This performance indicator cannot be missing from your eCommerce measurement strategy, as it represents one of the most important inputs when determining how effective the investments in your online media marketing campaigns are, which is why it is one of the best KPIs for eCommerce.
ROI is the result you get by dividing the amount ($) of sales captured by the amount ($) of investment you have made in the media.
This way you can determine how much you numbers (south korean tv series) have generated in sales for every cent you have invested in your campaigns.
When the ROI you get is positive, it means that the investments you are making in your campaigns are profitable. If, on the other hand, the figure you get is negative, it means that you are losing money and profitability.
The purpose of using ROI as a tool is to allow you to make better decisions based on optimizing your budget. This way, you can be sure that each investment is reflected in the income you obtain after executing each campaign.
The eCommerce Report highlights some alternatives for digital businesses that want to reduce their dependence on Google and other communication platforms, such as: affiliate customer programs and loyalty badges.
Now I will give you an example of how to calculate ROI in your eCommerce. To do so, I invite you to watch the following YouTube video where it is explained how to measure the ROI of your social networks.
Then continue reading this article as you will learn many interesting things to increase the performance of your business.
SLA (Service Level Agreement)
Moving forward in the list of the best KPIs to measure the profitability of eCommerce, we come to an indicator that directly responds to the quality of service, which we have talked about so much so far in this article.
The SLA is the KPI that measures the efficiency of your online store or business in terms of operational processes that have to do mainly with the dispatch and delivery of orders to your customers.
In the case of the Delivery SLA, the calculation can be done by dividing the number of orders shipped by the number of orders delivered within the given time period.
Cristián Campos, Head of eCommerce at Badamax Retail in Chile, reminds us of the importance of keeping the promises you make at the time of a sale.
“There is no point in having a full-service e-commerce and investing in media or marketing campaigns if I am not going to fulfill the purchase promise. All the logistics, including picking, packaging, dispatch time, compliance with delivery deadlines and after-sales service (yes, I include it in the SLA) will make your e-commerce successful or, on the contrary, destroy your brand.”