For many eCommerce companies, measuring multichannel sales performance is a challenge. And as your organisation expands to new sales channels like marketplaces, your own brand web stores, and social commerce channels, the complexity for measuring their performance increases.
So, you may end up being confused on which KPIs to track, or end up tracking every known KPI out there. To avoid this, we have listed some of the most prominent KPIs that can help you critically analyse your multichannel sales strategy:
Let’s start with the most obvious one first. Channel-wise sales performance is a significant multichannel sales metrics to begin with.
For this, you need to be consistent in the data collection and calculation techniques for all your sales channels. You can compare performance of each sales channel based on:
Based on the above metrics you can inspect the best-converting channels and build sales and promotion plans for each channel.
Another important KPI to track and which almost every eCommerce retailer fears the most is the cart abandonment rate. It is formulated as the percentage of shoppers who place product(s) in the basket but fail to complete the checkout process. It is an intuitive indicator that can help you understand the shopping behaviour of your website visitors and your subscribers.
It is calculated as –
Cart Abandonment Rate = [( No. of orders generated / No. of new shopping carts created ) * 100] - 100
To simplify, let's consider the following example:
You have generated 400 orders this month, and 1200 shopping carts were created. So 400/1200 gives you .33. Now multiply it by 100 that will give you 33%. Next, subtract this from 100 and you will get 66.
So, by this calculation, 66% is your final cart abandonment rate.
On an average, the cart abandonment rate falls between 60% to 80%. But, it also depends on the device through which the process has been initiated and the industry you belong to. Likewise, you can follow industry benchmarks to track, test and adjust your sales strategy.
If you get successful in reducing this rate, it will automatically increase your overall conversion cycle and help you to enhance your sales performance.
Offering seamless transitions between devices and delivering the right experience each time the customer lands on any of your sales channels is very critical. In fact, according to Harvard Business Review, 9 out of 10 global shoppers consider this as a tipping point when shopping online.
But, how do you measure if your consumer experience is good or if it needs any improvement?
In order to completely understand this KPI, you need to track the feedback of your shoppers and analyze it accordingly. Once the shopper has given their feedback on how likely would they recommend your products/ services, depending on their response, categorize them into three classes -
Once you have had a substantial score to grade, subtract the amount of detractors from promoters and you will get your Net Promoter Score (NPS). On an average you need to maintain NPS above 50 which is considered as excellent.
Although this metric is not directly related to the sales strategy, it will give you a clear picture of how your customers perceive your service. The ease and simplicity of the metric defines how to alter your consumer experience capabilities which are essentially important to drive more sales in your multichannel eCommerce operations.
Essentially when you track Gross Margin as a financial metric, it helps you to understand profit after product sales and gain insight on how sustainable your growth is.
It is calculated as – Gross Margin = Revenue - Cost of Goods Sold (COGS)
And the rate of Gross Margin is – Gross Margin Rate = (Gross Margin/Revenue)* 100
A higher gross margin rate means you have a highly profitable business.
Having a high gross margin rate allows you to invest more in your business.So you can make a decision if you should add more channels to further strengthen your position in the market or carry on with the existing ones.
Customer Lifetime Value is the value or amount of revenue you can expect from a customer during the course of your business relationship.
Make sure you monitor this metric from a specific point of time as this is the single most important element of the metric.
To track this KPI, first you need to calculate some underlying values such as:
Based on these four values you can deduce the customer lifetime value. CLV gives you a clear understanding of total revenue you can reasonably expect from a particular customer. The longer a customer continues to keep ordering, the greater their lifetime value becomes. This metric can help you identify significant customer segments that are most valuable to you. So you can promote loyalty campaigns or even compare CLVs for different customers across different channels.
Let’s understand how to measure this value with the following example -
You generated a revenue of $SGD 3,00,000 in one month. And the amount of orders generated for that month was say 5000. The no. of customers you have 20000. The customer ordered twice in one month 7 days apart.
A= 300000 / 5000 = 6
B= 5000/ 20000 = 0.25
C= 0.25/6= 0.04
So the CLV would be —
C*D= 0.04* 7 = 0. 28
To translate it into a simple statement, the customer has generated a revenue of $SGD 0.28 in this month.
