How to calculate customer lifetime value (CLV) for subscription ecommerce in Google Analytics
Many of Littledata's subscription customers come to us with a similar problem: how to calculate return on advertising spend, considering the varying customer lifetime value (CLV) of subscription signups. Calculating marketing ROI for subscription ecommerce is a big problem with a number of potential solutions, but even the initial problem is often misunderstood. In this post I break down what the problem is, and walk through two proven solutions for getting consistent, reliable CLV reporting in Google Analytics. What is customer lifetime value? I work with all kinds of subscription ecommerce businesses: beauty boxes, nutritional supplements, training courses and even sunglasses-by-the-month. All of them want to optimise customer acquisition costs. The common factor is they are all willing to pay way MORE than the value of the customers' first subscription payment... because they expect the customer to subscribe for many months. But for how many months exactly? That's the big question. Paying for a marketing campaign which bring trial customers who cancel after one payment - or worse, before the first payment - is very different from paying to attract sticky subscribers. A marketing director of a subscription business should be willing to pay WAY more to attract customers than stay 12 months than customers who only stay one month. 12 times more, to be precise. So how do we measure the different contribution of marketing campaigns to lifetime customer value? In Google Analytics you may be using ecommerce tracking to measure the first order value, but this misses the crucial detail of how long those shoppers will remain subscribers. With lifetime customer value segments we can make more efficient use of media, tailor adverts to different segments, find new customers with lookalike audiences and target loyalty campaigns. There are two ways for a marketing manager to see this data in Google Analytics: one is a more difficult, manual solution; the other is an easier, automated solution that ties recurring payments back to the original campaigns. A manual solution: segment orders and assign a lifetime value to each channel It's possible to see the required data in GA by manually segmenting orders and assigning a lifetime value to each channel. For this solution you'll need to join together: (a) the source of a sample of first orders from more than a year ago, by customer number or transaction ID and (b) the CLV of these customers The accuracy of the data set for A is limited by how your Google Analytics is set up: if your ecommerce marketing attribution is not accurate (e.g. using Shopify's out-the-box GA scripts) then any analysis is flawed. You can get B from your subscription billing solution, exporting a list of customer payments (and anonymising the name or email before you share the file internally). To link B to A, you'll need either to have the customer number or transaction ID of the first payment (if this is stored in Google Analytics). [subscribe] Then you can join the two data sets in Excel (using VLOOKUP or similar function), and average out the lifetime value by channel. Even though it's only a sample, if you have more than 100 customers in each major channel it should give you enough data to extrapolate from. Now you've got that CLV by channel, and assuming that is steady over time, you could import that back into Google Analytics by sending a custom event when a new customer subscribes with the 'event value' set as the lifetime value. The caveat is that CLV by channel will likely change over time, so you'll need to repeat the analysis every month. If you're looking to get away from manual solutions and excessive spreadsheets, read on... A better solution: tie recurring payments back to the original campaign(s) What if you could import the recurring payments into Google Analytics directly, as they are paid, so the CLV is constantly updated and can be segmented by campaign, country, device or any other standard GA dimension? This is what our Google Analytics connection for ReCharge does. Available for any store using Shopify as their ecommerce platform and ReCharge for recurring billing, the smart connection (integration) ties every recurring payment back to the campaigns in GA. Here's how the connector works The only drawback is that you'll need to wait a few months for enough customer purchase history (which feeds into CLV) to be gathered. We think it's worth the wait, as you then have accurate data going forward without needing to do any manual imports or exports. Then, if you also import your campaign costs automatically, you can do the Return on Investment (ROI) calculations directly in Google Analytics, using GA's new ROI Analysis report (under Conversions > Attribution), or in your favourite reporting tool. Do you have a unique way of tracking your marketing to maximise CLV? Are there other metrics you think are more important for subscription retailers? Littledata's connections are growing. We'll be launching integrations for other payment solutions later this year, so let us know if there's a particular one you'd like to see next.
Google Analytics Data Retention policy - which reports does it limit?
