ecommerce metrics webinar
TRANSCRIPT
eCommerce Metrics Webinar Learn what every eCommerce company needs to track.
Live Tweet Hashtag #eCommerceMetrics
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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
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.
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