KPIs for B2B Ecommerce: How to Measure Your Progress and Achieve Success

B2B ecommerce is revolutionizing how we do business. After surging during the pandemic lockdown, it’s continued to grow substantially, offering lucrative opportunities for marketing and ecommerce leaders. It’s now worth an estimated $7.7 trillion—and by 2025, 80% of B2B sales are expected to take place online.

B2B ecommerce has many benefits, and the ability to rack up bulk orders at a frequent clip while minimizing costs and overhead has made it quite profitable. But it’s an industry that also requires a lot of detailed planning. The approach for success in B2B ecommerce can be quite different from other business channels—and KPIs are your guide to getting that approach right. 

A key performance indicator (KPI) is a measure of how effectively you achieve your business objectives. We’ve compiled an inventory of the most indisposable KPIs for B2B ecommerce, covering financial performance, website performance, customer relations, and beyond. 

All sorts of companies—from coffee shops to fashion marketplaces to IT providers—have achieved success in B2B ecommerce in recent months. Use this guide as a roadmap for fast-tracking yours. 

What are key performance indicators (KPIs) in B2B ecommerce?

When you start a new exercise regimen, you likely have long-term goals in mind, and a plan that includes training techniques and benchmarks to hit. For business growth, KPIs function as those benchmarks. 

• KPIs are trackable metrics used to measure business performance.
• KPIs measure business performance over time, helping organizations assess progress toward specific goals and targets.
• KPIs vary by department, business, and industry.

How to identify KPIs for marketplace ecommerce

KPIs for ecommerce involve core principles like website performance, customer satisfaction, and financial outlook—but every business has its own unique differentiating factors and pressure points. As we explore KPIs, you’ll want to:

• Identify main business goals and priorities.
• Set targets and designate responsible individuals. 
• Determine the most important metrics for your business.

Website performance KPIs

Website performance is fundamental to B2B ecommerce. Ecommerce buyers—70% of whom are expected to be millennials by 2025—expect a fast, seamless buying experience. And online activity is shifting rapidly from personal computers to mobile devices, with mobile ecommerce expected to generate $620.97 billion in sales in 2024—so it’s crucial that your site is mobile-friendly.

There are numerous mobile site speed optimization tactics ecommerce leaders can employ, as well as best-in-class mobile checkout options like Shop Pay. As you fine-tune your ecommerce site, keep the following KPIs in mind:

Website traffic

Search engines like Google prioritize fast-moving sites. You can also draw traffic to your online store with knowledge base content that’s relevant to your prospects. 

So you’ve gotten prospects to your site; where do you go from there? 

• Website traffic data provides insights into how customers and prospective buyers engage with your company. 
• Click-through rate shows the effectiveness of marketing campaigns and the strength of your brand.
• Bounce rate shows interest in how products are presented, and return visitors reflect enduring interest in what you’re selling.
• Website traffic data can be used to optimize and enhance functionality.

Conversion rate

Conversion rate measures how frequently your site converts visitors into customers. Choosing a B2B ecommerce platform that’s an industry leader like Shopify is a great first step, as we take pride in offering businesses the best-converting checkout on the market. 

So how else can you increase conversion rate and use it as a metric to improve your site? 

• Conversion rate is the primary KPI for determining the effectiveness of a marketing strategy. 
• It measures how many impressions, social media engagements, views, and site visits turn into sales.
• Since ecommerce companies that rely on digital campaigns have a high volume of impressions, a 2% conversion rate is considered successful.
• B2B businesses can improve their conversion rates by optimizing their websites and using persuasive calls to action (CTAs).

Shopping cart abandonment rate

An easy, frictionless checkout is one of the most reliable ways of increasing B2B sales. Evaluate your checkout experience by analyzing how potential customers behave once they’ve placed items in their cart.

• Shopping cart abandonment rate measures how many website visitors put a product in the virtual shopping cart but fail to make the purchase.
• For ecommerce companies, this rate can reveal friction in the checkout process.
• Creating a simple, user-friendly checkout will improve this metric and increase online sales.

Customer acquisition and retention

B2B sales cycles are often long and complex, and tend to involve input from multiple stakeholders. But because B2B ecommerce involves so many interactions and customer touchpoints, it offers significant intel about your customer base, which you can analyze with two primary KPIs: 

Customer acquisition cost (CAC)

A marketing campaign that brings in new customers can look like a big win at first glance—but how does the value of those customers compare to the resources spent attracting them?

