E-Commerce Data: Topic-4: Web Analytics

E-COMMERCE DATA
TOPIC- 4: WEB ANALYTICS
DINESH MOHAN
mohandineshnew@gmail.com
mohandineshnew@gmail.com ECD 05 1
BUSINESS INTELLIGENCE IN E-COMMERCE
DATA MINING
AND ANALYTICS
AWARENESS CONSIDERATION SALE FULFILMENT RETENTION ADVOCACY
TEXT MINING, SENTIMENT ANALYSIS, WEB MINING

AND ANALYTICS
BIG DATA
TEXT
DATA WEB
MINING &
MINING & MINING &
SENTIMENT
ANALYTICS ANALYTICS
ANALYSIS
PREDICTIVE MODELLING
PREDICTIVE MODELLING
BIG DATA
WEB MINING
• Web mining is the process of discovering interesting and useful information
from web data
• The information uncovered by web mining are expressed in form of textual,
linkage or usage information
TOPIC – A TOPIC – B
• Search Engines • Web Analytics
WEB ANALYTICS
WEB ANALYTICS/ USAGE

MINING
WEB ANALYTICS/USAGE MINING
• Web usage mining, also known as Web analytics, is the process of extracting
user access patterns from data generated through web page visits and
transactions
• Analysis of the information collected from web servers can help us understand
the user behavior better
• Understanding of such behavior can be used to improve the e-commerce
customer experience and, thus, increase the customer value
E-COMMERCE: STAGES
• UNAWARE
• AWARE
BRAND • ENGAGEMENT
AWARENESS
• ENGAGEMENT
• ACQUISITION
CONVERSION • LOYALTY
• LOYALTY
RETENTION • ADVOCACY
E-COMMERCE: WHAT TO ANALYZE ?
How to analyze impressions

AWARENESS
How to analyze inbound traffic, including what

CONSIDERATION they do in your site, how they interact with email
and social media engagement
How to measure micro-conversions and analyzing

SALE sales transactions and average order value
How to analyze repeat orders, customer

RETENTION
lifetime value and purchase frequency
How to analyze word of mouth and

ADVOCACY referral marketing stats
E-COMMERCE: VALUE-DRIVERS
sale
E-COMMERCE: MEASURING VALUE
* Bounce rate – the percentage of visitors to a particular website who navigate away from the site after viewing only one page
WEB STATISTICS
SEARCH
ENGINES
DIRECT
CONVERSION STATISTICS
WEB SITE USABILITY
TRAFFIC SOURCES
• New visitors
• Page views
REFER- • Returning visitors
RAL • Time on site
SITES • Leads
• Downloads
• Sales/conversions
• Click map
• Abandonment/exit
OFF LINE • Click paths
CAMP-
rates
AIGNS
ONLINE
CAMP-
AIGNS
CONTENT LANDING
KEY- GEOG- TIME OF
GROUP- PAGE
WORDS RAPHY DAY
INGS PROFILES
VISITOR PROFILES
THE CONVERSATION PRISM
DEFINITIONS
• Session
A session is a group of user interactions with your website that take place within a given
time frame. E.g., a single session can contain multiple page views, events, social
interactions, and ecommerce transactions
A single user can open multiple sessions. Those sessions can occur on the same day, or
over several days, weeks, or months. As soon as one session ends, there is then an
opportunity to start a new session.
There are two methods by which a session ends:

• Time-based expiration: E.g., After 30 minutes of inactivity or At midnight
• Campaign change: If a user arrives via one campaign, leaves, and then comes back via a
different campaign
DEFINITIONS…
• Impressions
The number of times a piece of content (like an online advertisement) is seen; the views
• CTR (click-through rate)

A ratio showing how often people who see your ad end up clicking it.
CTR = clicks ÷ impressions = CTR. E.g., if you had 5 clicks and 100 impressions, then your
CTR would be 5%
• New Users
New users are people who are coming to your site for the first time on a device, during
the monitoring timeframe
• Time on site
The amount of time (in minutes or seconds) visitors have spent on your website
• Page views
Page Views / Visits = Average Page Views per Visit. Average page views per visit are an
excellent indicator of how compelling and easily navigated your content is
• Bounce rate
The percentage of visitors to a particular website who navigate away from the site after
viewing only one page
DEFINITIONS…
• Macro conversion
A macro conversion is the primary conversion on a website, for example a completed sale
on an ecommerce site or a completed lead generation form
• Micro conversion
A micro conversion relates to smaller engagements such as a newsletter sign up or a user
watching a product video. Micro conversions can often precede the macro conversion
STAGE-1
BRAND AWARENESS
BRAND AWARENESS: STRATEGY
UNAWARE AWARE ENGAGEMENT
• How much new awareness are you generating?

