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ROAS vs. ROI: Differences, Use Cases, and Examples
Business metricsROAS vs. ROI: Differences, Use Cases, and ExamplesYour organization must continuously monitor and evaluate its marketing and advertising efforts. Two key performance metrics that will help you with this are return on ad spend (ROAS) and return on investment (ROI). While they seem similar, they're used in different contexts to give you a clear understanding of how you spend money and what your brand gets in return. Let's break down the definitions of ROAS and ROI and look at examples to demonstrate how these metrics are applicable to advertising campaigns. What Is ROAS? Return on ad spend (ROAS) measures how effective your advertising budget is by calculating how much each dollar you've spent has given back in terms of revenue. ROAS = Total Revenue from Campaign / Cost Spent on Campaign If you want to see your ROAS as a percentage, just multiply the answer by 100. » Find out what's a good ROAS per platform and industry What Is ROI? Return on investment (ROI) refers to how much you've earned from an investment after you've subtracted the expenses, so ROI is about profitability. In the context of advertising, ROI measures how profitable your ads are based on what it cost you to run them. ROI = Net Profit / Net Spend x 100 » Discover how ROI between Google Ads vs Instagram Ads compares 5 Key Differences Between ROAS and ROI 1. Investment Type You can use both metrics to analyze ad campaigns, but they can focus on different investment types. ROASEvaluates advertising and marketing investments.ROIEvaluates all types of investments to determine if a particular initiative is worth it. 2. Reliability Since ROAS considers marketing expenses only, you should compare ROAS and ROI to get insight into the overall efficacy and profitability of your marketing efforts. ROASConsiders money spent on campaigns only.ROIConsiders other expenses related to your campaigns. 3. Profits Each metric looks at profitability from another angle. ROAS is more focused on the specific campaign, while ROI looks at the bigger picture. ROASCompares how much you spent on a campaign with how much the campaign earned you.ROIConsiders the profit the campaign has generated and how much it contributed to your bottom line. 4. Results ROASFocuses on sales resultsDetermines which advertising activities provide the most salesROIFocuses on profit resultsDetermines which advertising methods contribute the most to your profits 5. Necessity Both metrics are necessary when you analyze your business's performance, because it can give you insight from different perspectives. ROASMeasures how effectively you use your marketing funds.Advertising spend brings in more customers and bolters your brand visibility. ROIMeasures how profitable and worthwhile your campaigns are. Use Case 1: Positive ROAS and Positive ROI Clothing Brand X has just started selling pet clothing as an expansion of its product offerings. Q1 of its sales amounted to $60,000 from its new line. The brand also invested $15,000 in advertising in addition to $20,000 spent on production. To calculate ROAS: ROAS = Total Revenue from Campaign / Cost Spent on Campaign x 100$60,000 / $15,000 x 100= 400% To calculate ROI: ROI = Net Profit / Net Spend x 100$60,000 — ($15,000 + $20,000) / ($15,000 + $20,000) x 100$25,000 / $35,000 x 100= 71.42% As you can see, both calculations yielded positive results. This means Clothing Brand X's campaign was successful and highly profitable. Use Case 2: Positive ROAS and Negative ROI Bob's Upholstery Services spends $5,000 each month on advertising efforts for its new service—car upholstery. The brand's sales amount to $10,000 as a result of the ad campaign, but expenses for these jobs run up to $20,000. To calculate ROAS: ROAS = Total Revenue from Campaign / Cost Spent on Campaign x 100$10,000 / $5,000 x 100= 200% To calculate ROI: ROI = Net Profit / Net Spend x 100$10,000 — ($20,000 + $5,000) / ($20,000 + $5,000) x 100- $15,000 / $25,000 x 100= - 60% While the new service resulted in an overall loss, its advertising campaign still yielded positive results. In this scenario, the business must streamline expenses or increase service fees to improve ROI. » Follow these tips to increase your marketing ROI with dynamic pricing Calculate Your ROAS and ROI With BeProfit ROAS and ROI are crucial metrics that measure your business’s success in its marketing and overall operational efforts. While they provide different insights, both metrics help you to make informed decisions about your marketing strategies and other investments. A deep understanding of each will help to maximize your profits and minimize your losses, leading to long-term success and growth. Doing these calculations and analyzes on your own may seem intimidating, but that's why you can rely on an app like BeProfit to simply it for you. Easily keep track of all your data from the user-friendly dashboard or export reports if you want to dig deeper. » Book a demo to explore BeProfit's features for yourself
E-Commerce vs. Digital Marketing: What Is the Difference?