From 25th May 2018 Google allowed you to automatically wipe user-level data from the reporting from before a cut-off date, to better comply with GDPR. We made the change for Littledata's account to wipe user-level data after 26 months, and this is what we found when reporting before February 2016. Reports you can still view before the user data removal Audience metrics Pageviews ✓ Sessions ✓ Users X Bounce rate ✓ Audience dimensions Demographics X OS / Browser X Location X User Type X Behaviour Pageviews ✓ Custom events X
Tips and tricks for transitioning your physical business online
Transitioning your physical business online is a good choice in the modern age of digital business. It’s all about the internet and selling online. Customers aren’t shopping in brick and mortar businesses as much as they did years ago, and it’s obvious the trend is going digital. But where should you start? In 2017, over 40% of shoppers in the US shopped online several times per month according to Statistia. That’s a big percentage, and it’s only going up! You need the best tips and tricks to stay competitive if you’re transitioning your physical business online. Here’s a guide to smoothly making your transition from in-person business to online business. Choose the right selling platform Your first step when searching for the perfect way to sell online is finding the right platform. You have two main options: sell on an existing platform or create your own. Examples of existing platforms include Etsy and eBay which already have a customer base. While it’s easier to find new customers on these existing platforms, you also lose some control when selling with them. If you do choose to build your own website, there are a lot of tools for easily integrating selling on your website. Shopify is the most common platform for e-commerce and it’s easy to get started with. It's easy to modify to fit your brand and products, and everything just works, right out of the box. Your customers don’t have a lot of time to search your website for exactly what they’re looking for. The easier your website is to navigate, the more customers you’ll convert! That said, the choice for the best ecommerce platform often comes down to Shopify vs Magento. Find a good merchant account With your selling platform comes your merchant account. This is how you’ll process payments through your website, and it can make or break the user experience. Your merchant account is one of the most important aspects of e-commerce reported ExpertSure. When choosing a merchant account, less is more. One of the biggest problems facing online sellers is abandoned carts. You can cut down on this number of people leaving before entering their credit card info by making it as quick and simple as possible to checkout on your website. If you master these basics of building an online store on a platform like Shopify, your transition to online will be as smooth as possible! Did you know that you can even use the Shopify POS for selling offline as well? [subscribe] Be active on social media - but not overly salesy Now that you’ve chosen the right selling platform, it’s time to take your online presence to social media. Social media is to business today what print ads were to businesses 20 years ago. Social media has a lot of power today. According to WordSteam, over 60% of Americans are active on Facebook! If you want to make a splash with your marketing, you need to be on social media. As an e-commerce business, you might think you should be selling on social media. This isn't’ the case! Instead, focus on building relationships with your audience. Create valuable content that your users actually will want to share, and you’ll convert more users into buyers! As as an online business, social media is your first line of interaction with your audience. Why move your business online? In today's market, everything is online. It’s not enough to have a brick and mortar store. People want to be able to shop 24/7 and without worrying about holidays or store hours. An online business never takes days off. It doesn’t have to hire a store clerk or a cashier. There’s a lot of upfront work when setting up the website, but once you’ve established the right platform it’s smooth sailing as long as you have the right marketing strategy with free analytics tools to make sure you're tracking sales, marketing and e-commerce checkout steps. You might need to outsource your online marketing work, and with a good reason. This free Google AdWords PPC wasted spend calculator tool by Fang Marketing shows just how much of your marketing budget you can waste away by putting it to a bad use. As you transition online, you cannot afford such wasting, so it’s a smart choice to actually find a professional to help you target buyer personas and increase ROI (Return on Investment) for those campaigns. For example, using buyer personas to adjust Facebook Ads is an art...and a science! One more reason is having your stuff out of the office and working online as a way of taking down the overhead costs. Sure, some may decide to still go to a coworking space like Spacious or WeWork, but those costs won’t come near the downtown shop with office space for all employees. Just keep in mind that some cities may observe local holidays and you should make sure to find a strategy to keep your shop open without breaking any labor laws." Succeed in the digital age It’s not enough anymore to just set up your shop online and expect to see growth! E-commerce today is all about listening to users and connecting with your audience online. It’s easier than ever to transition your business online, but once you’re there you need the right strategy to get seen. Follow these tips above to create a strategy that works today and beyond! Have you had a unique experience bring your brick-and-mortar store online? Do you have tips for other old-school stores looking for the best route to ecommere success? Let me know your thoughts in the comments section below. This is a guest post by Ashley Lipman, outreach manager at Expertsure.
