As a B2B wholesale business, tracking and leveraging the right data is vital for maintaining and growing your business. In this post, we will be breaking down essential metrics and KPIs that you can track to keep your business on a positive trajectory.
Here is our list of 6 B2B Ecommerce Metrics & KPIs to Track:
1. Lost Orders / Cart Abandonment Rate
2. Average Order Value
3. Sell-Through Rate
4. Email Marketing Benchmarks
5. Conversion Rate
6. Reorder / Replenish Rate
So, what are KPIs?
The right metrics measure a quantifiable aspect of your eCommerce store's performance. Key performance indicators (KPIs) help you understand what metrics really work and help track the progress of your marketing strategy in supporting the profitability of your business, in increasing revenue for your business.
It's essential that you understand which metrics and select specific KPIs to refine your sales approach and increase the likelihood of driving conversions.
1. Lost Orders / Cart Abandonment Rate
The cart abandonment rate is the percent of customers that add an item to the cart and then abandon the purchase. The number of items added to the cart, the value of items added to the cart, and how long they shop are all important as well.
Why track it: This metric gives you insight into how many customers are interested in products but do not proceed to buy. By comparing this to other metrics on this list, you can develop strategies for reducing abandonment rates and getting more customers through the sales cycle.
Formula: (1 – (#Completed transactions / #Initiated sales)) * 100
2. Average Order Value
The average order value (AOV) is the monetary value of an average customer order on your site. You will also want to track the average abandoned order value (AAOV), which is the average value of an order that’s abandoned during either the checkout or cart stages of the purchase.
Why track It: Track AOV as a whole, and then segment by device type, platforms, and traffic sources. Identifying the sources of your highest AOV customers will help you run more ROI-positive marketing campaigns.
Formula: ($) total revenue / (#) orders placed = ($) Average Order Value
3. Sell Through Rate
Sell through rate measures the amount of inventory that is sold within a given period relative to the amount of inventory received within the same period.
The ratio of the number of goods sold by a retail outlet to the quantity distributed to it wholesale.
Why track it: Measuring sell-through helps you obtain a clearer view of what products sell the best and better determine pricing strategies.
Formula: Sell through rate = (Number of Units Sold / Number of Units Received) x 100
4. Email Marketing Benchmarks
Email open rate is the percentage of the total number of subscribers who opened an email campaign. These rates can vary depending on the subject line and the relevancy of the subject matter for subscribers, but the average open rate for emails is 18.0%. How to improve your email open rate: Improve your subject lines.
Email open rate is the percentage of subscribers who open a specific email out of your total number of subscribers.
Many people look to their email open rate to determine how successful their email marketing strategy is and, while email open rate is important, no one metric should determine your strategy.
Email CTR
Click-through rate for email is the percentage of people who clicked on at least one link in your email message. To calculate it simply divide the number of total people who clicked by the number of delivered emails and multiply that ratio by 100 to arrive at your email CTR percentage.
Email Conversion Rate
Your email marketing conversion rate is the percentage of subscribers who complete a goal action after reading your email. This is an important metric for most marketers, as it indicates how effective your email marketing is and determines your return on investment.
5. Conversion Rate
In this case, your conversion rate is determined by the number of customers that complete a sale after visiting your site and viewing a product. Having your conversion rate will help you in understanding your overall revenue metrics and the effectiveness of your marketing and sales outreach.
Why track it: It's one of the lead metrics for truly understanding the impact of your brand's marketing and messaging efforts.
Formula: Conversion Rate = Total number of conversions / Total number of sessions * 100
6. Reorder / Replenish Rate
Your optimal reorder rate will help you determine how much inventory to keep on hand, when to order, and ultimately forecast demand. Having the right amount of product is truly a balancing act, but a worthwhile one that will help you maintain the right stock levels.
Why track it: When you don't have the right SKUs in stock, you run the risk of losing sales and presenting a diminished buyer experience. Keep track of when buyers place orders and stay ahead of your demand without keeping too much or too little merchandise on hand.
Formula: Optimal Reorder Quantity for a SKU = Avg. Daily Units Sold x Avg. Lead Time
Conclusion
With the right KPIs, your wholesale business can be optimized to maximize sales, marketing efforts, and enhance the customer buying experience. Utilizing a B2B platform which enables native access to a variety of metrics will help with everything from inventory management, pricing strategy, orders, and a buying experience that will keep retail buyers coming back. Speak with a B2B eCommerce sales expert today and see what NuORDER can do for your wholesale business.
