Conversion Rate and Deduplication: Castelletti Presentation
First of all, let's remember that the communication budget of an e-commerce is used with the aim of collecting orders, therefore it is managed through the control of the relationship between cost and turnover generated.
Before talking about conversion, let's remember the 3 indicators that measure the efficiency of an advertising investment in an e-commerce:
ROAS (Return On Advertising Spending) = Revenue ∕ Advertising Spending
COS (Cost Of Sales) = Advertising Expenditure ∕ Revenue×100
CPA (Cost Per Acquisition) = Advertising Spend ∕ Number of Orders
It may happen that the turnover of an online store is different from the order: it is necessary to be sure that after the shipment of a product a passive event (withdrawal, return...) does not occur that reduces the initial turnover on which we measured the return on investment in online advertising. Any ecommerce manager hong kong telegram phone number list in highly competitive sectors knows that the budget must be precise to the percentage point especially if the average receipt and unit margins are low.
What are the determinants that generate the value of the order?
Formula Ordered Ecommerce_
The average conversion rate is given by the number of orders divided by visits x 100: the conversion rate is often low and depends on 3 aspects: quality of the web pages on which the traffic lands (page speed, sexy content, usability), quality/convenience of the commercial offer (prices, stock, assortment, free delivery, etc.), quality of incoming traffic . If I have to keep the COS low I have to choose the media closest to the decision-making phase of the customer journey: search engines are often the closest media, however the choice of the digital media mix depends on many variables that only experience teaches us.
The analytics data related to visits and online orders are activated through an external script that passes info on the events that happen on my site; be careful to activate different scripts for the same order. Deduplication is the process that prevents the same order from being attributed to multiple traffic sources; it allows you not to count more orders than those actually shown in the management control and to pay multiple times for the same order.
The attribution model determines which tags/scripts to activate at the time of conversion; the most used is the “last interaction” which provides for the attribution of 100% of the order to the last traffic source.
The popularity of the model is due to the fact that it greatly simplifies the representation of the scenario; the last interaction is the most widespread scheme and is often set by default by web analytics platforms.
Thanks to Paolo for the great contribution! If you want to test the usability of your pages try the 3-second usability test.
