Marketing Metrics Assignment
Table of Content
Contents
Dashboard 2
Introduction: 3
Evaluations of KPI’s 4
Ecommerce Conversion rate by Channel 4
Return on Ad Spend 5
Bounce rate of Website 6
Relationship between Ad Spent and CPC 7
Successful Website Referrals from SM 8
Bounce Rate in Comparison of all Channels 9
Class wise Sales via Internet 10
Product category wise Sales via Internet 11
Ecommerce Conversion Rate by Gender and Age Classes 12
Class wise Sales via Stores 13
Product Category via Stores 14
Net Income 15
Conclusions and Recommendations 16
Dashboard
Introduction:
This report assesses CB Shoes Ltd. Performance in the year 2018. Assessment has taken place after carefully using the range of metrics to provide a comprehensive set of data for analysis and concludes with a proposal of new plans for CB shoes to take under consideration.
The set of key performing indicators (KPI’s) used have been classified into three sub-categories. The three sub-categories used are vital in today’s time for a company such as CB Shoes to progress. The three sub-categories are: Digital/Social metrics, Traditional Metrics and Business operations related metrics.
A fundamental problem for measuring marketing performance is defining and identifying the best metrics and best practice (Tim Ambler, 2000). This assessment report focuses on 12 KPI’s from the information provided by CB Shoes Ltd that are key to performance and then explains how performance in 2018 in said KPI’s has affected the company, suggests how and why the company can perform better in said KPI’s.
As CB shoes Ltd is an E-commerce business as well as maintaining a conventional physical store, this assessment focuses mainly on digital/social & traditional metrics from the information provided. The dashboard attached above will be further discussed in the report. Each figure that shows one KPI will be discussed individually and how it is important for CB Shoes Ltd for future planning.
In the following assessment each of the KPI is defined, discussed and recommended to what is the outcome of tracking that particular KPI. This way there is a constructive reason to why a KPI is being highlighted and each KPI assessment comes with its unique suggestion as well.
The report concludes with recommendations of the key findings.
As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging. In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too. The report closes with suggestions of the key discoveries.
Evaluations of KPI’s
Ecommerce Conversion rate by Channel
84% if people trust recommendations from people, they know making referral marketing the most influential form of advertising (Lisa Ross, The Importance of Referral Marketing, 2021). In Fig.1 that illustrates the ecommerce conversion rate of CB Shoes by channel, Referrals is the most successfully converted channel. More than twice with Email and Paid combined who are the second most successful channels. Display and Social channels score the lowest in the ecommerce conversion rate by channel. As an ecommerce company there are two key things that need to be highlighted. Firstly, customers who are being targeted by SM and/or Display ads on other websites are not being targeted correctly. Secondly, the fact that CB Shoes Ltd once referred to by an existing customer to a potential customer, converts the most sales means that the product options and quality is not the problem. In this case CB shoes is more likely to convert overall if it drops investment in channels like display and social, if it was to offer a direct incentive, social recognition or access to an exclusive loyalty program. This way CB Shoes Ltd promotes all of its costumers to refer to their family and friends.
Return on Ad Spend
Return on Ad Spend (ROAS) allows business to evaluate the effectiveness of individual campaigns based on their performance (Yuval Yaary, 2020). As Fig 2 shows the ROAS from April 2018 to Jan 2019 from the information provided by CB Shoes Ltd. The line graph shows no trends in the ROAS. The limitation to this KPI is the fact that the ad-sets were not known. However, ROAS provides reliable information to make important decisions regarding future CB Shoes Ltd marketing plans. The outcome of highlighting this particular KPI was to identify the ads that were performing well so the can maximised in scale which will then further maximise results. With maximising in scale, the best performing ads, a better budget management can take place by trimming down the least best performing ads, this protects CB Shoes Ltd from unwanted losses. The information presented in Fig2 provides reliable information to make decisions regarding the next sets of ads that can be run by CB Shoes Ltd. This will allow maximising future profits my outperforming previous campaigns.
