eCommerce in Asia & China - How to drive profitable growth

Editor's Notes

• #4: Olay sells in almost all platforms but it lacks consistency in promotions and pricing
• #39: There are many metrics that aneCommerce business needs to constantly monitor.At the top line, obviously you look into revenue and profit, and number of orders.Inventory turnover ratio is also an important metrics, it measures the liquidity of your inventory. A high ratio means your business is efficiently managing and selling its inventory. The faster inventory sells, the less cash company would tie up in stock. In contrast, a low ratio can mean you are holding up obsolete inventory that may be difficult to sell. You will need to examine further and plan what to do to move the stock again.On the traffic driver side, you would measure cost per visit, qualified visits, and so on. But the most important aspect is the channel attribution, which let you understand the role and true effect of each traffic source, instead of just the last click conversion. Two other metrics we mentioned earlier are the conversion rate and average order value. The cart abandonment rate is also an important measure on the effectiveness of the site.On the customer acquisition side, the customer acquisition cost and customer lifetime value are the most an important metrics in this aspect. The traditional RFM, which is Recency, Frequency and Monetary, are also useful metric to segment your customer. At the end of the day, customer satisfaction is also critical, especially in the social world full of reviews in your site and offsite, you shall also measure the Net Promoter Score in this front.