2. BEAUTYTHAT
DOESN’T BREAK
THE BANK
Cosmetics company est. 2014
Headquartered in Oxnard, CA
Founder & CEO Laura Nelson
Cruelty-free
Develop, manufacture,test, package,and sell
products directly to the consumer
Was 100% online until 2017
3. BUSINESS OBJECTIVES
Build brand awareness
among customers
Increase sales revenue
Expand customer traffic
to the site
Develop the customer
base
5. SESSIONS ANALYSIS
Engagement shows positive trends:
Reduced overall Bounce Rate by 25%
Increased avg. # of Pages / Session from 3.91 to
4.99
54% increase in Avg. Session Duration (~69
seconds longer)
However,the data shows significant decreases
in completed purchases between last year and this
year:
Main issue we are looking at is the 96.34%
decrease in Purchase Completion, what's the cause?
36% decrease in overall Users and a 39% decrease
in New Users
Declines in every Acquisition channel (Except for
Affiliates)
30-35% decrease in Active users
This only explains a 30-40% decrease,does not
explain +90% decrease
6. USING CONVERSION TO TRACK COMPLETED ONLINE PURCHASES
The data shows significant decreases in completed
purchases between last year and this year
Main issue we are looking at is the 96.34% decrease
in Purchase Completion, what's the cause?
Cart Abandonment Rate increased to 92.24%
Exit Rate in Payment has increased from 8.49% to
49.52%
Bounce Rate for Payment increased from 0% - 50%
7. TRAVELING DOWN THE CONVERSION FUNNEL
Where are our customers falling off
8,762 customers added to their cart in January2019,butonly
24.13% of them moved on to Shipping and Billing
From there another 60.31% moved onto Payment
From Paymentonly 12.08% continued onto the Review
Another 50.65% of potential customers dropped off without
confirming their order
Only 0.89% of potential customers who started the
purchasing processsuccessfully placed an order
Major issues in the conversion funnel with Additions to
Cart, and Payment, over 80% of customers drop off at
each step.
8. CONVERSIONS ANALYSIS
Saw a 30-40% traffic decrease from last year to this year
<1% of customers completed a purchase in Jan 2019
Jan 2018 there was a 28.93% success rate for purchases,
with every step of the funnel having over 90% completion
other than Cart Additions (33.71%)
This large of a decrease across every step of the funnel
may result from an issue with the website itself
Unlikely that this drop is due to competition (would not
account for significant losses in the middle of the funnel)
The web page itself may have an error preventing it from
loading properly or displaying the correct information
Incorrectbilling or price info,long loading times or crashing
This is most likely happening on the Payment page
9. CHANGE IN REVENUE
There have been significant
changes in the Revenue in
January 2019 compared to
January 2018
The Revenuehas
decreased by 99.03% from
$404,994 in January 2018
to $3948 in January 2019
10. METRIC CHANGE IMPACT ON REVENUE
•Revenuehas decreased by -$401,045 as
compared to LY
•Conversion rate has affected the revenue
the most, accounting for $385,049 decrease
in the revenue
•Traffic (Sessions) combined with Reduced
AOV has estimated to have the revenue
reduced by $428,385
LY TY % change $ change
Revenue
$404,993.8
3
$3,948.42 -99.03%
-
$401,045.41
Sessions 88211 58920.00 -33.21% -29291
AOV $195.74 $54.09 -72.37% -$141.66
Conversion 2.35% 0.12% -94.89% -2.23%
Metrics
Metric Change Impact
on Revenue
Sessions -$134,737.96
AOV -$293,646.62
Conversion -$385,048.58
11. ROA ANALYSIS
Revenueand ROA from both ”Colourpop" and "Colourpop
Cosmetics" Search queries have been dropped significantly
ROA drops from 170.19 to – 0.07 from 2018 to 2019
Revenuedrops from 1645.11 to 790.99 from 2018 to 2019
Only Lipstick campaign has positive ROA at 4.68
Eyeshadow campaign costs most with no revenue
12. PROMOTION CLICK SUCCESS EVENT
"Promotion Click"Tracking:
No comparisonYoY since“Promotion Clicks” did
not exist or were not being tracked the year prior.
Popular user interaction: within one year,comprises
14% of all sitewide success events.
Promotion RevenueImpact:
Drives a higher Avg. OrderValue than the sitewide
average ($85 AOV compared to $62 AOV sitewide;
36% higher)
13. FINAL RECOMMENDATIONS
Contact the IT department regarding possible technical issues preventing
customers from completing all the steps in the conversion funnel
In order to reduce cart abandonments, offer more data-driven promo
opportunities, especially during end of the checkout process on payment and
basket pages (i.e. related-item bundles,credit card/reward programs, and add-on
items that provide future discounts)
Perform A/B testing to test the variations in the shipping/billing pages to
improve the conversion rate since we are losing 80% of the customers on the
billing page
Generate surveys to get honest customer reviews to find out their
expectations, since the sales have dropped by 99%, and align marketing
campaigns for transparency
Weigh the costs and benefits of shipping to China. Set up the overseas server in
China and inventory in bonded area.
Volume based promotions