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.
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.
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?
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
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
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