How Pufushop used our ecommerce benchmarks to grow sales
"Is my conversion rate good or bad?" We built Littledata's benchmarking feature to help you say goodbye to guessing games and start automatically benchmarking your site against top performers. Now that our benchmark tool has been around for awhile, we've started to get a sense for which ecommerce sites are using it most effectively. In other words, we've seen how benchmarks can help websites increase revenue - not in theory but in actual practice. Littledata has now helped hundreds of companies understand where their performance is compared with other websites in their niche, using our benchmarking algorithms and clean user interface. But can benchmarks really help you grow sales? I understand if you want to see the data for yourself. One of our long-term customers makes for an ideal case study. Case study - Pufushop Over the course of 2017, we helped Pufushop, a Romanian ecommerce site, understand if their website changes were helping to increase performance - and where they still had work to do. Pufushop is a retailer of baby goods, with a main focus on baby carriers. The products in their store are all premium quality and from top vendors, so comparing them with just any other baby store wouldn't have been relevant. Instead, we compared their ecommerce metrics with specific benchmark segments that were most relevant to their market landscape and business goals. Ecommerce benchmark segments Benchmarking is used to measure and compare the performance of a specific indicator, and it's most useful when you map that data onto your internal KPIs and compare performance against similar sites. Littledata specialises in ecommerce analytics and our benchmark population now includes Google Analytics data from almost 10,000 sites. We break that data into specific categories, such as Marketing, Ecommerce and Speed (site performance), and within each category you can filter by industry, location, website size, and more. Littledata aggregates reliable data from those thousands of high-performing websites so that you can focus on results. In this customer's case, we analysed their website and business model to provide 5 relevant benchmark segments: Romanian websites to compare KPIs across regional market Small SEO websites because 60% of Pufushop's traffic comes from search engines SEO-driven online stores (more generally, to see how they compare) General online shopping websites across the globe, to get a sense for how their funnel compares And a specific revenue per customer category based on shoppers' average basket spend (sites with a similar average order value, no matter the sector) Key metrics Web behaviour is not necessarily consistent across industries. We started Pufushop's analysis by looking at key ecommerce KPIs such as Checkout completion rate, Ecommerce conversion rate and Add-to-cart rate, but we didn't just pull these metrics blindly. Starting with the first month, February 2017, we looked at how other stores with a similar average basket value were performing. This helped our client establish what was working and what could be improved. As we worked with them to make sure everything was tracking correctly (after all, benchmarks are only as useful as your data is accurate), they could also check these benchmarks directly in the Littledata app. Results Now for the first time, both Pufushop's Marketing Director and Senior UX Designer had clarity on which areas of the website could be improved to increase sales. Based on the benchmark data they could see that the main places to improve were: The checkout process (to increase the checkout completion rate) Product pages (to increase the add-to-cart rate) Resolving those two main issues will automatically resolve the e-commerce conversion rate KPI and will indirectly influence the Revenue per customer. Pufushop decided to use Google Optimize in order to improve the checkout completion rate. Using Google Optimize is an easy-to-use, fast and scalable tool in order to A/B-test different experiences on the checkout page. Pufushop conducted a variety of targeted experiments, including: Shortening the checkout process Eliminating unnecessary fields Testing variants of checkout pages Split-testing different product pages Testing a variety of shipping costs After a couple of months of testing, the results were significant: The add-to-cart rate grew from 3.7% to 5.5% The checkout completion rate jumped from 52.8% to 89.7% Now those are some real results! Having a direction as well as a target helped Pufushop's digital team to focus on clear, achievable goals. As they continue to grow, we're glad to have them as a part of the Littledata family. [subscribe] Ready to benchmark your site? If you're in the same place as Pufushop was a year ago, here's a quick guide for how to use ecommerce KPI benchmarks to improve your store performance. Sign up for Littledata's main app or Shopify app Look at the benchmark data and pick an industry and a set of KPIs - the right sectors and segments will help you optimise campaigns Use tools like Hotjar and Littledata's automated reporting to analyse user behaviour around those benchmarks and define a short list of actions you're going to take Use Google Optimize or hire a developer to put those actions into place Monitor how users are interacting with the changes When you have sufficient data to see a clear relationship between those changes and an increase in traffic, revenue or conversions, make those changes permanent and move on to focus on a new set of KPIs Keep in mind that there are situations where the KPIs will show you issues of wrong messaging, for example of a product page or advertisement - technical issues where the change is fairly easy to make. In other cases, you will need to develop a long-term strategy for radical changes to your website, such as altering your checkout process. The online environment is a fast-moving industry, so you need to be agile and ready to change accordingly. Either way, we're here to help you scale with data-driven strategies for sustainable growth. Now stop reading this post and start benchmarking your site! Note: In order to maintain data-confidentiality, KPI values have been altered in this case study (the results are real, only the benchmarks have been adjusted).
