Web Analysis of an E-commerce business-VivianaTalledo


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Web Analysis of an E-commerce business-VivianaTalledo

  1. 1. Web Analytics Report:Elite Toy StoreViviana Talledo03/22/2013
  2. 2. Introduction• This document presents an analysis for the Elite Toy Store Website(http://www.elitetoystore.com).• The analysis is based on the following business goals:– Create awareness about the products– Create loyalty– Increase revenue• The following page shows the Web Analytics Measurement Model(WAMM), which lists:– The strategies decided upon to accomplish these business goals– The key-performance indicators (KPIs) used to measure them– The target values for the KPIs– The way in which the KPIs are segmented to obtain insight into the data2
  3. 3. 3Web Analytics Model For Elite Toy Store1 Business Objectives Website Goals KPIs Target SegmentsCreate Awareness aboutthe productsIncrease visitors from direct andcampaign traffic% of visitors from directand campaign trafficTraffic sources: 50%organic, 15% referral,25% direct, 10%campaign RevenueAdvertise product through PPCcampaignPPC: Revenue perAcquisition vs. Cost PerAcquisitionRPA = $2CPA = $0.4 PPC Campaigns2 Create LoyaltyIncrease number of returningvisitors% of visitors thatregularly come back tothe site (> once permonth) 2% increase per month ConversionsUnderstand and improvecustomer experience usingsurveys; Create fans and evagelistof the productsTask completion ratesurveyTask completion rate >=60%Primary activity on the site(customer service, shop, buy)3 Increase revenue Increase salesAverage Order Value,Conversion Rate AOV = $130, CR = 2%Traffic source category(referral, search, direct, etc.)Reduce cart abandonment rate Cart Abandonment Rate 45% abandonment rateTraffic source (referral, search,direct, etc.)
  4. 4. Executive SummaryThe main objective to the company is to increase revenue. The Elite Toy Store website has a very low number of returning visitors (14%), a very lowconversion rate for new and returning visitors (1% and 4% respectively), too high of a dependence on organic search visitors and low number of visitorsfrom direct or referral sources. Elite Toy Store gets 27% of its revenue from pay-per-click (PPC) campaigns, yet only one of the four campaigns that havebeen executed yielded a better profit-per-acquisition than non-paid traffic sources.PaidSearchTraffic19%Non-PaidSearchTraffic32%Direct25%Referral24%Average Order Value per TrafficSource0200040006000800010000Mar-12Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13New vs. Returning VisitorsReturning Visitors New Visitors4E-commerce VisitorsTotal Revenue Total PPC Cost New ReturningConversion Rate forNewConversion Rate forReturning$140,542 $5,614 86% 14% 1% 4%Dashboard71%7%14%8%Visitors perTraffic SourceOrganic searchDirectReferralCampaign$0.00$0.50$1.00$1.50$2.00$2.50$3.00Calico Critters Elite Toy Store ProductListing AdsGeographic JeopardyPPC: Revenue vs. CostCost Per Acquisition Revenue per AcquisitionTarget CPA Target RPA59%88%33%17%Shopping Buying Customer service OtherTask Completion RateQ: Where you able to find the info you needed?(segmented by primary activity on the site)Task Completion Rate67%65%64%62%Search Direct Referral CampaignCart Abandonment Rate, per Traffic SourceCart Abandonment Rate
  5. 5. Business Objective: Create Awareness of ProductsGoal: Increase visitors from direct and referral trafficKPI: % of visitors from direct and referral trafficTarget: Traffic sources: 45% organic, 20% referral, 20% direct, 15% campaignSegments: RevenueAnalysis:• Visitor traffic source relies heavily on organic search(47%).•Bottom chart, Search and Campaign traffic fluctuateheavily with season; Direct visitors also show someincrease on season.•Revenue per traffic source is closely correlated to visitsper traffic source. Therefore, fluctuations in visits resultin fluctuations in revenue.• Referral traffic is trending downward.Recommendations:•Fluctuations in traffic directly affect fluctuations inrevenue. By decreasing reliance on search andcampaign traffic, revenue fluctuations will decrease.• Increase Direct traffic by creating a blog and engagingvisitors with content describing the benefits ofeducational toys, to encourage visitors to return to thesite outside the holiday season.• Increase referral traffic by experimenting with a wordof mouth campaign in social media to see which socialmedia source brings more referrals.Source: Google Analytics14%32%47%7%Visitors per Traffic SourceDirectCampaignOrganicSearchReferral13%27%54%6%Revenue per Traffic SourceDirectCampaignOrganicsearchReferral01000200030004000500060007000#VisitsVisits Trend, Per Traffic SourceDirectCampaignOrganic SearchReferral
  6. 6. Business Objective: Create Awareness of ProductsGoal: Advertise product through pay-per-click (PPC) campaignsKPI: PPC Revenue-per-Acquisition (RPA) vs. Cost-Per-Acquisition (CPA)Target: RPA = $2, CPA = $0.4Segments: PPC campaignsAnalysis:.• As shown in previous page, 27 % of all revenuecomes from PPC campaigns. But is it worth the cost?• PPC campaigns have on average the lowest RPAcompared to other traffic sources, and have a highercost (see Table 1).• However, if we segment the revenue and cost peracquisition by PPC campaign, we notice that theJeopardy campaign has an RPA of $2.82 and a CPA of$0.24, which gives a higher profit per acquisition thanother traffic sources.Recommendations:• Stop PPC campaigns that don’t meet the target RPAand CPA, since other traffic sources are (organicsearch, referral, direct) provide a higher profit.Source: Google Analytics$0.00$0.50$1.00$1.50$2.00$2.50$3.00Calico Critters Elite Toy StoreProduct Listing AdsGeographic JeopardyPPC: Revenue vs. CostCost Per Acquisition Revenue per AcquisitionTarget CPA Target RPA1. The cost for PPC includes a simulated cost for a PPC campaign called “CPC”, which GoogleAnalytics shows brings revenue but with zero cost. The cost for this campaign has been simulatedto be 14% of the revenue,.Table 1. Revenue vs. Cost, All Traffic SourcesSourceRevenue per visit /acquisitionCost per visit /acquisitionPPC $1.47 $0.23Organic Search $2.10 $0.00Referral $1.77 $0.00Direct $1.59 $0.006
