March 5, 2014
Metrics For Online RetailersShopify’s Build a Business Competition
Janice FraserJason Fraser
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Jason FraserFounderMaster Coach
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Who is ?Supporting entrepreneurs worldwide
Video based curriculum
Short video workshops
In-person workshops around the world
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@luxrco
Event Hashtag
#retailmetrics
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3 Key Metrics
Acquisition
Conversion
Dollars per sale
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How do I find my numbers?
Google Analytics
has some basic features
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How do I find my numbers?
Buy a clicker!
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How do I find my numbers?
Buy a clicker!
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How do I find my numbers?
Keep a log by the register
Buy a clicker!
© 2014 Luxr Incorporated www.luxr.co
How do I find my numbers?
Keep a log by the register
Buy a clicker!
© 2014 Luxr Incorporated www.luxr.co
How do I find my numbers?
Keep a log by the register
Buy a clicker!
© 2014 Luxr Incorporated www.luxr.co
How do I find my numbers?
Keep a log by the register
Buy a clicker!
© 2014 Luxr Incorporated www.luxr.co
How do I find my numbers?
Keep a log by the register
Buy a clicker!
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Why?
Make informed decisions
Make more money
Move the numbers
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Metrics Pattern
Observe ObserveAct
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AcquisitionHow many people come to your store?
Your Store
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There are many ways to acquire customers
Paid traffic
Mailing lists
Search results
Social media
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Observe ObserveAct
Using the Pattern
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Establish a baseline
Observe ObserveAct
Using the Pattern
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Brainstorm ideas to
drive traffic.
Try one as an experiment.
Establish a baseline
Observe ObserveAct
Using the Pattern
© 2014 Luxr Incorporated www.luxr.co
Using the Pattern
Track the results
Establish a baseline
Observe ObserveActBrainstorm
ideas to drive traffic.
Try one as an experiment.
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!What can you do to get more customers to
come to your store?
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!Just 4 ideas to increase traffic
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!Just 4 ideas to increase traffic
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!Just 4 ideas to increase traffic
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!Just 4 ideas to increase traffic
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!Just 4 ideas to increase traffic
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!Just 4 ideas to increase traffic
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!Just 4 ideas to increase traffic
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
Brainstorm!Just 4 ideas to increase traffic
:15
:30
:451:00
1:15
1:30
1:45
2:00
© 2014 Luxr Incorporated www.luxr.co
ChooseTwo selection criteria:
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ChooseTwo selection criteria:
CHOOSE 2: Most likely to generate traffic
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ChooseTwo selection criteria:
CIRCLE 1: Easier to implement
CHOOSE 2: Most likely to generate traffic
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Make it happen
Get started right away
Put some time in your schedule to do the work
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Using the Pattern
Track the results
Establish a baseline
Observe ObserveActBrainstorm
ideas to drive traffic.
Try one as an experiment.
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ConversionOf the people who visit, how many buy?
© 2014 Luxr Incorporated www.luxr.co
ConversionOf the people who visit, how many buy?
$$MONEY
$$MONEY
$$MONEY $
$MONEY
$$MONEY
$$MONEY
$$MONEY
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Kinds of Conversion
Site visits to purchases
Ad views to site visits
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Conversion Is Key
Wrong target market
Low conversion suggests fundamental problems:
Wrong product for the market
Wrong message
1
2
3
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Observe ObserveAct
Using the Pattern
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Establish a baseline
Observe ObserveAct
Using the Pattern
© 2014 Luxr Incorporated www.luxr.co
Brainstorm ideas to increase
conversion.
Try one as an experiment.
Establish a baseline
Observe ObserveAct
Using the Pattern
© 2014 Luxr Incorporated www.luxr.co
Using the Pattern
Track the results
Establish a baseline
Observe ObserveActBrainstorm
ideas to increase
conversion.
Try one as an experiment.
© 2014 Luxr Incorporated www.luxr.co
Dollars per SaleAverage cart size
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It’s hard to get people to visit your
store.
Make the most of each transaction.
© 2014 Luxr Incorporated www.luxr.co
Observe ObserveAct
Using the Pattern
© 2014 Luxr Incorporated www.luxr.co
Establish a baseline
Observe ObserveAct
Using the Pattern
© 2014 Luxr Incorporated www.luxr.co
Brainstorm ideas to
increase the dollars per sale.
Try one as an experiment.
Establish a baseline
Observe ObserveAct
Using the Pattern
© 2014 Luxr Incorporated www.luxr.co
Using the Pattern
Track the results
Establish a baseline
Observe ObserveActBrainstorm
ideas to increase the
dollars per sale.
Try one as an experiment.
© 2014 Luxr Incorporated www.luxr.co
Many other things to measure
Customer referrals
Repeat sales
Page views per visit
Abandoned carts
Item views per visit
© 2014 Luxr Incorporated www.luxr.co
If tracking your metrics doesn’t
change your behavior...
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If tracking your metrics doesn’t
change your behavior...
...then there’s no point in doing it.
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Measure Measure Again
Act
Using the Pattern
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Measure
Act
Over and Over
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What’s good?
Set your own goals
What’s good for you?
Do some math
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How they play together
If 500 people visit my store in a day
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How they play together
If 500 people visit my store in a dayAQUISITION
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How they play together
2% make a purchase
If 500 people visit my store in a day
That’s 10 purchases
AQUISITION
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How they play together
2% make a purchase
If 500 people visit my store in a day
That’s 10 purchases
AQUISITION
CONVERSION
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How they play together
2% make a purchase
If 500 people visit my store in a day
That’s 10 purchases
Average cart size is $40
My gross is $400
AQUISITION
CONVERSION
© 2014 Luxr Incorporated www.luxr.co
How they play together
2% make a purchase
If 500 people visit my store in a day
That’s 10 purchases
Average cart size is $40
My gross is $400
AQUISITION
CONVERSION
DOLLARS PER
SALE
© 2014 Luxr Incorporated www.luxr.co
Backtrack to discover what you need
If it costs me $300/day to run my business, I know I need to change
something
If your profit (net of COGS) is 50%, that’s $200
-BUT-
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What do I do?
Increase Conversion to 3%
Increase Acquisition to 750 visitors
Increase Dollars Per Sale to $60
-or-
-or-
© 2014 Luxr Incorporated www.luxr.co
Acquisition: Baseline
10 purchases x $40 each = $400 gross
500 visitors converting at 2% = 10 purchases
$400 gross x 50% = Net of $200
© 2014 Luxr Incorporated www.luxr.co
Acquisition: Improved
15 purchases x $40 each = $600 gross
750 visitors converting at 2% = 15 purchases
$600 gross x 50% = Net of $300
© 2014 Luxr Incorporated www.luxr.co
Conversion: Baseline
10 purchases x $40 each = $400 gross
500 visitors converting at 2% = 10 purchases
$400 gross x 50% = Net of $200
© 2014 Luxr Incorporated www.luxr.co
Conversion: Improved
15 purchases x $40 each = $600 gross
$600 gross x 50% = Net of $300
500 visitors converting at 3% = 15 purchases
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Dollars per sale: Baseline
10 purchases x $40 each = $400 gross
500 visitors converting at 2% = 10 purchases
$400 gross x 50% = Net of $200
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Dollars per sale: Improved
10 purchases x $60 each = $600 gross
500 visitors converting at 2% = 10 purchases
$600 gross x 50% = Net of $300
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This is a way of life that grows your business
22 purchases x $60 each = $1350 gross
750 visitors converting at 3% = 22 purchases
$1350 gross x 50% = Net of $675
© 2014 Luxr Incorporated www.luxr.co
Measuring tells you what, but not why.
Listen to your customers
Talk to your customers
Learn from your customers
Empathize with your customers
© 2014 Luxr Incorporated www.luxr.co
3 Key MetricsAcquisition
Conversion
Dollars per sale
© 2014 Luxr Incorporated www.luxr.co
Why?
Make informed decisions
Make more money
Move the numbers
© 2014 Luxr Incorporated www.luxr.co
Why?
Make informed decisions
Make more money
Move the numbers$
$MONEY
$$MONEY
$$MONEY $
$MONEY
$$MONEY
$$MONEY
$$MONEY
© 2014 Luxr Incorporated www.luxr.co
Metrics For Online RetailersShopify’s Build a Business Competition
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