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Reaktion AcademyMost popularWorking with KPIs and budgets in Reaktion

Working with KPIs and budgets in Reaktion

Key Performance Indicators (KPIs) are essential tools for measuring success and guiding the growth of your e-commerce business. Implementing structured KPIs can significantly contribute to scaling your business by providing a clear framework for tracking performance and making informed decisions.

Here is a video on how to set up KPIs and work with targets in Reaktion.

Here are the steps on how to set up KPIs in Reaktion –

  1. 1) Click on “KPIs” –

2) Click on “Create KPI” –

3) Select your target month –

4) Select the desired webshop(s) –

5) Enable this option if you wish to set target on campaign level –

6) Select channels and campaigns to set targets –

7) Click on ‘Add’ to add your relevant metrics –

8) Click “Done” or choose ‘Next Month’ to select metrics for the next month –

9) Now, you can view all your KPIs here –

10) Click here to edit the targets for your KPIs –

11) You can also view these KPIs directly from the Overview dashboard –

Why Working Structures with KPIs Can Scale Your E-commerce Business

Benefits of KPIs:

Clear Objectives: Define specific, measurable goals aligned with business strategy.

Performance Tracking: Monitor progress and identify areas needing improvement.

Informed Decisions: Use data-driven insights to make strategic choices.

Motivation: Encourage teams by setting achievable targets.

Scalability: Adapt KPIs as your business grows to maintain focus.

Some things to keep in mind when implementing KPIs are:

Identify Critical Areas: Start by pinpointing the most critical areas of your business that impact overall performance. Common areas include ad spend, net profit, conversion rate, POAS. Prioritize these based on your business strategy and growth objectives

Set Realistic and Achievable KPIs: Develop KPIs that are specific, measurable, attainable, relevant, and time-bound (SMART). For instance, a KPI could be “Increase monthly online sales by 15% within the next quarter”. Ensure these KPIs are challenging yet achievable.

Adapt and Scale: As your business grows, revisit and refine your KPIs to align with new goals and market conditions. Scaling KPIs involves adding new metrics, retiring outdated ones, and continuously adapting your measurement framework to stay relevant. For example, as you expand internationally, you might add region-specific sales KPIs or track new market penetration rates.

Consistent use of KPIs helps optimize operations, drive growth, and achieve long-term success in the e-commerce sector. By establishing clear objectives, tracking performance, making informed decisions, motivating your team, and scaling your KPIs as your business grows, you create a robust framework for sustainable development.

The Most Important KPIs for Ecommerce

– Conversion Rate (CR), Customer Lifetime Value (CLV), and Shopping Cart Abandonment Rate are crucial for Ecommerce success.

– Understanding and leveraging these KPIs can significantly impact your business growth.

Conversion Rate (CR)

The conversion rate (CR) is a key performance indicator that measures the percentage of website visitors who complete a desired action, such as making a purchase. It’s calculated by dividing the number of conversions by the total number of visitors and multiplying by 100 to get the percentage.

Knowing your CR helps in gauging how effective your website is at turning visitors into customers. For instance, if you had 1,000 visitors and 50 made a purchase, your conversion rate would be 5%.

Tracking this KPI using analytics tools like Google Analytics provides valuable insights into customer behavior on your site.

Understanding and optimizing your conversion rate is vital for driving business success in ecommerce. By continually monitoring and improving this metric, businesses can enhance their online strategies to boost sales and revenue.

Successful ecommerce businesses focus on maximizing their conversion rates through various techniques such as A/B testing, creating compelling calls-to-action, offering seamless checkout processes, and providing personalized product recommendations to increase overall sales.

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a key indicator for ecommerce businesses to gauge the value of each customer over their entire relationship with the company. Understanding this metric enables businesses to tailor strategies and offerings to maximize long-term revenue.

CLV reveals how much a business can potentially earn from each customer, guiding decisions on marketing expenditure and customer acquisition costs. By focusing on increasing CLV, e-commerce businesses can build loyalty and drive sustained growth, ultimately contributing to overall business success.

Calculating Customer Lifetime Value involves considering factors such as average purchase value, purchase frequency, and customer lifespan. This helps in determining the potential earning from each customer throughout their engagement with the business.