9 ways to optimise landing pages for conversions
Six challenges in developing a Shopify integration
At the start of 2017 Littledata released its first Shopify app. A year on, here are my observations on the technical challenges we’ve overcome. This week we're at Shopify Unite in Toronto, and it's no surprise that their app ecosystem continues to grow. We chose Shopify as our first platform partner due to their open APIs, quality documentation and enthusiasm from other developers. Much of that has been as expected, but to help all of you looking to build your own Shopify app I’ll share some of our learnings on the hidden challenges. Littledata's Shopify app makes it a one-click process for stores to set up for Enhanced Ecommerce tracking in Google Analytics, and then get actionable insights based on the Google Analytics data. It has to hook into Shopify orders and products, as well and modify the store's theme and process ongoing transactions. 1. Handling re-installs gracefully The great advantage of Shopify’s app store over, say, Magento marketplace, is that any store admin can install and pay for an app with a couple of clicks. The disadvantage is that stores can be as quick to uninstall as install. Store admins may start, realise they don’t have permissions, time or energy to continue and roll back to try again later in the day. Since our app inserts a snippet into the store’s theme layout (see point two below), uninstalling removes the web-hooks we set up but does not remove the inserted snippet. When a store re-installs our app has to work out what state they were in when they uninstalled (audit, test mode or live), whether the script snippet is still there and what settings have been changed in the meantime. It took us a few months to get a handle on all the possible user flows, and we’ve found automated end-to-end tests to really speed up running through the different scenarios. In our Meteor framework we use Chimp [link] to run tests through Selenium on localhost and on our staging server. We've also found it essential to track our own stats of 'installs + activations' (including the date of first install and time to finally uninstall) rather than relying on the Shopify Partner stats of uninstalls and installs, which can hide the detail in between. 2. Working with script tags The other side-effect of making apps easy to install is that you can assume the early-adopter stores who will try your app already have lots of other installs. Shopify recommends using the Script Tag API to handle scripts linked to the app, so that when a store uninstalls your app it also removes any client-side scripts from the store. Unfortunately, in early tests we found the load latency to be unacceptably high: on some stores, only 50% of the page load events were getting fired before the user moved off the page. So plan B was add a snippet to the store theme, and then load this snippet at the top of the <body> element on all the layout templates. This has worked much more predictably, except when theme editors remove the snippet reference without enquiring what the Littledata app does (see our fifth challenge). [subscribe] 3. Charge activation vs authorisation Now a very simple gotcha. In our first month we had around 60 installs at a flat price of $20/month, but apparently no revenue. After investigation we found we had not activated the recurring charges after the store admin had authorised them. Doh! We're still not sure why an app would want to have authorised charges which are not activated -- seems like over-engineering on Shopify's side -- but luckily it was easy to correct without asking for more user permissions. 4. Tracking adds-to-cart The first version of our app tried to run the script when customers got to the ‘/cart’ page of a store. The problem here is that many stores have AJAX or ‘mini’ carts where customers can checkout without every visiting the cart page. We looked to trigger the script before the user got to the cart the page, but this appeared to run too many risks of interfering with the customer actually adding the item. Our final solution has been to poll the Shopify store for the current cart, and see if products have been added (or removed) since we last polled (and stored the previous cart contents in memory). This is somewhat inefficient, as it requires continuous network activity to grab the cart JSON from Shopify, but we’ve reduced the network requests to one every 4 seconds – judging that customers are very unlikely to add a product and checkout in less than 4 seconds. This cart polling has proved more reliable across different store templates. 5. Integrating with other Shopify apps I mentioned that early-adopter stores tend to have lots of other apps: and those apps have loyal customers who push to make Littledata's app to work their chosen app (not just vanilla Shopify). The challenge is that most of these app development companies run a very Agile process, constantly changing how their app works (hopefully to improve the experience for store owners). An integration that worked a few months ago may no longer work. We've found the best solution to be open developer-to-developer communications, via a Slack guest channel. Having the developers implementing the features on each side talk to each other really cuts down the delays caused by a well-meaning project manager slightly misinterpreting the requirement. 