systematic approach to analyse your ecommerce data and improve ecommerce business performance

Systematic approach to analyse your e-Commerce data and improve eCommerce business performanceMarch, 2013

Charles Chan, Founder & Managing Director of CLEARgo

What is your number one challenge ingrowing your e-Commerce business?

#1 Challenge is Improving Conversions

N: 457 eCommerce professionals in Australia & New Zealand, US & Canada, UK & Europe and Brazil.

Conducted by SLI Systems in November 2012

http://sitesearch.sli-systems.com/Survey-2012-12-05-eCommerce-Registration-Page.html

About CLEARgo

CLEARgo is an eCommerce agency in HK & China

Our Mission is to deliver eCommerce success for our clients

PLANE-Business

Strategy

BUILDOnline Branding, User

Experience & Technology

GROWPerformance Marketing, CRM &

Conversion Optimization

The Power of Data

Target knew about the girl’s pregnancy before her dad did

What do you want to get out of your data?

Sales & Margin

Customer Acquisition CostConversion Rate &Average Order Value

Inventory Turnover Repeat Customers &Customer Lifetime Value

Organize Your e-Commerce Data

Traffic Drivers Clickstream Customers Transactions Inventory

KPI & Measurement

What to measure?

Traffic Drivers

Cost per VisitQualified VisitsUnique Visitors

Channel Attribution

Conversion

Conversion RateAverage Order Value

Cart Abandonment Rate

Sales

Customers

Customer Acquisition CostCustomer Lifetime Value

RFM (Recency, Frequency & Monetary)

Net Promoter Score

Revenue & Profit# of OrdersInventory Turnover Ratio

KPI Dashboard

Knowing how you stack up?

Sources for Benchmarking Data

• IR Asia 500 Guide• Google Trends• Google Shopping• Alexa• Compete.com• Quantcast• Google Adwords• Industry news & blogs• Etc.

Benchmark Data (Conversion Rate by Traffic Sources)

Conversion Rate Visits Orders Conversion

Adwords (Search) 11% 4.4% 2.5%

Adwords (Content) 6% 1.8% 2.0%

Natural Search 11% 4.4% 2.5%

Affiliates 22% 4.4% 1.3%

Social Media 17% 1.8% 0.7%

Direct Traffic 11% 44% 25%

Email 17% 37% 14%

Shopping Engine 6% 1.8% 2.0%

Total 100% 100% 6.3%

Average performance cross all channels 2010-2011Source: http://www.smartinsights.com

Discovering Actionable Insight

Have you fully utilized Google Analytic?

• Enable eCommerce tracking & Goal for conversion funnel

• Use custom variable to track logins, coupon code usage, checkout methods, etc.

• Use advanced segmentation for drill down analysis by different criteria

• Use multi-channel funnel for attribution analysis

Digital One-way Mirror

Drilling the data

Test, Test & Test!It should be one of the daily routines for online business

A/B/Multivariate testing is your clinical trial

The Obama 2008 Movement

Variations

Result

Winner

40% Increase in Sign-up Rate= 280,000 volunteer & $60 million donation

Obama 2012 Campaign

• US$ 250 million raised from online fund raising platform

• >500 a/b tests

• 20 month period

• Increased donation conversion by 49%

• Increased sign-up rate by 161%

Testing Tips

• Let go of your ego. Let the data speak for itself!

• Trust the data, not HiPPO (Highest Paid Person’s Opinion)

• Focus on high conversion triggers

• Test continuously

eCommerce Optimization Framework

MEASURE

BENCHMARK

ANALYSE TEST

A Few More Tips

Segment your customers and customize your strategy

Use your data to give better recommendations

• 35% increase in conversion• 14% increase in attributable revenue• 16% reduction in click to buy distance(source: Predictive Intent from Emailvision)

Recover the abandoned carts

• Remarketing campaign

• Follow-up E-mail

The Tools

Clickstream & Heatmap

eCommerce Analysis

A/B, Multivariate Testing

PersonalizedRecommendations

Retargeting &Abandonment Recovery

eCommerce Platform

Key Takeaways

• Measure, Benchmark & Analyze

• Test, Test & Test

• Segment your customers and customize your strategy

• Use your data to give better recommendations

• Recover the abandoned carts

THANK YOUfor your time & attention

This is my contact:

Charles Chancharles@cleargo.com

+852 9470 6088

http://www.cleargo.com