how to use analytics to grow your ecommerce business
TRANSCRIPT
How To Use Analytics To Grow Your eCommerce Business
#AddShoppersLive
Your presenters
Chad LedfordCo-Founder and CRO of AddShoppers
Jake SteinCo-Founder and COO of RJMetrics
I. Why focus on analytics?
II. 6 key growth analytics & how to improve them
III. How to integrate data into your workflow & campaigns
IV. Q&A
Agenda
AddShoppersWe track and optimize the Shopper Journey with our suite of marketing Apps designed to increase our clients’ Average Revenue Per Visitor (ARPV).
10,000+ Clients Worldwide
RJMetricsRJMetrics is a cloud-based data infrastructure and analytics platform.
It provides tools to consolidate and analyze the ever-growing volume of data available to every organization that does business online.
For more information on RJMetrics, read the blog, visit the website, and follow them on Twitter.
What analytics do you need for growth?
Let’s start with understanding the Shopper Journey
This is the Shopper Journey...
Awareness Interest Consideration Purchase Retention Advocacy
...and here are the metrics that correspond to each step in the
Shopper Journey:
Awareness
Brand Impressions
Interest
MUVs
Consideration
Customer Database Records
Purchase
Conversion Rate
& AOV
Retention
Lifetime Value
Advocacy
Referrals
...and here’s how you can use
this format to track campaigns:Awareness Interest Consideration Purchase Retention Advocacy
Campaign Brand Impressions
MUVs / Clicks Customer Database Records
Conversion Rate & AOV
Lifetime Value Referrals
All Campaigns 1,000 100 10 2% / $30 $100 5
Black Friday Email
1,000 60 0 2.5% / $30 $110 1
Refer-a-Friend 200 50 5 3% / $35 $120 2
What do each of these steps look like for top-performing companies?
1. Customers
2. AOV
1. Retention
2. Loyalty
Why focus on these data points?“You can’t improve what you can’t measure”
The Shopper Journey highlights your most important growth levers.
Focusing on these metrics allows you to...
Stop flying blind
Identify growth opportunities
Prioritize your time
1
2
3
Awareness
{Brand Impressions}
Tracking brand impressions● Search Impressions● Retargeting/Media Impressions● E-mail Opens● Site Visits● PR Impressions● Social Impressions
Interest
{Monthly Unique Visitors}
Creative ways to increase monthly uniques
Identify lowest performing CTR by channel and optimize copy
Social Contests (Selfie to win!)
Paid Content Marketing (Taboola / Outbrain)
1
2
3
Consideration
{Customer Database Size}
Why track database size?● Understand the size of your customer
and email subscriber lists
● See how fast your audience is growing (average subscribers added per month)
Your email subscribers are the audience that you can market to at the lowest variable cost.
Creative ways to increase database size
Segment your email capture modals for better targeting (~30%+ increase)
Offer as much value as possible in exchange for an email address (know CLV)
Run Contests & Giveaways (~150%+ increase)
1
2
3
Acquiring new customers
By the end of year two, top performers acquire 5x more customers every month than their counterparts.
Expanding your customer base
By the end of year three, top ecommerce companies have a customer base that is 2.5x larger than the next-best group.
Purchase
{Conversion Rate / AOV}
Why track conversion rate?● Cart abandon rate has the potential for
the biggest immediate impact on revenue.
● Understand what’s important to your customers
● Maximize revenue per visitor
● Don’t get stuck on just this metrics - it can be unprofitable.
Average Conversion Rates by Vertical
The average eCommerce conversion rate is between 2.5% and 3%.
Vertical Average Conversion Rate Vertical Average Conversion Rate
Home & Garden 1.98% Office Supplies 3.36%
Apparel & Fashion 2.61% Electronics 2.04%
Sporting Goods/Outdoors 2.07% Automotive 1.92%
Jewelry 1.89% Food/Drug 4.11%
Health & Beauty 5.46% Gifts 6.03%
Creative ways to increase conversion rate
Integrate Personalization
Behavioral Targeting, especially on mobile
Smart Couponing - beware of open couponing
1
2
3
Personalization Example
16% higher conversion rate vs standard modals
Behavioral Targeting Example
Use mobile only offers to boost conversionsFocus on customers connected to wifi
Smart Couponing Example
Get customers to “work” for a coupon to drive additional value above improved conversions.