Business metricsE-Commerce vs. Digital Marketing: What Is the Difference?Despite the fact that digital marketing is an essential component of e-commerce, the two are, by definition, distinct. Although they are so intertwined, it is difficult to determine where one ends and the other begins. But first, let’s get an overview of the most important factors that distinguish e-commerce from digital marketing. E-Commerce vs. Digital Marketing Overview E-Commerce A digital store for purchasing products or services.There are different types of e-commerce available.All the transactions take place online between the consumer and the supplier.Digital MarketingUtilizes technology to interact with and reach consumers.Used to market products and services to customers.Helps increase sales by directing more traffic to where it is needed. E-commerce refers to an online store where products and services can be purchased, whereas digital marketing is the method used to drive the necessary traffic to these stores in order to increase sales. Now that you have a general understanding of the two terms, let's examine the most crucial details you should know about each. Stay Ahead of Your Profits It is no longer necessary to manually calculate your profits from multiple sources. The BeProfit analysis dashboard is here to simplify your life. The BeProfit analysis dashboard simplifies and streamlines your ability to monitor your profit by analyzing and automating the process. How BeProfit Analysis Dashboard simplifies tracking profits: Performs analyses so you always know your precise profit.It is compatible with your desktop and mobile device.Keep track of multiple sources of income.Integrates your storefronts into a single management system. What Is E-Commerce? E-Commerce is an industry with a large and expanding online market that has altered how businesses and consumers conduct transactions. Consumers are no longer required to go to the mall or a physical store to purchase the desired products. Instead, they can simply purchase the items online from the comfort of their own homes. The convenience factor cannot be overstated, and it has helped to drive the e-commerce industry to new heights. What Are the Three Types of E-Commerce? There are many different types of e-commerce, but the three main types are: Business-to-Business (B2B) The exchange of one business’s products or services for another business’s products or services.Business-to-Consumer (B2C) The sale of a business’s products or services to a consumer.Consumer-to-Consumer (C2C) The exchange of one consumer’s products or services for another consumer’s products or services. Benefits of E-Commerce There are a number of distinct advantages of e-commerce for both the seller and the buyer. These include: BuyerAccessibility: The product is accessible 24 hours a day, seven days a week.Flexibility: Products are available for purchase from anywhere in the world.Choice: Have access to an extensive selection of products.Assurance: Able to conduct product research at their leisure.Quicker buying process: Save time and effort searching for what they need while shopping online.SellerLow cost: Establish an internet-based business that can be operated from any location.Little to no overheads: No need to pay for inventory, as it will be shipped as orders are received.No overstocks: Pay only for the products that are sold.Faster response to the market: Easily keep up with trends and modify products and services.Cost-efficient promotion: Social media allows free audience targeting. Cheaper advertising. What Is Digital Marketing? Digital marketing is the promotion and advertising of a brand with the objective of connecting a business with prospective customers. This is made possible through the use of the Internet, cutting-edge technology, and other digital communication methods. What Is a Digital Marketing Strategy? Digital marketing is a plan that analyzes how the budget, manpower, and time can be integrated to create the most effective marketing campaign for a business and is achieved through the following steps. Digital Marketing Strategy Steps Define a set of goals.Establish a budget to develop a schedule.Research the target audience.Develop a strategy for each channel.Implement and monitor its success.Modify if needed. Examples of Digital Marketing Content marketing, search engine optimization, social media marketing, email marketing, and mobile marketing, are all examples of digital marketing activities. Benefits of Digital Marketing There are numerous benefits to digital marketing. These consist of: Timeliness: It allows brands to reach their target audience with the right message at the right time.Specific targeting: Increased brand awareness and greater customer engagement through targeted advertising.Develop brand loyalty: By publishing relevant content to your audience more frequently, your brand will be able to expand more quickly.Wide-reach: It offers a wonderful opportunity to advertise your business and services to a potentially infinite audience.Improve customer loyalty: It enables you to share the latest trends and news with your audience via social media and email. The Bottom Line E-Commerce and digital marketing are related processes that can work together. E-commerce usually begins where digital marketing ends. In fact, it could be argued that without one another, they might not have achieved the same level of success as they do now. In order to allocate resources effectively and address issues as they arise, it is crucial to be aware of the distinction between the two.
