As I discussed in earlier chapters, the success of the online marketplace is measured by two factors: Business metrics and Marketing metrics.
In the previous chapter, you have seen the online marketplace KPIs that measure the success of your business. In this post, we’ll discuss the B2B marketing metrics.
Your marketplace platform business may be adjusted to increase sales and marketing efforts and improve the consumer buying experience with the help of the proper marketing KPIs.
Utilizing these B2B marketing KPIs can assist you with inventory management, pricing strategy, orders, and creating a positive customer experience that will encourage repeat business from retail customers.
B2B Marketing Metrics To Analyze and Grow User Engagement
To check how users interact with your marketplace platform, you have to analyze the usage. Also, to decide the number of visitors, bounce rate, and time spent on the site are with these metrics.
Every marketplace platform tracks the same fundamental marketing metrics to track its development; these data are not exclusive to marketplaces.
Monthly/Daily Active Users (MAU or DAU)
These are important marketing metrics used to measure the engagement and usage of your marketplace platform.
Monthly Active Users (MAU)
This online marketplace metrics represents the count of unique users who interact with your marketplace in a given month. MAU is commonly used to evaluate the overall engagement and growth of a platform over a month.
To calculate MAU, one counts the number of different users who engage with the platform at least once during that specific month.
Daily Active Users (DAU)
DAU, on the other hand, refers to the number of unique users who interact with your marketplace daily. It offers a more detailed perspective on user engagement and is often utilized to gauge how frequently users engage with the platform.
DAU is calculated by tallying the number of distinct users who interact with the platform at least once within 24 hours.
Both MAU and DAU metrics are valuable for companies and developers to track the growth and retention of their user base.
These online marketplace metrics can provide insights into user behavior, help identify trends, and inform decisions related to product development, marketing strategies, and user acquisition efforts.
They are often used in conjunction with other key performance indicators (KPIs) to assess the health and success of a digital product or service.
Traffic (Organic / Paid)
The traffic of your marketplace website tells you the flow of visitors or users to your platform.
This metric displays how users find your marketplace platform. For example, if a visitor searches your keywords through a search engine and clicks your marketplace website. Then, it is organic traffic.
Other traffic sources are sponsored content, social media advertisements, paid search, etc.
As a result, you can determine which kind of marketing is more successful for your platform. For instance, about bought traffic, you may use it to determine if you should keep up the marketing and how accurate your targeting is.
Measuring marketplace traffic is important for marketplace owners as they can focus on those traffic channels. This way they can improvise their marketplace marketing strategy.
Bounce Rate
The percentage of people who visited one page of a website or app before leaving may be calculated using the bounce rate.
More conversions result from a decreased bounce rate on your platform. High bounce rates might signal issues such as unengaging content, slow-loading pages, confusing navigation, or a lack of clear calls to action.
You may discover the problems with your B2B online marketplace platform and plan a remarketing campaign to get visitors back by monitoring and analyzing bounce rates.
This campaign could involve retargeting ads, email follow-ups, or adjustments to your website’s content and user experience to make it more enticing and user-friendly.
Time Spent on the Online Marketplace Platform
Time spent on the platform is an additional measure to take into account. You can start keeping track of how much time people spend on your site if they do not leave quickly.
You are determined to determine the navigational roadblocks or difficulties in the platform. Due to this customers can stay on the page for a longer time. You need to keep your platform roadblock-free. For instance, a transaction is not successfully completed, when the checkout page is taken too long to load. By measuring the time spent on the platform you can easily eliminate these kinds of difficulties.
The metrics to analyze user engagement can be done with tools like Google Analytics and many other sites that provide business insights.
So far, you have measured your B2B online marketplace platform using transaction and user engagement. Now it’s time to measure your marketplace business success.
Online Marketplace Metrics To Evaluate User Satisfaction
We’ll go over two useful methods for marketplace businesses to measure user satisfaction: Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT).
Net promoter score (NPS)
The probability of your consumers recommending your online marketplace to their network is measured by the Net Promoter Score. Instead of focusing on single client touchpoints, the total customer experience is frequently measured.
