When it comes to B2B ecommerce metrics, how do you know if your business is thriving or falling behind? After all, accurately measuring and reporting the impact digital channels have on operations, sales, customer loyalty, and service is a tough task.
Luckily, Forrester’s new report “Get Your B2B eCommerce Metrics Right*” shows us how successful businesses “identify and prioritize key performance indicators (KPIs) and analyze omnichannel customer interactions to produce value-added insights and drive sustained growth.”
First, let’s take a look at a few KPIs you should be tracking and why they’re important.
The KPIs You Should Start Tracking Now
- Abandonment rate
- Acquisition cost
- Average order value (AOV)
- Brand loyalty
- Conversion rate
- Cost to serve
- Customer lifetime value (CLV)
- Customer satisfaction
- Length of sales cycle
- New vs. repeat customers
- Omnichannel sales percentage
- Online budget dedicated to 1. Research and Development (R&D), 2. Technology, 3. Usability/Customer Experience (CX)/Creative
- Online sales percentage
- Order error rate
- Percentage of marketing budget spent online
- Price sensitivity
- Profitability per customer, customer segment, and order
- Reduction in phone interactions
- Retention cost
- Return rate
- Share of wallet
- Spend per company and customer
Now that’s quite a list, and not all the KPIs listed will apply to every business. But by using these metrics, or at least the ones that best apply to your organization and its goals, you’ll be better able to understand where your business efforts are succeeding and where they’re lacking.
Tracking these KPIs will also help your business reduce costs, drive sales, optimize operations, and promote customer loyalty.
So now that you know which B2B ecommerce metrics to prioritize, how do you execute an effective measurement strategy?
Ensuring Your Measurement Strategy is Effective
Having the data from all these KPIs won’t matter if you don’t know what to do with them. That’s why it’s paramount you align those metrics with clearly defined business goals or objectives. This can start at the top, by working with leadership to define company goals and foundational “pillars” that will inform all aspects of the business.
But this type of alignment doesn’t start and stop at the top floor. Businesses that are successful will encourage managers and other employees to provide feedback on where they believe the company needs to grow, improve, and focus. This alignment will better allow you to discover where you’re falling short and realize improvements quickly.
In order to facilitate more accurate comparisons and better streamline and prioritize efforts, it’s important to ensure all teams are using the same definitions and measurement tactics for all KPIs. This will have to be an ongoing process, as business objectives change as companies evolve, meaning metrics will have to change with them. The updating of existing metrics, alignment of new ones, and retiring of unused KPIs will be a continuous process.
Once you know your teams are on the same page, it’s time to start benchmarking your performance against competitors and industry standards alike. Conduct a baseline assessment of your current performance in order to see how you measure up. Analytics providers can help with this.
Last but not least, it’s crucial that you hold your business accountable to meeting KPI targets while keeping the C-Suite informed of your progress. Forrester suggests that B2B digital business professionals “call regular cross-functional team meetings with key stakeholders to share important results and insights from, and improve data collection for, measurement programs.” Creating a “test and learn” culture that keeps people informed and accountable can keep your business objectives on track.
How FPX Helps Businesses Identify & Achieve Their Goals
At FPX, our Configure-Price-Quote (CPQ) solution is built to complement and extend the capabilities of your ecommerce solution. With the ability to quickly and accurately configure, price, and quote your most complex products and services across all channels, you can deliver the solutions your customers want through an experience that keeps them coming back.
Key to any CPQ project is the process of identifying, defining, and tracking key metrics related to upsell/cross-sell, product and solution bundling, and numerous other opportunities. Together, we can help your business identify opportunities for improvement, explain how CPQ can solve these challenges, and ultimately, help your business sell smarter by extending the capabilities of CPQ across all channels.
Learn more about how we do this by checking out our CPQ for ecommerce whitepaper below.
*2018 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc.