analytics & mis planning for your internet retail store by seby kallarakkal

The Digital Analytics Company www.nabler.com

www.nabler.com

Analytics & MIS planning for your internet retail store Seby Kallarakkal CEO Nabler


Goal of the workshop – part I Share a framework that will enable you to develop your own KPIs for your ecommerce store – the one that matters to your context.

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•  Full service Digital Analytics company

•  Providing Digital Analytics services for enterprises since 2004

•  Experience working with B2B / Ecommerce / Media sites

•  Expertise in a range of digital analytics tools

About Nabler

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Key Differentiators:

•  Focused only on digital analytics •  Technology driven – strong in-house software programming capabilities •  Centre of Excellence

Read more about Nabler on www.nabler.com


The principles of analytics are not too different for a physical store and ecommerce store. However, there are some differences to keep in mind. Ecommerce store tends to have

–  Lot more behavioral data than regular stores – cost, ease, comprehensiveness –  If you assume 2% conversion, transaction data or sales data deals with the 2%. Behavioral data would include

the full 100% of population

Ecommerce store vs regular store

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-vs-


Let’s do some shopping

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Look around and see what’s available

Buy what you found to be useful and

interesting

Come home and figure out what to do with the things you

bought


Look at data Explore Identify possibilities

Deep dive and come up with answers

and explanations

Present the findings ?

The data parallel

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Another way to shop

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You want to bake a cake, get something for breakfast, replenish your toiletries

You look around based on what you need, choose based on parameters that

you decide and order

Get home and use things purchased for the purpose you had in mind


The data parallel we recommend

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Business goals /

Strategies KPIs Report Analyze

Start with business rather than starting with data


Quick example

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Goals / Strategies KPIs Report Analyze

Increase orders from tier II cities

New visitors from tier II cities

weekly basis to online marketing

mgr.

Segment by source

Optimize campaign spend

Business users Analytics / MIS team


The process of arriving at KPIs Step 1: Arrive at goals & strategies Step 2: Develop KPIs

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Challenges we have seen

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•  Business objectives not readily available

•  Difficult to translate business objectives into measures

•  Non availability of benchmarks and targets


1.  Business objectives

2.  Business questions

3.  Individual / department goals

4.  Business framework

Few ways to arrive at business goals / strategies

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•  Increase the customer base

•  Increase repeat purchase

•  Increase order value

•  Get people to try out more product categories

•  Move focus from books to apparel

Examples of business objectives

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•  What is the best channel in terms of cost of acquisition?

•  How do we encourage visitors to explore more product groups?

•  Do we build more landing pages?

•  What’s the best path to conversion?

•  How do we encourage visitors to buy more?

•  How many visits does it take for a first time visitor to purchase?

•  How do we get repeat customers to browse more?

Sample of business questions

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•  SEO manager –  Increase non branded, organic traffic –  Get traffic from new set of industry keywords

•  Online marketing manager –  Increase conversion ratio –  Increase revenue

•  Content writer –  Increase stickiness

•  Development team –  Ensure links work –  Reduce load time

Example of individual goals

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Organization goals

SEO manager goals

KPIs

Online marketing

manager goals

KPIs

Content writer goals

KPIs

Development team goals

KPIs


Example of a framework

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Repeat Customer

High value customers

Low value customers

Customer

Non customer

Acquisition

§  Organic §  Direct

§  Search Ads §  Display Ads §  Email Camp. §  Affiliates §  Social

Website

Visitors


Next step

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Business objectives

Business questions

Role based goals

Business framework

Goals based on REAN framework

Develop KPIs Report Analyze


List goals & strategies under REAN

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Reach Engage Activate Nurture

R E A N

Credit: Xavier Blanc / Leevi Kokko / Steve Jackson (author of ‘Cult of Analytics’)


Next step

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Business objectives

Business questions

Role based goals

Business framework

Goals based on REAN framework

Develop KPIs Report Analyze


A good Key performance indicator (KPI) should have –  A clear definition –  Clear connection to your business goals –  Target (absolute / relative / competition) –  Actor –  Frequency –  The capability of helping you take a decision

Demystifying KPI

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Goal KPI Target Frequency Actor

Increase visits from tier II cities

# of new visits from tier II cities

5% increase MoM Monthly Online marketing manager

Example


An example of the full flow Multi product, multi brand ecommerce website sellanything.com

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Business objective: Increase the customer base

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Reach

•  Increase new visitors from all 3 tiers of cities

•  Spend optimally on various channels to get the highest reach

Engage

•  High level of engagement for first time visitors

•  Increase engagement on social media channels

Activate

•  Increase orders from first time purchasers

•  Reduce # of visits to purchase for first time purchasers

•  Build email database

Nurture

•  Increase referrals from customers

•  Get customers to rate and write reviews

Goals under the REAN model – reflects your thinking / strategy / solution / tactics


KPIs from the Reach goals

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Increase new visitors from all 3 tiers of cities

# of new visits (by tier I/II/III cities)

Historical (40% YoY increase)

Monthly Online marketing manager

# of new visits (by tier I/II/III cities)

2% WoW increase Weekly Online marketing manager

Spend optimally on various channels to get the highest reach

Cost per visit (by source)

Rs.50 Daily Online marketing manager


KPIs from the Engage goals

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High level of engagement for first time visitors

# of product views / visit from first time visitors

5 Monthly UX manager

Increase engagement on social media channels

Fb likes 5% WoW increase Weekly Social media manager

Fb comments 5% WoW increase Weekly Social media manager

Twitter followers 5% WoW increase Weekly Social media manager


KPIs from the Activate goals

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Increase orders from first time purchasers

# of new customers acquired

15% MoM Monthly Product manager

Cost per order by source

Rs.500 Daily Online marketing mgr.

Reduce # of visits to purchase for first time purchasers

% of purchases for first time customers where ‘visits to purchase’ is 3 or less

80% Monthly Designer

Build email database Size of verified email database

5% MoM Monthly Online marketing mgr.


KPIs from Nurture goals

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Increase referrals from customers

# of new customers from ‘recommend to friend’ feature

500 Monthly Product manager

Get customers to rate and write reviews

# of ratings 5% MoM increase Monthly Product manager

# of reviews posted 5% MoM increase Monthly Product manager


•  Engagement from new visits – 3.9 product page views / visit

•  Analysis –  Segment by source / campaign / channel –  Segment by landing pages –  Segment by original keywords –  Segment by day of the week

•  Action –  Optimization and realignment of campaign budgets –  Modifying / tweaks to the landing page –  A/B tests for the landing page –  Personalization –  Customization by day of week

Analysis & Action

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•  Write down goals

•  Then KPIs

•  Create KPI table

•  Questions? Email [email protected]

10 mins Exercise

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Nabler Web Solutions Pvt. Ltd. Level 1&2, Corporate Court, No. 15, Infantry Road, Bangalore - 560001, Karnataka

Phone : +91-80-4937-2900 Fax : +91-80-254-24367 [email protected]

Thank You

Nabler LLC 8410 Pit Stop Ct. Concord North Carolina 28027

Phone : 347-809-3323 Fax : 646-619-4979 [email protected]

The Digital Analytics Company www.nabler.com 29

analytics & mis planning for your internet retail store by seby kallarakkal

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