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Using Analytics to Make Revenue More “Real”

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  • 1. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.Using Analytics to Make Revenue More “Real”Justin Grover – Product Manager Analytics Platform
  • 2. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.Intro2
  • 3. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.Intro3
  • 4. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.Intro4• APIs• AuthenticationAuthorization• Integration
  • 5. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.A Focus on Real RevenueRevenue – (Returns, Cancelations and Exchanges)5
  • 6. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 7
  • 7. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 8
  • 8. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 9
  • 9. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 10
  • 10. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.StrategiesMore accurate Revenue for your paid search campaigns11
  • 11. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.General Adjustment1. Find out what yourreturn/cancelation/exchange rate is for thecompany as a whole2. Revenue – (returns + cancelations +exchange costs)/revenueeg. $100 – ($5 + $3 + $2)/ $100 = 90%3. Multiply all revenue numbers by theresulting percentagee.g. $150 * .9 = $135 (Real Revenue)12Pros• Make sure marginsaren’t negative
  • 12. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.Record Marketing Channel in System of Record1. Capture the marketing channel whenvisitors come to the site (usually a cookie)2. When a user makes a purchase, record themarketing channel in the ordermanagement system3. Export all orders with marketing channel4. Analyze what thereturn/cancelation/exchange rate is foreach marketing channel13Pros• Make sure marginsaren’t negative• Can break out “Real”revenue by channel
  • 13. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.Upload Returns/Cancelations/Exchanges to Analytics1. Make sure the order number/ID is beingcaptured in the analytics tool(Transaction ID in SiteCatalyst)2. Upload Return/Cancelation/Exchangeamounts to the analytics3. Establish a base linereturn/cancelation/exchange rate4. Analyze marketing campaigns to foropportunitiesa. Look for campaigns that bring in customerswith higher than average return ratesb. Look for products/landing pages to higherthan average14Pros• Make sure marginsaren’t negative• Can break out “Real”revenue by channel• Can find campaigns thatbring in expensivecustomers• Can findproducts/landing pagesthat mismatchexpectations
  • 14. © 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.Questions?15