So, depending on the above calculations, start determining customer wise CLV and monitor it, by keeping a constant check on the above four values.
If you wish to succeed in your multichannel strategy, you need to think about all these metrics holistically and put customer experiences, sales activities and channel behaviour at the heart of your strategy.
By measuring these KPIs, you can understand how useful your multichannel efforts have been, and what you can expect in the future. Once you start regularly monitoring them, you will also be able to determine your own benchmarks and make the necessary improvisations.
Interested in transforming your existing multichannel selling, retailing, or eCommerce service business? Speak with our expert now.
Integrate your online channels in few steps, and try out all features of the SelluSeller
Receive the latest insights, reports, research papers, news bytes, and important announcements from Anchanto.
8 Valuable Principles of Establishing Project Management Processes
For businesses that wish to scale while maintaining quality work and standardized operations, Pro...Learn more
Why Should Brands Adopt Omnichannel Retail?
For brands, omnichannel retail holds endless opportunities and benefits. With a key strategy in p...Learn more
5 Metrics to Strengthen your Multichannel Sales Strategy
To be successful in Multichannel Sales, you must analyse your existing channel operations closely...Learn more
How eCommerce Marketplaces Can Help You Setup Offline Presence in a New Market
To establish an offline presence in a new market, brands can begin by selling through eCommerce m...Learn more
Meet Bhushan, Product Consultant at Anchanto
Freshly out of college, Bhushan joined Anchanto’s rapidly growing team three years back. His jour...Learn more
Anchanto facilitated successful year-end eCommerce sales of Filipino local businesses amidst Covid-19
Anchanto helped Filipino businesses navigate challenges & scale operations online during COVI...Learn more
7 Key Steps to Set up Operations in a New Market
Establishing offices and operations in a new country requires detailed market study, proper strat...Learn more
Top tips to boost your social media and social commerce strategy
Your social followers can gradually convert to your shoppers. Here are few ways on how you can ma...Learn more
Electronics Conglomerate Panasonic announces eCommerce expansion across Asia-Pacific in partnership with Anchanto
Panasonic, a global electronics conglomerate announces partnership with Anchanto to streamline it...Learn more
Starting a New Job from Home: 7 Anchanto Stories
Listen to the stories of Anchanters who joined the company during a global crisis and how they na...Learn more
Social Commerce: The Winning Combination of Social Media and eCommerce
Social commerce is an upcoming trend and takes the best of eCommerce and social media to help you...Learn more
6 Useful Practical Insights to Manage Cross-border eCommerce
Understand the challenges of cross border eCommerce and how to tackle them through intuitive tech...Learn more
Preparing your logistics business for special sale seasons
Plan ahead for sales season this year with these recommendations for warehouse management system ...Learn more
How to Leverage YouTube for Retail Businesses
YouTube can work wonders for retail businesses. From having access to a large number of customers...Learn more
8 eCommerce Mistakes to Avoid this Holiday Season
Some businesses struggle to convert their holiday website traffic into sales. If you face this ch...Learn more
Top Multichannel Inventory Challenges and Solutions
Shifting to multichannel sales, you are likely to encounter commonly faced inventory challenges a...Learn more
Content Asset Management: A key to multichannel eCommerce success
Digital Asset Management (DAM) and Product Information Management (PIM) are two systems help that...Learn more
Retail distribution giant Valiram selects Anchanto to accelerate its global eCommerce transformation
Valiram, South-east Asia’s leading retail specialist, announces partnership with Anchanto to soli...Learn more
How to achieve control over your online retail business and improve its visibility
Understand how technology and software solutions can help eCommerce businesses to improve control...Learn more
Analysing The New Normal for Fashion eCommerce
The Covid-19 pandemic has changed the way in which shoppers use eCommerce, especially when fashio...Learn more
Using my past entrepreneurial experience to solve eCommerce Challenges for Enterprises
My experience as an entrepreneur helped me solve the challenges faced by eCommerce enterprises as...Learn more
Practical insights to implement a robust Omnichannel strategy for your retail business.
A few years back, ‘Omni-channel’ was merely a buzzword, a theoretical concept that was just discu...Learn more
How we conceptualised and launched our latest innovation in just 3 months
When it comes to innovation, we are always on the lookout for newer ways to make our customers’ e...Learn more
Scaling your logistics and fulfillment business with the right technology.
