INSTRUCTION:Assess for Success: Marketing Analytics and Measurement

you will determine some performance goals for a company’s email and social media marketing campaigns. 

TASK 1:

Baba’s is an independently-owned Gullah restaurant in South Carolina. They have recently launched a new line of proprietary spice blends. Currently, they only sell these products in their restaurant. However, to help achieve the company’s business goal to raise annual sales by 10% over the previous year, they plan to also sell the product line on the company’s website. You are responsible for running social media and email campaigns to to increase website traffic and conversions, as measured by the CTR and CVR. 

• The CTR (click-through rate) is the number of clicks that an ad receives divided by the number of times an ad is shown (impressions).

• The CVR (conversion rate) is the number of conversions that an ad receives divided by the total number of ad interactions (clicks).

The following information about Baba’s Q4 marketing goals, KPIs, and Q3 performance—as well as industry averages—will help you craft performance goals for these campaigns:

Baba’s Q4 Marketing Goals:

Goal 1: By the end of Q4, increase the combined CVR from all marketing channels by 2% (two percentage points) above the CVR in Q3. 

Goal 2: By the end of Q4, increase the combined CTR from all marketing channels by 5% (five percentage points) above the CTR in Q3.

Baba’s KPIs for Email and Social Media Campaigns:

CVR (conversion rate), CTR (click-through rate)

Baba’s Q3 Performance Data:

• Email:

  • Conversions: 90

  • Clicks: 1,200

  • Impressions: 80,000

• Social Media:

  • Conversions: 30

  • Clicks: 900

  • Impressions: 90,000

Food and Drink Industry Benchmarks*: 

• Email marketing:

  • Conversion rate (CVR) = 8.3%

  • Click-through rate (CTR) = 2%

• Social media marketing:

  • Conversion rate (CVR) = 4%

  • Click-through rate (CTR) = 1.1%

EXPLANATION:

Review each calculation:

Conversion rates are calculated using the following formula: 

Conversions / Total Clicks x 100 = Conversion Rate Percentage

Therefore, Baba’s Q3 conversion rates are calculated using the following equations: 

• E-mail: 90 / 1,200 x 100 = 7.5%

• Social media: 30 / 900 x 100 = 3.33%

Click-through rates are calculated using the following formula:

Total Clicks / Total Impressions x 100 = Click-through Rate Percentage

Therefore, Baba’s Q3 click-through rates are calculated using the following equations: 

• E-mail: 1,200 / 80,000 x 100 = 1.5%

• Social media: 900 / 90,000 x 100 = 1%

Let’s review the criteria for Q4 performance goals:

• Each performance goal includes conversion rate or click-through rate—metrics that are relevant to both the business goal of increasing revenue and the marketing goals of increasing conversion and click-through rates.

• Each performance goal indicates the desired increase to either the conversion or click-through rate, so it’s clear how the goal will be measured.

• Each performance goal targets an attainable increase to conversion and click-through rates , based on both industry benchmarks and Q3 performance data (for example, a 0.5 to 1.2 percentage point increase).

Note that your performance goals may differ somewhat from those in the exemplar. The performance goals you wrote are acceptable if they are relevant, measurable, and attainable.

Note also that your Q4 performance goals need not add up to the desired percentage point increase across all channels. Because you were asked to set goals for two out of possibly many other channels, your performance goals can contribute toward a combined marketing goal without necessarily satisfying it. For instance, for CTR in the exemplar, the Q4 performance goals for email and social media are increases of 0.8 and 0.6 percentage points, respectively. Adding these results in a combined 1.4 percentage point increase, but this is less than the five percentage points specified in the marketing goal for all channels. Other channels would presumably contribute and make up the difference to meet the overall marketing goal.

INSTRUCTIONS:

you will sign-in to a Google Analytics demo account and explore the metrics collected in the tool. You’ll review a scenario with metrics of interest, find the values for those metrics, and record your results. Think of this activity as a kind of treasure hunt where metrics are the treasures. 

TASK 2:

As a new marketing associate at Google, you have been asked to familiarize yourself with the metrics in Google Analytics that are available for the Google Merchandise Store. To help you do this, your manager has given you a list of metrics for user acquisition, engagement, and monetization that you can view under the Life cycle section of the tool. Normally, someone reviews these metrics on a monthly basis. Since this has been incorporated into your training assignment, everyone on the team is thrilled that you’ll be helping to get some real work done! 

EXPLANATION:

Acquisition metrics

If you browsed the user acquisition metrics independently, hopefully you didn’t miss the First user source option where Google Analytics breaks down the source of new users.

Below are the results for Google, Bing, YouTube, and Baidu from January 1, 2023 to January 31, 2023.

Below are the results for Baidu from January 1, 2023 to January 31, 2023. Notice the new mobile users counted.

