Let's continue the journey to double our e-commerce profits with a few questions: How well does my online store convert? Are my campaigns profitable? Do customers come back? What's my cost per acquisition and customer lifetime value? These are questions that should be burning in all online shop owners' heads. They tell us when we will be out of business soon or when we are ready to scale as fast as we can get new inventory. The truth, sadly, often lies somewhere in the middle. Some of our products and campaigns are profitable, while others are dragging us down. And if we can't look at the numbers and see what works and what doesn't, we rely mostly on luck. Let's talk about: ∙ Why Analytics matters in E-Commerce ∙ Improve your conversion tracking (#7/15) ∙ Manage your cookie consent well (#8/15) ∙ Better reporting means faster learning (#9/15) ∙ E-Commerce analytics - Q&A

1. ANALYZING
YOUR WAYTO E-COMMERCE PROFITABILITY
MEETUP
get.pirateskills.com/analyze
Nov 18th 2020

2. ANALYZING YOUR
WAY TO E-COMMERCE
PROFITABILITY
1. Analytics matters in E-Commerce
2. Improve your conversion tracking
3. Manage your cookie consent well
4. Better reporting, faster learning
5. E-Commerce Analytics – Q&A

3. Ben Sufiani
• Founder since 2008
• Growth Marketer
• Host of Pirate Skills
• Analytics has turned out
to be my most valuable skill

4. WHY ANALYTICS
MATTERS IN
E-COMMERCE

5. Why Analytics matters
in E-Commerce
• Broke or Billions?
• CPA > CLV = 🤮
CPA < CLV = 🤑
• Measuring cost per acquisition
• Estimating your customer value

6. Broke or Billions
• One of these two campaigns is
going to make you broke and
one is very profitable.
• Which would you choose now?

7. Broke or Billions
• Impressions are nothing if they
don’t bring people to your shop.
• Which would you choose now?

8. Broke or Billions
• Landing page views are
nothing if the visitors are not
interested in your product.
• Which would you choose now?

9. Broke or Billions
• ROAS is often your best
indicator of profitability.
• But how much ROAS is
necessary to be profitable?

10. PLOT TWIST
🤯
IT WAS ONLY
ONE CAMPAIGN

11. Broke or Billions
• Info: ROAS > 3.5 is profitable
• Only the placement split
revealed it’s profitable part
of the campaign
• Now you make a good choice!

12. CPA > CLV =
CPA < CLV = 🤑
🤮

13. Measuring your
Cost per Acquisition
• Simplify in the beginning
• Ignore personal costs
• Start with average costs
• (Ad) Spent / Purchases
• Simple spreadsheets
• Plus ads manager

14. Estimating your
Customer Value
• Customer Lifetime Value =
Average Order Value x
Purchase Frequency
• Average Order Value =
Total Net Revenue / Total Orders
• Purchase Frequency =
Total Orders / Total Customers

15. Why Analytics matters
in E-Commerce
CPA > CLV =
CPA < CLV = 🤑
🤮

16. ANALYZING YOUR
WAY TO E-COMMERCE
PROFITABILITY
1. Analytics matters in E-Commerce
2. Improve your conversion tracking
3. Manage your cookie consent well
4. Better reporting, faster learning
5. E-Commerce Analytics – Q&A

17. IMPROVE YOUR
CONVERSION
TRACKING (#7/15)

18. From impressions
to profits
• Write down every step your
customers have to take
• Traffic sources
• Website & landing page
• Email sequences
• Checkout process

19. Let’s do this for
some ad campaigns
• Impressions
• Clicks
• Page views
• Add to carts
• Initiate checkouts
• Purchases

20. Can you already track
your numbers?
Ad spent 5,000 €
Impressions 500,000
Clicks 5,927
Visitors 5335
Add to carts 1334
Initiate Checkouts 1000
Purchases 500

21. How to track
each conversion
get.pirateskills.com/tagmanager

22. A conversion
tracking stack
• Google Tag Manager
• Google Analytics
• Google Ads Conversations
• Facebook Pixel
• All relevant ad & service pixels

23. Benefits beyond
better reports
• Conversions are used as
optimization signals for
ad campaigns.
• Ability to split the conversion
data with the ads manager.
• Conversions can be integrated
in other tools like the CRM.

24. ANALYZING YOUR
WAY TO E-COMMERCE
PROFITABILITY
1. Analytics matters in E-Commerce
2. Improve your conversion tracking
3. Manage your cookie consent well
4. Better reporting, faster learning
5. E-Commerce Analytics – Q&A

25. MANAGE YOUR
COOKIE CONSENT
WELL (#8/15)

26. A 5% opt-in rate
is not an option

27. Consent optimization
is real
borlabs.io Dashboard

28. Constent needs to be
IN YOUR FACE
www.pirateskills.com/workshops

29. Consent @ Zalando
zalando.de

30. Consent @ Etsy
etsy.com

31. Choose your consent
tools wisely
• Don’t compromise on UX
• Pick a solution for your system
• Measure your consent rate
• Optimize over time
• Aim for 50% and more

32. ANALYZING YOUR
WAY TO E-COMMERCE
PROFITABILITY
1. Analytics matters in E-Commerce
2. Improve your conversion tracking
3. Manage your cookie consent well
4. Better reporting, faster learning
5. E-Commerce Analytics – Q&A

33. BETTER REPORTING
MEANS FASTER
LEARNING (#9/15)

34. Better reporting
means faster learning
• A simple E-Com spreadsheet
• Shop Analytics = 99% truth
• Google Analytics for the basics
• Facebook Analytics reports
• Rules for scaling up & down

35. A very simple
E-Com spreadsheet
Ad spent 5000 €
Impressions 500,000
Clicks 5,927
Visitors 5335
Purchases 500
Purchase Value 15000 €
ROAS 300 %

36. An expanded
E-Com spreadsheet

38. get.pirateskills.com/ecom-sheet

39. Shop Analytics are
closest to the truth

40. Shop Dashboard
shopify.com/blog/merchant-
overview-dashboard

41. Use Google Analytics
as the default tool
marketingplatform.google.com/
about/analytics

42. Best to measure user
flow across channels
marketingplatform.google.com/
about/analytics

43. Facebook Analytics is
great for CLV
facebook.com/analytics

44. And FB Analytics
thinks in cohorts
facebook.com/analytics

45. Why Analytics matters
in E-Commerce
CPA > CLV =
CPA < CLV = 🤑
🤮

46. The reason for all the
trouble is SCALING
• Define your minimum ROAS.
• Scale up budget slowly when
campaign ROAS is above that.
• Scale down campaigns that
don’t, after a reasonable ad
spent.

47. ANALYZING
YOUR WAYTO E-COMMERCE PROFITABILITY
MEETUP
get.pirateskills.com/analyze
Nov 18th 2020