Marketing Funnel-wise KPIs for e-commerce business
In e-commerce, the marketing funnel is a crucial aspect that determines the success of a business. The marketing funnel refers to the journey of a customer from the initial stage of awareness to the final stage of purchase. The journey of a customer through the marketing funnel is a series of stages that includes Awareness, Interest, Desire, Action, and Loyalty. Each stage in the funnel is characterized by a different set of KPIs or Key Performance Indicators.
In this article, we will explore the marketing funnel-wise KPIs for an e-commerce business and how to track these KPIs for better marketing results.
Awareness KPIs
The Awareness stage is the first stage in the marketing funnel where a customer becomes aware of your brand or product. In this stage, the main goal is to make your brand and product visible to potential customers.
The Awareness KPIs include:
a) Reach: The reach KPI refers to the number of people who have seen your marketing message or ad. Reach is usually measured in impressions, which are the number of times your ad is displayed to potential customers. Reach is important because it determines how many people have the potential to be interested in your brand or product.
b) Impressions: Impressions are the number of times your ad has been displayed to potential customers. Impressions are an important KPI to track in the Awareness stage because they give you an idea of how many people have the potential to become interested in your brand or product.
c) Brand Awareness: Brand Awareness refers to how many people are aware of your brand or product. This KPI is important because it helps you understand the reach of your marketing efforts and how well your brand is known in your target market.
d) Social Media Engagement: Social media engagement is an important KPI in the Awareness stage. This KPI refers to the number of likes, shares, comments, and mentions your brand or product receives on social media platforms. Social media engagement is important because it helps you understand how well your brand is resonating with your target audience.
Interest KPIs
The Interest stage is the second stage in the marketing funnel where a customer becomes interested in your brand or product. In this stage, the main goal is to generate interest in your brand or product and create a relationship with your potential customer.
The Interest KPIs include:
a) Website Traffic: Website traffic refers to the number of visitors to your website. This KPI is important because it gives you an idea of how many people are interested in your brand or product and are visiting your website to learn more.
b) Lead Generation: Lead Generation refers to the process of capturing information about potential customers for the purpose of converting them into sales. This KPI is important because it helps you understand how well your website is performing in terms of capturing leads and converting them into customers.
c) Bounce Rate: Bounce rate refers to the percentage of visitors who leave your website after viewing only one page. This KPI is important because it helps you understand how well your website is retaining visitors and engaging them in your brand or product.
d) Time on Site: Time on Site refers to the average amount of time a visitor spends on your website. This KPI is important because it helps you understand how well your website is engaging visitors and retaining their attention.
Desire KPIs
The Desire stage is the third stage in the marketing funnel where a customer expresses a desire for your brand or product. In this stage, the main goal is to generate desire for your brand or product and move the customer closer to making a purchase.
The Desire KPIs include:
a) Conversion Rate: Conversion rate refers to the percentage of visitors who take a desired action on your website, such as making a purchase or filling out a form. This KPI is important because it helps you understand how well your website is performing in terms of converting visitors into customers.
b) Average Order Value (AOV): Average Order Value refers to the average amount of money spent per order on your website. This KPI is important because it helps you understand how much value your customers are getting from your brand or product.
c) Cart Abandonment Rate: Cart abandonment rate refers to the percentage of visitors who add items to their shopping cart but do not complete the purchase. This KPI is important because it helps you understand why customers are abandoning their carts and what steps you can take to reduce the rate.
d) Product Page Views: Product page views refer to the number of times a specific product page is viewed on your website. This KPI is important because it helps you understand which products are generating the most interest and can give you insights into what your customers are looking for.
Action KPIs
The Action stage is the fourth stage in the marketing funnel where a customer takes action, such as making a purchase. In this stage, the main goal is to get the customer to take action and make a purchase.
The Action KPIs include:
a) Sales: Sales refer to the total amount of money generated from customer purchases. This KPI is important because it helps you understand how well your brand or product is performing in terms of generating revenue.
b) Return on Advertising Spend (ROAS): Return on Advertising Spend refers to the return generated for every dollar spent on advertising. This KPI is important because it helps you understand the effectiveness of your advertising efforts in terms of generating revenue.
c) Customer Lifetime Value (CLV): Customer Lifetime Value refers to the estimated value of a customer over the entire time they are a customer. This KPI is important because it helps you understand the long-term value of a customer and the potential return on investment for future marketing efforts.
d) Repeat Purchases: Repeat purchases refer to the number of customers who make multiple purchases from your brand or product. This KPI is important because it helps you understand the level of customer satisfaction and loyalty, and the potential for long-term revenue generation.
Loyalty KPIs
The Loyalty stage is the final stage in the marketing funnel where a customer becomes a loyal customer. In this stage, the main goal is to maintain a strong relationship with the customer and encourage repeat purchases.
The Loyalty KPIs include:
a) Net Promoter Score (NPS): Net Promoter Score refers to a customer’s willingness to recommend your brand or product to others. This KPI is important because it helps you understand the level of customer satisfaction and the potential for word-of-mouth marketing.
b) Customer Retention Rate: Customer Retention Rate refers to the percentage of customers who continue to make purchases from your brand or product over time. This KPI is important because it helps you understand the level of customer loyalty and the potential for long-term revenue generation.
c) Customer Feedback: Customer feedback refers to the comments and opinions customers have about your brand or product. This KPI is important because it helps you understand the level of customer satisfaction and what steps you can take to improve your brand or product.
d) Repeat Purchase Rate: Repeat Purchase Rate refers to the percentage of customers who make multiple purchases from your brand or product. This KPI is important because it helps you understand the level of customer loyalty and the potential for long-term revenue generation.
These are the five stages of the marketing funnel and the corresponding KPIs that e-commerce businesses should be tracking to measure their success. By focusing on these KPIs, e-commerce businesses can gain a better understanding of their customers, improve their marketing efforts, and increase their overall revenue.
However, it is important to note that not all KPIs are relevant to every e-commerce business, and the KPIs that are relevant may vary depending on the business’s goals, target audience, and marketing strategies. For example, a business that sells expensive luxury items may have a higher AOV, but a lower conversion rate, compared to a business that sells low-cost items.
Conclusion
In conclusion, marketing funnel-wise KPIs are an essential tool for e-commerce businesses to measure their success and make informed decisions about their marketing efforts. By tracking the right KPIs, businesses can gain valuable insights into their customers and make the necessary changes to improve their performance and increase their revenue.