Even though the whole world is coping with a viral epidemic, businesses still have to go on because that is what drives the global economy. As offline businesses are most hit, many have understandably turned to eCommerce. But whoever runs an eCommerce venture, there is the need to ensure there is proper sales analytics. There has to be steady monitoring of eCommerce KPIs and that is where Clarobi comes into the picture.
Clarobi to the Rescue
With Clarobi, businesses can enjoy a comprehensive package when it comes to monitoring of eCommerce Key Performance Indicators (KPIs). This includes parameters like the Abandon Rate, Average Order Value, Conversion Rate, Revenue per Employee, Operating Profit, Churn Rate, Inventory Depletion, Items per Order and so many others.
All these assist the business owners to have not just a better understanding of the enterprise itself but also the interaction of customers with the venture regarding sales and how they can make the best of the information derived from the sales analytics.
The Need for Proper Analytics
KPIs are very crucial, Clarobi automatically calculates and monitors all of them for you and you never get to miss any important information. A business cannot prosper and survive without adequate analytics of the sales and all associated factors. With Clarobi, you can get very detailed calculations done on the KPIs, some of which have been mentioned above. A good example of such KPIs is Customer Acquisition Cost.
How KPIs are Calculated and Why They Are Useful
In online business, success depends on many things but some of the most relevant of these factors are the key performance indicators (KPIs). Overall, the calculation of a specific KPI often involves using all the related parameters and then doing the relevant multiplication, addition, subtraction, or division depending on the formula for that KPI. An example of a KPI is the Customer Acquisition Cost and this is how it is calculated:
Customer Acquisition Cost = Total Amount Spent on Marketing in a Fixed Period/Customer Gained During the Fixed Period.
With the result from the Customer Acquisition Cost, a business can know the number of clients gained or lost and it is a good way to assess whether the campaigns for sales promotion are working or not and if a change of strategy is necessary.
Another example of a KPI is the Gross Profit Margin which is a fraction of total sales revenue that a business keeps after deducting all the costs for production of the goods or services. This KPI gives a very good idea of the level of efficiency of a venture and if all the operational strategies deployed are working or not. Here is how the Gross Profit Margin is calculated:
Gross Profit Margin = (Revenue – Direct Cost)/Revenue
KPIs are useful for several reasons but here are the most paramount:
Management of performance cannot be optimized without implementing KPIs. Because whatever gets measured will be properly managed, KPIs cannot be separated from excellent performance management. With KPIs, performance management becomes straightforward and everyone on the team can see what others are up to – transparency is promoted. With transparency, communication of the business goals and objectives becomes a lot easier and with increased transparency comes a higher rate of accountability.
More on KPIs and Clarobi
There are several KPIs like conversion rate, abandon rate, average order value, and growth rate, but Clarobi is always on hand to fix any of them for you. For instance, another KPI is Churn Rate and it is calculated as thus: Number of Customers at the Start of Period – Number of Customers at the End of Period/Customers at the Start of Period. This is another KPI that helps in assessing the retention or otherwise of customers.
There is also the Operating Profit and as the name implies, this KPI assists the business owner to know whether enough profits are being generated or not, whether the sales campaigns are yielding the desired returns or not.
By taking a good look at the revenue that is being generated by the business after major costs and overheads have been taken into consideration, the Operating Profit becomes clearer and it is the indicator that lets you know whether a business is profitable or raking in losses. With Clarobi, you have all these KPI calculations done for you. In a case where the business is turning enough profits, then the entrepreneur can identify the strategies that are working.
Clarobi, Your Reliable Partner
As you can see, sales analytics is a serious business. And it can be a lot of work for you to decide to do manual tracking and calculations of each KPI because that will be too hectic and even ineffective. With Clarobi, you are sure of having constant and automatic monitoring of all the most important KPIs. This way, you can easily and quickly spot all the unusual events and trends. This is in addition to getting a very helpful overview as an email sent to you daily. For the best of sales analytics, Clarobi is all you need!