How to Calculate Your e-Commerce Store's Product Return Rate
Business metricsHow to Calculate Your e-Commerce Store's Product Return RateHigh e-commerce return rates can be a serious issue for your store's bottom line. Currently, statistics suggest the cost of returns each year amounts to around $101 billion in lost cash for businesses. While returns are problematic for any store, they can be particularly damaging for e-commerce store owners. Apart from having a dissatisfied customer, you miss out on a sale and lose cash on two-way shipping expenses and packaging costs. Understanding Product Return Rate in e-Commerce Product return rate looks at the frequency at which customers return items to your online store. On average, studies suggest a quarter of all consumers return between 5% and 15% of all the items they buy online. If your return rate is higher than this, it could be a sign you need to make some significant changes to your quality management processes. Calculating Product Return Rate: The Formula The formula for calculating product return rate is relatively straightforward. Simply divide the number of products returned by the number of products sold, then multiply by 100. Return Rate = Products Returned / Products Sold x 100 Example Imagine your online clothing store sells 15,000 products within a year, but 5,000 of those products are returned by customers. The formula for calculating your product return rate would be: 5000 / 15,000 x 100 = 33%. If your company sold 10,000 products but had 100 of those items returned, the formula would be: 10,000 / 100 x 100 = 10%. What Is Considered a Good e-Commerce Product Return Rate? A "good" e-commerce product return rate can be difficult to define because the average return rate for most stores depends on the industry. For instance, apparel retailers generally experience an average return rate of around 12.12%, while home improvement and houseware brands can experience an average return rate of up to 11.5%. After industry, a business's return policy also holds great sway over the return rate. A generous return policy with free returns may have a higher return rate because customers are less likely to accept a product they’re not 100% happy with. Other factors that can contribute to higher return rates include: Price: Organizations selling high-price items may receive more returns because customers have higher expectations.Seasonality: A quarter of holiday shoppers buy items online intending to return them at a later date. Holiday returns are particularly common because gift recipients aren’t always happy with the item they receive. Poor product pages: Companies who provide little product information on their online platforms are more likely to see higher returns because customers may have made an uninformed decision when buying the item. The versatility of product return rates means it’s important for retailers to look at their metrics in the context of customer behavior. Organizations generally achieve the best return rates when they reduce the need for returns with high-quality products, and deliver customer-friendly purchasing policies. Best Practices to Optimize e-Commerce Returns There are a few ways companies can improve customer experiences and mitigate returns. Some of the best strategies to reduce return rates include: Implement the right return policy: A well-crafted return policy can help to reduce product returns and boost sales, while reducing cart abandonment. Make sure your customers know what to expect when returning an item. Make product information accurate and accessible: Ensure your product descriptions provide plenty of clear information for your customers to make confident decisions. Include high-quality photos, interesting product details, and relevant sizing charts. Keep customers informed about returns: Leverage automatic emails and notifications to inform your customers about the returns process. Around 92% of customers say they will buy from a company again if the returns process is simple. Elevate the value of customer reviews: Use customer reviews to highlight the values and benefits of a product in advance of a purchase. Most customers will check reviews to determine what they can expect from a product before buying. Promote exchanges over returns: Give customers a hassle-free way to exchange their products for something else on your store. This will also help to reduce the amount of money you lose from a potential return. Reduce Your Return Rates Now that you know how to calculate product return rates, it might be time to think about the other metrics and strategies you can use to improve the success of your online store. Tools like BeProfit can give you a behind-the-scenes insight into the factors that influence your company’s profitability. » Want to see what BeProfit can do? Book a demo
Boosting Shopify Sales: 7 Proven Tips You Should Try in 2023
Business metricsBoosting Shopify Sales: 7 Proven Tips You Should Try in 2023The e-commerce landscape is growing increasingly competitive. Shopify alone supports no less than 4.1 million stores in more than 175 countries around the world. However, while the competition levels in this landscape are high, there are amazing opportunities available to business owners too. As the world continues to transform digitally, consumers spend increasingly more time shopping online. If you can find a way of separating yourself from the other market-leading stores in your industry, you can benefit from significant sales and incredible growth. The good news? Small changes can make all the difference to your bottom line. » Struggling to track your Shopify sales? Read this essential guide to Shopify sales reports 1. Ensure Your Site is Mobile Friendly Around 53% of all orders placed in 2020 were from smartphone devices. If your site isn’t mobile-friendly, you risk losing the attention of your target audience. Responsive Shopify theme: Ensure your Shopify theme is responsive and optimized for mobile devices. User-friendly design: Consider that most mobile devices are touchscreen, therefore your design shouldn't frustrate the user when they tap a button or try to swipe.Simple navigation: Use the limited screen space of a mobile device wisely with a fixed navigation bar and don't nest too many levels in navigation. Users will give up their search if they don't