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The Digital Analytics Company www.nabler.com
www.nabler.com
Analytics & MIS planning for your internet retail store Seby Kallarakkal CEO Nabler
The Digital Analytics Company www.nabler.com
Goal of the workshop – part I Share a framework that will enable you to develop your own KPIs for your ecommerce store – the one that matters to your context.
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The Digital Analytics Company www.nabler.com
• Full service Digital Analytics company
• Providing Digital Analytics services for enterprises since 2004
• Experience working with B2B / Ecommerce / Media sites
• Expertise in a range of digital analytics tools
About Nabler
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Key Differentiators:
• Focused only on digital analytics • Technology driven – strong in-house software programming capabilities • Centre of Excellence
Read more about Nabler on www.nabler.com
The Digital Analytics Company www.nabler.com
The principles of analytics are not too different for a physical store and ecommerce store. However, there are some differences to keep in mind. Ecommerce store tends to have
– Lot more behavioral data than regular stores – cost, ease, comprehensiveness – If you assume 2% conversion, transaction data or sales data deals with the 2%. Behavioral data would include
the full 100% of population
Ecommerce store vs regular store
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-vs-
The Digital Analytics Company www.nabler.com
Let’s do some shopping
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Look around and see what’s available
Buy what you found to be useful and
interesting
Come home and figure out what to do with the things you
bought
The Digital Analytics Company www.nabler.com
Look at data Explore Identify possibilities
Deep dive and come up with answers
and explanations
Present the findings ?
The data parallel
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The Digital Analytics Company www.nabler.com
Another way to shop
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You want to bake a cake, get something for breakfast, replenish your toiletries
You look around based on what you need, choose based on parameters that
you decide and order
Get home and use things purchased for the purpose you had in mind
The Digital Analytics Company www.nabler.com
The data parallel we recommend
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Business goals /
Strategies KPIs Report Analyze
Start with business rather than starting with data
The Digital Analytics Company www.nabler.com
Quick example
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Goals / Strategies KPIs Report Analyze
Increase orders from tier II cities
New visitors from tier II cities
weekly basis to online marketing
mgr.
Segment by source
Optimize campaign spend
Business users Analytics / MIS team
The Digital Analytics Company www.nabler.com
The process of arriving at KPIs Step 1: Arrive at goals & strategies Step 2: Develop KPIs
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The Digital Analytics Company www.nabler.com
Challenges we have seen
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• Business objectives not readily available
• Difficult to translate business objectives into measures
• Non availability of benchmarks and targets
The Digital Analytics Company www.nabler.com
1. Business objectives
2. Business questions
3. Individual / department goals
4. Business framework
Few ways to arrive at business goals / strategies
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The Digital Analytics Company www.nabler.com
• Increase the customer base
• Increase repeat purchase
• Increase order value
• Get people to try out more product categories
• Move focus from books to apparel
Examples of business objectives
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The Digital Analytics Company www.nabler.com
• What is the best channel in terms of cost of acquisition?
• How do we encourage visitors to explore more product groups?
• Do we build more landing pages?
• What’s the best path to conversion?
• How do we encourage visitors to buy more?
• How many visits does it take for a first time visitor to purchase?
• How do we get repeat customers to browse more?
