Return on Investment (ROI)
Posted: Sat Jan 18, 2025 7:17 am
Considering that the ultimate goal of a business is to generate profits, you need a metric to measure your returns. In this case, return on investment (ROI) becomes a relevant solution.
With this ecommerce KPI, you can examine your store’s profits and returns from certain strategies, such as marketing campaigns. ROI is calculated as follows:
ROI (%) = ([ecommerce return - ecommerce cost] / ecommerce cost) × 100
Human analysis of these metrics is virtually chile phone number resource impossible due to the often high volume of tasks associated with online store operations and the large amount of data and information generated during the execution of internal processes.
Fortunately, this task can be automated by specialized software . In addition, some online platforms provide useful KPIs for e-commerce. Therefore, the easiest way to implement these tools is through technology.
Since we’re talking about ROI, watch a video on the subject!
Product affinity measurement
Example: If product A from a professional uniform factory is closely related to product C but not to product B, then product A will be easier to sell with product C.
This grouping increases the average number of customer votes, which means more revenue and profit per order.
Therefore, it is important to measure the affinity between products. There is a quantitative relationship between which items have greater affinity with some items and less affinity with other items.
This way, marketing actions, such as recommending related products or advertising via email, can be more accurate and generate more sales. It also helps to build a better virtual showcase that highlights and brings together products with a lot of affinity.
With this ecommerce KPI, you can examine your store’s profits and returns from certain strategies, such as marketing campaigns. ROI is calculated as follows:
ROI (%) = ([ecommerce return - ecommerce cost] / ecommerce cost) × 100
Human analysis of these metrics is virtually chile phone number resource impossible due to the often high volume of tasks associated with online store operations and the large amount of data and information generated during the execution of internal processes.
Fortunately, this task can be automated by specialized software . In addition, some online platforms provide useful KPIs for e-commerce. Therefore, the easiest way to implement these tools is through technology.
Since we’re talking about ROI, watch a video on the subject!
Product affinity measurement
Example: If product A from a professional uniform factory is closely related to product C but not to product B, then product A will be easier to sell with product C.
This grouping increases the average number of customer votes, which means more revenue and profit per order.
Therefore, it is important to measure the affinity between products. There is a quantitative relationship between which items have greater affinity with some items and less affinity with other items.
This way, marketing actions, such as recommending related products or advertising via email, can be more accurate and generate more sales. It also helps to build a better virtual showcase that highlights and brings together products with a lot of affinity.