find what they want quickly.Optimized text: Ensure the screen doesn't get overwhelmed by minimizing the amount of text and considering your font type and size.Site loading speed: Ensure each page loads quickly on a mobile device as users get impatient with slow site loading speeds 2. Pay Attention to Product Page Optimization Shopify store owners often spend a significant amount of time optimizing their checkout page design and other store elements, but they forget to enhance their product pages. Online shoppers can’t interact with these items in person. Instead, they rely on your product information to help them decide whether to convert. Make sure your product pages include: Excellent product descriptions: Write focused product descriptions that are to the point, but information-rich. Address the user's needs by highlighting how your product will help solve their problem. Refer to your product's features, benefits, and any unique features. Finally, ensure the text is easy to read by using the right font type and size.Multiple product media types: Use different media to help your customer envision how the product will fit into their lives. Photos from multiple angles will provide an overview of the construction and features of the product while a video can demonstrate how to use the product. Ensure that all media has the best production quality to lend credibility.Extra details: Consider using reviews and customer ratings for social proof to help boost your chances of conversion. 3. Optimize Your Shopify Store for SEO Approximately 92.96% of all global traffic for e-commerce stores comes from a Google search. Optimizing your store for SEO is an excellent way to reach more potential buyers and prospects. There are various ways you can enhance your e-commerce SEO including: Adding a sitemap to Google Search ConsoleCreating unique product pages, product titles, and keyword-rich meta descriptionsCreating a site hierarchy that makes your site easy to navigateEnsuring product images are high-quality, load quickly, and use alt-textCreating quality blog content to encourage more traffic 4. Employ Cross-Sell & Upsell Practices Cross-sell and up-sell techniques can inspire customers to buy as much as possible. With cross-selling, you suggest more relevant products your customer can add to their cart based on their current or previous purchases. Consider using carousels, recommendations, or bundle deals to highlight complementary items. With up-selling, you encourage your customers to purchase a better version of your product that includes extra features, thereby increasing the value the customer will receive. » Trading on WooCommerce instead? Follow these WooCommerce upsell and cross-sell tips 5. Advertise Strategically on Social Media Platforms Social media marketing has a range of great tools for helping you target specific audience groups with different kinds of content, thereby increasing store traffic and generating conversions. You can: Use shoppable posts on Instagram: Highlight your products on Instagram with high-quality images and allow customers to buy your items within the platform. Social commerce is a great way to increase sales by making customer purchases easier. Leverage Facebook retargeting ads: Boost your chances of attracting customers back to your store after they abandon their carts by targeting them with specific campaigns. Collaborate with influencers: Increase your credibility and your brand reach by using influencer marketing to drive e-commerce sales. Partner with an influencer with a strong connection to your target audience to grab the most attention. 6. Offer Discounts & Free Shipping to Convert Customers Customers are always looking for the best possible deal and a good discount can be the perfect thing to sway undecided customers. If items stay in a customer's cart for some time without being bought, encourage them to take action with a special discount. This can help to generate more revenue. Or you can offer free shipping when customers purchase a certain amount to increase the average order value. » Preparing for the holiday season? Boost your e-commerce sales during the holiday season 7. Leverage Email Marketing to Capture Lost Sales Running an online store means not interacting with customers face-to-face. Therefore, you need a communication channel that's quick, easy, and versatile—i.e., email. Apart from informing customers of any new products or sales, you can also: Follow up on abandoned carts: Remind customers of the items they have yet to purchase and highlight their value so they’re more likely to return to your store.Send back-in-stock alerts: Let your customers know when the items they want to buy are available, so you don’t miss out when customers see an “out of stock” message. Increase Your Shopify Store Sales By following these tips, you can increase your Shopify store sales in no time and generate more loyal customers. Remember to track which campaigns deliver the best results so that you can double down on your efforts in specific areas. The innovative profit tracking and calculating app from BeProfit can help you determine where your profits are coming from. » Curious to see the BeProfit app in action? Test a demo of the app
Ultimate Sales Funnel Metrics Guide for E-Commerce Sellers
Business metricsUltimate Sales Funnel Metrics Guide for E-Commerce SellersWhen it comes to e-commerce and multichannel retail businesses, the importance of analyzing sales funnel metrics can never be understated. It's an incredibly smart way to analyze the interactions your customers have with your site, from their first touchpoint through to conversion. What's more, the calculations aren't complicated, yet they can benefit your business immensely. » Can you use an app to analyze your sales funnel? Compare these top Shopify sales funnel apps Defining the Sales Funnel A "sales funnel" is marketing speak for your customers' journey from landing on your website to finalizing a sale. It's a relationship-focused framework that structures the timing of the build-up to achieving a conversion. The funnel is separated into various stages which usually align with your GA4 micro and macro sales funnel goals. Just remember that the micro and macro steps to achieving a conversion are unique to every business. 