The momentum of the e-commerce industry tends towards more data, rather than less. But as a retailer, only a small number of key performance indicators make appreciable differences to your business.
The philosophy behind Inventosaur Insights is to offer easy to digest details that might help inform your buying patterns, and expose underlying information about your catalogue. It won’t replace your analytics package, but it will provide some interesting business owner- focused metrics that we think you might enjoy. We’re particularly excited to see what you think of Inventosaur’s ability to remind you of what ‘this week last year’ looked like at your store: maybe you had a good seller that is no longer moving or a good seller that you need to restock to take advantage of soon-to-arrive sales? Time > The Future will tell you what you need to know.
Inventosaur's Dashboard KPIs Include:
Average Order Value
There are few more important metrics in the e-commerce space than average order value. Whilst there are a number of ways you can approach raising your customer’s average spend, one of the best approaches is to merchandise products as bundles. Inventosaur’s ability to present combination Opportunities could well give your store the in-built tools to up average order value. And better still, you can have confidence that you are only bundling problem products - exactly the stock you should be promoting.
Average Stock Turn Time
Inventosaur’s stock turn metric shows the average number of days necessary to sell the inventory for a particular product. Here’s a little example: you restock 40 units of a product, and it all sells out after 70 days. You restock again, adding another 40 units, and this time it sells out in 50 days. The average stock turn, in this case, would be 60 days. The ideal number? As low as you can go before losing sales through too low stock numbers.
Mean Conversion Rate
Add up product views, divide by sales and you get the mean conversion rate. This little metric is pretty handy, as it can help to indicate the base performance of your store. What is a good number? That depends on your website. But just like AOV, try to increase the number over time through proper attention to images, detail, delivery & returns transparency, product photography and of course, price.
Mean Cart Conversion Rate
Divide the total number of customers adding products to their cart by the number of products sold, and you get the mean cart conversion rate for your store. This number should always be higher than the mean cart conversion rate as there is clear intention to buy. Increasing this number should be one of your top priorities, and considering the flow from add to bag to the final step of checkout should yield results over time if you track the checkout funnel within your analytics package.
Average Customer Reorder Time
Another top metric for e-commerce marketers, this number shows the average time between customer orders. Just like average stock turn time, a low number here is desirable as it indicates customers regularly return to place repeat orders. But if you do see a lengthy period between orders, why not use email marketing to motivate customers to return, whether to place a review for a previously purchased product or through handpicked product recommendations based on their order history?
Customer Reorder %
An exceedingly useful metric, the customer reorder number displays the percentage of customers who have placed more than one order in your store. As an indication of the strength of your lifecycle marketing strategy, your aim should be to raise this number over time, motivating customers to return again and again. There are many ways to increase customer reorder %, but our favourite is to rely on good old email marketing. Take a pen and paper, draw out a horizontal line, label the left side 0 (which is the point of order) and the right with your current average customer reorder time. Now plan out why and when to email your customers during this period to encourage a reorder.
Top Sales/Orders Day of the Week
When is your store’s best sales day for both number of orders and revenue? Inventosaur’s handy little sub-dashboard within the Insights panel tells you this, and more.
Inventosaur also knocks out a heap of relevant and relational product and category information, including top sellers, poor sellers, regularly bought together and regularly viewed together items.
Sometimes though, it helps to see a longer view of a product’s performance - perhaps even over 2 or 3 years. Head to the Product Data tab to enter a product name, and auto-magically, a graphical representation of its performance, as well as the aforementioned KPIs will appear. Absorb and enjoy!