metrics for online retail (shopify/.co/luxr webinar)

March 5, 2014

Metrics For Online RetailersShopify’s Build a Business Competition

Janice FraserJason Fraser

Jason FraserFounderMaster Coach

Who is ?Supporting entrepreneurs worldwide

Video based curriculum

Short video workshops

In-person workshops around the world

@luxrco

Event Hashtag

#retailmetrics

Gather Your Tools

3 Key Metrics

Acquisition

Conversion

Dollars per sale

How do I find my numbers?

Google Analytics

has some basic features

Buy a clicker!

Keep a log by the register

Buy a clicker!

Make informed decisions

Make more money

Move the numbers

Metrics Pattern

Observe ObserveAct

AcquisitionHow many people come to your store?

Your Store

There are many ways to acquire customers

Paid traffic

Mailing lists

Search results

Social media

Observe ObserveAct

Using the Pattern

Establish a baseline

Observe ObserveAct

Using the Pattern

Brainstorm ideas to

drive traffic.

Try one as an experiment.

Observe ObserveAct

Using the Pattern

Track the results

Observe ObserveActBrainstorm

ideas to drive traffic.

Brainstorm!What can you do to get more customers to

come to your store?

:451:00

Brainstorm!Just 4 ideas to increase traffic

:451:00

ChooseTwo selection criteria:

CHOOSE 2: Most likely to generate traffic

CIRCLE 1: Easier to implement

CHOOSE 2: Most likely to generate traffic

Make it happen

Get started right away

Put some time in your schedule to do the work

Using the Pattern

Track the results

ideas to drive traffic.

ConversionOf the people who visit, how many buy?

$$MONEY

$$MONEY $

$MONEY

$$MONEY

Kinds of Conversion

Site visits to purchases

Ad views to site visits

Conversion Is Key

Wrong target market

Low conversion suggests fundamental problems:

Wrong product for the market

Wrong message

Observe ObserveAct

Using the Pattern

Observe ObserveAct

Using the Pattern

Brainstorm ideas to increase

conversion.

Observe ObserveAct

Using the Pattern

Track the results

ideas to increase

conversion.

Dollars per SaleAverage cart size

It’s hard to get people to visit your

store.

Make the most of each transaction.

Observe ObserveAct

Using the Pattern

Observe ObserveAct

Using the Pattern

Brainstorm ideas to

increase the dollars per sale.

Observe ObserveAct

Using the Pattern

Track the results

ideas to increase the

dollars per sale.

Many other things to measure

Customer referrals

Repeat sales

Page views per visit

Abandoned carts

Item views per visit

If tracking your metrics doesn’t

change your behavior...

If tracking your metrics doesn’t

change your behavior...

...then there’s no point in doing it.

Measure Measure Again

Using the Pattern

Measure

Over and Over

What’s good?

Set your own goals

What’s good for you?

Do some math

How they play together

If 500 people visit my store in a day

If 500 people visit my store in a dayAQUISITION

2% make a purchase

That’s 10 purchases

AQUISITION

2% make a purchase

AQUISITION

CONVERSION

2% make a purchase

Average cart size is $40

My gross is $400

AQUISITION

CONVERSION

2% make a purchase

Average cart size is $40

My gross is $400

AQUISITION

CONVERSION

DOLLARS PER

Backtrack to discover what you need

If it costs me $300/day to run my business, I know I need to change

something

If your profit (net of COGS) is 50%, that’s $200

What do I do?

Increase Conversion to 3%

Increase Acquisition to 750 visitors

Increase Dollars Per Sale to $60

Acquisition: Baseline

10 purchases x $40 each = $400 gross

500 visitors converting at 2% = 10 purchases

$400 gross x 50% = Net of $200

Acquisition: Improved

$600 gross x 50% = Net of $300

Conversion: Baseline

$400 gross x 50% = Net of $200

Conversion: Improved

$600 gross x 50% = Net of $300

Dollars per sale: Baseline

$400 gross x 50% = Net of $200

Dollars per sale: Improved

$600 gross x 50% = Net of $300

This is a way of life that grows your business

$1350 gross x 50% = Net of $675

Measuring tells you what, but not why.

Listen to your customers

Talk to your customers

Learn from your customers

Empathize with your customers

3 Key MetricsAcquisition

Conversion

Dollars per sale

Make more money

Move the numbers

Make more money

Move the numbers$

$MONEY

$$MONEY

$$MONEY $

$MONEY

$$MONEY

Metrics For Online RetailersShopify’s Build a Business Competition

Thank you!

Slideshare.net/luxrco@luxrco

Question and Answer time!

metrics for online retail (shopify/.co/luxr webinar)

pattern observe

metrics doesnt

baseline brainstorm

rs ve

observe track

drive traffic

selection

whats good

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