Without understanding your sales data, it’s difficult to make informed decisions about how to grow your business. That’s why today we’re going to discuss the four aspects that every seller should be analyzing: Ad Campaigns, Competitors, Customers, and Products. By understanding and analyzing data, you’ll be able to make more informed decisions about your successful business and improve your performance!
Table of Contents
Why Ad Campaigns should be analyzed
Ad campaigns analysis is one of the most important marketing tools. Ad campaigns are the lifeblood of any ecommerce business. Without them, it would be difficult to generate traffic and sales. That’s why it’s so important to understand how your ad campaigns are performing.
By analyzing data, you can determine which campaigns are working and which ones aren’t. This will allow you to make changes to improve your results. Additionally, you can use data to track your progress over time and see how your campaigns are performing relative to your goals.
With effective ad campaigns, you can drive traffic to your store and generate sales. Hence, you can increase your profit, whereas profit is the most important metric for evaluating whether your store is successful or not.
Analyze Ad Campaigns with Metrics
To conduct an analysis of your business, metrics are the basic. There are a few key metrics that you should track for each ad campaign:
Cost per click (CPC)
CPC is the amount you pay each time someone clicks on your ad. It’s important to track CPC because it can help you determine how much you’re spending on each customer.
Click-through rate (CTR)
CTR is the percentage of people who see your ad and click on it. A high CTR means that your ad is relevant and interesting to your target audience. Conversely, a low CTR indicates that your ad is not well-targeted or that it’s not interesting.
Conversion rate
The conversion rate is the percentage of people who click on your ad and then make a purchase. A high conversion rate means that your ad is effective at driving sales. If your conversion rate is low, you may need to make changes to your ad or your landing page to improve results.
ROAS
ROAS is the return on investment for your ad campaign. It measures how much revenue you generate for each dollar you spend on advertising. A high ROAS means that your ad campaign is profitable and efficient.
By tracking these metrics, you’ll be able to see which of your ad campaigns are performing well and which ones need improvement.
However, looking into metrics only cannot provide a deep understanding of ad campaigns. Therefore, analyzing ad campaigns also requires the combination of different metrics.
Combining multiple metrics can help businesses get a more complete picture of what is going on and make better decisions. By tracking both metrics together, they can get a sense of which area is performing well and which needs improvement.
Ecommerce businesses can more thoroughly understand the performance of their ad campaigns by analyzing them with multiple metrics. This will allow them to make better decisions about where to allocate their resources for the best return on investment.
Below is the demo from Super Chain:
Analyze Ad Campaigns with Correlations
In order to have a deeper understanding, studying the correlations of different factors is also essential. For example, when daily ad spending increases as the sales increase, we can assume there is a positive correlation between them.
But how strong is the correlation? Does the strength of the relationship change? Is that after the launch of the new ad campaign?
These are the insight you can gain after having an ad campaigns analysis with correlations. Here is a sample:
Why Competitors should be analyzed
Competitors are everywhere in the business world. No matter what industry you are in, there will always be other businesses trying to get a piece of the pie.
In order to be successful, it’s important to understand your competitors and what they’re doing through analysis. This way, you can stay one step ahead and make sure that you’re offering the best products or services possible.
Analyze Competitors with Metrics
Competitive analysis is the practice of identifying your direct and indirect competitors and evaluating their strategies to determine their strengths and weaknesses relative to your own business. The goal of a competitor analysis is to help you develop a marketing strategy that will give you a competitive advantage.
There are many ways to conduct competitor analysis, but some common methods include studying their marketing materials, conducting customer surveys, and analyzing their financial reports.
Some common metrics to look at include:
Revenue
By analyzing the revenue of direct competitors, you can get a good idea of what the market is willing to pay for your product or service. This will help you set your prices accordingly.
You can also use this information to identify potential areas of growth. If you see that a competitor is generating a lot of revenue from a certain type of customer, you may be able to tap into that market as well.
Market share
Market share is a measure of how much of the total market a business has. It’s important to track because it can give you an idea of how much room there is for growth.
If your competitors’ market shares are low, it may be an indication that the market is not saturated and there is still room for you to grow. On the other hand, if their market shares are high, it may be an indication that the market is more competitive and you’ll need to differentiate your product or service in order to succeed.
Customer satisfaction
Customer satisfaction is a measure of how happy customers are with a business’s product or service. It’s important to track because it can give you an idea of where the business needs to improve.
If you see that a competitor has a high customer satisfaction score, it’s an indication that they’re doing something right. You can try to replicate their success in your own business. Here is a sample:
Employee turnover
Employee turnover is a measure of how often employees leave a business. It’s important to track because it can give you an idea of the business’s culture and how well they treat its employees.
If you see that a competitor has a high employee turnover rate, it’s an indication that something is wrong. You may be able to attract talented employees by offering better working conditions or benefits.
