Key Points to Improve Your Business Performance
By: Sana Haroon
Many of the merchants are often struggling with matrices and the analysis of their shop’s performance. And unfortunately, what usually happens is that they just set it aside. But it is extremely important that from the start they monitor their shop performance closely and remove the language barrier by consulting Professional Translation Services like Arabic Bulletins translation services. Many companies use Arabic Bulletins translation services in order to advertise their business worldwide.
Set your objective:
You have to get started by setting your objectives and defining an appropriate strategy. From there you can determine the key performance indicators which are also called as KIP’s. The end game is all about return on investment and the net profits. But from the get go, most of the entrepreneurs will usually focus on generating revenue before trying to reduce costs, once sales volume become more significant. So you should start by setting some realistic objectives linked to revenue, such as sales volume, site traffic, or conversion rate.
Then, once the launch and initial growth phase are behind you, and you have established a solid foundation for your e-commerce, you can start setting some more refines objectives that are specific to your business.
Identifying the 5 fundamental KPI’s:
In order to effectively measure revenue and understand its mechanics, there are 5 indicators which are essential.
- Site traffic: This is simply the number of people that visit your online shop on a daily, weekly or monthly basis. You need to be vigilant about it and quickly course correct by implementing actions to boost visibility and visits. You should analyze not only global site traffic, but also break it down by page and product. The more you go into detail, the better decisions you will be able to make.
- Understanding your traffic sources: You need to know exactly which channels brings you the most or the least qualified visitors, so you can invest more that work for you and drop those that cost you money but don’t generate results. This indicator will provide you with valuable insight in order to optimize your shop.
- Focus on conversion rate: it is the ratio of paid orders to site visitors. This is usually 1% and 3% depending on your industry. If it is too low, you need to investigate, if there are any issues in the order process.
- Net margin: this is simply revenue minus cost. Many merchants fail to determine this accurately and underestimate the investment and promotional costs of an ecommerce website. In today’s economic environment, price wars are also common and net margin can plummet very quickly.
- Average cart amount: This may vary according to your business model, but in most cases, measuring your average cart amount and working to improve will allow few things.
- Cash flow
- Build up customer loyalty.
- Hedge sales volume related risks.
Once you have these basics down, you can then start digging deeper, and add new KPI’s that are linked to your objective.
Optimize your online shop:
Once your analysis is complete, the idea is of course is to draw some conclusions and take action to improve your strategy and optimize online shop. In this last case, you should have some testing and comparison tools. You can also use translation services as a best tool for the language issue. Professional translation services play a vital role in optimizing your business.