24 November 2020
When it comes to making business decisions, KPIs and metrics are valuable allies. Available in Marketplace dashboards, these performance indicators allow you to steer your business towards ever-increasing profitability as long as you don’t drown yourself in numbers but rather focus on the most relevant KPIs! Discover in this article the leading indicators to follow for a marketplace.
Because these KPIs (Key Performance Indicators) directly influence the turnover, they are to be monitored daily.
These indicators will give you clues on the actions to be taken to improve your marketplace’s profitability. For example, if you realize that you have good traffic but are struggling to convert, you may need to review your payment methods. On the other hand, if you manage to convert a good part of your visitors – but not enough of them to your liking, your efforts should focus on acquiring more traffic (content marketing, SEO & SEA). Finally, if you feel that your average shopping cart is too low, why not implement modules such as “You may also be interested in”, to promote cross-selling and up-selling?
Each of these 4 KPIs is then broken down into a series of other metrics. To evaluate the platform’s traffic and take appropriate measures to improve it, we can follow:
To measure each of your marketing actions’ performance, it’s essential to associate them with KPIs. Thus, if you adopt a content marketing strategy by sharing posts on social networks, in addition to the traffic from organic referencing, you will have to follow:
Opening rate, click rate, conversion rate, unsubscribe rate… The same rigorous approach should be applied to your emailing campaigns to identify your strategy’s pain points. If you launch a SEA campaign of paid referencing on Google Ads, for example, you will have to be attentive to:
In any case, it will also be necessary to calculate the acquisition cost per channel to measure your marketing actions’ ROI. You shouldn’t find yourself spending more to acquire a customer than you earn!
The highest rate of basket abandonment is at the time of payment. Therefore, the payment experience must be observed under a magnifying glass to remove all the obstacles that could prevent your visitors from becoming customers.
From attempted purchases to successful transactions, including payment acceptance, it’s essential to track the payment throughout its entire value chain while regularly checking chargeback rates and monitoring fraudulent attempts.
To best manage your business, choose a PSP with intuitive dashboards, such as Lemonway. Lemonway is an ACPR-approved payment institution that supports and advises platforms from A to Z to manage their payment flows and to improve marketplaces’ profitability. Do you have a project? Questions? Tell us what you need!
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