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Key Performance Indicators (KPIs) of Alibaba

Alibaba is one of the leading online retailers in the world. The position held by this company in the online retail industry is justified by its capacity to align its functions with the underlying objectives, vision and missions. Any organization may want to gauge its performance with respect to the underlying metrics and Alibaba is no exemption. In fact, the firm relies on its Key Performance Indicators (KPIs) to ascertain its performance in the online retail industry. Key Performance Indicators are measures and metrics that a firm uses to ascertain its performance over a period of time. Having worked for the company for about six months, then I can clearly attest that it embarks on the website, customer service, and supply chain management, sales and marketing to ascertain its performance. Each of these metrics has proved substantial as far as the monitoring of the company’s performance is concerned. Ultimately, Alibaba utilizes these metrics to gauge its performance from one financial period to another.

The website of a company plays an important role as far as its performance indications are concerned. In this regard, the website of Alibaba company is designed in such a way that it can be able to capture key details and information about the company’s performance and in this regard, in terms of customer satisfaction and market share. These two features can out rightly be used to ascertain the performance of the company in the online retail industry. The features of customer rating and satisfaction is ideal in capturing the effectiveness of the company’s products with regard to meeting the needs of its customers. In this regard, the website indicates the level of customer satisfaction, his or her rating (transactional level) of the purchased product as well as the response rate and time (Alibaba). These features are very important in the sense that the company is able to know its performance in terms of customer satisfaction and the subsequent levels of their ratings. Furthermore, this metric helps to promote the sales of the company in the sense that prospective customers can be able to have a look at the ratings and further place their orders as a result of them reading the ratings and seeing the actual value of their products. In this regard, they are more likely to purchase these products when their ratings are indicated than when they are not. The second feature of the website indicating the top three markets in which Alibaba.com operates is a key indicator of its performance in respective market sectors. As such, the website is clear that Alibaba’s top markets are North America, Eastern Europe and domestic market at 68%, 20% and 8% respectively. This information is important in ascertain the performance of the company in these market outlets and more importantly the significance of some of its marketing strategies in these areas (Alibaba).

Supply chain management metrics are very important as far as the performance of Alibaba.com in the online retail industry is concerned. In this regard, two of the key metrics of Alibaba in its supply chain management are customer order promised cycle time and customer order actual cycle. While customer order promised, cycle time is the period between when the order was created and the expected date of delivery, customer order actual cycle is the time taken to complete the order for a customer (123doc.org). These two metrics helps Alibaba.com to fasten the time taken for orders made online to ensure that they reach them within the agreed time. Some of key sales metrics that Alibaba.com uses are sales volume by location and competitor pricing. Each of these metrics is important in ascertaining the performance of the company in different ways. For instance, competitor prices by rival online retailers such as Amazon and eBay play a significant role in the pricing policies adopted by the company. In this case, Alibaba.com ensures that its prices align with those of the competitors to ensure that the company remains customer favorite. On the other hand, Alibaba.com looks at its market share and the way it is distributed over the world. As such, the company is able to know the places where its stakes are higher or lower for the purposes of taking necessary actions to expand or maintain its market share in the online retail industry.

Moreover, customer service metrics form a vital key performance indicator at Aliabba.com. The two main metrics that Alibaba.com uses to ascertain its performance under this KPI are customer satisfaction levels and customer retention. The levels of customer satisfaction as captured by the levels of customer ratings helps to determine the extent at which the clients have been satisfied the company’s products. On the other hand, customer retention is the ability of the business to retain customers for a longer period (Stillwagon).

Furthermore, Alibaba.com uses marketing as a key performance indicator to ascertain its performance in the industry. The two metrics that Alibaba uses under this feature are sales revenue and social media traffic. While the revenue from the company’s sales indicate the number of products sold over a period. The use of this metric helps in ascertaining cases of sales promotions and fluctuations for proper adjustments. On the other hand, the company monitors the traffic in the various social media sites to ascertain the number of clients, their concerns and demands for prompt interventions, assistance and support. These metrics have by far enabled Alibaba to become one of the leading online retailers in the world.

Works Cited

123doc.org. "Key Performance Indicators for Alibaba’s Sales Staffs at Osb Investment and - Tài Liệu Text." 123doc.org | Cộng đồng Chia Sẻ, Upload, Download Sách, Giáo án điện Tử, Bài Giảng điện Tử Và E-book,, text.123doc.org/document/2437474-key-performance-indicators-for-alibaba-s-sales-staffs-at-osb-investment-and-technology-joint-stock-company.htm.

Alibaba. "Key Performance Indicators Wholesale, Key Performance Indicators Suppliers - Alibaba." Manufacturers, Suppliers, Exporters & Importers from the World's Largest Online B2B Marketplace-Alibaba.com, www.alibaba.com/showroom/key-performance-indicators.html.

Stillwagon, Amanda. "14 Key Performance Indicators to Measure Customer Service." Small Business Trends, 5 Mar. 2015, smallbiztrends.com/2015/03/how-to-measure-customer-service.html.