Meal delivery is a highly competitive industry. Chances are, many businesses in your delivery area offer many of the same solutions or meal options you do, and you want your brand to stand out. Using the right Key Performance Indicators (KPIs) is a critical part of strategic decision-making across your e-commerce food delivery brand—and, of course, so is tracking them effectively. Tools like DeliveryBizPro make tracking and optimizing KPIs seamless and effective. Here are five KPIs your meal delivery e-commerce business must track.

1. Customer Retention Rate

Your customer retention rate is the percentage of customers who consistently order from your business over a predetermined period. Retaining customers significantly increases their overall lifetime value and reduces acquisition costs. The result is increased profits for your brand.

Satisfied, loyal customers also contribute heavily to better word-of-mouth marketing. By tracking customer retention rates, you can get a better idea of how many customers are staying with your brand. You can also see how that number changes over time, which makes it easier for you to spot customer service-related challenges that could negatively impact the customer experience. Comparing that number to other businesses in the meal delivery industry gives you a better idea of how your brand is performing.

DeliveryBizPro offers meal delivery e-commerce companies built-in subscription management tools that allow customers to customize their approach based on their unique needs. They can easily skip meals, adjust schedules, and adapt their meal delivery solutions to their specific needs. 

Actionable Tip:

Gather customer feedback and use it to identify and resolve pain points. Where are customers running into problems or roadblocks? By finding potential customer pain points and fixing them, you can keep customers with your brand, eager for their next delivery to arrive.

2. Average Order Value (AOV)

You may choose to track average order value across all your customers or break them down according to demographics, like household size, gender, or income level. Boosting AOV can significantly impact overall revenue without requiring you to bring in new customers. Not only that, a focus on boosting AOV can help you offer more to your customers, which increases your retention rate and customer satisfaction ratings. 

DeliveryBizPro makes it simpler to add value to individual customer orders. Our meal delivery e-commerce software offers upsell and cross-sell features during checkout, allowing customers to quickly see add-ons like desserts or beverages, encouraging them to make those additional purchases—including things they may not have considered when they started to put the order together.

In addition, we offer food delivery software with an analytics dashboard that can help you uncover bundling or price optimization opportunities. As a result, you can create offers customers are most likely to respond to based on their buying behavior, browsing, and more.

Actionable Tip: 

Promote bundles and time-sensitive offers to encourage larger orders. Fear of missing out is real, and customers are more likely to buy when they know you’re running a promotion that will benefit them.

3. On-Time Delivery Rate

Your on-time delivery rate covers the percentage of deliveries made on time. It helps you track the efficiency of your warehouses and shipping partners as well as identifying bottlenecks and challenges that could stand in your way. Freshness and punctuality are key success factors of meal delivery services. Without them, you may struggle to retain customers or experience considerable negative sentiment about your brand. 

DeliveryBizPro offers several solutions that can help you keep track of the essential timing of your deliveries. Not only does our delivery software for small businesses provide route optimization solutions that can ensure timely, efficient deliveries, we offer real-time tracking and alert notifications for both businesses and customers. That allows you to keep eyes on where deliveries are and ensures that customers are notified quickly about delays or other changes. Furthermore, delivery notifications let customers know precisely when their orders arrive so they can take steps to bring them in and put them away, ensuring freshness when they’re ready to eat. 

Actionable Tip:

Use mobile tools for drivers to streamline processes and address unforeseen delays swiftly. Those mobile apps keep everyone connected, delivering timely communication and improving customer satisfaction.

4. Order Fulfillment Accuracy

When it comes to customer satisfaction, order accuracy is key. Customers want to receive exactly what they ordered, with no random substitutions or items missing. While this is important for any business, it’s particularly critical for meal delivery services. Many customers will have allergies, food concerns, or even simple dietary preferences that can impact what they order. Failure to deliver on their expectations will decrease their trust in your brand and cause them to avoid future orders.

Order fulfillment accuracy is a critical measure of your brand’s ability to get the right products out the door and to your customers. Not only is it key for building and maintaining customer trust, it helps reduce your costs and time investments since you won’t have to spend time fixing errors. 

DeliveryBizPro steps up to improve your order fulfillment accuracy, too. We offer automated packing guides customized for your specific inventory and inventory tracking tools that can help you ensure correct stock levels. As a result, you won’t have to worry about not having items in stock when customers place their orders.

Actionable Tip:

Implement barcode scanning in your packing process. This simple step can significantly reduce the number of errors you see when packing customer orders.

5. Profit Margin Per Order

Your profit margin per order is the total profit earned after deducting all costs for each order, including the cost of food, prep, and employee time. Profit margins can change dramatically over time, especially if there are significant changes in the economy or your food acquisition costs. Understanding profit margins helps you make smarter pricing and cost-control decisions. You want to deliver value to your customers so that they keep coming to your brand while still maintaining a steady profit, and tracking profit margin per order helps you accomplish that goal.

DeliveryBizPro, as an integrated subscription ERP and e-commerce platform, can be a key part of helping you maintain those essential profits. We provide cost-reduction solutions through automated workflows, route efficiencies, and consolidated operations, all of which helps improve your total profit margin per order. In addition, we provide tools to analyze costs and streamline workflows to improve profit margins. 

Actionable Tip:

Regularly audit supplier and delivery expenses for optimization opportunities. In many cases, you’ll find that a simple look over those expenses will provide you with insights into where and how you can cut costs. 

See Your Meal Delivery E-Commerce Business Grow With These KPIs

Tracking the right KPIs is essential when you’re seeking long-term success in the meal delivery industry. You need to stay on top of profit margins, track accuracy, ensure a high degree of customer satisfaction, and look for ways to increase customer lifetime value, including upselling them—and these KPIs allow you to do exactly that.

With DeliveryBizPro, you can feel confident in the data you collect and the outcomes you’re seeking. We provide a wide range of solutions, from data collection tools to more efficient workflows, mobile tools for delivery drivers, and more. Are you ready to learn more? Schedule a demonstration today to discover how DeliveryBizPro can help you achieve your goals.