6. Handling ongoing updates As tested improved client-side tracking scripts, we needed to update the script in the store theme (see point 2 above). This creates a small risk for the store, as there is no UAT or test environment for most stores to check before going live with the new script. The store theme may also get edited, creating new layout templates where the Littledata snippet is not loaded. In the first version of our app we tried to update and re-insert the latest Littledata snippet automatically on a weekly cycle. However, once we reached hundreds of active installs this became unmanageable and also opaque for the store admins. In the latest version we now allow store admins to UPGRADE to the latest script, and then we check all the correct Google Analytics events are being fired afterwards. Giving the end user control of updates seems a better way of maintaining trust in our brand and also removing risk: if the update goes wrong, it’s quicker for us to alert the store owner on how to fix. Conclusion I’m still sure we made the right choice with Shopify as a platform, as their APIs, partner support and commercial traction are all number one in the ecommerce world. But I hope that by sharing some of the hidden challenges in developing Shopify integrations, we can all build better apps for the community. Have you built something for the Shopify app store? Are there development problems you’ve encountered which I haven’t shared here? PS. Are you a developer interested in joining an innovative analytics company? We're hiring in multiple locations!
How Littledata helps Shopify stores comply with GDPR
When the GDPR regulation comes into effect later this month, it will impact all websites trading with EU citizens. That means any ecommerce site with customers in Europe! Is your Shopify store ready to comply? We recently updated our Shopify app (since release 7.8) to help Shopify stores which use Google Analytics comply with GDPR. In addition to automatic fixes to help your store comply, we include recommendations for how to update your site content (such as Terms and Conditions), and how to deal with the new 'two year rule'. If you're running a Shopify store, the time to act is now. Automatic fixes with our Shopify app The first two steps are done automatically when you install our GDPR-ready Shopify app. If you're already using Littledata's Shopify app, these two fixes can be applied when you upgrade to our latest tracking script (version 3.2). Here's what they address. 1. Anonymise customer IP addresses The IP address of your website visitor is considered personal information under GDPR, and to remove any risk that this is sent to Google’s servers in the USA, our script scrambles the last few digits of the IP address. Google already promises not to store the IP address, so this step is an extra level of safety. This slightly reduces the accuracy of tracking which city your visitor came from -- but we believe that this is a small price to pay for ensuring anonymity. 2. Filter personal emails and ZIP/postcodes from pageviews Many sites accidentally send personal data in the page URLs or titles tracked by Google Analytics. For example, apps with their own checkout often send the user email as a URL parameter like ‘/email@example.com’. Our script now filters that personal data out at source, so the page path you’ll see in Google Analytics is ‘/url?email=REMOVED’. Additional manual steps There are two additional manual steps to ensure that Google Analytics for your Shopify store is GDPR-compliant. 3. Update your terms and conditions You need to update your website T&Cs to ensure users are aware of the Google Analytics Advertising Features that our Shopify app activates and Google uses to identify user demographics, such as gender and interests. We are not lawyers, but we suggest using something similar to these sentences to describe what data is collected, how you (and we) use the data, and how how users can opt out: Our site uses Google Analytics Advertising Features to deduce your gender, age group and interests based on other types of websites you have visited. We use this in aggregate to understand which demographics engage with areas of our website. You can opt out with Google's browser add-on. 4. Remove user-specific information after 2 years You should also change the data retention period for your Google Analytics web property, so that Google removes all user-specific information from their database after 2 years. To make this change, logging to your GA account and go to the Settings cog, and then Property > Tracking info > Data Retention. Use the 'data retention' drop-down menu to select to keep user data for 26 months, and mark 'reset on new activity' to ON. This means that after 26 