How to use analytics to grow your eCommerce business

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?

chad@addshoppers.com@ChadLedford

sales@rjmetrics.com@jakestein

To learn more about RJMetrics, visit:

RJMetrics.com