Case Study
Violet Vixen increased mobile conversion rates by 206% with Behavioral Targeting.
Rosenberry Rooms increased email captures 29% and online revenue 7%.
Berkshire Blanket converted cart abandoners at 67% and boosted total revenue 15%.
Why track average order value?● Higher AOV allows you to spend more
on customer acquisition (keeping conversion rate constant)
Creative ways to maximize AOV
Upsells/cross sells based on what the customer adds to cart
Decrease reliance on coupons - hide your coupon code box for certain traffic sources
Introduce very high end products - 80 / 20.
1
2
3
Case Study
Romulus Marketing increased AOV by 20% with a behavioral targeting offer focused on upsells.
Get 50% Off
Wait!Click here to get another shirt for
50% offOffer ends: 27:30
Close
Retention
{Customer Lifetime Value}
Why track CLV?● Know how much you can spend on paid
advertising and other customer acquisition costs
● Know how much you can offer for referral programs
● Identify your top customers
Customer lifetime value
Top customers
Marketing ROI reports
First purchase values
Customers that make 4 or more purchases have first order values at least 15% higher than average.
Two loyalty metrics
1. Revenue from repeat purchases
2. Time to loyalty
Revenue from repeat purchases
Time to loyalty
Top companies see customers making their 2nd purchase on average twelve days faster than their counterparts.
Time to loyalty
Time to loyalty
32%
53%
Number of loyal customers
Number of loyal customers
In year 3, top companies have 13.4k customers making 4+ orders, nearly 5k more than the other three quartiles combined.
How to maximize CLV
Email marketing / Retargeting
Create a strategy for post-conversion customer engagement - not just orders
Focus on your VIP customers - your top 10% of customers generate a disproportionate amount of $
1
2
3
Advocacy
{Referrals}
Why track your top advocates?● Advocates create your k-factor / virality.
● Advocates can become your lowest CPA channel and highest LTV generator.
● An established referral marketing channel gives you an unfair advantage.
How To Identify Top Advocates
Your customers Professional Influencers
Creative ways to make the most of your top advocates
Create direct relationships
Offer a referral program
Identify & segment in CRM
1
2
3
Referrals by the numbers● Referred customers are 25% more
profitable & 18% more loyal
● 50% of people are more likely to give a referral if offered a direct incentive. (Study from Software Advice)
● People are 4 times more likely to buy when referred by a friend. (Nielsen)
Case StudyHanes’ Refer-a-Friend program paid for itself in 2 weeks.
Putting it all together...How to integrate data analysis into your workflow
RJMetrics CloudBI is a complete analytics platform for online businesses.
RJMetrics Pipeline
How to improve your Brand’s Shopper Journey
1. Map your Shopper Journey and aggregate your data
Awareness Interest Consideration Purchase Retention Advocacy
Campaign Brand Impressions
MUVs / Clicks Customer Database Records
Conversion Rate & AOV
Lifetime Value Referrals
All Campaigns 1,000 100 10 2% / $30 $100 5
- Black Friday Email
1,000 60 0 2.5% / $30 $110 1
- Refer-a-Friend 200 50 5 3% / $35 $120 2
… remember this?
2. Pick a focusIdentify all of the Shopper Journey metrics that you think you can improve.
Then, rank them by:
● Estimated impact● Dollar investment needed to test● Time required to build test
Choose the test with the biggest estimated impact, taking investment required into consideration.
3. Execute
SummaryIntegrate + analyze your data + move the dials.
To learn more about AddShoppers, join an upcoming live demo:
AddShoppers.com/live-demo
Additional Questions? Follow Up?
[email protected]@ChadLedford
[email protected]@jakestein
To learn more about RJMetrics, visit:
RJMetrics.com