4.

0 Socialmedia Mix and Cybersocial Tools {Part 2}

4.7 Analyze the return on investment using social media

4.7.1 Describe online customer segmentation for effective ROI

4.7.2 Establish key performance indicators for sales
4.7.3 Calculate return on investment

Bhrunthashini karthikesen (10DDT19F2056)

Navintheren Sangkar (10DDT19F2054)
Tevatarusi Rajandran (10DDT19F2035)
Niveshaa Mohene Sundaram (10DDT19F2044)
Ko Shui Xian (10DDT19F2034)
4.7.1 Describe online customer segmentation for effective ROI

1. Behavioral Segmentation: A Customer’s Choices

 Behavioral segmentation digs deeper into customers' purchasing habits than demographic
segmentation. It’s also one of the most popular customer profile types to be integrated into
marketing campaigns. Behavioral segmentation comprises behavior patterns, like customer loyalty
or engagement level, specific to customer interactions with a brand or company.

2. Psychographic Segmentation: A Customer’s Lifestyle

 Psychographics is a type of customer segmentation that focuses on inner or qualitative traits.

Psychographic attributes are the ones that aren’t obvious just by looking at your customer, like
demographic segmentation
3. Demographic Segmentation: A Customer’s Profile

 Demographics are the breakdown of your customer personas in the market for cursory traits like age
or gender. These traits offer basic information on your customers and are often considered one of the
more broad segmentation types. Examples of demographic segmentation include age, income, family
size, education, or gender.

4. Geographic Segmentation: A Customer’s Home

 Geographics are the study of your customer based on their physical location, which can affect more
physical interactions in the market. Consumers grouped in similar areas may share similar preferences.

5. Firmographic Segmentation: The Customer’s Company

 Firmographics to describe the attributes of firms or businesses. Firmographics are to firms and
investors as demographics are to people. Companies can use this type of segmentation to determine
whether or not a smaller firm is apt for an investment.
4.7.2 Establish key performance indicators for sales

 Key performance indicators (KPIs) are like milestones on the road to online retail success.

 Monitoring them will help ecommerce entrepreneurs identify progress toward sales,
marketing, and customer service goals.

 Examples of key performance indicators for sales include:

• Sales: Ecommerce retailers can monitor total sales by the hour, day, week, month,
quarter, or year.

• Average order size: Sometimes called average market basket, the average order size
tells you how much a customer typically spends on a single order.
• Gross profit: Calculate this KPI by subtracting the total cost of goods sold from
total sales.

• Average margin: Average margin, or average profit margin, is a percentage

that
represents your profit margin over a period of time
• Number of transactions: This is the total number of transactions. Use this KPI in
conjunction with average order size or total number of site
visitors for deeper insights.

• Inventory levels: This KPI could tell you how much stock is on hand, how long product is
sitting, how quickly product is selling.

• Competitive pricing: It’s important to gauge your success and growth against yourself and
against your competitors. Monitor your competitors’ pricing strategies and compare them

to your own.
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4.7.3 Calculate return on investment

 ROI tries to directly measure the amount of return on a particular investment, relative to the
investment’s cost.
 To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment.
 The result is expressed as a percentage or a ratio.
Thank You