Metrics and KPIs that are important for WooCommerce

WooCommerce is a leading platform that provides hundreds of metrics to ensure the success or failure of eCommerce businesses and their teams.

Narrowing down and monitoring these key metrics helps track and stay aligned with business objectives.

Why Are KPIs Important for WooCommerce Businesses?

The ultimate goal of any WooCommerce business is to thrive or make a profit. Not all metrics are tied to your long-term goals or strategic objectives, so you should only focus on concrete data that directly affects or affects your business.

At the end of the day, running a WooCommerce store makes a profit. Not all metrics are tied to your long-term goals or strategic objectives, so you should only focus on concrete data that directly affects or affects your business.

What Distinguishes KPIs and Business Metrics?

While every KPI is a measure, not every KPI is a metric. To simplify this distinction, think of metrics as an overall umbrella that encompasses KPIs.

While you may have a stream of metrics to report on, your KPIs should be chosen based solely on your business objectives.

WooCommerce Metrics

A metric is a quantitative measure of data. Especially for WooCommerce businesses, a metric can be used to track the performance of any single aspect of the business.

In this case, for a WooCommerce store, the metrics would be sales, revenue, return rate, lead-to-conversion ratio, acquisition cost, etc.

Key Performance Indicators (KPIs)

KPIs go deeper, filtering on the metrics that matter most to business success. They help you make decisions, map business outcomes and deliver on strategic objectives.

You can use KPIs to track your progress toward current or long-term goals, estimate results, and create future strategies.

With KPI, you’ll have the ability to:

1. Clearly define the progress of your goals
2. Track your successes and milestones in relation to your business goals
3. Set the areas you want to enhance in order of importance.

13 WooCommerce Metrics and KPIs To Track

1. Sales

This metric can be measured hourly, daily, weekly, monthly, quarterly or annually. This metric displays the revenue your client has made from their website.

the most popular hourly and daily sales times to pinpoint when to launch a new product. Also, remember to have quarterly and yearly sales metrics as KPIs to guide plans.

2. Conversion Rate

Ecommerce conversion rates are typically between 2-3% depending on the industry. Your customers should use this information to improve their digital marketing strategy and drive more appropriate traffic to their online store with relevant campaigns.

3. Cost per Acquisition (CPA)

CPA informs you of the success of your efforts in terms of revenue generation. For pay-per-click campaigns in particular, this metric measures how successfully a marketing campaign earns income. Aim to keep CPA below AOV (Average Order Value) to ensure profitability.

4. Number of Transactions

Track the volume of transactions to compare your client’s eCommerce performance to that of competitors in the sector. It’s an important KPI for your clients to see how they’re tracking against industry standards.

5. Cost of Goods Sold

You need to factor in the product, production costs, and sales team’s commissions for how many online ads are made. Generally speaking, COGS (such as materials and labor) includes only the direct costs of producing a product.

Other expenses, like efforts in sales and marketing or overhead (e.g. renting office space), are not included in this calculation.

6. Average Profit Margin

This metric refers to the actual amount of your client’s business excluding any expenses such as COGS, overheads and taxes.

Here’s a formula to remember:

Average Profit Margin = ((Total Revenue – Cost) / Total Revenue) * 100

7. Revenue per Visitor (RPV)

Conversion rate is one thing-but RPV tells you how much each visitor is worth.

RPV = Total Revenue ÷ Total Site Visitors

Consider a scenario in which your client’s e-commerce website generated $400,000 in revenue last year. If there are 40,000 total visitors, their RPV will be $10.

8. Customer Lifetime Value (CLV)

This metric refers to customer lifetime value, that is, how much revenue your client can expect from a given customer over the course of their business relationship.

Here’s how CLV is calculated:

1. Determine the parts of your client’s site where customers complete transactions (e.g., shopping carts).
2. Track customer history and customer journeys in one place (e.g., enabling customers to create accounts)
3. Measure the revenue generated by the customer during their journey
4. Add this total revenue for each year they have been a customer. Multiply this figure by the duration of their customer journey and subtract any associated costs (e.g. customer acquisition costs).

CLV = (Customer Annual Revenue x Customer Journey Duration) – The total cost of acquiring and retaining that customer

9. Returning Customer Rate

This is a very valuable metric because it is closely related to CLV. Returning customer rate refers to the percentage of customers who returned and made additional or repeat purchases.

Returning customer rate = (number of repeat customers / total number of customers) * 100

10. Gross Profit

Gross Profit = Gross Sales – Total Cost of Goods Sold (i.e., COGS)

The total profit made during the specified time frame is the indicator. For ecommerce organizations with growth goals, tracking this metric over time is a useful KPI.

11. Add to Cart

This stat shows the proportion of WooCommerce site visitors who add at least one item to their shopping carts. It also provides insight into user experience, products offered, advertising and marketing working together.

12. Shopping Cart Abandonment Rate

Not every visitor who creates a cart in your client’s WooCommerce store may complete a purchase.

This may include obstacles such as:

• Any issues before checkout is complete
• Minimal load and check-out timings
• Difficult payment methods

13. Net Promoter Score (NPS)

For eCommerce organizations in particular, it is crucial to quantify consumer happiness, which is where NPS comes in. To collect customer feedback, use a rating system on your client’s website after a customer completes a transaction.

Use NPS as a guiding tool to continuously improve customer experience.