Top 7 Mobile Commerce KPIs
We had a live webinar on Critical mCommerce KPIs on Thursday, April 24th, 2014 at 12pm MDT. Click to watch the replay.
You could get consumed by tracking dozens of mobile commerce KPIs (in fact you probably already are). For the sake of simplicity, we are outlining the top 7 mCommerce KPIs that are highly worthwhile for tracking.
1) Total Mobile Traffic
2) Average Page Load times (by device type)
3) Entry and Exit page histograms
4) Average Order Value
5) SMS Subscription
6) Add to Cart Rate
7) Cart Conversion Rate
1) Tracking Total Mobile Traffic
Tracking Total Mobile Traffic is a critical top line KPI. Look for trends over time. Average inbound mobile commerce traffic has gone from approximately 5% in 2012 to about 20% by December 2013. Tablet traffic nearly doubles the totals. Goldman Sachs estimates that mobile commerce will account for 50% (or more) of all eCommerce revenues by 2018. You and your team need to know how many mobile visitors are hitting your site so they can make appropriate mobile investment, mobile budget, mobile marketing, support and technological decisions.
2) Average page load times
This is an important KPI people often neglect. After mobile UX, this may be the most important factor in driving mobile conversion rates. Average page load times for Fortune 100 companies hover around 5 seconds. Dedicated mobile sites tend to perform better. Responsive sites tend to perform much more slowly with page load times averaging more than 8 seconds. Be sure to check page load times by device. You will be amazed by the differences.
3) Entry and exit page histograms
Closely monitor the entry pages of your mobile visitors. Note, if most or all of your mobile visitors are entering via your home page, you may have a problem. Efficient deep linking is critical in mobile. Nothing destroys conversion rates more than unnecessary, slow navigation through multiple, superfluous pages! As in eCommerce, monitor your mobile exit pages so you know where to focus your mobile UX energy.
4) Average order value
We at mShopper choose this metric over total mobile sales volume because this metric is actionable. Monitoring AOV over time empowers mobile merchandisers to make better decisions. If you manage AOV and conversion rates, sales volume will take care of itself.
5) SMS subscription reporting
SMS subscription reporting (total, growth and attrition) is an essential piece to the long-term success of your mobile commerce efforts. Question: Are you even building your database of permissioned mobile phone numbers? Our guess: probably not… If not, you have a lot of work to do. Mobile conversion rates for people who opt in to receive your exclusive mobile alerts are 18x to 32x higher than those who do not opt in!!! Your SMS subscribers are your best customers!
6) Add to Cart rate
Everyone is obsessed with mobile conversion rates. Did you know that overall conversion rates equals the product of your Mobile Add to Cart Rate (mATCR) times your Mobile Cart Completion Rate (mCCR)? We focus an enormous amount of energy tracking mATCR because this data is actionable. mATCR measures the efficacy of all your mStore pages in front of your shopping cart. mATCR is a measure of your mobile store’s findability, and findability is the key to mobile conversion rates. Managing this critical KPI over time allows you to make better mobile UX decisions over time.
7) Mobile Cart Conversion Rate
mCCR and it is the other sub-formula related to your overall conversion rate. Tracking mCCR will require you to look at your checkout process more closely if the CCR is performing poorly.
Of course, managing your mATCR and mCCR will allow you to shine when it comes to most important KPI, your Overall Conversion Rate (CR). Knowing the percentage of all visits that end up in an order (ok, here you go. Mobile conversion rate range from a low 1% to more than 4%! As mobile traffic increases, your overall sales volume is going to be severely influenced by your CR. A low CR is going to kill your potential revenue. On the other hand, a mobile-optimized site, with an industry-leading conversion rate, will soon become the leading retail channel in your entire business.