• What channels drive this awareness?
• How effective is each channel?
• How do new users engage with your brand?
BRAND AWARENESS: DRIVERS
sale
AWARENESS GENERATION: METRICS
• How much new awareness are you generating
• KPIs like impressions and click-through rate (CTR) can help to gauge how
many new users you’re reaching and developing awareness with
• CTR = (No. of Clicks/No. of Impressions) x 100
• CTR and new users tell how well your brand name stands out in search
results or how effective different advertising strategies are
• With metrics like bounce rate, average session duration, and pages per
session, you can see how engaged new, unaware visitors are
BRAND AWARENESS: MEASUREMENT
STEP-1
• With metrics like bounce rate, average session duration, and pages per
session, you can see how engaged new, unaware visitors are
STEP-2
• Measure the effectiveness of various channels
STEP-3
• However, brand awareness, an important metric, is not accounted for
• Hence, it is important to look closely at your spend and most importantly, customer
acquisition costs
• How each channel plays a role in brand awareness
• Put these metrics to test with each channel that you use for brand-building
STEP-1
• Assess how this channel played a role in developing awareness on site
NOTES:
• CPM – Cost per Mile (i.e., 1000 impressions); an inventory-based cost measure rather than a performance based
• CPC – Cost per Click; a performance-based cost measure
• CPA - Cost per Acquisition
Impressions Clicks Click Rate Conversions (Actions) Conversion Rate Total Cost Cost Basis Price
100,000 500 0.5% 50 10.0% $1,000.00
CPM $10.00
CPC $2.00
CPA $20.00
STEP-2
• Inspect your social network data with a secondary dimension of “Landing
Page” and the segment of “new users” to see how unaware users interacted
on each page they landed on
STEP-3
• How to avoid a static analysis and elicit true performance
• Add secondary dimension, e.g., email signups and form completion, to

inspect conversions from this channel
• Users who moved from unaware to engaged (e.g., signed up for the email
list), often browsed nearly seven pages per session
STEP-4
• How to analyze ‘behavior flow’
• As earlier data showed, it took over six page visits on average before a
conversion action
• Now you can see exactly what those common pages were, giving you a clear
understanding of the conversion path and how to better optimize user flow
• This user flow reveals the “why” behind conversions. Why they had to go to
six or more pages, what those pages communicated, and how they nudged
users down the funnel
• Discussion example: Gymshark.com
• If you landed on Gymshark for the first time, most probably you wouldn’t be
ready to buy. Instead, you’d be looking to learn more about the company and
its products
• Your first touchpoint (after the home or landing page) might be an “About”
section
• Once educated, you might investigate where they sell their products in-store
• When doing this type of data analysis for the top of your funnel, pay special
attention to ‘micro-conversions’
• Maybe you straightaway go to their latest products by taking a look different

images and seeing what sizes are in stock
• Micro-conversions are the small, seemly insignificant steps taken by a user that
leads to engagement and eventually acquisition. Shopping on an UNTUCKit
product page, this would include a new visitor clicking:
Images, Reviews, Colors, Size Chart, Size or Fit Selector, Shipping, Returns &
Exchanges
• Essentially, these are signals that show you how the buying process works and
what features are most important for consumers before they commit
• To track all those micro conversions, configure the various clicks as ‘Events’ in
analytics on your most popular pages — e.g., landing pages for paid traffic and
top pages for organic traffic
AWARENESS: METRICS
• Conduct ecommerce data analysis like this for each channel your business
invests in to better understand:
• how effective each channel is at generating awareness, and
• how users from that channel interact with your site
• You may find that users from a specific channel, like Pinterest, have a longer
buying cycle because you’re engaging them so early in the purchase journey,
whereas a new user through search may be looking for the specific products
you sell and be ready to buy
STAGE-2
CONVERSION
CONVERSION: STRATEGY
BUY
ENGAGEMENT ACQUISITION LOYALTY
• What behaviors lead to conversion?