months, if the user has not come back to your website, any user cookie will be deleted. We think this sensible to comply with the Right to Erasure without making any practical limits to your analysis. [subscribe] Right to Erasure feature coming soon! We're also working on a feature to help websites comply with the Right to Erasure or Right to be Forgotten. Here's a summary of that aspect of the regulation, from the summary of key changes at EUGDPR.org. Right to be Forgotten Also known as Data Erasure, the right to be forgotten entitles the data subject to have the data controller erase his/her personal data, cease further dissemination of the data, and potentially have third parties halt processing of the data. The conditions for erasure, as outlined in article 17, include the data no longer being relevant to original purposes for processing, or a data subject's withdrawing consent. It should also be noted that this right requires controllers to compare the subjects' rights to "the public interest in the availability of the data" when considering such requests. Littledata's Right to Erasure feature will ensure that when you delete a customer from your Shopify admin interface, any references to that customer are deleted from Google Analytics. This won’t affect aggregate reporting, such as number of web sessions or transactions. When do GDPR regulations take effect? The official enforcement date for General Data Protection Regulation (GDPR) is 25 May 2018. At that time any organisations in non-compliance may face heavy fines. In short, we recommend implementing the fixes above ASAP for your Shopify store. All you need is Google Analytics account and our Shopify app. And do check our blog regularly for updates. This is the best place to hear about new Littledata features relating to GDPR, as well as news and analysis about how the regulations affect different types of online businesses, including ecommerce websites, subscription businesses, and membership-based sites such as large charities and nonprofits. Looking for additional support? Contact us about GDPR consulting for analytics setup.
How to implement a successful mobile marketing strategy
Mobile as a marketing strategy isn’t a new idea to anyone, but the landscape is changing quickly. Back in 2015, Google told us it would be expanding its use of mobile-friendliness as a ranking signal. More recently, in early 2018, they stated that page speed will be a ranking factor for mobile searches middle of this year. As consumers change their behavior on mobile devices, this greatly impacts our strategy as marketers. We now need to be visible on all devices, all the time. What do all these changes mean for marketers? Whether you're a solo AdWords consultant or a member of a digital agency, it's essential to stay on top of consumer trends in a way that is measurable and repeatable. In this post I break down how to develop a data-driven mobile marketing strategy that can easily scale with your online business. Mobile search has changed As consumers, we are research-obsessed. We want to know everything we can about an ecommerce product or service so we can make informed decisions. And as more of us search for seemingly minor things and do so on a small device, advertisers have the opportunity to be present in those micro moments. With an increase of searches on mobile devices (and with mobile searches already having bypassed desktop searches several years ago) we need to be present across the entire consumer experience, making the customer experience a business priority regardless of our brand or business size by providing a seamless experience on every device. Analyzing data with a last-click attribution model misses some of these mobile moments. Assumptions have changed along with search behaviors. In September 2015, Google shared that “near me” or “nearby” searches on Google had grown 2X in the previous year, but the use of that phrase has since declined. People still want results that are near them, but the assumption of today’s searchers is that Google knows the location of the searchers and where to find what was searched because people are using their devices throughout the day. Increase of use for “open now” and “tonight" and “today” travel-related terms indicate people are seeking information on their device. [subscribe] What this means for brands Does your strategy consider these trends and adjust to changes in consumer behavior? A mobile experience leads to a brand impression. People expect a consistent experience every time they interact with a brand. If your site does not deliver and does not deliver quickly, they will quickly leave. Regardless of which channel they used to get to your site, the mobile experience must be as seamless as the desktop experience. What this means for Google AdWords As mobile use continues to increase and consumer behavior changes, we need to better align our PPC efforts and use an attribution model that addresses all steps of the journey. With AdWords, we can align our marketing strategy to mobile use with mobile search