Category : Ecommerce
How to calculate your marketing ROI
Are you running campaigns in AdWords, Facebook or on another advertising platform? Do you know whether your marketing efforts are paying off and which channels you should keep investing in to increase your product sales? As marketers face more and more pressure to demonstrate that their activities are contributing towards the profit, there is a bigger need for you to be able to show your decisions yield positive results. But if a particular channel or campaign is doing the opposite and causing your business losses, then the sooner you figure that out, the quicker you'll be able to adjust your further marketing plans. That’s where calculating and tracking your ROI becomes important. By being able to figure out how much you make from investing into a particular campaign or channel, you can figure out where to focus your budget. Whilst it’s difficult to compare the performance of specific marketing tactics across every single industry and company, there are interesting conclusions that have come out from market research. As reported by Web Strategies Inc., the top 3 channels that generated the best ROI were email marketing, SEO / organic search and content marketing. Email marketing has also been reported elsewhere to give the best ROI (source: Campaign Monitor), but you should focus on figuring out the correct ROI for your marketing activities and, based on that, decide which ones work for you best. Further reading: What is CRO, conversion optimisation, for ecommerce? Image Credit: Image courtesy of Maialisa at Pixabay
What is CRO, conversion rate optimisation, for ecommerce?
If you run or work in an ecommerce business, you will always be looking for ways to increase your sales. So CRO or conversion rate optimisation is one of the key metrics you should care about - review and improve it. Are potential buyers leaving your online store before purchasing products? Have you looked at the potential reasons why they may be leaving and ways to improve the number of visitors who end up buying? Increasing that number of people who complete the main action, or convert, is called conversion rate optimisation. Some of the reasons why more people are not buying your products could be: product pages are loading too slowly not enough information provided about the product your ecommerce site has poor navigation information about delivery and returns costs is too confusing/difficult to find need more time to think before committing to a purchase In the video below, Edward gives an overview of CRO and talks through some examples of tests you could be running to find out how to improve your conversion rate. *This video is part of ISDI online training courses for digital professionals. Video transcription so one of the important things, if you're going to increase your return on investment of marketing campaign, is to think about how users engage with your page and this is typically called conversion rate optimisation or increasing the percentage of people who land on the page or visit the page to those that do the main action let's look at this example which is a very generic e-commerce product page as you can see the very obvious call to action, which is highlighted, is to click the Buy button to add it to cart if we get a marketing campaign to push people to page let's say the product here is some pink shoes and our campaign says buy pink shoes we are wasting money that's never going to have a positive return on investment if people out on the page and don't even like the content they don't engage with it so we need to measure very carefully what is the bounce rate of our landing page, and the bounce rate is the percent of people who land on the page and then go away with them without doing any further action and conversion rate optimisation is really the process through which you might go to get more people to convert - in this case to click Buy so we might look at the text on the page the heading could we change the copy to make it more engaging or to make it more fitting with the users expectations so if we advertise for pink shoes this better say pink shoes somewhere in the copy the next thing we'll optimise is the image - is it appealing, is it easy to see what the product is, maybe we might add a 3d visualisation animation of the product for them to get a better feel for it and then we might experiment with a Buy button itself - how about making it bigger or make it red this might seem really trivial but you'd be amazed the difference in conversion between let's say a blue button and a red button, so altogether we can run a series of tests in the next chapter, we're going to look at a series of tests you might run to test those things but the process of doing it is conversion rate optimisation and that's really going to help you boost that return investment from any given marketing campaign Have any questions? Get in touch with our experts! Get Social! Follow us on LinkedIn, Twitter, and Facebook and keep up-to-date with our Google Analytics insights.