After a sale, you may contact the consumers and ask them to give your product or service a rating between 0 and 10. How likely are you to refer your brand to a friend or work colleague, as an example of a question?
After that, you can group their responses into one of three categories:
- 9–10(Promoters): Brand-loyal audiences who promote your business continue to make purchases from you and enthusiastically refer others to it.
- 7-8(Passives): Passives are clients who are impartial and happy with your goods or services but aren’t too enthused. They are frequently open to threats from rivals’ products.
- 0–6(Detractors): Detractors are dissatisfied customers who will complain about your brand and occasionally share their displeasure with others.
You can calculate NPS using the formula:
Customer Satisfaction Score (CSAT)
Measure user’s general satisfaction or dissatisfaction with your marketplace platform using the Customer Satisfaction Score (CSAT).
On a scale of 1-3, 1-5, or 1-10, users are typically asked to rate a product or service. Your CSAT can be determined using the formula below,
Now you have a complete understanding of B2B online marketplace metrics to measure your B2B marketplace platform growth. But, apart from these, you need to consider other marketing metrics to make more accurate predictions. Here are some of the marketing KPIs you need to note.
Word-of-Mouth
A valuable metric for predicting success is the flow of traffic to your platform. Another method for assessing performance involves conducting interviews with potential customers.
By addressing the issues they are currently facing or are likely to encounter, you can gather their opinions. You can measure word-of-mouth effectiveness using the Word of Mouth Coefficient.
This metric helps gauge the organic growth and the impact of referrals on your platform.
You can measure word-of-mouth using,
Engagement
Engagement is a crucial factor for a startup to evaluate the current and future value of its product. User feedback obtained through engagement is a valuable resource for enhancing the overall user experience.
By understanding how users interact with your platform, you can make informed improvements to enhance their satisfaction and loyalty.
Sign-Up
The number of sign-ups provides insights into user interest in your platform. These sign-ups serve as an indicator of potential conversion into revenue, as they reflect an initial expression of interest in your products or services.
By analyzing sign-up data, you can gauge the market’s appetite for your offerings and adjust your strategies accordingly.
Better Client Appraisals Based on the Feedback
Evaluating the success of an online marketplace platform goes beyond just tracking sign-ins and usage statistics. It’s essential to analyze customer behavior and regularly collect feedback from active users.
This feedback loop helps you understand their evolving needs, preferences, and pain points, allowing you to make continuous improvements and provide a better user experience.
Percentage Of Active Users
The number of active users actively engaging with your platform is a critical metric for measuring marketplace growth and success.
It reflects how effectively you are retaining and engaging your user base, which is essential for sustainable growth and building a thriving marketplace.
Number of Paying Users
Monitoring the number of paying users is essential for revenue tracking. Understanding the Average Revenue Per User (ARPU) and keeping tabs on revenue-generating products or features enables you to make informed decisions about monetization strategies and optimize your marketplace’s profitability.
Churn Rate
Churn is a metric that reflects the number of users who have either uninstalled or discontinued using the platform.
It measures the rate at which users disengage or “churn” away from the platform, providing insights into user retention and the platform’s ability to retain its user base.
Monitoring churn is crucial for understanding user satisfaction, identifying potential issues, and implementing strategies to reduce user attrition.
Let’s Conclude This By,
In this chapter, you’ve gained insights into the critical performance metrics for marketplace businesses. To ensure your marketplace is on a path to success, it’s imperative to measure and evaluate these marketing metrics.
These online marketplace metrics provide a means to assess your market’s performance, pinpoint areas in need of improvement, and optimize efficiency.
Success can vary based on the specific type of marketplace you’re operating, and your choice of metrics will depend on the areas you aim to enhance.
Metrics related to usage, transactions, business performance, and user satisfaction are all essential to keep a close eye on. Historical data can tell you what’s happening in your industry, but understanding the reasons behind it is equally crucial.
To gain deeper insights, engaging with your users is vital. Quantifying user feedback data using user satisfaction metrics is a valuable approach.
Among these metrics, the Customer Satisfaction Score and Net Promoter Score are particularly significant in gauging user satisfaction and the likelihood of users recommending your platform to others.
