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Omnichannel KPIs

Implementing an Omnichannel strategy means you have a huge load of data. Without the ability to extract meaningful insights, these data will be wasted and your next move is lost. Hence, you need updated Omnichannel KPIs (Key Performance Indicators) to measure the omnichannel performance and its progress towards your objectives. This chapter will provide omnichannel measurement metrics to track your omnichannel efficiency.

The Importance of Adopting New KPIs in Omnichannel Measurement

In business, “gut feeling” of the marketer is important, but not that much in the digital era.


In this ever-changing market, no genius mind can sense accurately the business performance via a ton of data across channels.


That is why setting and tracking KPIs is very important, especially in an omni-channel business.


The company must handle information from many touch-points, which highly integrate with each other.


Without linked and systematic KPIs to track, there is no way to measure the effectiveness of omnichannel performance.


For example, an increase in online revenue, can be resulted from a “catchy” promotion in stores.

Typically, in the first stage of omni-channel execution, KPIs are vital for retailers to measure omnichannel performance i.e. whether the strategy fits their businesses, or which are the most effectively invested channels.


In addition, without omnichannel KPIs, misunderstanding can easily happen due to the complexity of customer behavior and internal procedure.


Obviously, some previously-preferred KPIs become outdated because they do not consider the interactive ecosystem of all channels. This results in wrong traction and decision.


Hence, tracking KPIs in omni-channel businesses is a more complicated task, which requires a new set of omnichannel measurement metrics.


As retailers are now empowered by technologies, a new key performance indicator (KPIs) system with various tools and Omni-channel data-centralized management is now promising for efficiency.

Discuss the Movement of Tracking KPIs

With previous business models, companies have been recommended to build KPIs focusing on sales-based metrics.


These metrics often aligned with the revenue – cost – margin model with corresponsive KPIs such as: monthly revenue, revenue growth, cost of goods sold, cost of acquiring customer, marketing cost, gross margin, etc.


However, these transaction records can hardly tell the whole truth about an omni-channel retailing with integrated channels.


For example, Omni-shoppers are unlikely to commit themselves in just one channel in their buying journeys.


In other case, the increase in sales of online channels can be resulted from a successful grand opening of a new store in a main street.


Similarly, there are many cases that activities of a channel interfere into the transactional records of one another. It can be deviation from returning goods, the inter-influence of cross-channel marketing, or re-allocation of inventory between channels.


Moreover, if only final transactional KPIs are taken into consideration, the drivers of customers’ decisions during the whole process cannot be explained.


New KPIs in omni-channel (Omnichannel KPIs)

As stated above, omni-channel KPIs will track down with the customers’ buying process, including: awareness, engagement, conversion and loyalty.


Each stage has its own typical KPIs that must be highly focused on.


For example, Al Sambar from Managing Partner Retail and Consumer Group suggests the following flow and relavent KPIs.


customer awareness Awareness

- Traffic generation

- Activation or visit rate

customer engagement Engagement

- Product recommendations and offers per visit

- Conversion rate on product recommendations

- Conversion rate on product offers

- Length of visit

product trial Trial

- Product tried per visit

- Conversion rate on product trial

conversion rate Conversion

- Cross-channel conversion rate

- Cross-channel basket rate

loyalty retention Loyalty

- Advocacy

- Lifetime customer value

- Revisit rate

- Revisit frequency


customer visit Awareness:

Typical Omnichannel KPIs for this stage are traffic generator and visit rate.


Traffic generator records the numbers of unique visitors to a website, store, social channel, and so on.


Visit rate, on the other hand, calculates how many times one unique visitor views those channels in a period of time.


At the age of multi-channel approach, these key performance indicators are recorded separately.


However, with omni-channel retailing, store owner demands to know the behavior when a customer visits and revisits touch points before she or he makes another action.


customer attraction Engagement:

There are many key performance indicators that can demonstrate how successful a customer engagement strategy is.


As recommended by Al Sambar, some KPIs worth applying are: Product recommendations and offers per visit; Conversion rate on product recommendations; and Length of visit.


First, to attract customers to not only one, but many items in the catalog, suggestions are widely used in today’s ecommerce. Length of visit is another simple indicator to reflect the level of involvement a customer expresses to a channel.



It shows how suitable and customized the content is to each individual shopper.


One important feature of this indicator is that it can show the conversion rate from a channel to another one. For example, a customer received a discount code for a nice dress after finishing a purchase in a webstore.


However, she doesn’t buy it immediately but goes to the nearby store to check if it fits her body.


If the retailer in this situation is operating multi-channel strategy, that girl will be a completely new customer when going to try the dress on.


Conversely, an omni-channel retailer can identify that customer, based on her account. In this situation, conversation rate among channels is well performed.


cross-channel conversion Conversion:

Some typical omnichannel KPIs to measure the success of this stage are: Cross-channel conversion rate; Cross-channel basket size.


Conversion rate from visitors to customers is the most common and consistent indicator for any e-commerce business.


However, in omni-channel marketing, the focus point is on “cross-channel”.


With this business model, omnichannel retailers can track what is the real contributors for final purchasing decisions and the pattern of their habit.


advocacy rate Loyalty:

Advocacy is a KPI showing the satisfaction of customers.


This can be scored through ratings of customers via many channels.


Lifetime customer value (LTV) is another indicator, showing the total revenue of a customer in his “life time”.


To simplify, this key performance indicator calculates the sum of all purchases that he can make.


Therefore, higher LTV means that customers re-purchase many times in his life.


While Lifetime value of customers can indicate the loyalty of one customer, customer retention rate is a KPI showing generally the loyalty of all customers. It is calculated as the ratio of remained customers after a period.

Retention Rate = ((CE-CN)/CS)) X 100

CE = number of customers at end of period

CN = number of new customers acquired during period

CS = number of customers at start of period


Retention rate is more than just a simple formula. To have an accurate retention among channels, it needs a solid omni-channel tool and process.


There are other domains of KPIs that an omni-channel business can adopt, including supply chain management, channel performance, other alternative channels, and pricing. The standard KPIs varies according to the businesses’ goals and products.


To sum up, the key differences between Omnichannel KPIs and other approaches are:


  • Customers centricity
  • Qualitative measurement metrics
  • Consideration of interdependence of many channels
  • Differences across industries.
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