The Critical Connections of eCommerce success
Improve Return on Ad Spend (ROAS)
The 5 Critical Connections of eCommerce success
The Critical Connections of eCommerce success
The Critical Connections of eCommerce success
Improve Return on Ad Spend (ROAS)
Nearly every marketer looks at the return on ad spend (ROAS) of their campaigns as the overall barometer for success. Marketers
typically focus on A/B testing to find the best subject lines; perfecting bidding algorithms of PPC campaigns and making sure
retargeting campaigns are presenting relevant products. However, there are some unexpected factors behind why your ROAS may be
lower than expected.
These five critical connections are just as important in ensuring the success and effectiveness of yourmarketing campaigns.
1. ProductInventory
2. CompetitivePricing & Delivery
Terms3. Landing
Pages4. Marketing
Spend5. Checkout
Process
The Critical Connections of eCommerce success
The Critical Connections to Improve Return on Ad Spend (ROAS)
1. Product Inventory
How can you leverage product inventory data?The first things a marketer typically looks at when faced
with low ROAS on a particular campaign are broken links,
poor creative, or perhaps a missing call-to-action. These
are legitimate reasons, but it’s a siloed view that only
looks at marketing-attributed causes. By looking across
departments to other areas like product inventory, you
may find that conversions are low simply because there is
limited stock available. Metrics like views availability—the
percent of product page views when there is sufficient
coverage of stock—can provide a good alternative
perspective for why campaigns aren’t performing.
What are other retailers doing with product inventory data?Nearly $300,000 was identified in lost opportunity on
traffic from paid search keywords that were sending
customers to items that were out of stock. By connecting
inventory data with PPC keyword cost and click
information, one retailer was able to identify keywords
that were underperforming because of this reason.
DynamicAction was able to identify the issue
immediately, which allowed them to pause those
keywords until additional inventory was available.
The Critical Connections of eCommerce success
The Critical Connections to Improve Return on Ad Spend (ROAS)
2. Competitive Pricing & Delivery Terms
How can you leverage competitive pricing and delivery terms data?How is your pricing compared to competitors? If it’s
higher, consumers may be “window shopping” on your
site and purchasing elsewhere. Separately, a choice of
delivery terms (e.g. 24-hour, same-day, free shipping, etc.)
is becoming the new standard for many retailers.
Maintaining a constant handle on what retailers in your
competitive set are offering customers may be the
difference between a successful campaign with high
ROAS or a low performing campaign.
What are other retailers doing with competitive pricing and delivery terms data?At one luxury retailer, marketing was promoting a
certain line of products for the season. Using
DynamicAction, they were alerted to the fact that these
products were priced high compared to
competitors—in some cases by as much as $1,000.
Even though they were offering a free shipping
promotion the price disparity was impacting the
performance of the campaign. Adjusting prices to be
more in line with other retailers, they managed to
improve the sales of these products and improved the
ROAS for the campaign as well.
The Critical Connections of eCommerce success
The Critical Connections to Improve Return on Ad Spend (ROAS)
3. Landing Pages
How can you leverage landing page data?At any given time, a retailer may have hundreds of
campaigns running between PPC, display, retargeting,
email, social and other channels. Knowing whether any one
of these campaigns is directing people to the wrong landing
page or error page is a daunting task. With the right tools
that can alert you to broken links or misdirected traffic, you
can avoid spending time digging into campaign
performance and immediately fix any issues to recoup
potential revenue losses.
What are other retailers doing with landing page data?A retailer using DynamicAction was able to connect their
PPC, web analytics and product data to discover that a
number of keywords were resulting in a high bounce
rate and that this bounce rate was costing them tens of
thousands in potential revenue from sales of those
products. Based on the recommendation from
DynamicAction, they immediately paused those
keywords and went in to their site to optimize the
landing pages.
The Critical Connections of eCommerce success
The Critical Connections to Improve Return on Ad Spend (ROAS)
4. Marketing Spend
How can you leverage marketing spend data?Are you spending too much on campaigns where you’re
actually losing money on the product being sold? The
conversion rate is just one element of understanding
campaign performance, but in order to get a true picture
of ROAS, you need to have visibility into shipping costs,
orders and other factors that may be detracting from your
profit potential. The math to calculate ROAS from all of
these components can be complicated, but the right
application can help track these costs.
What are other retailers doing with marketing spend data?Within the first week of using DynamicAction, one
retailer found they had a low margin and low ROAS on a
number of products they were promoting—in some
cases the campaign costs were too high; in others, free
shipping was diminishing the margin too much.
Through the application, they were able to get the exact
products impacted and revisited their campaigns to
adjust spend and free shipping thresholds.
The Critical Connections of eCommerce success
The Critical Connections to Improve Return on Ad Spend (ROAS)
5. Checkout Process
How can you leverage checkout process data?Accounting for every factor that can go wrong along the
checkout process path is impossible—from broken links
to fraud detection to invalid promotion codes. You could
have an amazing campaign, but if customers simply can’t
make a purchase due to technical issues, your ROAS may
suffer. It could be a full time job to try to maintain all of
these areas, but there are tools that can monitor for any
performance anomalies or outliers to avoid losing
potential sales and risk damaging customer satisfaction.
What are other retailers doing with checkout process data?DynamicAction identified a website issue that was
impacting one retailer’s campaign performance. They
found that hundreds of customers were clicking through
an email campaign only to receive error messages when
entering a promotion code upon checkout. They were
able to fix the site issue in time to salvage their
ROAS—and contact the customers impacted to invite
them back to purchase.
The Critical Connections of eCommerce success
About DynamicAction
DynamicAction from eCommera helps forward-looking retailers and brands drive every last dollar of profit from their ecommerce
business.
This first-of-its-kind Decision Intelligent Commerce application connects and analyzes product and customer data across a retailer’s
organization. Unlike any reporting or analytics tools to date, DynamicAction tells you exactly what’s impacting profit, recommends
actions to take, and ranks them by how much they’re worth to your business.
eCommera is based in London, England and Redwood City, California. Find out how the leaders in retail are revolutionizing their
multichannel businesses at www.dynamicaction.com, @eCommera and http://www.linkedin.com/company/ecommera.
eCommera Limited., Wells Point, 79 Wells Street, 1st floor, London, W1T 3QN, United Kingdom, +44 0 20 3530 5800eCommera Inc., 812 Middlefield, Redwood City, CA 94062, United States +650 814 5476eCommera France, 11bis rue Volney, Paris, 75002, France, +33 0 1 74 90 04 03www.dynamicaction.com [email protected]
Top Related