• How effectively are we encouraging these behaviors?
• What segments of our user base are driving the highest conversions?
• What channels drive the highest conversion?
CONVERSION: DRIVERS
sale
CONVERSION: METRICS
• What behaviors lead to a conversion from awareness to sale
• Conduct a channel analysis. However, this time — instead of new users —

segment all users or purchasers while also inspecting your revenue channels
• Start with site-wide conversion numbers
CONVERSION: MEASUREMENT
STEP-1
• In the dashboard above, total store visits are down, but sales are up. How?
• The average order value increased by 9%, showing that while we aren’t
getting tons of new middle-to-bottom funnel traction, our bottom funnel is
still coming back for more
STEP-2
• These conversion
metrics give a baseline
• You can also run

additional reports
filtered by “traffic
referrer” to see how
sales and conversation
rates vary by channel
• STEP-3
• You can measure how each source and medium (i.e., channels) performs
STEP-4
• You can further measure how new visitors compare to returning visitors as well as (2)
how your sources and mediums (i.e., channels) perform
STEP-5
• Within these subsets, you can then analyze micro-conversions from each channel like add
to cart, reached checkout
• Once you’ve baselined your channels to see which produces the best conversion rates, it’s
time to dig deeper and determine the reasoning behind those conversions
• The Opportunity Pie is the amount of traffic you get that can convert. It helps to weed out
hoards of traffic that will never convert, giving you a more realistic conversion analysis
• Theoretically, everyone that clicks on your site can convert. However, some might not
need your product. And, others might just be there for the secondary information
STEP-6
• One of the easiest ways to determine your Opportunity Pie is to exclude traffic from your
site, that spent less than ten seconds on site. You can do this by creating a custom segment
• A second option is surveying web visitors to see what percentage are there to shop,
browse or other reasons like applying for a job or a wholesale application
STEP-7
• To get a more detailed sense of user behavior, use heat mapping and visitor recording
technology to see what triggers drive action on site.
STEP-8
• Analyze the user flows for each channel based on total conversions, seeing which pages
and channels were critical drivers
• Onsite search will open up a treasure trove of information — straight from your users —
on exactly what they’re looking for
STAGE-3
RETENTION
RETENTION: STRATEGY
ENGAGEMENT ACQUISITION LOYALTY
• How effective are you at retaining customers?

• How many of your customers are you ‘at risk’ of losing?
• On average, how often do customers purchase?
• What stops first-time purchasers from making a repeat purchase?
• How can you improve your customers’ experience?
RETENTION: DRIVERS
sale
RETENTION: METRICS
• How many customers become loyal and how many turn into brand evangelists
• The main KPIs to track are

• customer lifetime value (LTV), i.e., the value a customer contributes to the
company over the entire lifetime, usually 12-24 months
• repeat purchase rate
• product reviews
• qualitative metrics like NPS (Net promoter score), CSAT (Customer satisfaction)
• voice of the customer surveys
• Happiness and delight are difficult emotions to quantify. But with a combined approach,
you can get a strong idea of how evangelical your buyers are
RETENTION: METRICS…
CLV
Historic CLV Predictive CLV
∑Value of Transactions x Av. Gross Margin Av. No. of Transactions/Month x Av. Order
Value x Av. Gross Margin x Av. Customer-
Lifespan in Months
RETENTION: MEASUREMENT
STEP-1
• Segment your customer lifetime values by acquisition channel
• This report gives you a clear picture of which channel produces the highest
LTV customers. E.g., organic search is generating tons of repeat customers at
a high lifetime value, indicating that it’s succeeding in creating a flow from
awareness to a loyal customer
STEP-2
• If you’re not sure whether your business is acquisition or repeat customer
heavy, check the repeat customer rate report
• This report outlines if you are acquisition or retention focused
• It also shows the balance between acquiring or keeping customers, and
• Where you can look to improve the loyalty-based portion of your funnel
STEP-3
• Another great metric to look at is your average time between purchases
• It shows you if you need to either:

