After a five month absence from writing, I’m finally back to adding content around innovation and developing an entrepreneurial mindset. My wife and I made a permanent move from Boston to Chicago and this has been the focus of my time for the past several months.
Now back to a stable schedule, I’ve decided to continue adding content on this site but also update the focus of my site to now include digital analytics. This is a top interest of mine and I think this can blend well with the other topics I write about.
Now on to my discussion about creating a digital marketing and measurement model for an ecommerce company….
Creating a Digital Marketing and Measurement Model for an eCommerce company
After starting a humidor ecommerce business several months ago, I recently decided to create a Digital Marketing and Measurement Model in order to provide clarity around the marketing activities I need to undertake in the months ahead. I was inspired by Avinash Kaushik’s post here about how to create a Digital Marketing and Measurement Model for improving your digital marketing campaigns and the web analytics used to measure the mechanics of the campaigns. The process involves these 5 steps:
- Document your business objectives
- Identify goals
- Choose KPI’s (key performance indicators)
- Choose targets
- Choose segments for analysis in web analytics software (e.g. Google Analytics)
Below is what I put together over a couple of hours of thinking through the above five steps (I left out my actual targets):
Here’s some of my thinking around each section:
Step 1: Document your business objectives
As an ecommerce company, I don’t need to focus on generating leads or driving eyeballs to view media content for ad revenue. I need to focus on creating sales (“Generate Sales”) and to focus on how I will grow my brand (“Establish The NH Brand”).
Step 2: Identify goals
With the help of Alistair Croll and Benjamin Yoskovitz in their book, Lean Analytics, I determined that my ecommerce company is a hybrid company—one that can focus on both New Customer Acquisition and Customer Loyalty as growth strategies. I included these strategies in my goals section and also established some goals around generating sales.
Step 3: Choose KPI’s (key performance indicators)
Now that I knew what goals I’m aiming at, choosing the KPI’s was fairly straightforward.
Step 4: Choose targets
I decided on some targets for that want to hit by March 1, 2015. I first picked reasonable goals for ‘New Visitors per Month’, ‘Conversion Rate’ and ‘Average Order Value (AOV)’, which told me roughly how much money per month I would earn in profit. This profit number seemed like an achievable goal if I put in the effort, so I went with it.
Step 5: Choose segments for analysis in web analytics software (e.g. Google Analytics)
Here I decided on some segments that I would look at in my Google Analytics account in order to help myself refine my marketing tactics to help me better achieve my goals. This is one area I could likely put more time in, but I decided to stick with what I have for now. I will definitely be spending some more time in the near future digging into my Google Analytics account to find those segments that I need to focus my efforts around.
Going through the above process has been very helpful in determining what my marketing goals should be and how to measure the results on a recurring basis. If you are interested in creating a Digital Marketing and Measurement Model, I highly suggest you read through Avinash’s post here.
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