How to use Enhanced Ecommerce in Google Analytics to optimise product listings
Ecommerce reporting in Google Analytics is typically used to measure checkout performance or product revenue. However, by analysing events at the top of the funnel, we can see which products need better images, descriptions or pricing to improve conversion. Space on product listing pages is a valuable commodity, and products which get users to click on them – but don’t then result in conversion – need to be removed or amended. Equally, products that never get clicked within the list may need tweaking. Littledata ran this analysis for a UK retailer with Google Analytics Enhanced Ecommerce installed. The result was a scatter plot of product list click-through-rate (CTR) – in this case, based on the ratio of product detail views to product listing views – versus product add-to-cart rate. For this retailer, it was only possible to buy a product from the detail page. We identified three problem categories of product, away from the main cluster: Quick sellers: these had an excellent add-to-cart rate, but did not get enough list clicks. Many of them were upsell items, and should be promoted as ‘you may also like this’. Poor converters: these had high click-through rates, but did not get added to cart. Either the product imaging, description or features need adjusting. Non-starters: never get clicked on within the list. Either there are incorrectly categorised, or the thumbnail/title doesn’t appeal to the audience. They need to be amended or removed. How we did it Step 1 - Build a custom report in GA We need three metrics for each product name (or SKU) - product list views, product detail views and product add to carts - and then add 'product' as a dimension. Step 2 - Export the data into Excel Google Analytics can't do the statistical functional we need, so Excel is our favoured tool. Pick a decent time series (we chose the last three months) and export. Step 3 - Calculate List > Detail click through This website is not capturing Product List CTR as a separate metric in GA, so we need to calculate as Product Detail Views divided by Product List Views. However, our function will ignore products where there were less than 300 list views, where the rate is too subject to chance. Step 4 - Calculate Detail > Add to Cart rate Here we need to calculate Product Adds to Cart divided by Product Detail Views. Again, our function will ignore products where there were less than 200 detail views. Step 5 - Exclude outliers We will use an upper and lower bound of the median +/- three standard deviations to remove improbable outliers (most likely from tracking glitches). First we calculate the median ( =MEDIAN(range) ) and the standard deviation for the population ( =STDEV.P(range) ). Then we can write a formula to filter out all those outside of the range. Step 6 - Plot the data Using the scatter plot type, we specify List > Detail rate as the X axis and Detail > Add to Cart as the Y axis. The next step would be to weight this performance by margin contribution: some poor converters may be worth keeping because the few sales they generate are high margin. If you are interested in setting up Enhanced Ecommerce to get this kind of data or need help with marketing analytics then please get in contact. Get Social! Follow us on LinkedIn, Twitter, and Facebook and keep up-to-date with our Google Analytics insights.
3 steps to great email customer support
As a consumer brand, is there a better way of getting customers to refer you business than offering excellent customer support? My inbox this afternoon showed two polar opposites of handling support by email and illustrated what great support looks like. I can sum up the differences: Ditch the "you're in a queue" email Really listen to the customer Offer further advice Ditch the "you're in a queue" email My depressing email exchange with Swiss Airlines starts when I tried to complain about the £4.50 credit card charge. I would normally never pay it, but their debit card payment route was broken, so to book the flight I had no choice. Dear customer, thank you for your message. We will get back to you as soon as possible. The response time may vary depending on the amount of research required. Please do not reply to this E-Mail. Use for your feedback our page: www.swiss.com/contacts We thank you for your understanding. Yours sincerely, Swiss International Air Lines Ltd. Let's unpack the sheer hostility of this: "thank you for your message" = we care so little we couldn't be bothered to add a capital letter "as soon as possible" = nor do we have enough staff to answer today "Please do not reply to this E-Mail" = we can't even be bothered to install a smart ticketing system Really it would be better not to send me an auto-response at all - just get back to me when a human is ready. Let's compare that with an email I get from TransferWise, which was my good experience of the day. At first glance, this looks like an automated response, but then I realise it's signed by a real person - and they actually want me to reply to the email. TransferWise are having to deal with genuinely onerous FCA anti-money laundering rules - and offering a helpful way to get around it. Really listen to the customer The Swiss conversation goes downhill from there. OK, I'm a bit smart Alec about the transaction fee - but it's a well known scam. On 24 Feb 2016, at 05:51, firstname.lastname@example.org wrote: Dear Mr. Upton, Thank you for writing to us with regards to your query and we apologizes for the inconvenience caused. We would like to inform you that GBP4.50 is the fee charged directly from the bank/bank fee. Therefore, we cannot grant a refund with regards to the above mentioned fees. We trust the above information will be of assistance and are available to assist you with any further questions at any time. Thank you for choosing SWISS and we wish you a pleasant day further. Kind regards, Miriama Consultant Customer Travel Services / R1S ----- From: Edward Upton [mailto:email@example.com] Dear Miriama, That is absolutely untrue. MasterCard charges you 0.3% for the transaction, which in this case is 51p https://www.mastercard.us/en-us/about-mastercard/what-we-do/interchange.html So please can you refund me GBP 4? regards, Edward Upton ----- From: firstname.lastname@example.org Dear Mr. Upton, Thank you for writing to us. We have reviewed your request regarding your reservation. Please note that in regards to your request we will not be able ot refund the OPC. Please note this (GBP4.50) is a charge placed by the credit card company and it applies as per the point of commencement of your ticket. We hope this information is useful. Please do let us know if you need