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Metrics for Online Retail (Shopify/.CO/Luxr webinar)

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Information about Metrics for Online Retail (Shopify/.CO/Luxr webinar)
Business & Mgmt

Published on March 6, 2014

Author: luxrco

Source: slideshare.net

Description

We discuss the three key metrics that online retailers should be watching and pushing and why they're important. We also cover a simple framework for making experiments to help drive those numbers.
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Metrics For Online Retailers Shopify’s Build a Business Competition Janice Fraser Jason Fraser March 5, 2014

Jason Fraser Founder Master Coach © 2014 Luxr Incorporated www.luxr.co

Who is ? Supporting entrepreneurs worldwide Video based curriculum Short video workshops In-person workshops around the world © 2014 Luxr Incorporated www.luxr.co

Follow Us @luxrco Event Hashtag #retailmetrics © 2014 Luxr Incorporated www.luxr.co

Gather Your Tools © 2014 Luxr Incorporated www.luxr.co

3 Key Metrics Acquisition Conversion Dollars per sale © 2014 Luxr Incorporated www.luxr.co

How do I find my numbers? has some basic features Google Analytics © 2014 Luxr Incorporated www.luxr.co

How do I find my numbers? Buy a clicker! © 2014 Luxr Incorporated www.luxr.co

How do I find my numbers? Buy a clicker! © 2014 Luxr Incorporated www.luxr.co

How do I find my numbers? Buy a clicker! Keep a log by the register © 2014 Luxr Incorporated www.luxr.co

How do I find my numbers? Buy a clicker! Keep a log by the register © 2014 Luxr Incorporated www.luxr.co

How do I find my numbers? Buy a clicker! Keep a log by the register © 2014 Luxr Incorporated www.luxr.co

How do I find my numbers? Buy a clicker! Keep a log by the register © 2014 Luxr Incorporated www.luxr.co

How do I find my numbers? Buy a clicker! Keep a log by the register © 2014 Luxr Incorporated www.luxr.co

Why? Make informed decisions Move the numbers Make more money © 2014 Luxr Incorporated www.luxr.co

Metrics Pattern Observe © 2014 Luxr Incorporated www.luxr.co Act Observe

Acquisition How many people come to your store? Your Store © 2014 Luxr Incorporated www.luxr.co

There are many ways to acquire customers Paid traffic Mailing lists Search results Social media © 2014 Luxr Incorporated www.luxr.co

Using the Pattern Observe © 2014 Luxr Incorporated www.luxr.co Act Observe

Using the Pattern Observe Establish a baseline © 2014 Luxr Incorporated www.luxr.co Act Observe

Using the Pattern Observe Establish a baseline Act Brainstorm ideas to drive traffic. Try one as an experiment. © 2014 Luxr Incorporated www.luxr.co Observe

Using the Pattern Observe Establish a baseline Act Brainstorm ideas to drive traffic. Try one as an experiment. © 2014 Luxr Incorporated www.luxr.co Observe Track the results

Brainstorm! What can you do to get more customers to come to your store? 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Brainstorm! Just 4 ideas to increase traffic 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Brainstorm! Just 4 ideas to increase traffic 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Brainstorm! Just 4 ideas to increase traffic 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Brainstorm! Just 4 ideas to increase traffic 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Brainstorm! Just 4 ideas to increase traffic 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Brainstorm! Just 4 ideas to increase traffic 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Brainstorm! Just 4 ideas to increase traffic 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Brainstorm! Just 4 ideas to increase traffic 2:00 :15 1:45 :30 1:30 1:15 © 2014 Luxr Incorporated www.luxr.co :45 1:00

Choose Two selection criteria: © 2014 Luxr Incorporated www.luxr.co

Choose Two selection criteria: CHOOSE 2: Most likely to generate traffic © 2014 Luxr Incorporated www.luxr.co

Choose Two selection criteria: CHOOSE 2: Most likely to generate traffic CIRCLE 1: Easier to implement © 2014 Luxr Incorporated www.luxr.co

Make it happen Put some time in your schedule to do the work Get started right away © 2014 Luxr Incorporated www.luxr.co

Using the Pattern Observe Establish a baseline Act Brainstorm ideas to drive traffic. Try one as an experiment. © 2014 Luxr Incorporated www.luxr.co Observe Track the results

Conversion Of the people who visit, how many buy? © 2014 Luxr Incorporated www.luxr.co

Conversion Of the people who visit, how many buy? $ MONEY $ $ $ $ MONEY $ MONEY MONEY $ $ $ MONEY MONEY $ $ MONEY © 2014 Luxr Incorporated www.luxr.co $ $ $

Kinds of Conversion Ad views to site visits Site visits to purchases © 2014 Luxr Incorporated www.luxr.co

Conversion Is Key Low conversion suggests fundamental problems: 1 Wrong target market 2 Wrong product for the market 3 Wrong message © 2014 Luxr Incorporated www.luxr.co

Using the Pattern Observe © 2014 Luxr Incorporated www.luxr.co Act Observe

Using the Pattern Observe Establish a baseline © 2014 Luxr Incorporated www.luxr.co Act Observe

Using the Pattern Observe Act Establish a baseline Brainstorm ideas to increase conversion. Try one as an experiment. © 2014 Luxr Incorporated www.luxr.co Observe

Using the Pattern Observe Act Establish a baseline Brainstorm ideas to increase conversion. Try one as an experiment. © 2014 Luxr Incorporated www.luxr.co Observe Track the results

