Guest Post by Conjura
This guest post from data and reporting experts, Conjura, will explore 3 key considerations when measuring performance of B2B channels. Whether you’re just starting out with your wholesale brand or are looking for deeper insights into your multi-channel performance, this guide is for you!
3 B2B KPIs you need to be tracking as a wholesale business
In the competitive world of B2B eCommerce, effectively tracking and analysing key performance indicators (KPIs) is crucial for optimising business strategies. For companies operating in both B2B (Business-to-Business) and D2C (Direct-to-Consumer) channels, understanding the nuances of each channel's performance can lead to significant improvements in profitability and efficiency.
We’ve put together some of the top reporting KPIs that brands with a wholesale channel should be looking at:
- What is my contribution margin across all my sales channels, including B2B?
- How are my products performing within my B2B channel?
- What is the quality of my B2B Customers; how valuable are they really?
What is my contribution margin across all my sales channels, including B2B?
Contribution margin is crucial across sales channels as it highlights the profitability of each channel by showing the difference between sales revenue and variable costs (including ad spend). This metric helps businesses optimise pricing strategies particular to the B2B channel and identify the most profitable channels.
B2B variable pricing by customers across products makes it challenging to calculate this metric at a sales channel level. The software we provide at Conjura allows you to plug and play your Shopify store to get line of sight of this crucial KPI. Harnessing this data correctly can inform high-level strategic decisions and lead to optimal output.
How are my products performing within my B2B channel?
Knowing which products are performing well in your B2B channel is essential for inventory management, efficient marketing strategies, and overall business growth. Critical KPIs to track include:
- Contribution margin % and $ per product
- Units sold by product
- Stock volumes
- LTV by product
Product selection can vary significantly between B2B and D2C channels. Understanding these variations is key to tailoring your product offerings to meet the specific needs of each customer segment. The more you can learn about your existing audiences and target demographics, the more tailored and appropriate your approach can become.
What is the quality of my B2B Customers; how valuable are they really?
At Conjura, we recommend measuring B2B eCommerce customer quality by using KPIs like purchase frequency, average order value (AOV), customer lifetime value (CLV), payment timeliness, and engagement level. These are all great indicators of success within wholesale and can help you create strategies that deliver long-term results - and long-term customers!
There are no ‘Eureka’ moments in this list of KPIs, or in any of these KPIs, as a matter of fact! The important takeaway is that by looking at these in isolation for B2B, as well as alongside your D2C channel, you can get a true understanding how each channel is performing and gauge the level of opportunity for your products across both channels.
Effectively reporting and analysing B2B eCommerce KPIs is essential for making data-driven decisions that enhance business performance. By focusing on product performance, profit margins, AOV, and product selection variations, you can gain a comprehensive understanding of your B2B channel's strengths and areas for improvement. Regularly tracking these KPIs will enable you to optimise your strategies, increase profitability, and stay competitive in the ever-evolving eCommerce landscape.
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These insights are brought to you by our partner, Conjura. To learn more, please reach out to their team here. You can start your free trial with Conjura today - sign up to see your B2B reporting live in action for yourself!
This guest guide is taken from Conjura’s contribution to our upcoming Q3 micropaper. Hungry for more? Sign up for our newsletter now to be the first to receive the full micropaper, including insights from 10 other key voices in the B2B eCommerce industry.