How to track your ecommerce strategy effectiveness with consistent KPIs – PART 1
A simple method to keep monitored your Ecommerce Performance
The C.O.R.E. MODEL (Channel → Objective → Result→ Estimate)
Marketing is the key. So start from the purchase funnel.
Don’t focus on technology and in the last trends in web design – if you don’t sell luxury items of course.
You can see the picture below.
The funnel can be viewed as the process of a single prospect, but in this case we consider it as the average sum of figures in a given period – for example, one month.
At the end of the picture you can notice an appendix below the end of the funnel: it means that after the first sale – the most critical choise – the prospect’s turned out in your customer: so why don’t you consider it in your marketing plan?
Your mission is to enlarge all the funnel of the purchase decision, in order to have more sales and more opportunities to increase them as well. The ratio between the number of sales (per different customers) and the visits to your ecommerce is the conversion rate (CR): we can see it as the tilt angle of the funnel inside. The more the funnel is vertical, the more you are converting visits to sales.
In the images of the purchase funnel, at the left side there are the first elements: Channels. For example, Google Adwords or site referrals. The channel is the source by with traffic is provided: it can be a natural one (SEO) or an effect of a campaign, in any case you should monitor it, in order to control and to step in. In every channel you can have a sort of control, like in the SEO optimization for example.
The channel has an influence on the prospect’s behaviour, triggering its action.
So the action of the prospect is the real Objective in each step.
When the channel is managed there is a web marketing action, aimed at influencing the behaviour of the prospect, in order to make him going down to the next step in an easier way.
Without awareness, there is no confidence about the website. If you are a start-up, considering a low traffic from natural search with keywords like your brand, and even less direct accesses, considering you don’t count your own visits, isn’t it?
The Consideration step concerns the first evaluation of your products (prices, features) and of your presentation (look & feel, reliability of your communication, the coherence of the tone of voice with the products and of the copy).
The favorability is – in other word – how much seductive seems your proposal for your prospect. If you aimed at bringing on your ecommerce a specific target (for example, fashion blogger), remember that all your communication efforts must be consistent, in order to obtain the favorability of your prospects. The previous step, the Consideration one, doesn’t involve the prospect to a certain extent. In the Favorability step instead, they are more involved: the prospects figure out what other people can think about the product and looks for reviews by the customers on the website, or on the social networks. At this step, the prospect is deciding to buy, even if he’s not full conscious of his choise.
The intent is a step where the plane is taking off. Every wrong factor can be damaging the final purchase decision. For the psychologist, the theory of the cognitive dissonance says that after one’s decided to buy, the good reasons blur and the nos remain on the stage, more evident. But even before the purchasing there could be these kind of issues. After the prospect has put the product in the cart, he can stop figuring out to be fraud or to never receive the goods, or feel that going to another website he can find another product at half the price.
In other words, it means that everything can happen in the mind of the prospects – of course if you don’t know how to manage it.
The purchase step involves the checkout process. Keep it simple!
Don’t forget that the success of an ecommerce depends on sales, but the best ecommerce depends on the reorders of their loyal customers. A reorder is a premium to the ecommerce manager – and a steep wall towards competitors.
At the right of the image you can see the Results – in terms of numeric indicators of the performance – the famous KPIs.
So, how to track the KPIs in order to keep monitored the outcome of the web marketing process?
We will see it in the next article!