4 Stages of the E-Commerce Sales Funnel Even though some e-commerce companies have developed more comprehensive iterations, a typical sales funnel is divided into four stages: Stage 1: Awareness Your first step is to improve the visibility and presence of your brand and start collecting leads. It's an information-sharing stage where you need to use creativity to stand out from your competitors. How does the visitor get to this stage? You catch their attention with sponsored social media posts, guest podcasting, webinars, independent research, SEO—anything that builds awareness without being too pushy. Your visitor is gently nudged to stage 2 if they sign up for a marketing newsletter or watch a webinar. These actions must be defined clearly in your sales funnel. Stage 2: Interest Next, you need to change your visitors' awareness of your products or services into showing an interest in what you have to offer. Visitors get to this stage because they've had an interaction with your brand and now have an understanding of your products or services. To turn their interest into desire, you need to identify and use keywords to drive these visitors to your social media platforms and website. You can also develop blog posts that target these users as well as email campaigns and free trials. Stage 3: Desire The aim of this stage is to build a desire in the visitor to purchase a product or service. You also want to build trust so that the visitor starts to feel comfortable with your brand. Visitors have entered the third stage when they start researching your catalogs and different pricing models. They'll look for social proof by reading product reviews and testimonials. You can boost this by offering the visitor case studies, tutorials, demos, and product comparisons to help them along to the action stage. Stage 4: Action The final stage aims to convince the visitor to take action and finalize a conversion. To get the visitor to this stage you can offer them time-sensitive discounts and special bundle deals. It's critical in this stage to answer any questions the visitor poses quickly and professionally. You can further develop the relationship by sending out consistent email marketing that's hard to ignore. Also consider using retargeting strategies at this point. 9 Essential E-Commerce Sales Funnel Metrics You Should Be Tracking For tracking purposes, stages two and three of the sales funnel are combined to present the metrics according to three phases: the top, middle, and bottom of the funnel. Top of Sales Funnel When your visitors filter into the top of your sales funnel, they're in the process of becoming aware of your brand and discovering your offerings. The metrics that you should be tracking at this point include: 1. Traffic This is the general traffic on your site and on your product or service pages. It will help you understand visitor movement and interactions (why general traffic increases or decreases). If you monitor the dips and increases in traffic flow, you can see which of the changes you implemented on your site are attracting more traffic and which are switching visitors off your site. Use these insights to keep reworking your site until you achieve optimum results. 2. Entry Point This metric will tell you where the visitor entered your website (landing page), and which source led them to your site. This can be a specific social media platform or another website that backlinks to you. If you find that one particular source (or multiple) is bringing your site the most traffic, you can work on targeting that source and pulling in more visitors. 3. Bounce Rate Discover which page the visitor was on when they decided to leave your site. You must find out what caused the visitor to "bounce" before a conversion was finalized and address it. The average bounce rate for an e-commerce website ranges between 20% and 45%. If your bounce rate is lower than the average range, you're doing well. Middle of Sales Funnel This phase analyzes whether your visitors become interested in your products or services. Use the below metrics to calculate how well you're engaging the leads that have come through from the top of the sales funnel. 4. Customer Acquisition Cost (CAC) CAC is the total overall cost to acquire a customer. It includes the cost of producing, storing, and shipping the products your visitors have purchased as well as any marketing costs. Use this formula to track your CAC: CAC = Amount Spent on Marketing / Number of New Customers Each industry has its own average CAC to use as a benchmark. Make sure to look up yours as a simple guide. » Still unclear about CAC? Learn which expenses influence e-commerce CAC 5. Sales Funnel Velocity This sales pipeline metric measures how quickly your visitors move through your sales funnel and therefore how quickly your website is generating new revenue. Use this formula to calculate your sales funnel velocity: Sales Funnel Velocity = (Number of Opportunities) x (Average Deal) x (Conversion Rate) / (Sales Cycle Length) "Number of opportunities" refers to how many leads entered the funnel, while "average deal" is a specific value e.g., your average selling price or customer lifetime value. "Sales cycle length" is your chosen sales period. We discuss "conversion rate" more below. Bottom of Sales Funnel This stage is your ultimate goal—to convert those leads you've generated into sales. The metrics you would use in this phase include: 6. Conversion Rate This metric measures how many of your leads convert into sales. Use the following formula: Sales Conversion Rate = Total Transactions / Total Visits x 100 If your sales conversion rate is between 2% to 3%, then you're hitting the mark. Anything higher than this range means you're doing better than the norm. » Is your conversion rate below average? Discover how to increase your conversion rate 7. Average Order Value (AOV) Use AOV to measure how much—on average—your visitors are spending per order. It will help you decide whether you should spend some time to formulate special deals, packages, and discounts to encourage users to spend more. Use this formula to measure your average order value: AOV = Total Revenue / Total Number of Orders AOV is an important metric because it influences other calculations and the overall health of your business. It can increase your customer lifetime value, decrease your CAC, and increase your overall revenue. 