As I said in the earlier post, online marketplace success is measured by two factors: Business and Marketing metrics. In the previous chapter, you have seen the Business metrics KPIs. Thus, in this chapter, you’ll see marketing metrics.
Your wholesale business may be adjusted to increase sales and marketing efforts and improve the consumer buying experience with the help of the proper KPIs.
Utilizing a B2B online marketplace platform that allows native access to several KPIs can assist with inventory management, pricing strategy, orders, and creating a positive customer experience that will encourage repeat business from retail customers.
Metrics to Analyze and Grow User Engagement
Usage analytics will demonstrate how user interactions are impacted by your product development initiatives. You may use them to determine the number of visitors and duration of visits to your website. The number of visitors, bounce rate, and time spent on the site are among them. Every website tracks the same fundamental metrics to track its development; these data are not exclusive to online marketplaces.
Monthly/Daily Active Users (MAU or DAU)
Beyond traffic, downloads, or installations, it shows actual people who engaged with your product or service within the specified time frame. They may be used to determine the user ratio percentage by calculating the DAU/MAU ratio.
By using this indicator, you may determine how attractive and well-liked your online marketplaces are, evaluate the customer experience and the success of your marketing initiatives, and then plan for client retention.
Traffic (Organic / Paid)
It displays the overall number of individuals who used sponsored content, social media advertisements, paid search, or organic search to find and visit the website.
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.
Bounce Rate
The percentage of people that 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.
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.
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 the 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.
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 that are impartial and happy with your goods or service 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)
Customer Satisfaction Score (CSAT) is a metric to evaluate a user’s overall satisfaction or dissatisfaction with a specific product or service. It involves asking users to rate the product or service on a scale of 1-3, 1-5, or 1-10. You can calculate CSAT using the following formula:
Now you have a complete understanding of B2B online marketplace marketing metrics to measure your B2B marketplace platform growth. But, apart from these, you need to consider other KPI metrics to make more accurate predictions. Here are some of the KPIs you need to note.
Word-of-Mouth
A helpful statistic for success forecasting is traffic. Interviewing prospective consumers is another approach to measuring performance.
A customer’s opinions can be valuable when addressing the issues they are currently experiencing or expected to encounter in your online marketplace. Seeking their feedback allows you to understand their pain points and make necessary improvements.
You can measure Word of mouth utilizing various methods, including:
Engagement
It allows a startup to assess both the present and future worth of the product. To improve the user experience you need user feedback engagement.
Sign-Up
You can determine users’ interest via sign-ups. Based on assessing interest in the goods, they may also translate into money.
Better Client Appraisals Based on the Feedback
The success of an online marketplace platform extends beyond mere sign-in and usage statistics. It is important to analyze the client’s behavior and often review active users’ feedback.
Percentage of active users
The number of active users currently using your platform is vital in calculating online marketplace growth and success.
Number of Paying Users
Be aware of the average revenue per user (ARPU) and keep track of the revenue-generating products.
Churn Rate
It displays the number of users who have uninstalled or stopped using the online marketplace platform.
Let’s Conclude This By,
Measuring and evaluating metrics is crucial to ensure the success of your online marketplace. By utilizing online marketplace metrics, you can assess the performance of your market, identify areas for improvement, and enhance overall efficiency.
Success may differ depending on the kind of market. Which ones you use for your company will depend on the area you want to improve your focus in.
Metrics for usage, transactions, business, and user satisfaction are all important to monitor. The data from the past shows you what is occurring in your industry, but you also need to know why.
You must speak with your users about that. You can quantify user feedback data with the use of user satisfaction measures. The Customer Satisfaction Score and Net Promoter Score are the two most significant metrics.