It is also worth noting that another limitation around this metric is that is only looking at direct revenue related ad spend and does not take into consideration the halo effect of a customer seeing the ad and coming to CB Shoes Ltd at another point (Hilhorse, 2019). It is essential to capture this information as it will help to understand the customer journey and they discovered the brand (Pelino and Kohl, 2018)
As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging.
In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too.
The report closes with suggestions of the key discoveries.
Bounce rate of Website
In Fig3 the bounce rate of CB Shoes Ltd website is shown from April 2018 to February 2019. The reason this KPI is highlighted here is because that as an e-commerce website, CB Shoes Ltd objective should not be to help the seller to sell but rather be to help the buyer to buy (Charlsworth 2018, p.36). A bounce is a single-paged session on a website. CB Shoes Ltd out of the 14 months of data provided scored more than 50% bounce rate for 8 of those months. Since CB Shoes Ltd are an ecommerce website this means that users logging onto their website leave the website before opening another page. Meaning zero sales. The limitation of this KPI is the UX and UI design of the website were not available in the information provided by CB Shoes Ltd. Such a high bounce rate from website does not only that there were no sales, it also means that the website was not able to showcase other products on the website that would capture the attention of the visitor. The success of the website is directly linked with the bounce rate of the website. In this case the success of the website is low.
As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging.
In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too.
The report closes with suggestions of the key discoveries.
Relationship between Ad Spent and CPC
In fig 4 two information inputs are shown in the form of a line graph. One being AD spent by CB Shoes Ltd in 2018 and the other being the CPC of said ads by CB Shoes Ltd in 2018. The main focus point of showcasing this information is that there is no similar trend between the line graphs. If the Ad spent was effective then the CPC line trend should’ve been similar to Ad spent. Since CPC is concerned with the advertising cost and the number of impressions there is one limitation to this KPI that is the ad sets the cost went to. However, the two graphs not having any similar trends show that the variation in Ad spent did not play any role in the CPC going up or down. With no relation between the two, CB Shoes Ltd should manage their Ad spent more effectively. Introduce a budget management tool or a budget management plan to control the ad spent to cut unnecessary advertisement cost.
Successful Website Referrals from SM
In fig5 it shows from the information given the differences of successful website referrals from different social media mediums in the year 2018. Previously in Fig1, Referrals had the highest conversion rate among other marketing channels, Social media scored a 0.3 conversion rate. In this particular KPI, the information shows that Facebook among the other social media takes 93.5% of successful conversions. Social media networks are open to all, giving businesses a chance to follow their consumers activities or potential buyers, this helps marketers to be more informed about their target audience, likes, dislikes, and interest so that they can create a better marketing strategy to attract such customers (Gary Henderson, 2021).
From this information it is suggested that CB Shoes Ltd change approach to how its marketing in SM mediums such as Blogger, IG, LinkedIn, Pinterest, Polyvore, Reddit and Yelp. As from the information provided by CB Shoes Ltd these SM mediums have 0 conversion rate. Either a change of plans on how to market CB Shoes on these platforms need to take place or to just focus on the ones that are converting so the conversions can be increased in mediums that are already performing well.
Bounce Rate in Comparison of all Channels
In Fig 6 it shows the bounce rate of the CB Shoes website according to their respective channels. Previously the information provided by CB Shoes showcased an alarming bounce rate for the website considering its an ecommerce website. Fig 6 furthermore highlights an alarming situation of attributing the most bounce rate to paid search. The main attribute of Paid search is to target audience that a marketer think is most likely to be interested in the product. The fact that paid search has the most bounce rate goes to show that the targeted audience is either not interested in the product anymore, Or it is highly likely that the audience targeted isn’t the desired audience. The limitation to this KPI is only that historical information of successful purchase Ad IDs isn’t given nor is the ad-set on the audience targeted by the paid search given. However, from the information provided CB Shoes Ltd can reduce their paid search to minimise cost or change their paid search criteria to perform better in this particular KPI
Class wise Sales via Internet
Fig 7 shows the distribution of sales via the internet between Kids, Ladies and Men. Taken as a technical metric that shows Kids contribute to sales more than the Ladies and Men Combined. As of January 2021, the highest share of advertising audience in the UK was found among 25- to 24-year-old, with 12.8 percent women and 12.4 percent men (Statista, 2021). This information provides that through the ecommerce route products for kids are being sold the most followed by Ladies items and then Men’s. As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging.