By leveraging relevant technological tools for tracking CLV, enterprises can optimize their approach towards customers and boost profitability by strategically catering to individual consumer needs.

Shopping Cart Abandonment Rate

The shopping cart abandonment rate is a critical KPI for ecommerce businesses, revealing the percentage of online shoppers who add items to their virtual carts but leave without completing the purchase.

It offers valuable insights into user experiencepricing strategy, and checkout process efficiency. High shopping cart abandonment rates can indicate issues such as unexpected costs at checkout or complicated navigation, emphasizing the need for businesses to optimize their websites and streamline the purchasing process.

By analyzing this KPI, businesses can implement strategies like retargeting campaigns or offering incentives to minimize abandoned carts and increase conversion rates.

Setting KPIs is essential for monitoring the performance of an ecommerce business and making data-driven decisions toward achieving success. Understanding these crucial metrics helps businesses identify areas needing improvement while capitalizing on strengths.

How to Set and Track KPIs for Ecommerce Success

Identify your business goals to set KPIs. Choose relevant KPIs and utilize tracking technology for success.

Identify your business goals

Determine your business objectives to align KPIs with strategic targets. Tailor KPI selection towards specific business needs and goals for accurate performance measurement.

Choose relevant KPIs

To choose relevant KPIs for your ecommerce business, consider the specific metrics that align with your business goals and objectives. By focusing on key indicators such as conversion ratecustomer lifetime value, and shopping cart abandonment rate, you can gain valuable insights into your business performance and make data-driven decisions to optimize success.

Tailoring KPIs to match your unique business needs is crucial for accurately measuring the effectiveness of your strategies and maximizing sales. With a focus on mastering KPIs, you can enhance the overall performance of your ecommerce store and drive sustainable growth in line with industry benchmarks.

Business success measurement relies heavily on identifying the most pertinent KPIs that directly impact sales and customer engagement.

Utilize tools and technology for tracking

To choose relevant KPIs ensures tracking them using modern tools and technology. Effective tracking requires utilizing advanced software and analytics platforms. Leveraging these tools can provide real-time insights, aiding in making data-driven decisions to improve business performance.

Implementing tools and technology also allows for seamless monitoring of key metrics such as conversion rates, customer lifetime value, and shopping cart abandonment rate. By harnessing these resources, businesses can accurately measure their success and make informed strategies to drive ecommerce growth.


Mastering KPIs is vital for ecommerce success. By understanding the most important KPIs and how to set them, businesses can achieve significant growth. These practical strategies help in boosting sales and reaching goals efficiently.

Applying these approaches can lead to substantial improvements and resolve common business challenges. To further explore this topic, consider seeking additional guidance or resources for continued learning.

Take action now to master KPIs and propel your ecommerce business towards greater success!


1. What are KPIs for ecommerce businesses?

KPIs, or Key Performance Indicators, are important numbers that show how well an ecommerce business is doing.

2. How do I choose the most important KPIs for my ecommerce business?

Pick the most important KPIs by thinking about what goals matter most to your online store, like sales numbers or customer visits.

3. Can you give examples of some key KPIs for ecommerce businesses?

Yes! Some key KPIs include how much you sell, how many people visit your site, and how happy your customers are.

4. How do I set KPIs for my ecommerce business?

To set KIPs, first decide on your big goals. Then choose which numbers will show if you’re reaching those goals. Keep checking these numbers to see how things are going.

General Facts

1. KPIs are crucial metrics for evaluating the performance of ecommerce businesses.

2. They can offer insights into the effectiveness of various aspects of the business, such as site visits, leads, and sales.

3. The accuracy of KPIs depends on the quality of the data being used to track them.

4. Tracking and measuring KPIs can help determine a company’s operational, financial, and strategic achievements.

5. There are a wide variety of KPIs that can be used to measure different aspects of ecommerce businesses.

6. Defining and tracking KPIs for ecommerce business can provide valuable insights into growth and success.

7. KPIs are highly customizable and can be tailored to specific business needs and goals.

8. They are valuable instruments for accurately measuring the success of an ecommerce business and increasing sales.

9. Mastering KPIs is essential for running a successful online store and maximizing business performance.

10. Understanding and setting the most important KPIs is crucial for optimizing the performance and growth of ecommerce businesses.