<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1526847570950436&amp;ev=PageView&amp;noscript=1">

Five Ecommerce Metrics That Will Change How You Evaluate Your Furniture Retail Business

By Blueport Team Sep 21, 2015 8:00:01 PM

Last week my colleagues attended the Furniture|Today Future Leadership Conference, where they explored taking the next steps in the leadership, technology, and product strategies in the businesses of furniture retailers, big and small. Carl Prindle, Blueport President and CEO, participated in a panel that discussed the future of retail, including trends such as bricks to clicks, pop-up retail, and more.

One crucial component in taking the next step for retail success, as we see it, resides in data: that is, the key ecommerce metrics used as levers for furniture businesses to drive sales – online, in stores and on mobile. I sat down with Carl to discuss five of these metrics and how we use them to help our furniture retail clients’ achieve business success on our platform.

5 Ecommerce Metrics

1. Revenue Per Visit is the Queen to the King of Sales

No matter what path to purchase customers take to buy furniture – and they will take a long and varied path through your stores, online, on their devices and everywhere in between – revenue per visit (RPV) provides a much more holistic and realistic marker for sales impact, rather than just YoY sales increase/decrease itself. RVP is also a good indicator of where a retailer should be spending its money on new products, website promotions and other kinds of marketing and advertising initiatives. Oftentimes, a positive trending RPV for furniture retailers on our platform can indicate a strong promotion and/or product set and project positive sales trends for future initiatives.

 2. Catalog Quality and Availability Over Sheer Volume

If there’s one thing that furniture retailers know well, it’s tailoring product selection and inventory levels to their customers’ needs. Just as furniture retail stores need to carefully assess and monitor inventory and merchandising by location, the same goes for online assortment. The real opportunity online is to have a quality catalog chock full of images (good ones), that is highly searchable (taxonomy rules), has a varied volume of products both available for purchase online and directly in store. Continuously measuring this mix and making changes, sometimes on the fly to capitalize on trends, can make a significant and positive impact to sales.

“Measuring key performance indicators like these and others can be the difference between a furniture retail business that barely keeps up and one that leads the pack.”

– Carl Prindle, Blueport President and CEO

 3. Cost of Fraud

In this day and age, the potential for fraud amongst all retailers is unfortunate, but very real. Taking steps to measure your true cost of fraud, and having the right teams and technology in place to catch and prevent fraud before it costs you, saves your business and your customers surprises and headaches in the long term. Regularly check in on metrics such as charge back rates, cost of prevented fraud sales, and percent of prevented charge backs. Continual iteration on your fraud technology and processes will help you stay ahead of the game.

 4. Ecommerce Platform Quality, Velocity and Speed

The web will influence over 50% of total U.S. retail sales and is expected to grow at a 7% CAGR through 2018, according to Forrester. As more of the retail furniture industry looks to expand their online initiatives and adopt ecommerce technology, there are several key metrics to keep in mind to carefully monitor the transition online. This includes measurements such as number of bugs that arise and deployment of fixes, time to resolution, speed of releases and much more. And that’s all if your site loads in two seconds or less. Making sure to measure how you are handling the continual improvement of your ecommerce technology is critical to your retail successs.

5. Positive End-to-End Delivery Experience

Of course, one of the primary drivers to retail sales and revenue is whether or not customers’ furniture is actually delivered as promised. A customer that has a positive delivery experience is likely to buy from you again in their next major purchase cycle, refer you to others and write positive reviews of your business, all because of a great order and delivery experience.

Well there you have it, some of the most important ecommerce metrics that keep us up at night when assessing and accelerating our furniture retail clients’ online opportunities.

Adds Carl, “There are so many more metrics that Blueport measures, sometimes on an hourly basis, for our furniture retail clients, but most importantly is the idea that without dialing up all areas of your shopping experience to your customers, you’re not taking advantage of potential sales for your furniture business, online, offline and through mobile devices. A deeper look into how you run and measure your business is in order to take the next step for your business.”

Sign Up for Future Ecommerce Tips

Subscribe Now

Related Resources