ads, mobile display ads and app ads on mobile devices. Each option offers slightly different features. Text ads can display on any device. The primary difference with ads on mobile vs desktop is more ads per page on a desktop and only a couple on a mobile device. Because the first couple ads take up most of the screen on a smartphone, advertisers need to be in the first or second position because that is all that will display. Impatient searchers will not scroll down on their device to your ad in position four. On the Display Network, you can be more creative with ads, adding images and videos to the mix. Although image sizes that work on desktop computers will also work on mobile devices, aim for a smaller size of 320 x 50 when possible, keeping the layout of smaller screen sizes in mind. The third option for mobile ads are appearing on mobile apps, which are part of the Display Network. App promotion ads have a goal of driving downloads. Campaigns with only app promotion ads are eligible for phones and tablets; they are not on desktop computers. Bid adjustments With your AdWords campaigns, set bids on mobile devices that are aligned with your goals. As mentioned above, many will not scroll down the search results page on a smartphone to view ads so may want to increase these bids. This is also important for branding goals; you need to be at the top to be seen. When determining mobile bids based on ROI, identify ROI for desktop versus tablets and devices. That way, your adjustment is based specifically on the mobile value of conversions. Keywords In any AdWords campaign, the key to success is selecting the correct keywords. But you can go a step further and use the keyword tool to also see mobile trends for your selected keyword over the previous year. Use these findings to inform your bidding strategy. A subjective approach is to view your keywords in the eyes of your users. Are the keywords in your campaigns ones that you would type into your mobile device? Although more people use voice recognition to search, there are still those who type in their request. Since typing on a small screen results in typos, you want broad match keywords in your campaign when targeting mobile users. Make sure these keywords include action-oriented terms. Some people may surf their device out of boredom while standing in line, but many search to find information to make a decision. You can capture these early clicks with an attribution model other than last-click. Mobile URLs Google provides an option of using mobile URLs in ads to customize the mobile experience, but if the mobile URL is the same as the Final URL in AdWords, adding it does not impact mobile performance. This is designed for people who have different pages for mobile users. AMP pages An open source initiative, Accelerated Mobile Pages (AMP) solve the issue around slow landing pages to make them faster for mobile. Business that have used them find a much quicker loading time and a more engaging experience. You can also use the AMP version of your website in this option for final URL Bid strategy Take advantage of machine learning with a Smart Bidding strategy in your AdWords campaigns. It considers the multiple signals around device type and browser for auction-time changes, offering more targeting than we could do manually as an AdWords account manager with simple bid adjustments. Monitor device performance with this strategy and prioritize mobile traffic if it does particularly well on devices. Attribution models In all AdWords campaigns, regardless of device, many advertisers use the last-click attribution model, which is not ideal for any campaign, including those targeting mobile. It gives all the credit for a conversion to the last touchpoint - the last click - which misses out on how other interactions influenced the decision to convert. If you have enough data in your account, utilize the Data-Driven Attribution Model. If it is not available to you, consider one of the other options besides last-click attribution. The right reporting for mobile marketing Before you target mobile users with advertising, check first that your site performs well on mobile devices if you do not plan to have a mobile specific URL. Start with a quick test for mobile speed to see if you are at risk of losing traffic. Next do a quick SEO check of your site which is based on Google’s guidelines, which is also relevant to paid traffic. For all your campaigns, not just AdWords, you need to consider metrics such as sessions by device type for general site behavior and conversions once a campaign is running for a while. To minimize manual work for reporting and analysis, use a Littledata report pack which pulls in data from Google Analytics to offer automated reporting on customer touch points, providing data you need without the manual labor. And remember your mobile users are on the go, so any advertising needs to cater to them in the moment! Want to know more? Get in touch with Tina's agency, 360 Internet Strategy, and follow her on LinkedIn.
Are niche stores the future of ecommerce?