According to a report by Mordor Intelligence, the logistics market in APAC is set to grow at a CA...Learn more
Overcoming challenges of cross-border eCommerce
Over the last few decades, selling has seen a logical progression. Earlier, the brick-and-mortar ...Learn more
Utilizing Cutting-edge Technology to Overcome the Challenges of Channel Management
Distributors have long played an important role in streamlining the operational lines between man...Learn more
Onboarding customers remotely: how the pandemic helped us learn & innovate processes
Aligned with our deeply ingrained objectives of delivering anchanting experiences to our customer...Learn more
How to Use Partnerships & Tools for Shorter Time-to-market?
As a retail brand or distributor, time is of the essence, especially when you want to expand your...Learn more
Can sticking to a marketplace harm your online trade?
There’s no doubt that eCommerce has given businesses a new lease of life. Much of the overhead th...Learn more
How brands overcame the channel conflict dilemma
Earlier, businesses had to establish their dealer and retailer networks in all geographies, putti...Learn more
Anchanto achieves profitability and receives S$16.6 million in ongoing Series C-funding round for market expansion & product development
Anchanto’s SaaS offerings receive a vote of confidence from globalcompanies due to steady profita...Learn more
How can distributors keep both brands and buyers happy?
As the world shifts to the new normalcy and adopts online shopping, your distribution responsibil...Learn more
Australia: How Anchanto is ramping up growth in the region
After entering the Australian market in late 2019, we are well underway to serving as a bridge fo...Learn more
Creating a Successful Cross-border eCommerce Strategy for Your Business
Cross Border eCommerce strategy is one of the major factors associated with the future of eCommer...Learn more
Should you outsource eCommerce operations or manage them in-house for your brand?
It is no secret that the global retail economy is changing fast and eCommerce has a significant p...Learn more
Execute Seamless eCommerce operations on-the-go with the all new SelluSeller App!
The world, as we knew it, has completely changed over the past few months. A remarkable shift can...Learn more
The Power to manage business ‘on-the-go’ for eCommerce leaders.
Living through a pandemic has altered the way people across the world shop, leading to a remarkab...Learn more
SelluSeller Now in Your Palm- An eCommerce Management Revolution
Aligned with our vision of making multichannel selling & eCommerce logistics simple for every...Learn more
Enhancing eCommerce Logistics Operations with Cutting-edge Technology
The eCommerce wagon runs on the tracks of resourceful supply and excellent connectivity. As onlin...Learn more
2018’s Top Ecommerce Trends That Will Shape Online Selling in Southeast Asia
As online selling is a fairly new retail method, ‘change’ is a common expectation for almost all ...Learn more
The Influence of COVID 19 on Fashion eCommerce
Understand the existence of consumer trends for fashion industry during the lockdown period and h...Learn more
What does the current pandemic mean for brand marketing agencies?
The Covid-19 pandemic has shut offices and significantly affected our world, but it has also resu...Learn more
Exploring the Future of Australian Businesses in Asia - I
Covid-19 has become a force that has changed the way in which businesses operate, strategize and ...Learn more
Exploring the Future of Australian Businesses in Asia - II
In order to grow and thrive in a post-pandemic era, Australian businesses must analyse the risks ...Learn more
How to avoid human mistakes in eCommerce with Automation?
eCommerce businesses in Southeast Asia have struggled for a long time dealing with manu...Learn more
How Should I Structure my Warehouse?
The efficiency of an eCommerce business depends heavily on how well its warehouse is op...Learn more
How to Improve User Ratings on Seller Centre
As an online seller, you must be well aware of the importance of the ratings that you get on your...Learn more
How to Structure Fulfillment Operations for Your Selling Business?
Fulfillment operations primarily refer to the process of getting a product delivered to the right...Learn more
What is the difference between B2C & B2B Fulfillment?
With the rapid expansion in the Indonesia digital economy and online purchasing decisio...Learn more
How to Avoid Overselling?
Inventory and stock management are one of the biggest challenges faced by enterprise eCommerce bu...Learn more
What is the Difference between WMS and eWMS?
