An E-commerce financial dashboard is a centralized software tool that provides real-time insights into your business’s financial data. It allows you to monitor key metrics such as revenue, expenses, and profit margins, helping you identify trends and potential issues promptly.
This comprehensive dashboard integrates financial services, analytics, and both domestic and international payments, simplifying the tracking and management of your store’s finances. It’s an essential tool for store owners and managers aiming to optimize their E-commerce store’s financial performance by identifying cost-saving opportunities and areas for improvement.
Customized dashboards amalgamate pertinent data, enabling users to make decisions that are backed by solid information. This empowers users to make choices that align with their business goals and strategies.
Dashboards offer a comprehensive overview of various metrics and Key Performance Indicators (KPIs). This bird’s eye view allows users to grasp the status and performance of different departments at a glance, facilitating quick and effective decision-making.
Dashboards display real-time statistics about sales, progress towards financial goals, and KPIs. This visibility can foster engagement among staff members, ignite healthy competition within teams, and motivate individuals to work more efficiently.
An e-commerce dashboard equipped with relevant KPIs can provide a lucid snapshot of past and present activities. Online retailers can leverage these real-time insights to make accurate predictions about future trends, enabling them to plan strategically and stay ahead of the curve.
AI has the capability to sift through customer data and behaviour patterns to forecast future purchasing trends and preferences. This predictive analysis can be a game-changer for e-commerce businesses, enabling them to plan their inventory more effectively and make informed business decisions. By anticipating what customers will want in the future, companies can ensure they stock the right products at the right time, reducing waste and increasing sales.
CAC is a metric that quantifies the expense associated with gaining a new customer. It’s calculated by examining your marketing expenditure and how it translates to each customer acquired. A lower acquisition cost is generally more favourable.
CAR represents the percentage of visitors who add products to their cart but don’t complete the purchase. Given that an average of 69.57% of customers globally abandon their shopping carts, this is a crucial KPI. Retargeting ads can be effective in re-engaging these customers and encouraging them to complete their purchase. Strategies such as enticing offers or personalized emails can persuade them to return to your website and finalize their purchase.
AOV also known as the Average Market Basket, represents the typical amount a customer spends per order. Understanding your customers’ spending capacity can help you establish benchmarks and encourage customers to purchase more items than they initially intended.
CRR gauges the percentage of customers who repeatedly purchase from you, serving as a key metric of customer retention. Repeat customers are valuable, spending 67% more than new ones and being 60-70% more likely to make a purchase compared to a 5-20% success rate with new customers. This KPI is vital for boosting profitability and building customer loyalty. While the average CRR in the E-commerce industry is 30%, striving for a higher rate is beneficial.
Customer Lifetime Value (CLV) represents the total revenue a customer generates for your business throughout their relationship with you. By comparing CLV with Customer Acquisition Cost (CAC), you can assess each customer’s profitability. For example, a customer who spends $100 per visit, visits twice a month for five years, would have a CLV of $12,000.
The churn rate, which measures the percentage of customers who leave your brand within a certain period. This key E-commerce metric helps identify the proportion of customers likely to leave your store and informs customer retention strategies. Remember, retaining existing customers is five times cheaper than acquiring new ones.
PRR KPI calculates the percentage of sales orders that include a product return. It can be broken down into three categories: Return Orders, Refunded Orders, and Exchange Orders. These metrics are calculated by dividing them by the total orders placed during the same period. A high PRR indicates a failure to meet customer expectations with your products or services. The average ecommerce return rate is 18.1%, so anything below this is considered good for your store.
The conversion rate in E-commerce signifies the percentage of potential customers or website visitors who become actual customers. It’s crucial to ensure that the data on visitor numbers and conversions are from the same timeframe. Understanding your store’s conversion rate is a key step towards achieving significant E-commerce success. Through conversion rate optimization, you can enhance your store’s performance, marketing campaigns, and strategies, thereby converting more visitors into customers.
While the metrics we’ve discussed are crucial, they’re just the tip of the iceberg when it comes to E-commerce analytics. There are numerous other metrics and KPIs that can provide valuable insights into your business. However, the key is to identify what you want to know. Each business has unique needs and goals, and the metrics you choose to track should align with these. By focusing on the metrics that matter most to your business, you can gain a deeper understanding of your performance and make informed decisions to drive growth and success.