additional information. Thank you for choosing SWISS. Kind Regards, Alexander Consultant Customer Travel Services / R1S This feels like someone has cut and pasted from a standard response list. It's robotic. And given that the original issue was actually about their website being broken, there is a total lack of empathy for the issue - just some 'apologizes' (sic). Offer further advice Often companies have to say no to refunds and extra requests, but at least be gracious. And sometimes the company can offer you something that benefits both parties: a guide to how to avoid needing to email in the future. Here is the exemplary reply from Transferwise Hi Edward, I hope you’re doing well! Thank you for getting back to us, and confirming that we can change the name on the payment ###### to your personal. I shall quickly pass this on to my colleagues, who are able to make the change and proceed with the transfer. As soon as the payment is sent out from our end, we shall send you a confirmation e-mail, like always. All you need to do is check your inbox every now and then.:) Just in case, I will explain how you can choose to use both your personal and business profiles on TransferWise. Once you log in to your TransferWise account, on the upper right corner you should see a logo (like a man in a circle). When you click on the logo, you should see: Use as Edward Upton Use as Littledata Consulting Ltd Therefore, if you want to set up a personal payment, and you’re planning to send money from your personal bank account, please make sure that “Use as Edward Upton” is ticked. And if you’re planning to make a business payment and send money from your business bank account, please make sure to choose the second option. If anything was left unclear or you would need help with something else, please don’t hesitate to get back to us. We are always happy if we can help! I hope you have a lovely day, Eliisa, TransferWise Support Which company do you think I'll recommend in the future? Comment below!
How to audit your Web Analytics Ecommerce tracking
Best enhanced ecommerce plugins for Magento
Under the hood of Littledata
Littledata tool gives you insight into your customers' behaviour online. We look through hundreds of Google Analytics metrics and trends to give you summarised reports, alerts on significant changes, customised tips and benchmarks against competitor sites. This guide explains how we generate your reports and provide actionable analytics. 1. You authorise our app to access your Google Analytics data As a Google Analytics user you will already be sending data to Google every time someone interacts with your website or app. Google Analytics provides an API where our app can query this underlying data and provide summary reports in our own style. But you are only granting us READ access, so there is no possibility that any data or settings in your Google Analytics will change. 2. You pick which view to report on Once you've authorised the access, you pick which Google Analytics view you want to get the reports on. Some people will have multiple views (previously called ‘profiles’) set up for a particular website. They might have subtly different data – for example, one excludes traffic from company offices – so pick the most appropriate one for management reports. We will then ask for your email so we know where to send future alerts to. 3. Every day we look for significant changes and trending pages There are over 100 Google Analytics reports and our clever algorithms scan through all of them to find the most interesting changes to highlight. For all but the largest businesses, day-by-day comparisons are the most appropriate way of spotting changing behaviour on your website. Every morning (around 4am local time) our app fetches your traffic data from the previous day – broken down into relevant segments, like mobile traffic from organic search – and compares it against a pattern from the previous week. This isn’t just signalling whether a metric has changed – web traffic is unpredictable and changes every day (scientists call this ‘noise’). We are looking for how likely that yesterday’s value was out of line with the recent pattern. We express this as signal bars in the app: one bar means there is a 90% chance this result is significant (not chance), two bars means a 99% chance and three bars means 99.9% certain (less than a 1 in 1000 chance it is a fluke). Separately, we look for which individual pages are trending – based on the same probabilistic approach. Mostly this is change in overall views of the page, but sometimes in entrances or bounce rate. If you are not seeing screenshots for particular pages there are a few reasons why: The website URL you entered in Google Analytics may be out of date Your tracking code may run across a number of URLs – e.g. company.com and blog.company.com – and you don’t specify which in Google Analytics The page may be inaccessible to our app – typically because a person needs to login to see it 4. We look for common setup issues The tracking code that you (or your developers) copy and pasted from Google Analytics into your website is only the very basic setup. Tracking custom events and fixing issues like cross-domain tracking and spam referrals can give you more accurate data – and more useful reports from us. Littledata offers setup and consultancy to improve your data collection, or to do further manual audit. This is especially relevant if you are upgrading to Universal Analytics or planning a major site redesign. 5. We email the most significant changes to you Every day - but only if you have significant changes - we generate a summary email, with the highest priority reports you should look at. You can click through on any of these to see a mobile-friendly summary. An example change might be that 'Bounce rate from natural search traffic is down by 8% yesterday'. If you usually get a consistent bounce rate for natural / organic search traffic, and one day that changes, then it should be interesting to investigate why. If you want your colleagues to stay on top of these changes you can add them to the distribution list, or change the frequency of the emails in My Subscriptions. 6. Every Sunday we look for changes over the previous week Every week we look for longer-term trends – which are only visible when comparing the last week with the previous week. You should get more alerts on a Sunday. If you have a site with under 10,000 visits a month, you are likely to see more changes week-by-week than day-by-day. To check the setup of your reports, login to Littledata tool. For any further questions, please feel free to leave a comment below, contact us via phone or email, or send us a tweet @LittledataUK.