• Decrease the time in between purchases and cross-sell more often
• Increase average order values by offering bundles or ways to increase the
standard value of a product
• If you have high purchase values or average order values, you need fewer
purchases per year for each customer. Conversely, if you have a low average order
value, you’ll need people to purchase more often to maintain a high LTV
• Example: Pura Vida Bracelets
• Pura Vida Bracelets faced this problem when looking to scale its business
• With products averaging around $6, it’d take countless new users to reach huge
sales if a customer had small order values or didn’t purchase frequently
• To combat this, the company instituted the Pura Vida Monthly Club, helping to
increase the frequency of purchases by selling three bracelets via a monthly
subscription for $14.95
• To help drive average order values, they also instituted free shipping when
customers spend $25 or more
• Pura Vida Bracelets uses a host of ecommerce tools to optimize their entire
funnel
• Once you’ve analyzed these reports and have a solid foundation of your
repeat customer rate, you should have answers to a few fundamental
questions:
• How effective are you at retaining customers?
• On average, how often do they purchase?
• If your repeat purchase rate is high, you’re already doing a fantastic job at
creating loyal customers. If it could be higher, you have a great opportunity
to increase it
• Tools like the Net Promoter Score (NPS) will let you gauge customers
satisfaction
• You can quickly survey customers at the end of a purchase and compare
that back with average NPS’ for your industry
• Such surveys allow you to collect a simple feedback number on user satisfaction
that indicates whether or not they will promote or detract from your business due
to their experience
• Take this analysis one step further by segmenting your results based on customer
behavior:
• One-time buyers
• Multiple purchases
• Finish off your analysis with a qualitative, voice of customer survey
• The voice of the customer is an open-ended question that your customers

or visitors can answer in their own voice
• Web Analytics cannot tell you why something happened, no matter how
much you torture the data
• Only your visitors and customers can tell you why something happened, so
engage them in a conversation through reviews and surveys
REPORTING FREQUENCIES FOR OPTIMAL
PERFOMANCE
Quarterly
• Review general business objectives and top-level KPIs (CPA, Conv. Rate, LTV)
• Summarize your past quarter’s funnel metrics: awareness, conversion, and
loyalty
Monthly
• Take a deep look at each stage of the funnel from awareness to conversion
to loyalty
• Focus on running each analysis for each channel to see what can be
improved
Weekly
• Complete a channel analysis for your main channels
• If your focus is generating awareness, for example, you will need to review
your awareness KPIs to tweak campaigns and double down on the most
successful ones
METRICS AT A GLANCE
METRICS AT A GLANCE
• CPA – Cost per Acquisition

• CTR – Click Through Rate
• VTC – View Through Conversions
• PPC – Pay per Click
WEB ANALYTICS
• End of session.

E-Commerce Data: Topic-4: Web Analytics

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E-COMMERCE DATA

TOPIC- 4: WEB ANALYTICS

AWARENESS CONSIDERATION SALE FULFILMENT RETENTION ADVOCACY

TEXT MINING, SENTIMENT ANALYSIS, WEB MINING

WEB ANALYTICS/ USAGE

How to analyze impressions

How to analyze inbound traffic, including what

How to measure micro-conversions and analyzing

How to analyze repeat orders, customer

How to analyze word of mouth and

There are two methods by which a session ends:

• CTR (click-through rate)

UNAWARE AWARE ENGAGEMENT

• How much new awareness are you generating?

• CTR = (No. of Clicks/No. of Impressions) x 100

• Add secondary dimension, e.g., email signups and form completion, to

• Maybe you straightaway go to their latest products by taking a look different

ENGAGEMENT ACQUISITION LOYALTY

• What behaviors lead to conversion?

• Conduct a channel analysis. However, this time — instead of new users —

• Start with site-wide conversion numbers

• You can also run

ENGAGEMENT ACQUISITION LOYALTY

• How effective are you at retaining customers?

• The main KPIs to track are

Historic CLV Predictive CLV

• This report outlines if you are acquisition or retention focused

• It also shows the balance between acquiring or keeping customers, and

• It shows you if you need to either:

• Finish off your analysis with a qualitative, voice of customer survey

• The voice of the customer is an open-ended question that your customers

• CPA – Cost per Acquisition

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