1. Understanding the product
The product is e-commerce website for luxury goods. When we talk about luxury goods, the understanding is that the product prices are catering to people on the wealthier side. Apart from, the target audience and the price range of the product the features of the e-commerce website are assumed to be similar to that of a normal -commerce website.
2. Goal of the website
I assume that since it is luxury goods market wherein the cost of acquisition of products is high, and therefore the main goal is conversion. So let the primary goal of the website be of conversion, leading to generation of revenue.
3. Walking through the customer journey
->customer lands on the home page
-> either the customer finds a product interesting on the home page and clicks on it/has landed on the product from an ad/ searches for a particular product and then clicks on it/ or through reference
->customer reviews the details of the product, sees the cost of the product, reviews the feedback of the people, sees the page
->customer either abandons or selects the product for buying
->customers fills the shipping the details
->customer pays the cost
->customer confirms the buy
4. Mapping the user behavior to the customer journey
Awareness : Since it is a luxury goods website. My end target is to drive home the customers that can afford the luxury goods. And therefore, I need to ensure there is awareness in that group. It is highly likely the traffic can also be from people who are doing window shopping, but will never be buying or most unlikely to buy.
Therefore, based on previous source of information of customers, I will perform a cohort analysis of the traffic to identify the % of traffic from the ideal TG. Monitoring this will ensure whether I have the right group to approach for conversion.
I will also capture the keyword searches among the social network to understand the awareness.
Acquisition/Activation : From the identified TG, I would then measure:
% of users signing up for the website and completing it
% of growth in number of new users
It is only those users that become a part of the community that we can have targeted channels to capture, and thus have the client profile and becomes a good candidate for conversion.
Engagement: % of people viewing the products
% of people viewing the reviews
% of people that are on the product page for more than 10 sec – this helps us further analyze or target as these are the people who might be interested in the product
% of people scrolling the images – again indicates interest
% of people that came via search and left the page within 10 sec – these are the people that probably did not find the product they were looking for and hence can indicate a pain point that we need to tap
evaluate the cohort analysis to understand the retention over a month
% of active users who repurchase
% of active users who come back to leave reviews
product return rates
average spending per active user
% growth in the average size of transaction
frequency of transaction
In case of luxury good referral is essential as it works as a certificate of trust
% of users sending referrel
% of converted referrels
5. Evaluating the metrics
Based on the product of luxury goods,
it is essential that the right TG is identified and then we have a constant loyal customer base developed with the customer group, that will ensure that our reach continues to grow based on their feedback to the people they know
Therefore, the main metrics are from Acquisition, retention and referral and also % growth in revenue and average revenue per user