Dollars per Sale Average cart size © 2014 Luxr Incorporated www.luxr.co

It’s hard to get people to visit your store. Make the most of each transaction. © 2014 Luxr Incorporated www.luxr.co

Using the Pattern Observe © 2014 Luxr Incorporated www.luxr.co Act Observe

Using the Pattern Observe Establish a baseline © 2014 Luxr Incorporated www.luxr.co Act Observe

Using the Pattern Observe Act Establish a baseline Brainstorm ideas to increase the dollars per sale. Try one as an experiment. © 2014 Luxr Incorporated www.luxr.co Observe

Using the Pattern Observe Act Establish a baseline Brainstorm ideas to increase the dollars per sale. Try one as an experiment. © 2014 Luxr Incorporated www.luxr.co Observe Track the results

Many other things to measure Repeat sales Customer referrals Page views per visit Item views per visit Abandoned carts © 2014 Luxr Incorporated www.luxr.co

If tracking your metrics doesn’t change your behavior... © 2014 Luxr Incorporated www.luxr.co

If tracking your metrics doesn’t change your behavior... ...then there’s no point in doing it. © 2014 Luxr Incorporated www.luxr.co

Using the Pattern Measure © 2014 Luxr Incorporated www.luxr.co Act Measure Again

Over and Over Measure Act © 2014 Luxr Incorporated www.luxr.co

What’s good? What’s good for you? Set your own goals Do some math © 2014 Luxr Incorporated www.luxr.co

How they play together If 500 people visit my store in a day © 2014 Luxr Incorporated www.luxr.co

How they play together ON ITI S UI Q Aa day If 500 people visit my store in © 2014 Luxr Incorporated www.luxr.co

How they play together ON ITI S UI Q Aa day If 500 people visit my store in 2% make a purchase That’s 10 purchases © 2014 Luxr Incorporated www.luxr.co

How they play together ON ITI S UI Q Aa day If 500 people visit my store in 2% make a purchase That’s 10 purchases © 2014 Luxr Incorporated www.luxr.co ON C RS VE N IO

How they play together ON ITI S UI Q Aa day If 500 people visit my store in 2% make a purchase That’s 10 purchases ON C Average cart size is $40 My gross is $400 © 2014 Luxr Incorporated www.luxr.co RS VE N IO

How they play together ON ITI S UI Q Aa day If 500 people visit my store in 2% make a purchase That’s 10 purchases ON C RS VE N IO ER P RS LA OL D LE SA Average cart size is $40 My gross is $400 © 2014 Luxr Incorporated www.luxr.co

Backtrack to discover what you need If your profit (net of COGS) is 50%, that’s $200 -BUTIf it costs me $300/day to run my business, I know I need to change something © 2014 Luxr Incorporated www.luxr.co

What do I do? Increase Acquisition to 750 visitors -or- Increase Conversion to 3% -or- Increase Dollars Per Sale to $60 © 2014 Luxr Incorporated www.luxr.co

Acquisition: Baseline 500 visitors converting at 2% = 10 purchases 10 purchases x $40 each = $400 gross $400 gross x 50% = Net of $200 © 2014 Luxr Incorporated www.luxr.co

Acquisition: Improved 750 visitors converting at 2% = 15 purchases 15 purchases x $40 each = $600 gross $600 gross x 50% = Net of $300 © 2014 Luxr Incorporated www.luxr.co

Conversion: Baseline 500 visitors converting at 2% = 10 purchases 10 purchases x $40 each = $400 gross $400 gross x 50% = Net of $200 © 2014 Luxr Incorporated www.luxr.co

Conversion: Improved 500 visitors converting at 3% = 15 purchases 15 purchases x $40 each = $600 gross $600 gross x 50% = Net of $300 © 2014 Luxr Incorporated www.luxr.co

Dollars per sale: Baseline 500 visitors converting at 2% = 10 purchases 10 purchases x $40 each = $400 gross $400 gross x 50% = Net of $200 © 2014 Luxr Incorporated www.luxr.co

Dollars per sale: Improved 500 visitors converting at 2% = 10 purchases 10 purchases x $60 each = $600 gross $600 gross x 50% = Net of $300 © 2014 Luxr Incorporated www.luxr.co

This is a way of life that grows your business 750 visitors converting at 3% = 22 purchases 22 purchases x $60 each = $1350 gross $1350 gross x 50% = Net of $675 © 2014 Luxr Incorporated www.luxr.co

Measuring tells you what, but not why. Talk to your customers Listen to your customers Learn from your customers Empathize with your customers © 2014 Luxr Incorporated www.luxr.co

3 Key Metrics Acquisition Conversion Dollars per sale © 2014 Luxr Incorporated www.luxr.co

Why? Make informed decisions Move the numbers Make more money © 2014 Luxr Incorporated www.luxr.co

Why? Make $informed decisions MONEY $ $ $ $ MONEY $ $ Move the numbers MONEY $ MONEY $ $ MONEY MONEY $ $ MONEY $ $ Make more money © 2014 Luxr Incorporated www.luxr.co

Thank you! Slideshare.net/luxrco @luxrco Metrics For Online Retailers Shopify’s Build a Business Competition © 2014 Luxr Incorporated www.luxr.co

Question and Answer time! © 2014 Luxr Incorporated www.luxr.co

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