Sometimes, when you’re looking at data, you go into a kind of trance. You see all these numbers in front of you, and it can be daunting to try to make sense of it all.
But the fact is, that data doesn’t have to be difficult.
Your data holds the secret to each and every opportunity for the success of your ecommerce store, you just need to know where to look.
In this article, I’m going to outline exactly how to:
- Break down your data into consumable chunks
- Find opportunities among your organic channels, and what strategies you can use to boost them
- Find opportunities in your marketing costs, and how you can shift your budget to pack the biggest punch
- Discover your best opportunities to increase revenue for your online store
With these tips, your data will never have to be scary again.
Organic Channels: Your Best Free Ecommerce ROI Opportunity
Organic channels are amazing: they drive qualified traffic from your target audience, and best of all, they’re free.
Well, monetarily speaking. Making sure your organic channels are performing to their best capacity takes time.
And we all know time=money.
So how do you save time on organic channels?
Focus on the channels that have the biggest ecommerce ROI opportunities. Now that you have the formula, the only thing left to do is figure out how to spot these opportunities.
So the first thing that I’m going to do here is to break this down bit by bit and focus on our organic channels. The first one that really jumps out at me is organic search: Google, Bing, and Yahoo.
Now we can see that organic Google really packs a punch for your online store. It’s got a great volume of traffic, and we can see that the conversion rate is fantastic.
We can also see that from paid Google AdWords, this store is trying to make the most of this channel by investing in paid search, which is performing even better than organic Google search.
A great opportunity here would be to invest in Dynamic Search Ads via Google Adwords. This specific type of ad feeds off of strong SEO and uses an algorithm to build ads based on what your site is already ranking for and what consumers are searching for.
However, there might be some potential opportunities in the organic Bing and Yahoo channels. Especially for Bing, it might be interesting to invest in Bing ads to drive more traffic from this channel.
It’s also important to note that with such low traffic/conversions from Bing, the conversion rate is likely to drop a bit as more data comes in.
The next organic channels we should look at are the social channels, which might present new ROI opportunities for your online store.
Facebook is the top traffic driver for this store, and it’s already doing rather well. With that said, there’s always room for improvement.
What to do:
In this case, the bounce rate is a bit high, so make sure that your site is well optimized for mobile, because 95% of users browsing Facebook are doing so via mobile.
Try adding a Facebook specific discounts or free shipping offers- this makes your Facebook community feel special and it gives them an added incentive to complete a purchase with you (especially if they’ve had their eye on a particular product).
The same kind of strategy can be employed with Instagram. With Instagram, you can do what you would with Twitter as well with a bit of competitive research.
Find accounts who post frequently under hashtags that pertain to your store, or your competitor’s accounts and begin liking the posts of and following accounts that comments frequently.
About 15-20% of these accounts will likely follow you back, creating a target audience already looking for the kinds of products you offer.
Here we’ve found 4 key opportunities in your organic channel data, and great strategies to put behind them to boost ecommerce ROI.
Now let’s focus on the paid channels and try to find some opportunities there.
Reducing Marketing Costs: How to Boost your Profits without Selling More
One of the biggest ways to generate more revenue is to reduce your costs. Everyone knows that, but it’s much easier said than done, right?
Luckily, your data and Divvit can help make the decisions a bit easier. Your analytics will help you cut budget from channels that aren’t providing value and push it towards channels that are packing a bigger punch for your store.
So taking some different data for this example, we’re going to look at it piece by piece and figure out which channels are working best for us.
So there are a lot of KPIs here, but they’ll help us make good decisions about our marketing costs.
Let’s start from the top and move down from there.
Google AdWords is the channel you’re spending the most in, but the customer acquisition cost is rather high. At -5% ROI, this channel isn’t doing as much as it could for the budget that you’re putting into it.
After all, you’re paying nearly £ 95,000 to make £ 100,700. Is the £ 5,000 worth the effort or the budget?
Bing Ads are performing best of your paid channels. While CAC is a bit high, it’s still better than what we’re seeing in Google AdWords. While it’s not making more than Google AdWords in pure revenue, it’s making more of an impact in terms of ROI (as you’re essentially doubling what you put into this channel).
Criteo is bringing in only £3,896 for the £2,248 that you’re putting into it, which isn’t amazing in terms of revenue, but it’s still got a decent ROI. The CAC is the lowest of the three channels, meaning that this channel has good potential for new conversion.
So what decisions should you make concerning these channels? The easiest option is to say shift budget away from Google AdWords and towards Bing Ads.
But that would be too easy. There are a few KPIs that will help us make better decisions.
marketing cost behavior
If we add in bounce rate and conversion rate, we get a more concrete picture. Google AdWords has the highest conversion rate of the three channels, but it also has the highest bounce rate.
These KPIs help you determine the quality of your traffic- so understanding that AdWords is a paid channel, this potentially means that it’s targeted poorly. All three of these channels could do with a bit of retargeting, as the bounce rate is quite high for ecommerce.
What to do:
Shift budget away from Google AdWords and into more profitable channels for now, and work on setting up and targeting your AdWords account properly.
This work into this channel will increase the quality of the visits coming in, which means that they’ll be more likely to purchase, thus reducing your costs.
Sometimes, there’s a bit of back and forth needed to really make the best decisions to boost your ecommerce ROI, but it’s worth it. Luckily, you can do this in just a few clicks to analyze your data together, and mix and match your KPIs to get a clear picture.
Finding Opportunities in Ecommerce ROI to Boost Revenue
Once you’ve figured out how to reduce your marketing costs, you can move on to ways to boost your revenue. Spotting these opportunities is quite simple when you know where to look.
Scan through the data to find numbers that really jump out at you. I like to start with conversion rate, because it’s a great, concrete KPI that we can latch onto.
The first thing that jumps out at me is Zanox, which has one of the highest conversion rates of your channels.
We can also see here that it has an Average Order Value (AOV) of £79.59. This is already higher than the average of your ecommerce store, but it’s lower than a lot of your other channels. There’s definitely room for improvement.
The next thing I notice in conversion is that of your organic search channels, DuckDuckGo and Bing have the highest conversion rates, but they aren’t bringing in much traffic compared to Google.
What to do:
It might be interesting to invest in ads in alternative search engines to boost your revenue from these channels, as customers coming from Bing and Yahoo also have the tendency to spend more at your store too.
With organic Google, we can see that it’s bringing in a large amount of traffic, with a decent conversion rate. However, customers coming from Google are only spending £83.03 per order, so it might be interesting to try to boost AOV there.
Social channels have poor conversion all around, so it’s time to audit your social media networks and work towards building real traction there, as they are bringing in traffic for your online store, and Facebook has a great AOV.
Obviously, we didn’t go through each and every KPI here, but these are just a few examples of how you can use your data to spot these ecommerce opportunities.
When working with data, it’s important to not get overwhelmed. It can seem like a lot at first, but knowing where to look to spot these opportunities is key to using your data effectively.
- Break your data down bit by bit and look for numbers that are wildly different from the others
- Think critically about what the data means, and add relevant KPIs to make the best decisions for your store
- Look for key ecommerce ROI opportunities in your marketing cost data to know where to reallocate your budget for the biggest impact
- Boost your revenue by applying smart tactics that are data driven
From this point, you’re the master of your own data. Specialized tools can help you make the most of your time by making your data more accessible to you, and understanding that data is the first step towards taking advantage of each opportunity.
What was the biggest ecommerce opportunity you spotted from this data? Let us know below or Tweet us!