Web Development KPIs Every Business Should Know

There are lots of web development KPI metrics that are important and tracking them will give you a better understanding of your web development process.

Written by RamotionNov 8, 202213 min read

Got a website? Congrats! Well, you're almost halfway there. Your site is going to need to convert visitors into customers, so you need to track your web development KPIs, even more, closer than a lot of other businesses.

Web development KPI metrics are important metrics that a web development services or team should keep close tabs on. Whether you're a web developer or work in some other part of the tech industry, chances are you've heard about KPIs (key performance indicators). KPIs have been used in many organizations for years to measure the output and efficiency of people working within that organization. There are plenty of metrics to use from your web development KPIs dashboard, but if you aren't tracking the right software metrics you can miss key information. Web development KPIs are a top hot spot in your Web Development Analytics dashboard which is great because web developers are one of the best people to make decisions based on analytics data because they understand what makes a website functional.

In this article, you will learn what KPIs are, why web developers need to pay attention to them, and also see some of the best metrics that you can use for your next web development software project. But before jumping into it, let's take a look at why you should care about KPIs in the first place. Not all of us are familiar with this concept (and we confess most of us don't know how much a website costs), so it might just be a nice addition! The basic idea behind the concept of Key Performance Indicators is figuring out if business goals are being met. Things like KPI metrics give you an overview of how your company does certain things, like marketing and sales. This is very similar when looking at website KPIs.

Defining web and software development KPI

A key performance indicator (KPI) is a metric that measures the performance of a business or organization. KPIs can be used to monitor the success of an organization in reaching its business objectives and goals and may be used as an input factor for making decisions about the future direction of an organization.

Web development KPIs

KPIs are often used as a tool for evaluating the effectiveness of management. For example, if an organization has set a goal of increasing sales by 20% over the next year and its KPIs show that it is on track to achieve this target, then it can be assumed that management is doing an effective job. There are many different types of KPIs. For example, a sales KPI could be the number of leads generated by your marketing team or the number of sales made by your sales team. A customer satisfaction KPI could be the average rating for each product or service that you offer.

KPIs can be used at any level of an organization, from the individual employee to the entire business. A key performance indicator is a way to measure and track progress toward achieving goals and objectives. They are used in conjunction with other metrics such as cost per action, conversion rate, ROI, etc. so that you can determine which campaigns are performing well and which ones need improvement.

Some of the popular software development KPIs include code churn, code coverage, code quality and code stability.

Benefits of web development KPI metrics

If someone goes onto your site but doesn't buy anything, they're not going to make any money for you!

The benefits of web development KPI metrics include:

  • Web development KPIs are used by developers, project managers, and business owners to measure the effectiveness of their efforts and make necessary adjustments along the way. Web development KPI metrics are also used to communicate progress to stakeholders and upper management. For example, if you're trying to build an e-commerce website, you can use web development KPIs to track how many visitors purchase products from your site and how much revenue they generate. If someone goes onto your site but doesn't buy anything (i.e., a bounce rate of 100%), then they're not going to make any money for you!
  • Web development KPIs are especially important if you’re running a business that depends on the Internet to generate revenue. This means that you need to monitor and analyze web development metrics to ensure that your website is optimized for conversion and lead generation.
  • KPIs help to determine what is working well and what needs improvement. This gives development teams a better understanding of where they should focus their energy. You can start by analyzing the bounce rate. This tells you how many people visit your site and leave without going any deeper than the homepage. For example, if you have a bounce rate of 100%, this means that all traffic to your site is leaving immediately after landing on it. The lower the number, the better.
  • KPIs can be used for marketing purposes – for example, if you see that a particular landing page is performing poorly compared to others, you will know which one needs changing. This is an important metric for measuring the effectiveness of your marketing efforts. You should also look at the conversion rate, which shows how many people take a desired action on your site (for example, signing up for a newsletter), and compare that to how many visit it. The higher this number is, the better.
  • A dashboard displaying all KPIs clearly helps everyone involved in the project understand how it is going at any given time so they can react quickly if something goes wrong or if there is an opportunity for improvement somewhere else on the project.
  • They help improve user experience: User experience refers to how satisfied users feel when using your website or app. If users are happy with their experience, they will come back again and again and recommend it to others as well. In order for this to happen, however, it’s important that you track these metrics and measure them regularly. You can also use user surveys to get feedback and find out what users like about your product, what they don’t like about it and how you can improve.

Best KPIs for web development team

1. Conversion rate

Conversion rate is the percentage of visitors who take the desired action on your website. For example, if your sales page has a conversion rate of 5%, then every 100 visitors will result in 5 purchases.

Conversion rate

A conversion can be either a goal or an action. Goals are things that you want people to do, such as making a purchase, registering for an event, or filling out a form. Actions are things that people do while interacting with your site or app that is helpful to you even though they aren't relevant to achieving your goals — like clicking on an ad or performing certain types of searches.

This metric tells you how well your marketing campaigns are performing and whether they’re worth continuing. If you see that your conversion rate is low, try to improve it with A/B testing or by tweaking landing pages or call-to-action buttons.

2. Bounce rate

Bounce rate metric measures the effectiveness of your website. It’s the percentage of people who visit your site and then leave without visiting any other pages on your site. A high bounce rate means that many people are leaving, while a low bounce rate means that most people are staying on your site.