8. Cart Abandonment Rate This metric tells you how many of your leads are abandoning a sale before conversion. Just like your bounce rate, you must find out why visitors are abandoning sales and address it. The formula is as follows: Shopping Cart Abandonment Rate = (Number of Completed Purchases / Number of Shopping Carts Created) x 100 Cart abandonment rate depends on a number of factors like device used, industry, and time of day and year. The average cart abandonment rate can be as high as 70%. » Worried about your cart abandonment rate? Find out how to manage, prevent, and recover abandoned carts 9. Total Sales This is the total revenue of your e-commerce store. It's critical for calculating your profits and losses and gauging the "health" of your business. Use this formula to calculate total sales: Total Sales = Number of Items Sold x Sales Price Use total sales to determine a top and bottom line as well as your breakeven point. It's important to set goals for your business and track whether they are achieved. » How do you calculate profits and losses? Find the essentials of profit and loss statements here 5 Benefits of Sales Funnel Analysis for E-Commerce Significantly Enhances Productivity Your site becomes organic and dynamic, constantly improving because of the data you're analyzing. The result of constant analysis is constant improvement in productivity and therefore a better bottom line! Enables Predictability of Results You take the guessing game out of business because you can monitor and track literally all aspects of your e-commerce store. This makes results more predictable, giving you the opportunity to act proactively instead of reactively. Allows Better Use of Resources & Opportunities When your sales funnel is optimized, you'll be able to use your resources effectively. You'll also be able to make the most of the opportunities you get to take your business to new heights. Enables Management Optimization The more data you have, the more you can read into the finer details of your business. It will give you more control over the different stages of the sales funnel. You'll have your finger on the pulse! Drives Product Development Product development is crucial for innovating and staying ahead of your competitors. The sales funnel can help you with this too because you have a good understanding of what your customers want. Key Takeaway By understanding the journey your visitors take from becoming aware of your brand to becoming paying customers, you can optimize their experience, gain their trust, and turn them into lifelong partners. If you combine this comprehensive guide with the innovative solution offered by BeProfit, you'll learn how to build a successful sales funnel and ultimately improve your sales funnel's performance, while also tracking your data with ease and skill! » Want to connect with BeProfit? Sign up to BeProfit
Revenue vs. Product Revenue Discrepancy in GA4—Resolved
Business metricsRevenue vs. Product Revenue Discrepancy in GA4—Resolved Are you, like many others, having a tough time understanding the difference between "revenue" and "product revenue" in Google Analytics 4 (GA4)? It may seem like these two metrics report on the same thing—but they don't. In fact, these two metrics, used in tandem, will give you a deeper and clearer understanding of the financial health of your business. » Need more insight into generating revenue? Learn how to perfect your sales funnel with GA4 Revenue in Google Analytics Revenue is the aggregated metric from your web e-commerce or in-app stores. This is the value that's used most frequently in reporting, because it aims to give you an overall picture. Revenue represents the value of an entire purchase or cart. Therefore, it can include tax and shipping costs as well as discounts, because these values are applied to the entire purchase and not individually to each item. Let's look at an example. Let's say a customer buys a T-shirt from Joe's Tees (an online e-commerce store). Here is an example of the code that's generated for the revenue metric. Take special note of the bold, underlined coding: ga('ecommerce:addTransaction', { 'id': '5678', // Transaction ID. Required. 'affiliation': 'Joes Tees', // Affiliation or store name. 'revenue': '5.99', // Grand Total. 'shipping': '1', // Shipping. 'tax': '0.50' // Tax. }); This code highlights the grand total, and includes shipping and tax in the final revenue report. Product Revenue in Google Analytics Product revenue focuses on the value that individual products contribute to the total revenue. It looks at each product's value and quantity in the cart separately. Therefore, you may have situations where the values of revenue and product revenue don't correspond, even though you're analyzing the same products in the same cart. Here's another example so that you can compare the coding. Sticking with Joe's Tees, have a look at the bold, underlined section: ga('ecommerce:addItem', { 'id': '1234', // Transaction ID. Required. 'name': 'Black Rambo T-shirt', // Product name. Required. 'sku': 'AA12345', // SKU/code. 'category': 'Rambo Range T-shirts', // Category or variation. 'price': '5.99', // Unit price. 'quantity': '1' // Quantity. }); The value of the revenue is $7.49, while the product revenue is $5.99 because revenue also calculates tax and shipping. » Worried about product performance? Use these tricks to analyze your products with GA4 Final Takeaway So, revenue will provide you with a baseline of your overall performance, while product revenue will show you the weight of each individual product's contribution. This is good for determining which products are your bestsellers and which need a marketing boost or should just be discontinued. If you're still struggling to understand the difference between these metrics, you can call on BeProfit. Their solution will demystify all the GA4 discrepancies. The bottom line is that the success of your business depends on accurately understanding the metrics and data you can extract from GA4. » Want to see what BeProfit has to offer? Schedule a demo
5 Quick Steps to Check Amazon Sales Data (+ Helpful Shortcuts)