Warehouses have always been an integral part of any retail chain business and proper wa...Learn more
How to Reduce Customer Complaints and Claims
When the customer is unsatisfied, investigating the way they are treated, is important.Learn more
3 Things You Need to Master To Sell More on Marketplaces
Why is it that global businesses and brands, most often, seem to be miles ahead in their approach...Learn more
How to Make an Effective Social Media Plan for Your Online Store
A Social Media Marketing Plan or social media plan is a document that details the strategies in s...Learn more
How to Use Emotional Persuasion as a Growth Tool for Online Selling
Neuromarketing or emotional persuasion in connection with sales and marketing is not a new concep...Learn more
Top Marketing Strategies for Your eCommerce Store in 2018
eCommerce is the next big thing when it comes to online web stores in IndonesiaLearn more
Top 5 Ways to Advertise Your Products for Free on the Internet
E-commerce is what Indonesia is going towards with each passing day. With the rise in the accessi...Learn more
How Do I Sell Online in Indonesia For Free?
To sell online without having to spend a penny, you have several options: through social networks...Learn more
Decoding the Cross-Border eCommerce Puzzle
Technology enabled eCommerce has given an unprecedented push to cross-border trade in recent years.Learn more
Grow Your Online Business by Selling More to Current Customers
When you ask a co-seller what their goal is when they start start selling in Indonesia, they almo...Learn more
How to Transform Occasional Buyers in Frequent Customers?
While online sellers and brands always seek to expand their reach to increase their sales in Indo...Learn more
Five Most Common Mistakes Made by Online Stores
Revenue in the eCommerce market of Indonesia amounts to US $8,591m in 2018, and it is expected to...Learn more
7 Tactical Ways Every Business Can Use Local Marketing to Sell More Online
Local marketing is the process of optimizing your website’s brand in a way that adapts the localLearn more
How to Choose the Perfect Theme for Your Online Store
Judging a book by its cover may not be a good way of understanding our society, but when it is aboutLearn more
Best Software and Apps to Edit Product Photos
We all know about Photoshop, one of the most common and efficient image editing software in South...Learn more
How to Describe a Product in Your Web-Store?
The content is king. A phrase conveys the importance of your titles, descriptions and other texts...Learn more
The Drop Shipping in eCommerce: Is it Possible to Sell Without Having Inventory?
The inventory is undoubtedly one of the dilemmas of any company that trades with articles of any ...Learn more
How to Choose an online marketplace to sell your products?
A data from Entrepreneur-the elite magazine says In 2017, the eCommerce market generated a revenu...Learn more
Eight Effective Ways to Promote Your Products on eCommerce Platforms
When planning to promote your products to strengthen the sale, you should not limit yourself to t...Learn more
How to Master Product Photography on a Tight Budget
If you are one of those who keeps uploading the product photos provided by your supplier,Learn more
Nine Effective Strategies to Increase Additional Sales
Selling more is something that obsesses both online and offline marketers. Hence, a seller is con...Learn more
Top 10 DIY Things to Make and Sell Online
Indonesia has a history of thousands of years. This means people residing here have ideas of art,...Learn more
Marketplace Aggregation – Why It Can Make or Break Your Online Business
Okay, so you’ve moved on—not in the distant past—from the brick and mortar model of doing busines...Learn more
Dont Just Meet Marketplace SLAs, Beat Them!
With the spurt in Indonesia eCommerce, sellers need to deal with a deluge of Service Level Agreem...Learn more
How to Use Discounts and Deals to Get More Customers Come and Stay Forever
Encouraging repeat sales is a crucial aspect of online selling, specially when you are an online ...Learn more
How to Maximize Selling During Peak Season
For an online business seller in Indonesia, holidays are golden opportunities for increasing thei...Learn more
How to Be an Online Power Seller on Major Marketplaces in Indonesia
The rising popularity of Indonesian eCommerce marketplaces has led to increase in the direct comp...Learn more
Top Products to Sell Online in Indonesia
With a history of over 40,000 years, Indonesia is one of the 17 mega diverse countries in the world.Learn more
How to Start Selling Online in Indonesia
The massive shift of Indonesia retail towards digital has opened up a whole new world of opportun...Learn more