10 Great OKR Examples for E-commerce

Introduction

In this era, where digital shopping carts have replaced physical trolleys and swipes have substituted aisle strolls, staying ahead is a challenge every e-commerce business faces.

E-commerce businesses dominate shopping, with different platforms solving customers’ problems and filling a unique market need. Business-to-business models like Shopify and Alibaba can set up online stores and sell their products. Amazon operates in a marketplace model, allowing other sellers to list and sell their products. eBay is an e-commerce leader, connecting buyers and sellers in over 190 markets worldwide.

Regardless of the e-commerce platform or model utilized, goal-setting and tracking are vital to unlocking your business’s potential. OKRs can efficiently help you set ambitious goals and measure the outcomes with actionable metrics. Tracking organizational elements such as
marketing, product, vendor management, seller management, delivery, customer
on-time delivery, and more can help you understand and analyze how to improve your business.

Let’s dive into actionable OKR examples to help your e-commerce business thrive.

1. Customer Service

For an e-commerce business to succeed, customer service must remain high-level, which can be challenging when all interactions are not face-to-face. This OKR example will help you bridge the gap between customers and your business to provide excellent customer support service.

Objective : Provide an amazing customer support service

KR 1: Decrease lead time to resolve customer queries from 2 hours to 30 mins

KR 2: Decrease refund processing time from 48 hours to 24 hours

KR 3: Implement a new complaint management portal

KR 4: Increase CSAT score from 4.0 to 4.5

KR 5: Reduce no. of billing issues from 5% to 2%

Objective

Try it in Profit.co

David Griffin

Provide an amazing customer support service

52%

Target Date: Q2-2023

Visibility: All Employees

Key Results

Decrease lead time to resolve customer queries from 2 hours to 30 mins

Q3-2023Lead Time

120 Min(s)30 Min(s)81 Min(s)

43%

Decrease refund processing time from 48 hours to 24 hours

Q3-2023Refund Processing Time

48 Hour(s)24 Hour(s)34 Hour(s)

58%

Implement a new complaint management portal

Q3-2023Complaint Management Portal

010030%

5555555555

30%

Increase CSAT score from 4.0 to 4.5

Q3-2023CSAT

4.04.54.3

60%

Reduce no. of billing issues from 5% to 2%

Q3-2023Billing Issue

5%2%3%

67%

2. Customer Satisfaction

Building a customer base requires boosting customer satisfaction, which this OKR example assists e-commerce businesses. Happy customers correlate to high profits, so implementing an OKR focusing on customer satisfaction will benefit your business.

Objective : Delight our customers

KR 1: Increase CSAT score from 4.0 to 4.5

KR 2: Increase NPS score from 8.5 to 9.0

KR 3: Increase OTIF rate from 95% to 98%

KR 4: Reduce product return and refund time from 48 hrs to 12 hrs

Objective

David Griffin

Delight our customers

61%

Target Date: Q2-2023

Visibility: All Employees

Key Results

Increase CSAT score from 4.0 to 4.5

Q3-2023CSAT

4.04.54.2

40%

Increase NPS score from 8.5 to 9.0

Q3-2023NPS

8.59.08.9

80%

Increase OTIF rate from 95% to 98%

Q3-2023OTIF Rate

95%98%97%

80%

Reduce product return and refund time from 48 hrs to 12 hrs

Q3-2023Return and Refund

48 Hour(s)12 Hour(s)27 Hour(s)

58%

3. Marketing (Customer-related marketing/seller-related marketing)

Every day, the e-commerce landscape grows denser with new entrants. Thus, carving a distinct niche for your business becomes crucial. By deploying well-crafted OKRs centered around marketing, you can propel your brand visibility and effectively amplify your market share.

