How should an organization determine the health of its e-commerce business? There are important KPIs like Return on Advertising Spend (ROAS) or Ordered Product Sales (OPS) for Amazon vendors, but these markers do not account for the inefficiencies that can be present in businesses of any size. Hidden problems can lie dormant at length and cause businesses to lose incremental sales or prevent the realization of important cost savings. Furthermore, metrics like ROAS are lagging indicators of sales and do not necessarily determine the extent of your future brand presence and market share online. Consistently having a high Share of Voice, avoiding out of stocks, maintaining strong content quality and a high best seller rank, winning the buy box, and eliminating 3P variants should be important priorities for any e-commerce vendor. Towards this end, we’ve developed a scorecard that measures exactly these factors.
CommerceIQ can rate your brand visibility, desirability, availability, and convertibility and combine ratings for each into one simple number, up to a perfect score of 100, that tells you the health of your e-commerce business. The score’s parameters are tailored for your category and reflect the standing of your most crucial items. Importantly, the scorecard goes beyond revenue and volume to truly understand the health of your business whether you are a large and established vendor or a smaller, challenger brand.
- Visibility: Measures the Page 1 Share of Voice for both generic and branded keywords. These are the most heavily weighted parameters of the scoring model as they reflect their importance as the leading indicator of future sales and online market share.
- Availability: Measures the ‘shippability’ of your product to the consumer, including metrics like Lost Buy Box percentage and out of stocks. These parameters reveal the degree of revenue leakage a brand may be experiencing.
- Desirability: Measures the quality of your content on product detail pages such as the number of images, length of your product title, and completeness of your descriptions to estimate how it will resonate with consumers.
- Convertibility: Measures the prevalence of 3P variants latching on to your items and brand as well as the movement of your items’ Best Seller rank.
Your CommerceIQ score isn’t just for bragging rights. It serves several functions for your business:
- Compare. You can see where you stack up vs. other brands: where you excel and where you might not.
- Correct. You can identify and fix blind spots you didn’t even know you had.
- Track. You can measure your progress over time as you work towards achieving your e-commerce goals.
Our scorecard is universal, and brands do not have to share any proprietary information to receive one. We can pull your score even if you have no existing partnership with CommerceIQ. Contact us for a sample scorecard and start improving your business!