Business metrics5 Quick Steps to Check Amazon Sales Data (+ Helpful Shortcuts)If you're new to Amazon, you may not know that the platform provides comprehensive data reports to all its sellers. This data can unlock important insights into your sales, prices, and rank, which can help you make predictions about a product's future performance. Using these five easy steps, you will tap into a gold mine of information that you can use to increase sales and send your business soaring. » Need extra help boosting your Amazon sales? Learn how to use Google Analytics to track and boost Amazon sales 1. Log In to Your Amazon Seller Central Account Firstly, you need to log into your Amazon Seller Central Account. You'll need to complete the fields by entering your email address and your password. Once you're in, click on the Sales Summary tab, followed by the View more of your sales statistics tab. 2. Review the Sales Dashboard Now, the sales dashboard may seem overwhelming and difficult to understand at first. But don't get spooked! Just keep reading and we'll take you through all the important features. Once you're in the dashboard, you'll see three main sections: Sales Snapshot The Sales Snapshot gives you a handy summary of: Your total orders for the dayHow many units you've sold The sales revenue you’ve generated for the day 'Compare Sales' Graph Just below the Sales Snapshot, you'll see a Compare Sales Graph. This feature allows you to compare sales from different days. Handy tip: You can remove one or more of the comparison graph lines by unchecking the box next to that sales day. That way, you'll only see the statistics you want to see. Menu Bar You'll find the menu bar on the left-hand side of the dashboard. The Business Reports tab is where you'll get all your sales statistics. 3. Select the Method of Organization You can access different types of sales data and reports using the method of organization. It all depends on your choice of categorization and report type. You can arrange your statistics in three ways: By Date: there are three report options that offer various statistics that have been arranged into columns. By ASIN: this is the Amazon Standard Identification Number (ASIN)—a 10-character alphanumeric unique identifier assigned by Amazon.com and its partners within Amazon.Other: this includes "sales and orders by month", "listings with missing information", and "inventory in stock". 4. Select the Type of Report The method of organization you choose will give you access to a different set of sales and business reports. Some of the more useful reports include: Page views: the number of visits to your e-commerce store.Sessions: the number of unique customer views on your site.Units ordered: the total amount of units ordered for the specified period.Total sales: the total amount of sales made for a specified period.Order session percentage: a percentage of the number of orders over the number of sessions.Buy Box percentage: the recurrence of your products appearing in your customer’s Buy Box as a percentage. Handy tip: You can customize these reports by adding or removing data or changing the data range on the graphs. You can also change data so that it reflects as columns by clicking on Columns Customization. 5. Download Your Sales Report Once you're ready to download a report, follow these steps: Step 1: On your dashboard, click on Reports. Step 2: Select Business Reports. Step 3: Choose your date period: day, week, or month.Step 4: You will see a download link: choose either a TSV or XML format. Step 5: If you choose TSV, once downloaded it will open in Microsoft Notepad. Select all the information, then copy and paste it into a new Excel file. Handy tip: You can integrate the data from the reports with other reports which will help you with forecasting and strategic planning. » Worried about your Amazon sales? Find out how to promote your Amazon products for better sales Seller Central Shortcuts For ease of reference, here are some quick shortcuts to help you navigate to these important metrics and reports in seconds flat: Items Sold: Reports > Business Reports > Detail Page Sales and Traffic By Child ItemSales History: Reports > Business Reports > Sales Dashboard. Change the date range to custom and select your business start date.Sales Volume: Reports > Business Reports > Sales and Orders by Month.Seller Performance: Reports > Business Reports > Seller Performance Final Words... Now that you've successfully navigated through the steps to access your sales data, you're ready for the next crucial step in the process: calculating your profit. The good news is that BeProfit has a nifty profit calculation app that makes tracking profits and calculations on Amazon FBA a walk in the park. This app will give you detailed analyses using all your own raw data. It's exactly what you need to take your business to the next level! » Curious about BeProfit? Schedule a demo
Snapchat Ad Metrics: A Detailed Guide for E-Commerce Sellers
Business metricsSnapchat Ad Metrics: A Detailed Guide for E-Commerce Sellers Love it or hate it, Snapchat offers a cost-effective advertising channel with an incredible reach and access to untapped markets. As a business owner, you can boost your e-commerce store with Snapchat ads, especially if you get a solid understanding of the different metrics used to track the performance of different types of ads. Just remember, you can only monitor your progress toward reaching your goals if you set clear objectives. » New to e-commerce ads? Follow this ultimate guide to effective e-commerce ads Snapchat Ad Formats If you're looking to drive sales or app downloads, or simply want to engage potential customers, Snapchat Ads are known for delivering good results. Choose one (or more) of these easy-to-use formats—just make sure it suits your targeted audience and aligns with your advertising objectives. » Should you use Snapchat ads? Discover why Snapchat ads are worth it Single Image & Video Ads Single image or video ads—just like Snaps—give you the creative freedom to advertise your products or services using sight, motion, and sound. Your ads can be either motion graphic, live, cinema-graph, gif style, or stills. Remember to add a swipe-up call to action at the bottom of the screen—this is the central action that drives this type of ad. Users can be driven to your website, an AR lens, or your app page in the app store. Story Ads Story ads give you the opportunity to reach both current and potential consumers by uploading a branded