Jewelry ECOMM Tech
Understanding ECommerce Data #7: Revenue By Traffic Source January 13, 2020 (0 comments)
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"Understanding Jewelry ECommerce Data" Series Chapters: Part 1: Customer Lifetime Value Part 2: Sales Conversion Rate Part 3: Average Order Value Part 4: Cart Abandonment Rate Part 5: Email Conversion Rate Part 6: Social Media Conversion Rate Part 7: Revenue By Traffic Source (you are here) Part 8: Customer Acquisition Cost Part 9: Percentage Of Returning Customers
How can you know where to spend your marketing budget if you don't know which channel your revenue is coming from? It's pretty impossible. Yet, jewelers around the country continue to keep dumping money into marketing channels without knowing which ones are actually improving their bottom line. You may already have some insight by tracking clicks and visitors to your website by traffic source, but you’re likely only getting half the story. As I keep saying, clicks and visits are only part of the equation. Which one of these scenarios do you think is better? a) Getting 2,000 clicks that earn 10 sales and $2,000 profit b) Getting 200 clicks that earn 200 sales and $8,000 profit Looking at "clicks" is exciting. But you're bound to have a traffic channel that has a higher ratio than others in terms of how many sales that channel gets for each 1,000 visits. Thats what we want to figure out. Additionally, once you have the baseline numbers figured out, you'll be able to keep an eye on the conversion rates for each traffic source, showing you that some campaigns are more efficient than others at driving revenue. This can be a good reminder not to rely too heavily on email, for example, but to diversify into retargeted ads, push notifications, etc. “The data on the growing and shrinking traffic sources is very interesting because it not only helps us identify new trends in consumer behavior but also helps us identify where marketing dollars should be spent.” - Justin Butlion, Content and Social Marketing Manager of Yotpo.