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Understanding the Bigger Picture in E-commerce
In the realm of e-commerce, monitoring the right metrics is the road of success. While the traditional funnel offers a conceptual journey of a customer, diving deeper into metrics such as sessions, conversion rate, GMV, PDP cart, cart rate, and order rate can provide a more granular understanding.
Sessions: The Starting Point
Sessions represent the number of individual user interactions with your website during a given timeframe. Monitoring sessions gives insight into:
User Engagement: A growing number of sessions indicates growing interest or effective marketing campaigns.
User Retention: Repeated sessions from the same user might indicate a strong product offering or effective retention strategies.
Product Detail Page (PDP) Cart: Evaluating Interest
When a user lands on a Product Detail Page and adds a product to their cart, it signifies strong interest. Monitoring this metric helps businesses understand:
Product Appeal: Which products resonate the most with visitors?
Website Usability: If PDP cart numbers are low, perhaps the product information or website design needs refinement.
Cart Rate: Nearing the Finish Line
Cart rate represents the ratio of users who add products to their cart versus total website visitors. A higher cart rate can indicate:
Effective Product Listings: Clear, compelling product details and images.
Seamless User Experience: An intuitive, hassle-free process to add items to the cart.
Order Rate: From Browsing to Buying
Order rate showcases the percentage of visitors who make a purchase. It's a critical step, highlighting:
Pricing Strategy: Are products priced competitively?
Trustworthiness: Secure payment gateways and clear return policies can influence this rate.
Conversion Rate: The Ultimate Indicator
The conversion rate is the percentage of visitors who take a desired action, such as making a purchase. A healthy conversion rate suggests:
Effective Marketing: Targeting the right audience with the right message.
End-to-end User Experience: From landing on the website to checking out.
Gross Merchandise Value (GMV): Measuring Success
GMV represents the total value of goods sold over a period. It's a top-level metric, indicating:
Business Growth: A growing GMV suggests a scaling business.
Market Demand: It can help gauge product demand and market trends.
My 3 favorite tweets on Growth and performance marketing this week
#1st Gem 💎 ⬇
People may perceive that there is competition between paid and non-paid while they complement each other, as beautifully captured by Badal. There is a limit to the growth brands can have through organic alone, while when both paid and non-paid join forces, a true impactful innovation can occur.
#2nd Gem 💎 ⬇
With tons of noise we see daily on social media about hacks and shortcuts, we must remind ourselves that time is essential for growth and performance marketing.
One underrated factor that can bring down your CAC faster is:
Having a culture of ownership among your team members, we need to break the silos so we, as a team, talk to each other and ensure that we are providing the best offer to our customers.
#3rd Gem 💎 ⬇
There is no secret formula. We must keep testing with different creative styles until we find the winning creative for each brand. Finding the winning creative is the most significant leverage you will have running paid social ads.
Here are my 3 steps process I use to find winning creative:
Come up with a creative testing roadmap after studying your brand, competition, and target audience
Prioritize quick wins and communicate clearly with your creative team
Be agile to adapt to any trend in the market that is gaining traction
My 3 favorite updates on performance marketing this week
1. Google Analytics 4 - Behavioral modeling
Behavioral analysis in journey and funnel evaluations: GA4 has integrated behavioral prediction data into journey and funnel studies, encompassing reports on user buying pathways and tailored funnel analyses. This enhancement fills the data voids from website visitors or app users who opt out of Analytics cookies.
2. Meta ads - rolling out NEW AI-powered audience targeting options
Audience Control Insights, reported by Bram
Audience controls let you dictate the precise criteria for your campaign's ad delivery, such as specific locations and minimum age requirements. These settings are firm limits. Meta will adhere to these limits, ensuring your ads aren’t shown beyond your boundaries. While you can exclude custom audience segments and designate particular languages for targeting, remember that excluding custom audiences might not omit everyone you intend.
3. Google ads - Headline and Descriptions as campaign-level assets
The mega feature provides detailed metrics like CTR and impressions for each headline and description at the campaign level.
Also, you can set the asset to display during particular days or hours.
Currently, it's in Beta and available to a select few accounts. However, it will be rolled out to more accounts in due course.
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