Objective : Grow our market share through marketing services

KR 1: Increase our market share from 10% to 15%

KR 2: Increase no. of buyers from 100K to 150K

KR 3: Increase no. of deals and flash sales on the top 50 most purchased product from 5 to 10

KR 4: Increase customer retention rate from 75% to 90%

KR 5: Increase NPS score from 8.5 to 9.0

Objective

David Griffin

Grow our market share through marketing services

48%

Target Date: Q2-2023

Visibility: All Employees

Key Results

Increase our market share from 10% to 15%

Q2-2023Market Share

10%15%13%

60%

Increase no. of buyers from 100K to 150K

Q2-2023Buyers

1OOK150K117.02K

80%

Increase no. of deals and flash sales on the top 50 most purchased product from 5 to 10

Q2-2023Number of Deals & Flash

5108

60%

Increase customer retention rate from 75% to 90%

Q2-2023Customer Retention Rate

75%90%82%

47%

Increase NPS score from 8.5 to 9.0

Q2-2023NPS

8.59.08.7

40%

4. Order Management

Navigating the intricacies of digital order management calls for accurate tracking. Improve your order management process by integrating cutting-edge OKRs, transforming operational efficiency, and cultivating unparalleled customer delight.

Objective : Delight customers through amazing order management

KR 1: Increase on-time, in full (OTIF) rate from 95% to 98%

KR 2: Decrease shipping time from 2 days to 1 day

KR 3: Increase order accuracy rate from 90% to 98%

KR 4: Increase perfect order rate from 95% to 99%

Objective

David Griffin

Delight customers through amazing order management

73%

Target Date: Q2-2023

Visibility: All Employees

Key Results

Increase on-time, in full (OTIF) rate from 95% to 98%

Q2-2023On-Time in Full (OTIF) Rate

95%98%97%

60%

Decrease shipping time from 2 days to 1 day

Q2-2023Shipping Time

2 Day(s)1 Day(s)1 Day(s)

100%

Increase order accuracy rate from 90% to 98%

Q2-2023Order Accuracy Rate

90%98%96%

75%

Increase perfect order rate from 95% to 99%

Q2-2023Perfect Order Rate

95%99%97%

50%

5. Sales

Boosting sales is a guaranteed way to grow your business. E-commerce businesses need to maintain high sales to remain competitive, and implementing an OKR focusing on sales growth is an excellent strategy to remain agile in the marketplace.

Objective : Grow our sales

KR 1: Increase revenue through sales from $500K to $550K

KR 2: Decrease cart abandonment rate from 40% to 30%

KR 3: Increase repeat purchase rate from 40% to 50%

KR 4: Improve average order value from $200 to $500

Objective

David Griffin

Grow our sales

61%

Target Date: Q2-2023

Visibility: All Employees

Key Results

Increase revenue through sales from $500K to $550K

Q2-2023Revenue Through Sales

500K550K526.51K

53%

Decrease cart abandonment rate from 40% to 30%

Q2-2023Cart Abandonment Rate

40%30%33%

70%

Increase repeat purchase rate from 40% to 50%

Q2-2023Repeat Purchase Rate

40%50%47%

70%

Improve average order value from $200 to $500

Q2-2023Average Order Value

$200$500$354

51%

6. Revenue

Without revenue, a business can sustain itself, and grow. Implementing an OKR to focus on increasing revenue will allow your e-commerce business to thrive and succeed.

Objective : Increase our profitability

KR 1: Increase net profit margin from 30% to 40%

KR 2: Decrease customer acquisition cost/customer from $20 to $10

KR 3: Decrease operational cost by 10%

KR 4: Decrease cost of goods by 10%

Objective

David Griffin

Increase our profitability

70%

Target Date: Q2-2023

Visibility: All Employees

Key Results

Increase net profit margin from 30% to 40%

Q2-2023Net Profit Margin

30%40%37%

70%

Decrease customer acquisition cost/customer from $20 to $10

Q2-2023Customer Acquisition Cost

$20$10$13

70%

Decrease operational cost by 10%

Q2-2023Operational Cost

10%0%4%

60%

Decrease cost of goods by 10%

Q2-2023Cost of Goods Rate

10%0%2%

80%

7. Supplier Management

By effectively managing suppliers, organizations can enhance their operational efficiency, reduce risks, and gain a competitive edge in the market. An OKR dedicated to establishing successful supplier management gives your e-commerce business an advantage.

