eCommerce Metrics Webinar

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    15-Jul-2015
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Transcript of eCommerce Metrics Webinar

  • eCommerce Metrics Webinar Learn what every eCommerce company needs to track.

    Live Tweet Hashtag #eCommerceMetrics

    +

    Click here to view the webinar

  • Agenda

    Introductions Segmenting your data What metrics to track

    Order Metrics

    Marketing Metrics

    Customer & Advanced Metrics

    Insider information Diamond Candles case study

  • Diamond Candles

    Diamond Candles is on a mission to make home fragrance fun. They combine the scents of premium 100% soy candles with an exciting and fun RINGREVEAL experience. Their candles are handmade in Durham, NC and we release fresh, fruity, floral and exotic scents all year long. Justin Winter CEO and Co-founder Diamond Candles Diamondcandles.com

  • Retention Science

    Retention Science is the best way to target, engage, and retain your customers. Our marketing platform uses machine-learning algorithms to predict customer behavior and automate 1-to-1 retention campaigns. We make advanced data science accessible to all marketing teams. Ryan Lee Customer Success Manager Retention Science Retentionscience.com

  • Segmenting Data

  • Ways to segment your data

    Traffic source and channel Direct, referral, organic, PPC,

    other advertising

    Product & category affinity Brands, types of products, styles,

    etc.

    Time based cohorts Hours, days, weeks, holiday

    periods

    Device Browser, OS, desktop, mobile,

    tablet, screen size

    Customer Type Discount, high value,

    subscription, hybrid, etc.

  • Key metrics to track

  • Order Metrics

    Average Order Value What does an order mean to you? Calculation: (Total Sales / Orders) Example: [$35,000 total sales]/[800 orders] = $43.75

    Average Business Margin Do you know if youre making money? Calculation: (Sale Price Product Cost) / Sale Price Example: ([$45 sale ] [$30 cost])/[$45 sale] = 33.3% margin

    Average Order Profit How much money are you actually making? (minus discounts) Calculation: (AOV x Margin) Example: [$43.89 AOV] x 33.3% margin = $14.57 Avg. Profit

  • Marketing Metrics

    Cost per acquisition How much is each customer costing you? Calculation: (Marketing & Sales Spend / Customers) Example: [$20,000 spend]/[575 customers] = $34.78 CPA

    Conversion rate How efficient is your website? Different types of conversion rates Calculation: (Orders / Website Visitors) Example: [95]/[4500 visitors] = 2.1% CR

    Repeat customer rate Are customers coming back? Calculation: (Repeat Customers / Total Customers) Example: [550 repeats]/[1200 total] = 45.8% RCR

    Revenue per visit Are you making the most of every visitor? Calculation: (Total Sales / Total Visitors) Example: [$480,000 total sales]/[1.2m visitors] = $.40 RPV

  • Customer & Advanced Metrics

    Customer lifetime value How much is each customer worth over their lifetime? Calculation: (AOV x Order Frequency) x Predicted lifetime Example: ([$45 AOV] x [2.5 orders/mo.]) x [18 mo.] = $2025

    Likelihood to purchase What is the probability that an individual customer will make a purchase? Calculation: predictive data science model

    Propensity to churn What customers are in danger of churning? Calculation: predictive data science model

    Customer satisfaction rate Are your customers happy with you? Calculation: Regular customer survey or Net promoter score

  • Insider Information

  • Challenge: How can you tell what channels and campaigns are driving the most bottom-line revenue?

  • Questions

    eCommerce Metrics WebinarLearn what every eCommerce company needs to track.AgendaDiamond CandlesRetention ScienceSegmenting DataWays to segment your dataKey metrics to trackOrder MetricsMarketing MetricsCustomer & AdvancedMetricsInsider InformationSlide Number 12Slide Number 13