By analyzing your competitors, you can develop strategies to improve your own business and stay ahead of the competition.
Why Customers should be analyzed
One of the important parts of the business is understanding your target customers. After all, they are the ones who are buying your product or service.
It is essential to conduct a customer analysis a get a grasp of who your customer is, what they like and don’t like, and how they make their decisions in order to create good business practices. You need to know this so you can give them what they want.
Analyze Customers with Metrics
There are a number of different metrics that can be used to analyze customers, depending on what you’re trying to learn. Some common metrics include:
Customer lifetime value (CLV)
Customer lifetime value is a metric that measures the total value of a customer over their lifetime. This is important to track because it can give you an idea of how much revenue you can expect to generate from a single customer.
By knowing the CLV, you can make decisions about how much to spend on acquisition and retention.
Customer acquisition costs (CAC)
CAC is the customer acquisition cost. This is the amount of money that you spend in order to acquire a new customer. This is important to track because it can give you an idea of how much it costs to expand your business.
If the CAC is too high, a business would likely need to reevaluate its marketing strategies. It may be necessary to invest more in marketing in order to attract new customers at a lower cost. Alternatively, a business could focus on increasing customer loyalty and generating more revenue from each customer.
Churn rate
Churn rate is the percentage of customers who stop doing business with you within a given time period. By tracking the churn rate, businesses can better identify areas where customers are leaving and work to improve those areas.
Additionally, it can help businesses measure the health of their customer base and the overall success of retention strategies. By understanding why customers are leaving, businesses can proactively address these issues and hopefully reduce their churn rate.
Retention rate
Retention rate is a metric that measures the percentage of customers or employees who stay with a company over a period of time. Companies with high retention rates tend to have happy customers who are loyal to the brand.
There are a number of factors that can influence retention rates, including the quality of the product or service, the strength of the brand, customer satisfaction, and how easy it is to use the product or service.
Analyze Customers with Segmentation
By segmenting customers, businesses can more strategic in their marketing efforts. Segmentation allows businesses to target specific groups of customers with tailored messages that are more likely to resonate.
There are a number of different ways to segment customers, but some common methods include:
Demographic segmentation
This is the process of dividing customers into groups based on factors like age, and gender analyzed, it can give businesses a better understanding of how to appeal to their target market.
Psychographic segmentation
This is the process of dividing customers into groups based on factors like lifestyle, values, and personality. This type of segmentation can help create marketing messages that resonate with the target audience.
The lifestyles and values of individuals in different countries are usually different. Here is an example from Super Chain indicating which country has more profitable customers.
Behavioral segmentation
This is the process of dividing customers into groups based on factors like purchase history, web browsing behavior, and email engagement. This type of segmentation can help understand how customers interact with a business and what their needs are.
By segmenting customers, businesses can create more targeted marketing campaigns that are more likely to result in conversions. Additionally, segmentation can help businesses be more efficient with their marketing spending by allocating resources to the most promising groups of customers.
Why Products should be analyzed
Analyzing products is important for a number of reasons. First, it can help businesses understand which products are selling well and which ones are not. This information can be used to make decisions about inventory levels and product mix. Additionally, analyzing products can help businesses identify trends and anticipate future customer needs.
Second, analyzing products can help businesses improve their marketing efforts. By understanding which products are selling well, businesses can focus their marketing resources on those products. Additionally, analyzing products can help businesses develop more targeted marketing campaigns that are more likely to result in conversions.
Analyze Products with Metrics
In order to analyze products properly, businesses need to track a number of different metrics while conducting product analysis. Some common product metrics include:
Sales volume
This metric measures the number of units of a product that are sold over a period of time. This information can be used to understand which products are selling well and which ones are not.
Inventory turnover
Inventory turnover is a calculation of how often a company’s inventory is sold and replaced over a period of time. This metric is used to measure a company’s effectiveness in managing its inventory and gauging its sales and production pace.
If businesses know their inventory turnover, they can better manage their stock levels and make sure they have enough products on hand to meet customer demand. This information can also help businesses understand which products are selling quickly and adjust prices accordingly. Additionally, knowing the inventory turnover can help businesses identify issues with dead inventory or slow-moving items. Below is the actual usage of the Super Chain demo.
Production costs
By tracking production costs, you can identify ways to become more efficient and reduce your expenses, which can lead to increased profits.
Also, if you’re ever faced with the need to make cuts in order to stay afloat, knowing your production costs will help you make the most informed decisions about where to cut expenses.
Conclusion
In this blog, we have discussed the importance of analyzing products and how businesses can use product metrics to understand the performance of their products. Additionally, we have looked at some of the benefits of tracking production costs.
Thanks for reading! We hope this blog has been helpful. Let’s try using analytics to boost your performance!