• Customer acquisition cost (CAC) measures the price of acquiring new customers.
• CAC evaluates the effectiveness of marketing campaigns and budget allocation.
• Implementing targeted content-marketing strategies can help reduce CAC.
• CAC shows how effective and efficient your marketing efforts are. 

Customer retention rate (CRR)

One of the core benefits of B2B is attracting wholesale buyers who purchase in bulk and purchase frequently. Loyal customers who buy on a monthly, weekly, or even daily basis can pay tremendous dividends over time.

• Customer retention rate (CRR) measures how many customers continue to make purchases from your online store.
• A low CRR may indicate issues with customer service. 
• Retaining existing customers is often more cost-effective than acquiring new ones.
• Average CRR varies by industry—consider rates in your space to shape your CRR goals.

Order and revenue metrics

Let’s take a closer look at customer behavior. Analysis of order value and frequency can help you understand predictable revenue streams—a foundation of business stability and growth. 

Average order value (AOV)

Average order value (AOV) is calculated by dividing total revenue by the number of orders. It’s a useful method for identifying buyers who are already enthusiastic about your products. 

• AOV determines the average amount spent per order.
• A rising AOV indicates a strong remarketing strategy and a wide range of products.
• Factors that influence return visits include navigation, security, and the ordering process.
• AOV measures the “quality” of a customer by determining how much the customer spends on a typical order.

Order frequency

It’s more cost-effective to convince existing customers to buy more frequently than to try to attract new buyers in the marketplace. Strive to optimize order frequency. 

• Order frequency measures how frequently a customer makes purchases within a year.
• Increasing order frequency enhances customer loyalty and lifetime value.
• By prioritizing order frequency, you can tailor marketing strategies to your high-value customers.

Monthly recurring revenue (MRR)

Monthly recurring revenue (MRR) is the amount of money a business reliably receives each month based on customer payment agreements such as subscriptions and contracts. It does not include one-time purchases. 

• MRR is a predictable revenue stream.
• MRR is an important metric for understanding business performance.
• MRR by campaign quantifies marketing effectiveness and justifies budget.
• The best way to increase MRR is to sell more to existing customers. 

Customer lifetime value and ROI

Customer behavior insights can be synthesized into long-term, holistic figures to guide your business. 

Customer lifetime value (CLV)

Savvy ecommerce leaders who understand customer lifetime value (CLV) focus not just on acquiring customers, but acquiring the right customers. 

• CLV estimates the total revenue you can expect from a given customer throughout the entire relationship.
• CLV helps identify high-value customers and segment your customer base for targeted marketing and sales efforts. 
• CLV measures the total amount of money a single customer is forecast to spend with a company over the duration of the business relationship.

Return on investment (ROI)

Return on investment (ROI) is the money you earn in return for the financial capital you put into a business. It’s best expressed as a percentage gain (or loss) of the original sum.

• ROI can be applied at the macro and micro level.
• Successful companies look at the ROI of most decisions to determine their impact.
• Companies tracking ROI can improve value for resources spent to increase profitability.
• ROI measures the return on investment for marketing campaigns and business decisions. 

Lead generation and conversion

How effectively you generate interest around your product—then turn interested shoppers into new customers—is another KPI of B2B ecommerce. Potential customers, or leads, are sorted into two main categories.

Marketing-qualified leads (MQLs)

Not all leads are created equal. What can high-quality leads, who have often already engaged with your product, tell you about your marketing efforts and the conversion rates you can expect?

• MQLs are sales leads who are more likely to become customers. 
• Marketing efforts have created interest in your products with a number of customers, and they are now a part of the sales funnel.
• The number and quality of MQLs (and where they are in the funnel) are valuable in determining the effectiveness of marketing efforts.

Sales-qualified leads (SQLs)

Sales-qualified leads (SQLs) are the MQLs who are especially ready to buy your product and should be targeted for a sales push. SQLs represent the final stage of conversion, and they’re a crucial KPI of your company’s outreach. 

• SQLs are potential new customers who have been vetted by marketing and sales teams and determined to be probable buyers. 
• An SQL has shown intent to buy and met your organization’s lead qualification criteria.
• They’re farther down the sales funnel and are a sign of an effective sales strategy. 

Lead-to-customer conversion rate

Successful lead-generation tactics include SEO, offering knowledge base content to potential customers on topics that matter to them, and seeking out the best B2B marketplaces to sell your products. The next step is analyzing how well those tactics convert new customers. 

• Lead-to-customer conversion rate measures the effectiveness of your lead generation and sales strategies.
• Measure the change in lead-to-conversion rate after every new conversion strategy to assess what you’re doing well and how you can improve.
• Lead-to-conversion ratio measures the share of qualified B2B leads who eventually become customers.

