Analyzing online traffic and making sense of all the data is something digital marketers do every day. After all we need to understand what’s going on in order to grow the business. Sometimes our assumptions are based on past experiences, sometimes we can support them with data, but quite often they are based on pure logic. Are they really? Over the years we’ve worked with numerous clients and learned that some assumptions are proven wrong more often than not.

1. 5 FALSE ASSUMPTIONS
ABOUT YOUR ONLINE TRAFFIC
Andraž Štalec

2. I LOVE SEARCH

3. Where else could you find things like these…

4. And these…

5. And these…

6. It fulfills our lives

7. Search query
„Nike sneakers“
Ad
„Nike sneakers“
Landing page
Nike sneakers

8. €-
€50,000.00
€100,000.00
€150,000.00
€200,000.00
€250,000.00
€300,000.00
€350,000.00
€400,000.00
€450,000.00
€500,000.00
Revenue
You achieve great results for your client (or company)

9. But then sometimes all this results in totally unexpected results
Productbrandsusersaresearchingfor
Productbrandsusersarebuying
Nike
Adidas
Salomon
Nike
Adidas
Salomon

10. We were so wrong
0%
brand stickiness
25%
brand stickiness
50%
brand stickiness
Productbrandsusersaresearchingfor
Nike
Adidas
Salomon
Nike
Adidas
Salomon

11. Because we fail to see behind the standard reports.
MOST FAILURES ARE NOT EVEN CAUSED BY PPC
CHALLENGES, BUT BECAUSE OF BAD ASSUMPTIONS

12. IT’S TIME TO DIVE DEEPER AND TO UNDERSTAND WHAT IS
REALLY HAPPENING.

13. Brand stickiness report
Nike has a brand
stickiness of 50 %

14. Use this report to ….
Sitelink extensions
For brands with low stickiness include
secondary brands as Sitelink extensions.
Dynamic remarketing
Promote the products users are actually
enggaging with on the website.
Estabilsh RLSA
On brands that are „stilling“ most of the
conusmers from the primary brand.
Research low stickiness
Do you have enough products on stock?
Are your prices compepative?

15. But do they?
THE MOST LOYAL USERS COME FROM DIRECT TRAFFIC

16. It’s quite common to see channels like Paid Search, Organic Search and Email
outperforming Direct

17. 98,70 % of users!
IGNORE CONVERTERS
FOCUS ON THE ONES WHO DIDN‘T CONVERT

18. Use Session Quality report to deliver more actionable insights

19. Use Session Quality report to deliver more actionable insights

20. WE ARE CREATURES OF HABIT

21. BUT MORE OFTEN THAN TO PRODUCTS AND BRANDS,
HABITS ARE CONNECTED TO OUR BEHAVIOR

22. 50%
50%
75%
25% 25%
Display Organic Search Referral Paid Search Email Direct

23. Cross-channel CDJ: First interaction is Direct
100%
40.48%
83.42%
18.31%
17.73%
5.14%
11.74%
4.81%
First interaction Assisted interactions Last interaction
(Other) Direct Display Email Organic Search Paid Search Referral Social Network

24. Check out this blog post to learn how to create these reports:
https://www.red-orbit.com/blog/e-commerce-cross-channel-consumer-decision-journey-report

25. We’ve seen a decrease in Paid Search revenues of up to 80 %!
GENERIC SEARCH IS IN RAPID DECLINE

26. Search is behaving strangely
FREE FALL
Decrease in generic
Branded steady
BRAND TAKING
OVER
Decrease in generic
Increase in branded
GENERICS RULE
Increase in generic

27. BRANDS AGE. INDUSTRIES CHANGE. MARKETS GET
MATURE. EVEN ON SEARCH.

28. Market maturity stages and Search
https://www.red-orbit.com/blog/the-decline-of-generic-search-and-how-to-save-your-brand

29. 12 types of search users
Nike sneakersNike
sneakers
Nike
sneakers
Nike
sneakers
Nike
sneakers
Nike sneakers Nike
sneakers
Nike
sneakers

30. 12 types of search users
https://www.red-orbit.com/blog/12-types-of-google-search-users

31. OPTIMIZE ON CPA

32. One-time customer revenue stream
CPA
GM CPA <= GM
The only way your business could be profitable is achieving CPA
much lower then your Gross Margin.

33. One-time customer revenue stream
CPA
GM CPA > GM
Due to increased competition CPCs are increasing and CRs are
decreasing.

34. Shift to retention model
CAC
GM
CLV <= CLC
Sum of GM from all customer transactions should be higher then
sum of all costs connected to the customer
GM GM
GM
GM
GM
MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC MRC
CLV
CLC

35. CLVP = (P × AOV) × AGM) × ALT
The tricky part is calculating your CLV

36. The SaaS Ecommerce Funnel
Acquire Activate Retain Grow Referrals
2nd purchase1st purchase

37. How do you measure churn in ecommerce?
Customer aquisition
Retention
Customer churns

38. How do you measure churn in ecommerce?
3 months 6 months

39. The SaaS Ecommerce Funnel
Acquire Activate Retain Grow Referrals
1st purchase 2nd purchase Customer
Engagement
Score

40. Customer Engagement Score
01
02
03
043%
35%
10%
50% 05
10%
Days since last
session
Sessions with
product views
Interest-based
browsing
Adds to cart Email engagement
rate

41. Active vs. churned customers

42. Active vs. churned customers
active
churned

43. WITH NEW FOCUS NEW KPIs ARISE

44. Top Ecommerce metrics
2 31 4 5 6 7
CLV CAC Customer
profitability
score
Repeat rate Retention rate AOV CES

45. Making an ASS out of U and ME
ASSUME

46. Get to know the business. It will help you make better decisions.
ECOMMERCE
CUSTOMER
LIFETIME
VALUE
1.600 €
TRANSACTION
S PER MONT
0.33
CUSTOMER
LIFETIME
24 MONTHS
AVERAGE
ORDER VALUE
400 €
AVERAGE
GROSS
MARGIN
50 %
CUSTOMERS
CUSTOMER
ACQUISITION
NEW USERS
CONVERSION
RATE
CUSTOMER
ACTIVIATON
REPEAT RATE
CUSTOMER
RETENTION
CHURN CES
CAC MRC

47. Establish top level business KPIs and connect your activities to them
2 31 4 5 6 7
CLV CAC Customer
profitability
score
Repeat rate Retention rate AOV CES

48. Create dashboards for day-to-day monitoring

49. Go beyond traffic. Analyze the business.

50. Don‘t build reports. Create value.
Insights Lessons learned Actions Business impact

51. LET‘S GO AND DELIVER SUCCESS

52. Thank you
01 02 03 04
Email
andraz@red-orbit.com
Twitter
@andrazstalec
LinkedIn
Andraz Stalec
Web
www.red-orbit.com