In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too.
The report closes with suggestions of the key discoveries.
Product category wise Sales via Internet
In Fig 8, the information provided by CB Shoes Ltd highlights the product category Sales via Internet. Previously in Fig 7 it was highlighted that Kids section had the most sales. Likewise in the Fig 8 it shows that two-thirds of CB Shoes Ltd overall revenue comes from Lelli Kelly: an Italian owned that specialises in party shoes for girls (About Us – Lelli Kelly Kids Official Stockists). In contrast to different organizations in the footwear commercial center, CB Shoes Ltd doesn’t produce their own line of items and just stocks marked shoes. This puts the organization in a tough spot as they don’t have unlimited oversight over the expense of stock coming in. There is the potential that in the event that one of these brands were to go into negative sales individually, it could have monetary ramifications for CB Shoes Ltd in the long haul. CB Shoes Ltd needs to consider the absence of control they have in terms of the standing of these brands. As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging.
In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too.
The report closes with suggestions of the key discoveries.
Ecommerce Conversion Rate by Gender and Age Classes
In Fig. 9 it breaks down the ecommerce conversion rate into genders which are then divided into age groups that are similar in both genders.
Previously it was highlighted in the in Figure 7 that, men contribute the least in ecommerce sales in 2018 to CB Shoes Ltd. The importance of this KPI highlights that except for the 18–24-year-old bracket male have a better conversion rate than female.
The importance of this KPI highlights that for CB Shoes Ltd Male customers are converting more than females. However, females are bringing in more the revenue. This information could be used to understand the process of their consumers, they will know how their consumers search for information before buying, which criteria can encourage them to buy, and what factors influence their purchase decision-making (Solomon er al., 2010) As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging.
In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too.
The report closes with suggestions of the key discoveries.
Class wise Sales via Stores
In Fig 10, the information breaks down product category wise the sales via stores among Kids, Ladies and Men.
To focus on the brands Lelli Kelly and Uggs that are both considered high in the footwear marketplace (Fitzpatrick, 2015: Clack, 2017) are the two most used brands. CB shoes Ltd focus is on stocking brands that sit under the umbrella brand of Kurt Geiger Limited, The number one premium footwear brand in the UK( Kurt Geiger, 2020). They also own brands like Carvela, Converse, Fendi and Nine West brands (Marketline,2020). By tracking this KPI CB Shoes Ltd will be able catch any drops in sales, furthermore, divide them into three categories of urgency. Kids category being the most important as they bring the most revenue.
This KPI tracked also helps CB Shoes to see more comprehensively which brand works at their store and which brand is doing good independently however not being bought at third party stores such as CB shoes Ltd. As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging.
In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too.
The report closes with suggestions of the key discoveries.
Product Category via Stores
In figure 11 the information given by CB Shoes Ltd shows that Dr Martens, Hunter, Lelli Kelly and Uggs perform the same as they perform in their own stores if not better.
This KPI tracked gives CB Shoes Ltd insight to the consumers on how comfortable they are buying high-end shoes from CB Shoes. Moreover, how comfortable consumers are buying products that are more easily available elsewhere.
Previously the reports mention the reason Lelli Kelly is the most popular brand at CB Shoes Ltd is mainly because the brand itself has little to no social media presence.
Brands like Converse that have an 1886 million revenue in 2018 (Statista, 2020) are well more equipped to have sales from their own stores and website. This KPI not indicates that these brands are doing bad on their own. Whereas they highlight the trend of shoes that are being bought and give thought-provoking market insight to how it is possible.