Inventory and fulfillment

Monitoring inventory and fulfillment can help you avoid running out of product during crucial sales periods—and avoid overstocking, which can also be extremely costly, particularly in industries with perishable or time-sensitive products. 

Inventory turnover

Inventory turnover is calculated by dividing the cost of goods sold by average inventory figures. It’s a KPI that can help you fine-tune pricing, purchase schedules, and manufacturing volume.

• Inventory turnover measures how efficiently a business sells its inventory within a specified time frame.
• A high turnover rate indicates effective inventory management; a low rate suggests potential issues with inventory strategy.
• Inventory turnover is an important metric for understanding the efficiency of your business.

Gross merchandise volume (GMV)

Gross merchandise volume (GMV), also known as gross merchandise value, is a fundamental ecommerce KPI that can help inform your pricing structure and shape the month-to-month strategy of your business. 

• GMV is the total sales value of products sold through your marketplace, before subtracting expenses such as shipping.
• GMV is an important indicator of marketplace health.
• GMV can help identify and leverage customer trends. For instance, if your GMV spikes during the holiday season, you may want to increase inventory and consider special promotions for that period.

Customer engagement and satisfaction

Happy customers are a KPI of any business—and in B2B ecommerce, their importance multiplies. If you’ve been investing significant resources in attracting high-volume customers, maintaining those relationships is crucial. 

Use these metrics for evaluation:

Net promoter score (NPS)

Net promoter surveys ask customers a standardized question: “On a scale of 0 to 10, how likely are you to recommend us to a friend?” The resulting net promoter score (NPS) represents a simple, cost-effective KPI for businesses. 

• NPS measures user satisfaction.
• NPS is an important metric for measuring customer loyalty.
• Because NPS is so commonly used, you can learn a lot by comparing your score to your industry average.
• NPS carries predictive value: Improvements in NPS indicate happier customers, which can lead to increased sales. A declining NPS suggests an unhealthy company, which tends to lead to decreased sales until problems are addressed. 

Repeat purchase rate

Your customers come back to restock because they’re happy with their purchases (evidently, their customers are happy too). Repeat purchases keep B2B ecommerce humming along. 

Consider the following: 

• Is your customer base satisfied with your products?
• How often do they return for additional purchases? 
• What is your churn rate?
• Returning customers have an increased CLV and indicate customer satisfaction with your products and services.

Financial performance

As you monitor the financial performance of your business, keep the following metrics in mind:

Revenue growth rate

Whether it’s on the macro or micro level, monitor how much money your company is bringing in. 

• Revenue growth rate measures the change in revenue from one period to another.
• Revenue growth rate measures the increase in revenue over time. 
• Revenue growth rate is an important metric for understanding business performance.

Profit margin

What constitutes a “good” profit margin varies by industry (accounting for factors like overhead, competition, etc.), but ultimately, it is a defining KPI of your company’s standing. Calculate profit margin with the following formula:

Profit margin = (gross profit / net revenue) x 100

• Profit margin measures the profitability of your business.
• Profit margin is an important metric for understanding your company’s financial health.
• Profit margin measures the difference between revenue and costs.

Tracking and reporting

KPIs should be front of mind as you manage your business. Take what you learn from them and apply that knowledge to your goals.

How to regularly track your ecommerce metrics

Monitor the ecommerce metrics we’ve discussed—such as CAC, AOV, conversion rate, and profit margin—to ensure your business makes smart, impactful decisions. 

• Metrics should be tracked regularly to understand business performance.
• The frequency of tracking depends on the nature of your business and goals.
• Regularly tracking your ecommerce metrics helps you make data-driven decisions.

Best practices for KPI reporting

A business can put a lot of effort into analyzing KPIs without turning the intel into meaningful action. Your analytics are a living indicator of your company’s health—applying them is an ongoing, ever-changing process. 

• Report KPIs in a visual format that tracks pre-determined metrics.
• KPI reporting is beneficial for understanding business performance and making data-driven decisions.
• Best practices for KPI reporting include setting clear goals, using relevant metrics, and regularly reviewing and improving your reporting strategy.

Make the B2B revolution a difference-maker for your business

B2B ecommerce is an industry of rapid growth, as brands across countless industries jockey for a piece of the action. KPIs provide trusty guidelines for nurturing what you’ve built and bringing it to scale. 

Choosing the right ecommerce platform also primes you for success. Shopify can help you accelerate site speed, personalize inventory management, convert at rates you dreamed of—and even apply the personality of DTC to the B2B experience. Your company can be the standard-setter.