Metrics for Online Retail (Shopify/.CO/Luxr webinar)

Metrics For Online
Retailers
Shopify’s Build a Business Competition

Janice Fraser
Jason Fraser

March 5, 2014

Jason Fraser
Founder
Master Coach

© 2014 Luxr Incorporated www.luxr.co

Who is

?

Supporting entrepreneurs worldwide
Video based curriculum
Short video workshops
In-person workshops around the world


Follow Us

@luxrco
Event Hashtag

#retailmetrics

Gather Your Tools


3 Key Metrics
Acquisition
Conversion
Dollars per sale


How do I find my
numbers?
has some basic features
Google Analytics


How do I find my
numbers?
Buy a clicker!


How do I find my
numbers?
Buy a clicker!
Keep a log by the register


Why?
Make informed decisions
Move the numbers
Make more money


Metrics Pattern
Observe


Act

Observe

Acquisition
How many people come to your store?

Your
Store

There are many ways to
acquire customers
Paid traffic
Mailing lists
Search results
Social media

Using the Pattern
Observe


Act

Observe

Using the Pattern
Observe
Establish a
baseline


Act

Observe

Using the Pattern
Observe
Establish a
baseline

Act
Brainstorm
ideas to
drive traffic.
Try one as an
experiment.


Observe

Using the Pattern
Observe
Establish a
baseline

Act
Brainstorm
ideas to
drive traffic.
Try one as an
experiment.


Observe
Track the
results

Brainstorm!

What can you do to get more customers to
come to your store?

2:00

:15

1:45

:30

1:30

1:15

:45
1:00

Brainstorm!

Just 4 ideas to increase traffic

2:00
:15

1:45

:30

1:30

1:15

:45
1:00

Choose
Two selection criteria:


Choose
CHOOSE 2: Most likely to generate traffic


Choose
CHOOSE 2: Most likely to generate traffic
CIRCLE 1: Easier to implement


Make it happen
Put some time in your schedule to do the work
Get started right away


Conversion
Of the people who visit, how many buy?


Conversion
Of the people who visit, how many buy?

$
MONEY

$

$

$

$
MONEY

$

MONEY
MONEY

$

$

$
MONEY

MONEY

$

$
MONEY


$

$

$

Kinds of Conversion
Ad views to site visits
Site visits to purchases


Conversion Is Key
Low conversion suggests fundamental problems:
1 Wrong target market
2 Wrong product for the market
3 Wrong message


Using the Pattern
Observe

Act

Establish a
baseline

Brainstorm
ideas to
increase
conversion.
Try one as an
experiment.


Observe

Using the Pattern
Observe

Act

Establish a
baseline

Brainstorm
ideas to
increase
conversion.
Try one as an
experiment.


Observe
Track the
results

Dollars per Sale
Average cart size


It’s hard to get
people to visit your
store.
Make the most of
each transaction.


Using the Pattern
Observe

Act

Establish a
baseline

Brainstorm
ideas to
increase the
dollars per sale.
Try one as an
experiment.


Observe

Using the Pattern
Observe

Act

Establish a
baseline

Brainstorm
ideas to
increase the
dollars per sale.
Try one as an
experiment.


Observe
Track the
results

Many other things
to measure
Repeat sales
Customer referrals
Page views per visit
Item views per visit
Abandoned carts


If tracking your
metrics doesn’t
change your
behavior...


If tracking your
metrics doesn’t
change your
behavior...
...then there’s no
point in doing it.


Using the Pattern
Measure


Act

Measure
Again

Over and Over
Measure

Act


What’s good?
What’s good for you?
Set your own goals
Do some math


How they play
together
If 500 people visit my store in a day


How they play
together
ON
ITI
S

UI
Q
Aa day
If 500 people visit my store in


How they play
together
ON
ITI
S

UI
Q
Aa day
2% make a purchase
That’s 10 purchases


How they play
together
ON
ITI
S

UI
Q
Aa day
2% make a purchase


ON
C

RS
VE

N
IO

How they play
together
ON
ITI
S

UI
Q
Aa day
2% make a purchase

ON
C

Average cart size is $40
My gross is $400

RS
VE

N
IO

How they play
together
ON
ITI
S

UI
Q
Aa day
2% make a purchase

ON
C

RS
VE

N
IO
ER
P

RS
LA
OL
D
LE
SA
Average cart size is $40
My gross is $400

Backtrack to discover
what you need
If your profit (net of COGS) is
50%, that’s $200

-BUTIf it costs me $300/day to run my
business, I know I need to change
something

What do I do?
Increase Acquisition to 750 visitors
-or-

Increase Conversion to 3%
-or-

Increase Dollars Per Sale to $60


Acquisition: Baseline
500 visitors converting at 2% = 10 purchases
10 purchases x $40 each = $400 gross
$400 gross x 50% = Net of $200


Acquisition: Improved
$600 gross x 50% = Net of $300


Conversion: Baseline
$400 gross x 50% = Net of $200


Conversion: Improved
$600 gross x 50% = Net of $300


Dollars per sale: Baseline
$400 gross x 50% = Net of $200


Dollars per sale: Improved
$600 gross x 50% = Net of $300


This is a way of life that
grows your business
$1350 gross x 50% = Net of $675


Measuring tells you
what, but not why.
Talk to your customers
Listen to your customers
Learn from your customers
Empathize with your customers


Why?
Make informed decisions
Move the numbers

Make more money

Why?
Make $informed decisions
MONEY

$

$

$

$

MONEY

$

$
Move the numbers

MONEY

$

MONEY

$

$

MONEY
MONEY

$

$
MONEY

$

$

Make more money

Thank you!

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@luxrco

Metrics For Online Retailers
Shopify’s Build a Business Competition

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Metrics for Online Retail (Shopify/.CO/Luxr webinar)

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