Bounce rate

A high bounce rate is a sign that people aren’t finding what they want on your website — and it could mean that you need to make some changes. Bounces are also called “drop-offs,” since visitors drop off or leave when they find what they’re looking for or when they have an issue with your site.

3. Cost Per Lead

Cost per lead is a way to measure how much it costs you to get a lead. It’s the amount of money spent on marketing campaigns divided by the number of leads those campaigns generate. For example, if you spend 10.

The cost per lead does not take into account the quality or quantity of those leads. Instead, it simply measures the cost of generating a single sale opportunity through advertising efforts such as print ads or banner ads on websites.

4. Cost Per Acquisition

Cost Per Acquisition metrics is the average amount you spend to acquire a new customer. It is calculated by dividing the total acquisition costs by the number of customers acquired. This metric can be used to compare different channels, products, or campaigns. For example, if you have two marketing campaigns and one is more expensive than the other but also generates more sales, it’s better to invest in that campaign because it has a higher return on investment (ROI).

Cost Per Acquisition

The biggest advantage of using CPA as a metric is that it allows you to compare different channels and strategies more effectively. For example, let’s say you’re using two different Facebook ads: one for eCommerce and another for lead generation. You could run both ads simultaneously and compare their performance based on which one has the higher CPA or ROI (return on investment).

5. Time on Site (Session Duration)

Time on Site, also known as Session Duration, is a metric that shows how long users spend on your website. This is a good indicator of how much attention they’re paying to your content, and you can use it to determine whether or not they’re finding what they need. For example, if a user comes to your landing page but leaves after just 30 seconds (or even 5 seconds), then there’s probably something wrong with the page itself or the way you’re presenting information within it.

Time metrics are useful for evaluating the effectiveness of your content and the website performance. You can use them to see where people are spending most of their time, what pages are driving conversions or engagement, and how much attention users pay to specific elements on the screen.

6. Interactions Per Visit

Interactions per visit is a metric that measures the number of interactions (such as page views, clicks, and form submissions) that occur on your site during each visit. These are counted by tracking user behaviors and then assigning them to specific visits, so they don’t include actions that happen across multiple sessions (like returning visitors).

If you have a high interaction rate, it means that users are engaging with your content more often than others. This is a positive metric for SEO and for conversion rates.

7. Average revenue per user

The average revenue per user (ARPU) is simply the average amount of money you make from each of your customers. It's calculated by dividing the total revenue from your customer base by the number of customers.

There are two main types of ARPU: customer-based, which looks at all customers together; and product-based, which looks at each product separately.

Customer-based ARPU

Customer-based ARPU measures how much money you're making on average from each customer over a set period of time (usually a month). This can be useful if you want to compare your current performance with previous months or years or if you want to compare it against industry averages.

Product-based ARPU

Product-based ARPU measures how much money each individual software product generated in a given month. This can be useful when comparing products within one company or between different companies.

8. Average Order Value

Average order value (AOV) measures the average amount that a customer spends when placing an order. This can be useful if you want to know how much money you're making on your customers' orders, but it doesn't tell you anything about what percentage of people are buying from you or whether they're coming back for more.

This metric can be calculated in a few different ways, but it's often expressed as the total revenue generated by customers divided by the number of orders.

9. Customer Lifetime Value

Customer lifetime value (CLV) measures how much money you'll make from a customer over their lifetime as a customer. This can be useful for businesses that sell expensive products or services because it allows them to determine how much they should spend on sales and marketing activities to attract new customers.

It's important to note that CLV isn't just about top-line revenue. It includes indirect revenue from things like referrals and word-of-mouth marketing, as well as cost savings on support or other services that you provide to existing customers.

10. Traffic sources

Traffic sources are the channels that you use to bring visitors to your site. Every business needs website traffic in order to generate sales. There are many ways to get website visitors, but your main focus should be on the ones that convert into customers.

Traffic sources are a key metrics for marketers. It is important to understand where your traffic is coming from and how you can improve it. This will help you reach the right audience, increase your conversion rates and drive more sales.

To improve your overall campaign performance, you need to monitor daily changes in each traffic source/channel and make adjustments accordingly.

Some examples of traffic sources include Social media, Organic search, Direct traffic, and Paid traffic.

Conclusion

KPIs are important because, unlike past methods of measuring website performance and success, they can be applied to a variety of websites with different businesses and products without any major modifications. By understanding the driving factors behind each of the KPIs, webmasters and web developers can build deeper analytics into their websites, ultimately accelerating their return on investment (ROI).

The goal of any website is to drive traffic and increase sales. The first step in doing this is by understanding what your KPIs are and how they can help you achieve your goals. Once you have identified the most important performance metrics for your website, it’s time to start measuring them so that you can make data-driven decisions in real-time instead of relying on guesswork or best practices from other websites.

Remember, KPIs aren't designed to be a measuring stick by which you compare yourself against your competitors. They're a way for you to measure performance against your goals, and identify points that need improvement. At the end of the day—whether your business is thriving or failing, whether you measure up or fall behind—the key to success doesn't lie in the numbers. It lies in knowing how they relate to your website and then using this information to make adjustments that improve your bottom line.

By tracking these KPIs, you can see how your website is evolving over time. This can provide valuable insight into whether new features or marketing efforts are having an impact or not.