How to measure KPI performance during a pandemic:
The coronavirus pandemic has impacted nearly every business. Brick-and-mortar retail stores are struggling to remain open. To serve their communities shelves are stocked with goods. As a result, eCommerce businesses have seen a significant spike in the number of online buyers. Thus, fulfilling the cliche that when life gives you lemons, make a lemonade! So it’s more important than to outline three primary Key Performance Indicators (KPI), to monitor performance in these uncertain times.
Average Order Value (AOV)
The AOV is an essential KPI for performance during the pandemic because it allows them to monitor specific merchandise. The performance is invariably related to customer orders and thrives on it. When customers increase the number of products in their carts, this contributes to the overall AOV. This confirms the fact that how imports AOV is for E-commerce business in online sales.
Why Is AOV Important?
AOV provides decision-makers in e-commerce businesses with insights into specific customer buyer patterns. Be it advertising spending habits, and even product-related performance and pricing. Let us take a look at Ad Scale, which helps online retail stores to create carousel ads. They stock food and products that are frequently bought together, based on their store order history. This alone helps to know KPI performance during a pandemic and increases the average AOV.
Return Customer Rate
This metric measures the ratio of buyers and those who return for a second or third purchase. It also measures KPI performance for those who complete an initial purchase even during a pandemic. The return customer rate is of great importance for e-commerce businesses.
Why Is the Return Customer Rate Important?
Monitoring the return customer rate allows us to see the overall customer retention level. The average order purchased from a return customer is 30% higher than that of new customers. Furthermore, the acquisition cost is much lower, which increases overall customer lifetime value (LTV). Ad Scale can increase the return customer rate by creating dedicated sales offers for returning customers. Therefore, retargeting past customers to measure KPI performance during pandemic holds greater value.
Repeat Customer Order Frequency
This repeat customer order frequency measures the likelihood a customer will return to make another purchase. The goal is to reduce the purchase frequency of the returning customer.
Why Is the Repeat Customer Order Frequency Important?
As mentioned above, studies have shown that repeat customer order frequency is important, as it is more cost-effective. To measure KPI performance during a pandemic it is more important to market to repeat customers than first-time visitors. This level of dedicated advertising directed to existing customers tells certain products are in high demand.
How Ad Scale Helped Braxley Bands
After the initial launch in 2017, Braxely Bands quickly outgrew and couldn’t invest the time to manage its advertising efficiently. Braxley Bands turned to Ad Scale, and also used the above three primary KPIs to measure overall performance. As a result, it was able to help automate its advertising efforts. Moreover, overcome the challenges brought on by the coronavirus pandemic. For Ecommerce businesses that are struggling to stay on track during the global crisis, AdScale just might be the solution for you.