Ecommerce blogs were once full of the stories of retailers who had built a thriving ecommerce business sitting on a beach in Thailand while doing as little work as possible. Their business model wasn’t complex: they bought cheap goods from suppliers in developing nations, dropshipped them to US and European consumers with a substantial markup, and lived off the profit. If you’re unusually smart and lucky, it’s still possible to find success walking this path, and you will have little trouble finding ecommerce bloggers happy to sell you the secret to their success (and a large dose of snake oil to wash it down with). But for today’s hopeful new ecommerce merchant, that path doesn’t lead anywhere worth going. As the ecommerce market matured, the low-hanging fruit was picked. In 2017, the most successful small ecommerce retailers are focused on niches they understand well and can build a rapport with. The suppliers relied on by the dropshippers of old got wise. They don’t need small ecommerce merchants to act as the middle-man when it’s just as easy to sell online themselves. There are suppliers who don’t want to be involved in the retail end of the business, but those are generally wholesalers who only sell in quantities that smaller retailers can’t afford. As Commerce Notebook’s Brian Krogsgard puts it: Yesterday’s dropshipping gold rush is today’s dropshipping myth factory. You should be prepared for the realities of dropshipping today in a highly competitive environment, and know that it’s not as easy as some of the stories you’ve heard. Plus, if all your store does is attempt to replicate a tiny subset of Amazon, you’re onto a losing proposition. You can’t beat Amazon at its own game. And yet, small ecommerce merchants continue to thrive. How? By doing what the Everything Store cannot: providing excellent service to a niche market whose needs they understand. I’ve seen dozens of smaller ecommerce businesses flourish by focusing with single-minded determination on a niche audience. Why niche ecommerce works Niche ecommerce works because it’s all-encompassing. Every aspect of these sites fits their particular specialism, including the passions of the target audience. When building user personas for your site, the better you know your audience, the more effective those personas will be when running PPC campaigns, improving SEO and optimising product listings! Branding, communication, product, design, service: everything is calculated to appeal to a specific and clearly identified group of people. Groups that are large and diverse enough to be worth selling to while possessing a sliver of a common identity. One of my favorite examples of this phenomenon is Dolls Kill, a fashion retailer that sidesteps the norms of the fashion industry to appeal to a clearly articulated individualism. The online store calls for shoppers to ‘navigate through the site and unleash your inner riot girl’, and they even have a brick-and-mortar pop-up shop in San Francisco right now. Towards the more mainstream end of the spectrum, Grovemade manufactures and sells wooden furniture and other products. Its branding focuses on design, craftsmanship, and the quality of its materials, with content that tells the story of each product’s genesis, from concept, to design, to manufacture. Although different in tone, audience, and product, these retailers are similar in one way: each understands the values, lifestyles, and needs of a niche market. They unapologetically sell products and build a brand that appeals to that audience. Their customers get the products they desire, but more than that, they buy from a retailer that projects an authentic image in-line with their ideal identity. [subscribe] What’s next for niche ecommerce? The future of ecommerce might be in a combination of these worlds, the old and the new, the big and the small. On one hand we have niche sites that combine next-gen dropshipping with the power of a platform like Shopify, WooCommerce or Magento that make it easy to scale -- as long as you choose the best reporting tools to understand revenue and customers. Littledata’s ecommerce analytics app is particularly useful for Shopify and Magento stores that want to find the right buyer personas to sell to, and to connect that marketing directly to revenue. On the other we have larger stores like MADE.com and Figleaves in the UK. These online stores are now household names, but they became that way by building best-in-class customer support teams and online customer communities with specialised, personalised tools. Two standout examples are MADE’s Unboxed customer community, where shoppers share design pics, and Figleaves’ My Perfect Fit tool, where shoppers can find their perfect lingerie fit. MADE’s story is especially worth noting because they created a niche based on the story of how their business operates, cutting out the middleman and selling directly from designers to consumers. Once they found this niche, they scaled using data-driven decisions that lead to radical increases in yearly revenue. That’s the deal with niche selling: no two stores are ever the same, but your chances for success increase many fold when you use proven tools for hosting, design and tracking -- and create ways for your customer community to share inspiration while at the same time discovering new products and trends. Niche ecommerce is a powerful force, and anyone entering the ecommerce market in 2018 should pay heed to that power. About the author: Graeme Caldwell works as an inbound marketer for Nexcess, a leading provider of Magento and WordPress hosting. Follow Nexcess on Twitter at @nexcess, Like them on Facebook and check out their tech/hosting blog!
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