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

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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 you’re 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