Top 5 ecommerce trends in 2015: more power to consumer
2014 saw an increasing number of people buying online. With ever-growing competition, it’s ever more important for retailers to understand what their customers want and how to best serve them. Let’s look at five main ways that shoppers will be dictating what they want from ecommerce retailers in 2015 and how you can track these trends. 1. They’re shopping more on mobile devices Not only are shoppers making more purchases on their laptops and PCs but they’re also increasingly using their mobile devices. Retailers saw mobile transactions grow 40% at the end of the last year and there are no signs of slow down. If you’re sceptical about whether optimising for tablets and smartphones is necessary for your business, add a custom Google Analytics report by Lens10 that will quickly tell you if you should go mobile. It will also show you which devices are being used to access your site so you’ll know where to focus your efforts. 2. They’re using click & collect services In 2014 we saw some of the biggest companies jump on the click & collect bandwagon to allow customers to choose when and where they want to pick up their purchases. Waitrose, Ocado, Amazon partnered with TfL to provide click & collect at tube stations. Argos and eBay teamed up to offer the collection of parcels to eBay buyers from Argos stores nationwide. Online buyers want to enjoy a greater freedom when it comes to their shopping so we expect to see more companies join up to expand their offering. With 76% of digital shoppers predicted to use click & collect service by 2017, many more companies will begin offering the service. It’s time to offer customers the option to pick up purchases on their daily commute. 3. They’re expecting convenient delivery options It’s annoying to go through the online buying process only to be faced with limited and costly delivery options at the checkout page. Customers want more flexibility with how and when their purchase will be delivered and if your competitor offers those better options, then why aren’t you? 50% of online shoppers have abandoned a purchase online due to inconvenient delivery options. This number is staggering and should act as a warning to review your delivery cost, times and the accuracy of information you provide on the site. 4. They want personalised communication As shoppers get snowed under hundreds of emails, their individual experiences have become more important. Whilst a large majority of the businesses, 94%, understand that personalisation is crucial to their strategy it’s surprising that not that many are using the tactics. Econsultancy and Adobe produced a survey that reported 14% rise in sales, which makes a strong case for making marketing more personal. Track your customers’ location, local weather, viewed and bought items, and start testing with personalised marketing campaigns to see what works for your sales. (Chart: How do you (or your clients) measure the benefits of personalisation? | Econsultancy) 5. They’re accelerating online sales UK retailers saw their biggest sales over Christmas period, with digital increasingly getting the bigger share of the overall retail market. In 2014 ecommerce sales broke the £100bn mark for the first time and IMRG Capgemini e-Retail Sales Index predicts further growth to £116bn this year Be wary of repeating the mistakes of retailers like Currys, Argos, Tesco and PC World, whose websites couldn’t handle the increased number of visitors on Black Friday. Many customers remained stuck on frustrating holding pages instead of shopping. Check out some useful tips from Econsultancy for how to prepare for Black Friday in 2015. By setting up ecommerce tracking you can understand what shoppers are doing on your website and make informed decisions on further updates to product pages. In 2015 retailers’ success will depend on their ability to meet customers’ expectations and we hope the list above has helped your preparations. If there are any other trends you see growing in 2015, do share them in the comments.
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