Engagement metrics

If you browsed the engagement metrics independently, hopefully you didn’t miss the importance of the metrics for events. You calculated the number of users with cart abandonment using the metrics for the begin_checkout and purchase events. You also calculated the sales conversion rate using the metrics for session_start and purchase events. These metrics are important to monitor for future promotions or remarketing efforts. Imagine increasing sales by re-engaging these users!

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Monetization metrics

If you browsed the monetization metrics independently, you might have noticed how useful the Overview page is. You were able to find the number of first-time purchasers and the top-selling items from this page. These metrics are important to monitor for growth. Imagine increasing the number of first-time purchasers through a promotion on the most popular items!

INSTRUCTION:

TASK 3:

As a marketing associate at Google, you have been asked to use Google Analytics to try to determine if user visits and purchases in the Google Merchandise Store trend upward when developer events are held. You want to answer the question: Do active users and purchases in the Google Merchandise Store go up when developer events occur?

To complete the analysis, you’ll select three developer events and create a free-form Exploration in Google Analytics to visualize the metrics during and in the days immediately before and after those events. The Exploration will enable you to see if there is a possible correlation between developer events and Google Merchandise Store purchases.

INSTRUCTION TASK 4:

You are working on a Google Search ad campaign. The business goal of this campaign is to maximize sales (conversions) from new customers. The Conversion column in Google Ads shows new customer sales. You have a flexible budget, but you need to get executive-level approval for any budget increases, especially if you change the bidding strategy. You are fully responsible for the management of the account and requesting approval for budget increases is one of your company’s best practices.

Your current bidding strategy relies on Target CPA to maximize conversions and uses the data in the Conversion column for bidding. Although there is also data in the Conversion Value column, your business goal and current bidding strategy don’t require the use of conversion values.

INSTRUCTION TASK 5:You will assess the short-term ROI of a campaign. 

You are a marketing associate who just completed work on a multi-channel ad campaign for an e-commerce business. Your team plans to present the campaign’s ROI during a project debriefing. You have been asked to calculate estimates of ROI using ROAS and LTV. Your team is known for its accurate use of data. You understand that this step is a critical one, especially since the results will also be used to inform future campaign spending decisions.

Your team will use these insights along with other performance data to make budget decisions for future campaigns.

To help you complete the activity, review the following calculations:

• ROAS = Revenue/Ad spend

• LTV = Average order value (AOV) x Purchase frequency

• LTV to CAC ratio = LTV/CAC

Also, recall the guidance for LTV to CAC ratios:

• A result of 2 or higher is considered good 

• A result of 3 is ideal for profitability

• A result higher than 3 indicates you have a steady revenue stream

EXPLANATION:

ROAS

Formula: ROAS = Revenue/Ad spend

• Campaign ROAS = $502,358/$250,000 = 2.01 or 201%

• ROAS for search ads = $320,943/$187,500 = 1.71 or 171%.

• ROAS for display ads = $56,288/$32,000 = 1.76 or 176%.

• ROAS for social ads = $70,101/$15,000 = 4.67 or 467%.

• ROAS for shopping ads = $55,026/$15,500 = 3.55 or 355%.

Average order value (AOV)

Formula: AOV = Revenue / Number of orders

• Campaign AOV = $502,358/6,237 = $80.55

• AOV for search ads = $320,943/2,494 = $128.69

• AOV for display ads =  $56,288/2,039 = $27.61

• AOV for social ads = $70,101/802 = $87.41

• AOV for shopping ads = $55,026/902 = $61.00

Lifetime value (LTV)

Formula: LTV = Average order value (AOV) x Purchase frequency

• Campaign LTV = $80.55 x 1.6 = $128.88

• LTV for search ads = $128.69 x 1.5 = $193.04

• LTV for display ads =  $27.61 x 2 = $55.22

• LTV for social ads = $87.41 x 1.5 = $131.12

• LTV for shopping ads = $61.00 x 1.5 = $91.50

LTV to CAC ratios

Formula: LTV:CAC = LTV/CAC

• Campaign LTV to CAC ratio: $128.88/$65 = 1.98

• LTV to CAC ratio for search ads: $193.04/$112 = 1.72

• LTV to CAC ratio for display ads: $55.22/$31 = 1.78

• LTV to CAC ratio for social ads: $131.12/$28 = 4.68

• LTV to CAC ratio for shopping ads: $91.50/$25 = 3.66

Percentages of new customers making purchases

Formula: Percentage of new customers making purchases =

(Number of unique new account purchasers / Number of new accounts) x 100

• Campaign: (3,819/20,790) x 100 = 18.37%

• Search ads: (1,663/8,420) x 100 = 19.75%

• Display ads: (1,020/5,816) x 100 = 17.53%

• Social ads: (535/3,959) x 100 = 13.51%

• Shopping ads: (601/2,595) x 100 = 23.16%