  7. 7. Business Objective: Create LoyaltyGoal: Increase number of returning visitorsKPI: % of visitors that regularly come back to the site (more than onceper month)Target: 2% increase per monthSegments: Visitor conversionsAnalysis:• Returning visitors are a small % of all visitors (14%).• The % of returning visitors that convert is very low(4%). However, the % of new visitors that convert iseven lower (1%).• The rate of growth of returning visitors is below thestated target of 2% per month.• Increasing the % of returning visitors would bebeneficial, since they are 4 times as likely to convert asnew visitors.Recommendations:• Increase the % of returning visitors by creating ablog to engage visitors and provide news via RSS toreceive latest product information. This can also soreduce money spent on campaigns.• Create a page-level-survey to understand why so fewvisitors are returning (14%).Source: Google Analytics0200040006000800010000New vs. Returning VisitorsReturning Visitors New Visitors02004006008001,0001,2001,4001,600Returning Visitors(purchase vs. no purchase)Returning visitors (no purchase) Returning visitors (purchase)Target Increase (2% per Month)Feb 2012 - Feb 2013All visitors % New % Returning% new visitorsthat purchase% returning visitorsthat purchase63,234 86% 14% 1% 4%7
  8. 8. Business Objective: Create LoyaltyGoal: Understand and improve customer experience using Task Completion Rate (TCR) survey.KPI: Task completion rateTarget: Task completion rate >= 60%Segments: Primary activity on the site (customer service, shop, buy)Analysis:• TCR is 49% on average, which means that less thanhalf of all customers felt they were able to find theinformation they wanted.• Customer service has a low task completion rate(33%), indicating problems in the customer servicearea.• Other Non shopping/buying activities has a very lowtask completion rate (17%). This is due to people thatwere unhappy about the survey pop-up as soon asthey entered the site.• Many customers that did shopping (without buying)reported a bad experience. This points to problems inhow easy it is to search the website for products.Recommendations:• Improve customer service experience by addingretraining customer service agents agents andinstituting a 1 month return policy, no questionsasked.• Modify website so that survey pop-up only showsfor customers that have done significant activity onthe site.• Improve the website navigation and internal productsearch, to improve the overall shopping experience.Source: simulated online survey59%88%33%17%Shopping Buying Customer service OtherTask Completion RateQ: Where you able to find the info you needed?(segmented by primary activity on the site)Task Completion Rate• Average TCR = 49%25%41%17%2%19%11%46%60%56%48%38% 38%Shopping Buying Customer service OtherCustomer Response TypeQ: Share some words about your rating(segmented by primary activity on the site)Positive % Negative % No comment8
  9. 9. Business Objective: Increase RevenueGoal: Increase salesKPI: Average Order Value (AOV), Conversion Rate (CR)Target: AOV = $130, CR = 2%Segments: Traffic source category (referral, search, direct, etc.)Analysis:• AOV in pie chart is higher from non paid sourcesthan from PPC.• High conversion rates around seasonality (Dec),however, AOV shows decreasing trend.• Feb 2013 shows one of the highest percentage of CRof the year, yet the lowest AOV of the year. A declinein # of orders combined with a decline in visitorsusually cause this difference.Recommendations:• Reverse negative trend in AOV by implementingtechniques that convince customers to buy pricierproducts or more products on each shopping session.For example, adding “continue to shop” button next tothe item selected in the shopping cart.Source: Google AnalyticsPaidSearchTraffic19%Non-PaidSearchTraffic32%Direct25%Referral24%Average Order Value perTraffic Source$117$223$155$187 $178$276$126$160 $151 $163$116 $105Average Order Value, One Year1.78%1.47%1.75%2.11% 2.00%1.42%1.91%2.39%2.86%3.21%1.81%2.91%Conversion Rate, One Year9
  10. 10. Business Objective: Increase RevenueGoal: Reduce cart abandonment rateKPI: Cart Abandonment RateTarget: 59% abandonment rateSegments: Traffic source category (referral, search, direct, etc.)Analysis:• Cart abandonment rate is higher than bounce rate,which implies that the shopping cart process performsworse than the overall website.• Abandonment rate for search traffic is highest, andabandonment rate for campaign traffic is lowest,reflecting the difference in commitment to purchase.Recommendations:• Reduce the cart abandonment rate by improving theshopping cart process (e.g., adding a “continueshopping” button, adding a “wish list” button).Business Impact:• If cart abandonment rate is improved to match thebounce rate, the total revenue could be improved by25%, a large increase compared to the small decreasein abandonment rate.Cart Abandonment Statistics (Feb 2012 - Feb 2013)CartAbandonmentRate Bounce RateTarget CartAbandonment RatePotential revenue ifabandonment rateis reduced to target% revenueincrease65% 59% 59% $35,451 25%67% 65% 64% 62%Search Direct Referral CampaignCart Abandonment Rate, per Traffic SourceCart Abandonment RateSource: PaditrackElite Toy Store Shopping Cart Page10