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eCommerce Metrics Webinar

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View webinar: http://go.retentionscience.com/ecommerce-metrics-webinar-recording

Slides from a webinar featuring eCommerce expert Justin Winter, CEO & Co-founder from Diamond Candles and Ryan Lee, Customer Success Manager from Retention Science. They discussed how scaling eCommerce companies can measure success and inform their marketing strategy and process.

Published in: Marketing

eCommerce Metrics Webinar

  1. 1. eCommerce Metrics Webinar Learn what every eCommerce company needs to track. Live Tweet Hashtag #eCommerceMetrics + Click here to view the webinar
  2. 2. Agenda Introductions Segmenting your data What metrics to track Order Metrics Marketing Metrics Customer & Advanced Metrics Insider information Diamond Candles case study
  3. 3. 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
  4. 4. 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
  5. 5. Segmenting Data
  6. 6. 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.
  7. 7. Key metrics to track
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. Insider Information
  12. 12. Challenge: How can you tell what channels and campaigns are driving the most bottom-line revenue?
  13. 13. Questions

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