As you evolve along the e-commerce maturity curve—moving from reactive mode, where you mainly respond to customer requests, to proactive, where you initiate actions that optimize your e-commerce capabilities to increase value for you and your customers—it’s important to put measurements in place to track progress and document success. And an e-commerce scorecard is a great tool to help you do it.
How can an e-commerce scorecard benefit your business?
An e-commerce scorecard gives you a highly effective way to share key metrics that reveal the success of your e-commerce strategy. Why is this important?
- Enhances buy-in and support at all levels of the organization. When you share measurements, you increase visibility and appreciation for the value of e-commerce at all management levels—including the executive level. For example, hard numbers demonstrating how much of your company’s revenue comes through e-commerce can make management take serious notice. Similarly, when you can show how much money you’re saving on every electronic order that comes in unassisted (like the cost of 10-20 minutes of sales agent time per order) and how much faster you’re getting paid (by five to 15 days or more), executives can better understand the extraordinary potential of e-commerce to lower sales costs and reduce days sales outstanding.
- Hones your strategy to drive better results. Besides making it easier to socialize your initiatives internally, publishing a clear set of measurements helps you and your team focus on what you really want to accomplish. With the right scorecard metrics, for example, you can see where you need to improve to achieve your goals and meet—or exceed—service levels provided by your competitors. And based on this data, you can make rational decisions about where to invest further. Measurements can also be the key to securing new budget for e-commerce initiatives; the more executives see tangible proof of the value of e-commerce, the easier it is to get funding for e-commerce improvements to grow your team, enhance your e-commerce capabilities, and move further up the maturity curve.
- Helps you benchmark and improve your market position. Measurements help you objectively assess how competitive your business is relative to other suppliers. For example, you can evaluate whether your services are at least on a par with best-in-class suppliers, and identify and promote specific areas where your performance and capabilities differentiate you from other sellers—which can be critical to finding and keeping customers and driving up sales.
Tomorrow: Getting started strategies