Likewise, with Ugg being an Australian brand and having only 3 stores of their own in the UK, their sales are substantially high as compared to Michael Kors that turned over triple revenue in 2018 as compared to Uggs (Statista, 2019)
Net Income
Net Income is the result of all costs, including interest expense for outstanding debt, taxes, and one one-off items, such as the sale of an asset or division (Claire Boyte-White, 2021). Fig 12 shows the downfall of net income in 2018 from 2017. A variance of -52.9%.
For any company to take future decisions their Net Income is single handily the most important KPI to keep in observation. This gives insight if the company should make changes from their last fiscal year or not. As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging.
In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too.
The report closes with suggestions of the key discoveries.
Conclusions and Recommendations
With individually focusing on each of the KPI’s this assessment comes to a conclusion. The assessment highlighted 12 KPI’s in total. These KPI’s have been highlighted as they’ve shown to be most relevant to the market of CB Shoes Ltd and how keeping a track of these metrics not only tell marketers at CB Shoes Ltd the outcomes but also give insights to further evaluate the market and take better decisions in the future.
The Shoe Industry comprises of a huge number of footwear makers, wholesalers, and retailers. The significant wholesalers in the U.K market are proprietors of a brand and regularly source their shoes from producers. CB Shoes running the same business model has done impressive at the store end however key areas to improve as an ecommerce store have been highlighted.
Organizations inside the shoe industry are affected by an assortment of elements, from the macroeconomic climate to style inside specific footwear classes. All things considered, investors should give close consideration to same-store deals and inventory management. The organizations that prevail there will in general be the best and sustain in the market however with marketing metrics proving to be more vital the KPI mentioned are just ways for CB Shoes to get better and better each year.
With the assessment being concluded the following are three major recommendations for CB Shoes Ltd:
Cut down on paid search. Two KPIs show CB Shoes Ltd’s website has a high bounce rate. For an ecommerce website having a high bounce rate is not the appropriate thing. Not only the bounce rate is high but when looked into another metric of bounce rate by channel it highlighted that Paid search bounce rate has the most bounce rate. To cut down this paid search only seems appropriate at this stage as it guarantees a lower cost in Advertisement budget. A budget that could be more effectively used somewhere else.
Secondly it is recommended that CB Shoes should start a referral’s reward card/points from customers. Referrals already being the most successful channel of conversion in ecommerce, it is surprising to see that except for Facebook, the other social media mediums perform badly in converting. This is not a case of open affiliate marketing plans. This is to ensure that customers who are referring CB Shoes Ltd are incentivise. This will increase more referrals but also even out the line of successful website referrals from social media. the fact that CB Shoes Ltd once referred to by an existing customer to a potential customer, converts the most sales means that the product options and quality is not the problem. In this case CB shoes is more likely to convert overall if it drops investment in channels like display and social, if it was to offer a direct incentive, social recognition or access to an exclusive loyalty program. This way CB Shoes Ltd promotes all of its costumers to refer to their family and friends.
Lastly it is recommended that jump on the bandwagon of Shoe marketing. Shoes brands are now making more than shoes, they’re making an experience. They’re making a marketing campaign around their shoes. Not recommending to compete with Adidas or Nike but to think Globally and act Locally. It is recommended that CB Shoes Ltd to reach out micro influencers to gain exposure. To reach out college football teams and local athletes and sponsor them, support them in their journey. It is recommended that CB Shoes Ltd partner up with local businesses such as the closest fitness studio or sports club to promote a positive brand image and drive customer loyalty (Sean P.Fontaine, 2020). As CB shoes Ltd is an E-trade business just as keeping an ordinary actual store, this appraisal centers essentially around advanced/social and customary measurements from the data gave. The dashboard connected above will be additionally examined in the report. Each figure that shows one KPI will be talked about exclusively and how it is significant for CB Shoes Ltd for future arranging.
In the accompanying evaluation every one of the KPI is characterized, examined and prescribed to what exactly is the result of following that specific KPI. This way there is a productive motivation to why a KPI is being featured and each KPI appraisal accompanies its extraordinary idea too.
The report closes with suggestions of the key discoveries.
References
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