are poised to escalate from a 13.6% growth in 2019 to a projected 19.5% by 2021, marking a significant 45.8% increase. This surge presents a dual opportunity and challenge for businesses with robust online presence. Monitoring a company’s success, particularly in a B2B sector often dealing with intangible goods like software and services, can be intricate. As transactions and deliverables scale, discerning the broader business trajectory becomes a challenge—here, B2B Ecommerce metrics play a pivotal role.
Ecommerce metrics enable businesses to assess performance against predefined benchmarks. A multitude of metrics exist, each tracking distinct performance aspects. Analyzing these metrics collectively, rather than in isolation, offers a holistic view of a business’s performance. Their significance lies in the following:
It is important to distinguish between Key Performance Indicators (KPIs) and metrics. While the terms are often used interchangeably, KPIs are a subset of metrics focused on specific performance indicators, whereas B2B Ecommerce metrics gauge the overall growth and success of a business or organization.
The abundance of data businesses accumulate daily can lead to an overwhelming number of metrics to consider. This dual-edged sword can result in businesses becoming lost in data without clarity on which metrics are truly impactful.
B2B buyers typically prioritize certain metrics such as cost savings, satisfaction, and productivity. Here are some critical metrics B2B ventures should consider:
Customer Retention Rate (CRR) measures the percentage of customers who continue purchasing from your online store. A healthy CRR is indicative of robust Ecommerce capabilities and a solid base of repeat customers. A decline in CRR or a shift in sales channels may signal that your current B2B Ecommerce platform isn’t sufficiently engaging or incentivizing customers to return.
Customer Acquisition Cost (CAC) is the expense associated with acquiring new customers. This metric assesses the effectiveness of marketing campaigns and the utilization of the marketing budget. A targeted content marketing strategy can help reduce CAC and expand the customer base.
Order or purchase frequency indicates the number of orders a customer makes within a year, reflecting engagement and potential for cross-selling. Average Order Value (AOV) measures the average amount spent per order, directly influencing revenue. Strategies like product bundling can increase AOV.
The percentage of return visits is a key indicator of customer satisfaction and the stickiness of your Ecommerce platform. A growing percentage suggests customers are enjoying their shopping experience and are likely to make repeat purchases.
Conversion rates, a crucial metric, reflect the percentage of visitors who make a purchase. While a low conversion rate might be concerning, it is essential to consider it within the context of other metrics and strategies for improvement.
In addition to customer-centric metrics, internal benchmarking is vital for evaluating operational efficiency and cost management. Regular internal benchmarking helps businesses maintain competitive edge and optimize operations.
Monitoring Ecommerce metrics is a critical strategy for B2B companies aiming for sustainable success. Stay informed with insights from the Coalition Technologies blog for strategies to convert knowledge into competitive advantage.
