Amazon Data Analytics, Part 1: Choosing your KPI’s
Many brands spend $100’s or $1000’s per month on software and "experts" to track the performance of their brand on Amazon.
But I will let you in on a secret:
You don't need expensive software or alleged "AI" to make business decisions and to stay up to date on your brand's performance on Amazon.
Amazon gives you all this information for free. You just have to know where to find it and how to use it.
Our biggest advantage as a company, other than our incredible team, is our ability to take the overwhelming amount of data Amazon provides and:
Present it in a way that makes sense to our clients
Present in a way that can be used to make business decisions
Our brand partners find and react to opportunities faster, which gives them a competitive advantage over less sophisticated brands. We can also avoid traps that others may fall into.
The first step in that process is picking KPI’s (Key Performance Indicators) that are useful for each brand's unique goals. We then track and present that information to our clients, so we can make business decisions and adjustments as quickly as possible.
There are countless KPI’s to choose from, and each brand is going to have different needs based on:
Where they are as a brand
What their goals are for the near and long term future
For almost all brands, the following KPI’s are very important to track and improve upon:
Conversion Rate — It is always important to track your conversion rate. It is even more important to track it when you are making changes to your listing pages, so you can see in the data whether or not your optimizations made the positive difference you wanted them to make.
LTV — Customer Lifetime Value. This tells you how much the average customer will spend over the lifetime of your brand. This is important because it lets us pick a good target for….
CPA — Cost Per Acquisition. This is how much we are paying to acquire a new customer or order. This is typically just the cost of an ad campaign or promotion, divided by the total number of orders.
What are your favorite KPI’s and why do you find them important? Tell us in the comments below.
Petros Neofotistos
Petros lives on the cutting edge of e-commerce marketing and data analytics. He helps clients build strategies to target and retarget customer segments that lead to sales. He can take the overwhelming amount of business data available to brands, find the important information, and apply that information to business and marketing decisions with a tight feedback loop.