Objective : Establish a successful supplier management

KR 1: Decrease supplies defect rate from 40PPM To 20 PPM (parts per million)

KR 2: Achieve 95% contract compliance rate within the fiscal year

KR 3: Mitigate high-risk suppliers by 50% within the next quarter

KR 4: Decrease average lead time for order fulfillment from 20 days to 15 days

Objective

David Griffin

Establish a successful supplier management

57%

Target Date: Q2-2023

Visibility: All Employees

Key Results

Decrease supplies defect rate from 40PPM To 20 PPM (parts per million)

Q2-2023Supplier defect rate

40%20%23%

85%

Achieve 95% contract compliance rate within the fiscal year

Q2-2023Contract Compliance Rate

0%95%66%

69%

Mitigate high-risk suppliers by 50% within the next quarter

Q2-2023High Risk Suppliers

35%50%

15%

Decrease average lead time for order fulfillment from 20 days to 15 days

Q2-2023Average Lead Time

20 Day(s)15 Day(s)17. Day(s)

60%

8. HR

By increasing your employees’ skill sets, you are boosting the quality of your e-commerce business. Implementing an OKR to upskill the talent level will increase talent competencies and encourage continuous learning.

Objective : Upskill people’s competencies

KR 1: Increase talent competency score from 80 to 95

KR 2: Improve employees skills by providing shadow learning with 3 top ranking experienced managers

KR 3: Ensure 50 employees to get certified on “How to get a business online” course

KR 4: Launch at least 2 e-commerce CBT programs

Objective

David Griffin

Upskill people’s competencies

53%

Target Date: Q2-2023

Visibility:
All Employees

Key Results

Increase talent competency score from 80 to 95

Q2-2023Talent Competency Score

809593

87%

Improve employees skills by providing shadow learning with 3 top ranking experienced managers

Q2-2023Employee Skills

032

67%

Ensure 50 employees to get certified on “How to get a business online” course

Q2-2023Certification

05025

50%

Launch at least 2 e-commerce CBT programs

Q2-2023CBT Program

22

8%

9. User Experience

Perhaps the most significant asset that sets an e-commerce company apart is having an incredible user experience. If customers have a positive experience, they will likely return, so implementing practices to encourage this is important.

Objective : Provide an exceptional user experience

KR 1: Increase user experience score from 90% to 95%

KR 2: Reduce user error rate from 20% to 5%

KR 3: Increase task success rate from 70% to 90%

KR 4: Increase CSAT score 4.0 to 4.5

Objective

David Griffin

Provide an exceptional user experience

74%

Target Date: Q2-2023

Visibility:
All Employees

Key Results

Increase user experience score from 90% to 95%

Q2-2023User Experience Score

90%95%93%

60%

Reduce user error rate from 20% to 5%

Q2-2023User Error Rate

20%5%7%

87%

Increase task success rate from 70% to 90%

Q2-2023Task Success Rate

70%90%88%

90%

Increase CSAT score 4.0 to 4.5

Q2-2023CSAT

4.04.54.3

60%

10. Digital Marketing

As the world becomes increasingly interconnected through the internet, digital marketing becomes vital for e-commerce success. Focusing on strategies to build and strengthen your brand awareness is essential.

Objective : Improve our brand awareness

KR 1: Improve website traffic from 200K to 250K visitors

KR 2: Increase click through rate (CTR) for brand promotions from 50% to 60%

KR 3: Increase no. of social media followers from 2M to 2.2M

KR 4: Increase share of voice from 20% to 30%

Objective

David Griffin

Improve our brand awareness

53%

Target Date: Q2-2023

Visibility: All Employees

Key Results

Improve website traffic from 200K to 250K visitors

Q2-2023Website Traffic

200K250K

0%

Increase click through rate (CTR) for brand promotions from 50% to 60%

Q2-2023CTR

50%60%55.6%

56%

Increase no. of social media followers from 2M to 2.2M

Q2-2023# of Social Media Followers

2M2.2M2.15M

74%

Increase share of voice from 20% to 30%

Q2-2023Share of Voice

20%30%28%

80%

Conclusion

In the fast-paced digital market, setting clear objectives is not just a strategy; it’s a necessity. Objectives and Key Results provide the lens to focus on tangible outcomes, keeping you on track. From enhancing customer experience to optimizing supplier management, OKRs provide the much-needed structure and purpose for your e-commerce business to succeed.

As an e-commerce entrepreneur or a seasoned professional, embracing OKRs means setting your sights on the future and ensuring every team member has the tools to execute your shared vision. It is about creating a culture of agility, accountability, and continuous improvement.

With Profit.co’s intuitive OKR management software, you can engage employees to help them track, monitor and handle issues and inquiries on the expected timeline and manage their important initiatives without losing focus. Build your e-commerce business with OKRs and achieve results.