5 Metrics to Strengthen your Multichannel Sales Strategy

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:

1. Measuring Channel Performance 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 the performance of each sales channel based on:

No. of orders generated

GMV over a period of time (try measuring it on a quarterly basis)

Generated Revenue

Proportion of visitors vs. customers

Based on the above metrics you can inspect the best-converting channels and build sales and promotion plans for each channel.

1. Tracking Different Conversion Rates 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 –

How to calculate Cart Abandonment Rate
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 0.33. 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 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.

1. Monitoring Consumer Experience 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

Read More: Metrics to Strengthen your Multichannel Sales Strategy