3 deep dives into customer lifetime value for ecommerce sites
Subscription ecommerce has continued to scale throughout the pandemic, with consumables like beverages and meal kits rising particularly fast in North America. Shopify sites selling by subscription have always been a core part of our customer base at Littledata, and with even traditionally brick-and-mortar retailers moving online and trying out subscription ideas, we've got our hands full with new subscription sites these days. It might be easier than ever to start a subscription box (companies like Bulu have transformed the market), but getting accurate data about marketing attribution and customer lifetime value is difficult without the right data setup. So with Black Friday Cyber Monday coming up, we thought it would be useful to share some of our top posts this year about subscription analytics. Here are our top three posts this year. Enjoy! 1. How to calculate LTV for ecommerce subscriptions Lifetime value is a core metric for many online companies these days. This is especially important for ecommerce sites, because whether you're focusing on repeat purchases or actual subscriptions, marketing to (and product alignment with) the highest LTV customers can make or break a DTC brand today. In this post, our founder breaks down the basics of LTV calculations for ecommerce, focused on Shopify stores using ReCharge for subscriptions. https://blog.littledata.io/2020/01/14/how-to-calculate-lifetime-value-ltv-for-subscription-ecommerce-in-google-analytics/ 2. How to use Custom Dimensions in Google Analytics to increase subscription sales Custom Dimensions are a remarkably powerful feature in Google Analytics, often overlooked because they can be complicated to set up manually (also, they "sound complicated"). But the truth is that with a little background research, custom dimensions are easy to understand, and -- more importantly -- to apply to your daily, weekly and monthly reports in order to get a clear view of different order types, repeat purchasing behavior, and more. https://blog.littledata.io/2019/09/19/quick-tips-for-subscription-stores-using-custom-dimensions-in-google-analytics/ In this detailed post, our lead analyst dives into the complications of modern DTC brands selling a mix of product types and subscriptions. He focuses on how to reconcile differences in different reporting tools, and how to create segments and reports to fit your unique business model. After all, talk is cheap. How can you put LTV calculations to work for your business? [note]Did you know? Littledata automatically tracks first-time and recurring purchases and ties them back to the original marketing source.[/note] 3. The ultimate guide to LTV tracking In this popular guest post on the Shogun blog, we take a look at everything you need to know about LTV. When you know your LTV, you can: Know which kinds of products your high-LTV customers want more of Know how much to spend to acquire a “similar” customer and still make a profit based on their projected buying habits Promote the products with the highest profitability Increase your marketing budget and inbound efforts to attract your most profitable types of customers [subscribe]
What's included in Analytics traffic sources?
The Channel report in Google Analytics (under 'Acquisition' section) splits out into 6 or more types of visit channel: Direct Where a visitor has: typed the URL into the address bar clicked on a link which is NOT in another web page (e.g. in a mobile app) visited a bookmarked link Organic Search All visits from search engines (i.e. Google, Bing, Yahoo) which were not an advertisement. You used to be able to filter out people searching for your brand (which are more like Direct visits), but now the search terms are not provided. Paid Search Visits from search engines where the visitor clicked on an advert. Referral Where a visitor has clicked on a link in another website (not your own domain), but not including search engines or social networks. Social Networks Specifically links from known social network websites (including Facebook, Twitter, LinkedIn etc) Email From links tagged as medium = 'email'. Your email software needs to be configured correctly to add this tag. Display Links tagged as 'display' or 'cpm'. FAQs Can I change the channel groupings? Yes, you can change this under Admin .. (Selected View).. Channel Grouping. But we recommend you don't do this for your default view, as you won't be able to compare the historical data.
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