In the process of building a foreign trade website, enterprises must first clarify the goals of their own websites, that is, what is the Business Objective. Whether to obtain high profits from a large number of orders, or to obtain commissions from foreign trade platforms. After determining the purpose of building a foreign trade website, more specific strategies can be implemented to achieve this goal step by step. So, how to measure the effectiveness of strategy implementation? Here, KPI (Key Performance Indicator) plays a decisive role.
Many large-scale B2C and B2B foreign trade e-commerce websites use KPI as an important assessment of corporate performance. For example, the famous Alibaba uses KPI as a quantitative indicator to measure the performance of its staff. So, how should foreign trade companies set appropriate KPIs for themselves?
There is an important SMART principle in determining key performance indicators. SMART is the abbreviation of 5 English words:
S stands for Specific: it means that the performance appraisal must focus on specific work indicators and cannot be general;
M stands for Measurable: it means that the performance indicators are quantitative or behavioral, and the data or information to verify these performance indicators is available;
A stands for Attainable: It means that the performance indicators can be achieved with hard work and avoid setting goals that are too high or too low;
R stands for Realistic: it means that the performance indicators are real and can be proven and observed;
T stands for Time bound: focus on a specific deadline for completing performance indicators.
According to this SMART principle and combined with the characteristics of foreign trade website construction, we cannot summarize the following KPIs to measure the profitability of foreign trade websites.
1. Website conversion rate
ROI (Return of Investment) is not only applicable to various conversion efficiencies. For example, in SEO, ROI is often used as an important indicator to measure the search engine optimization effect of a website. Similarly, ROI is the core of foreign trade e-commerce operations. Generally, the average conversion rate of Chinese e-commerce websites is one thousandth, that is, out of 1,000 people visiting the website every day, one person will make a purchase. For example, mature e-commerce websites such as Dangdang.com, JD.com, etc. have a conversion rate of 1%. Therefore, most of the main energy of foreign trade companies is how to improve the conversion rate of the website in order to obtain more income.
2. Average order amount
For a website with a high conversion rate, if the amount of each transaction is small or even negligible, it will be a failure for foreign trade companies. Many people will complain about why I have worked so hard to increase the ROI, but the results are not as expected. A large part of the reason for this is that website owners ignore the average order amount. The average order amount reflects the commercial value of a website, that is, its ability to develop later. For example, after Taobao has established a foothold in the C2C field, it has continued to develop Taobao Mall. One of its obvious purposes is to increase the amount of orders in order to obtain more profits in the future.
3. Repeat purchase rate
Traditional sellers pay great attention to their repeat customers and hope that customers will continue to purchase their products and services again. In fact, this is the repeat purchase rate. To increase the repeat purchase rate of users, in addition to enhancing the user experience of the website, it is more important to allow users to obtain better products and services on the website and increase user loyalty.
[Original article, please indicate the source for reprinting: Mulan Design www.mulandesign.com ]
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