Sample of business questions
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The Digital Analytics Company www.nabler.com
• SEO manager – Increase non branded, organic traffic – Get traffic from new set of industry keywords
• Online marketing manager – Increase conversion ratio – Increase revenue
• Content writer – Increase stickiness
• Development team – Ensure links work – Reduce load time
Example of individual goals
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Organization goals
SEO manager goals
KPIs
Online marketing
manager goals
KPIs
Content writer goals
KPIs
Development team goals
KPIs
The Digital Analytics Company www.nabler.com
Example of a framework
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Repeat Customer
High value customers
Low value customers
Customer
Non customer
Acquisition
§ Organic § Direct
§ Search Ads § Display Ads § Email Camp. § Affiliates § Social
Website
Visitors
The Digital Analytics Company www.nabler.com
Next step
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Business objectives
Business questions
Role based goals
Business framework
Goals based on REAN framework
Develop KPIs Report Analyze
The Digital Analytics Company www.nabler.com
List goals & strategies under REAN
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Reach Engage Activate Nurture
R E A N
Credit: Xavier Blanc / Leevi Kokko / Steve Jackson (author of ‘Cult of Analytics’)
The Digital Analytics Company www.nabler.com
Next step
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Business objectives
Business questions
Role based goals
Business framework
Goals based on REAN framework
Develop KPIs Report Analyze
The Digital Analytics Company www.nabler.com
A good Key performance indicator (KPI) should have – A clear definition – Clear connection to your business goals – Target (absolute / relative / competition) – Actor – Frequency – The capability of helping you take a decision
Demystifying KPI
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Goal KPI Target Frequency Actor
Increase visits from tier II cities
# of new visits from tier II cities
5% increase MoM Monthly Online marketing manager
Example
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An example of the full flow Multi product, multi brand ecommerce website sellanything.com
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Business objective: Increase the customer base
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Reach
• Increase new visitors from all 3 tiers of cities
• Spend optimally on various channels to get the highest reach
Engage
• High level of engagement for first time visitors
• Increase engagement on social media channels
Activate
• Increase orders from first time purchasers
• Reduce # of visits to purchase for first time purchasers
• Build email database
Nurture
• Increase referrals from customers
• Get customers to rate and write reviews
Goals under the REAN model – reflects your thinking / strategy / solution / tactics
The Digital Analytics Company www.nabler.com
KPIs from the Reach goals
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Goal KPI Target Frequency Actor
Increase new visitors from all 3 tiers of cities
# of new visits (by tier I/II/III cities)
Historical (40% YoY increase)
Monthly Online marketing manager
# of new visits (by tier I/II/III cities)
2% WoW increase Weekly Online marketing manager
Spend optimally on various channels to get the highest reach
Cost per visit (by source)
Rs.50 Daily Online marketing manager
The Digital Analytics Company www.nabler.com
KPIs from the Engage goals
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Goal KPI Target Frequency Actor
High level of engagement for first time visitors
# of product views / visit from first time visitors
5 Monthly UX manager
Increase engagement on social media channels
Fb likes 5% WoW increase Weekly Social media manager
Fb comments 5% WoW increase Weekly Social media manager
Twitter followers 5% WoW increase Weekly Social media manager
The Digital Analytics Company www.nabler.com
KPIs from the Activate goals
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Goal KPI Target Frequency Actor
Increase orders from first time purchasers
# of new customers acquired
15% MoM Monthly Product manager
Cost per order by source
Rs.500 Daily Online marketing mgr.
Reduce # of visits to purchase for first time purchasers
% of purchases for first time customers where ‘visits to purchase’ is 3 or less
80% Monthly Designer
Build email database Size of verified email database
5% MoM Monthly Online marketing mgr.
The Digital Analytics Company www.nabler.com
KPIs from Nurture goals
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Goal KPI Target Frequency Actor
Increase referrals from customers
# of new customers from ‘recommend to friend’ feature
500 Monthly Product manager
Get customers to rate and write reviews
# of ratings 5% MoM increase Monthly Product manager
# of reviews posted 5% MoM increase Monthly Product manager
The Digital Analytics Company www.nabler.com
• Engagement from new visits – 3.9 product page views / visit
• Analysis – Segment by source / campaign / channel – Segment by landing pages – Segment by original keywords – Segment by day of the week
• Action – Optimization and realignment of campaign budgets – Modifying / tweaks to the landing page – A/B tests for the landing page – Personalization – Customization by day of week
Analysis & Action
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The Digital Analytics Company www.nabler.com
• Write down goals
• Then KPIs
• Create KPI table
• Questions? Email [email protected]
10 mins Exercise
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The Digital Analytics Company www.nabler.com
Nabler Web Solutions Pvt. Ltd. Level 1&2, Corporate Court, No. 15, Infantry Road, Bangalore - 560001, Karnataka
Phone : +91-80-4937-2900 Fax : +91-80-254-24367 [email protected]
Thank You
Nabler LLC 8410 Pit Stop Ct. Concord North Carolina 28027
Phone : 347-809-3323 Fax : 646-619-4979 [email protected]
The Digital Analytics Company www.nabler.com 29