What are the key indicators in e-commerce business?
Posted: Wed Jan 22, 2025 6:14 am
If it is still confusing, consider the following analogy; in the process of dieting (weight loss), the number of kilos lost is a lagging indicator , and the number of calories consumed or burned is a leading indicator . These two indicators are interrelated, but only the latter indicator will give a prediction of what will happen in the future.
To find your leading indicators:
Identify your goals (e.g., bottom line KPIs), and then;
Think backwards to identify metrics that drive growth
For example, your goal is to increase revenue from your email marketing strategy by 10% in six months. Over the course of six months, you compare the daily revenue generated from your email marketing to determine whether the aruba email list campaign was successful. Over the course of those six months, you collect data on the number of customers who subscribed to your emails, the emails sent, the emails opened, and how many people transacted through those emails.
These are leading indicators that enable you to achieve your campaign goals. Some leading indicators are standard across businesses, regardless of what services or products you sell. For example, metrics that show an increase in customer complaints or an increase in returns are strong indicators of problems in the production or distribution process.
To find your leading indicators:
Identify your goals (e.g., bottom line KPIs), and then;
Think backwards to identify metrics that drive growth
For example, your goal is to increase revenue from your email marketing strategy by 10% in six months. Over the course of six months, you compare the daily revenue generated from your email marketing to determine whether the aruba email list campaign was successful. Over the course of those six months, you collect data on the number of customers who subscribed to your emails, the emails sent, the emails opened, and how many people transacted through those emails.
These are leading indicators that enable you to achieve your campaign goals. Some leading indicators are standard across businesses, regardless of what services or products you sell. For example, metrics that show an increase in customer complaints or an increase in returns are strong indicators of problems in the production or distribution process.