tile in Snapchat’s Discover section. This then opens into a collection of up to 20 images or videos. Story ads is a clever technique to promote your business in a way that's easily consumable. You can use it to showcase a range of products, use always-on branding, and even release a movie. Collection Ads Use Collection ads to promote a series of products in a fun way with a seamless shopping experience. A collection ad is a basic Snapchat video with a ribbon of thumbnail-sized products visible at the bottom of the screen. This ad format works well if you have one product with many different uses or a star product in a range you want to promote. So, avoid trying to cramp all your content into one view. Commercials A Snapchat commercial is a video ad that can last from six seconds up to three minutes. The first six seconds of each ad can't be skipped. Your consumers will see these adverts while playing games or within Snapchat’s Curated Content. The main aim of a Snapchat commercial is to drive awareness and build your brand presence and consistency. Filters Snapchat filters offer business owners a cost-effective way to build a solid brand presence on Snapchat. You have a choice of regular filters and then you have geofilters. A Snapchat geofilter is location restricted. It adds a creative visual effect that can be applied to both photos and videos as long as they're taken through the app. Geofilters are unique because they're only available to people within a certain geographical radius, giving these filters a true marketing edge if you want to drive your consumers toward specific locations. » Unsure how to use Snapchat ads? Employ these best practices to dominate Snapchat ads 13 Key Snapchat Ads Metrics You Should Be Tracking These valuable Snapchat ad metrics have been grouped according to the different business areas they're related to, namely: delivery, spend, and conversion. Delivery 1. Total Impressions Total impressions is the total number of times your ad is seen or displayed on a screen, including multiple views by one person. Therefore, your total impressions is the sum of your paid and earned impressions. Paid impressions refer to how many times your ad was sent and fully rendered to a Snapchatter, while earned impressions is how many times your ad was viewed after a Snapchatter shared it via their Chat or Stories. This metric will help you gauge how consumers are interacting with your brand. 2. Total Unique Views This is the number of consumers who opened the first frame in your Snapchat story for the very first time for a minimum of one second. This metric can be measured weekly, monthly, and yearly. 3. Reach Reach refers to the total number of unique Snapchatters who viewed your story on specific days. You can monitor and record your reach to see how your business is growing over time. It will also tell you which days your viewers are engaging with you more. 4. Engagement Rate Use engagement rate to measure the performance of a piece of content, including views, screenshots, and replies. Use this formula to calculate your engagement rate: Engagement Rate = (Total Number of Interactions / Number of Followers) x 100 5. Completion Rate Measure the loyalty of your consumers by calculating the percentage of followers who have viewed an entire story. This means they viewed the story right from the first snap all the way through to the last one. On other social networks, your completion rate is referred to as the retention rate. Spend 6. Ad Spend Ad Spend is the total amount of money spent on an ad campaign to date. Use this metric to monitor the success rate (or failure rate) of each campaign and to identify what works and what doesn't work for your brand. Over time, you'll be able to organically tweak your adverts for optimum results. 7. Cost per Click (CPC) CPC is a method of paid advertising where you pay Snapchat each time a consumer clicks on an ad. CPC is a cost-effective advertising method and helps you keep more control over your budget. Use this formula to calculate CPC: CPC = Total Ad Cost / Number of Clicks Let's look at a simple example. If you spent $200 in a day and got 20 clicks in return, your calculated CPC would be $10. 8. Cost per View (CPV) Use CPV for your brand awareness campaigns. As a business owner, you would pay a sum every time one of your videos is viewed. This payment ratio works well if you want to make your advertising budget stretch as long as possible. The formula to calculate your CPV is: CPV = Advertising Cost / Video Views 9. Cost per 1000 Impressions (CPM) CPM is also called "cost per mille", This metric measures the price of 1 000 impressions on a piece of marketing. So, if your CPM is $5, that means you are paying $5 for every 1 000 impressions of your advertisement. Use this formula to calculate your CPM: CPM = Cost / Impressions x 1 000 Conversion 10. Return on Ad Spend (ROAS) This is one of the more important metrics, because you'll learn how much revenue you've earned for every dollar you spent on a campaign. Use this formula to calculate ROAS: ROAS = Revenue Earned from Ad Spend / Ad Spend Let's look at a quick example. If you make $100 for every $10 you spent on an advertising campaign, your ROAS for that particular campaign would be $10 or 10:1. 11. Pages Viewed This is the total number of times a Snapchatter has viewed your Snap or video whether using the app or your website. This metric tells you what aspects of your marketing campaign are working and getting traffic, and points out low performers. 12. Add to Carts This metric tells you how many products or services have been added to carts before the conversion takes place. If this number is high, and your conversion rates are low, there's some form of barrier to your sales that you need to investigate. 13. Average Order Value (AOV) AOV tells you how much a customer is spending with you each time they order. If this number is low, consider formulating special deals, promotions, up-sells, and discounts. The higher your AOV, the higher your revenue. Key Takeaway The importance of accurate data analysis cannot be understated. You need to be able to correctly interpret the results of your data analysis so that you can keep on improving your strategy to drive conversions. BeProfit is the ultimate solution because this software will help you to accurately and easily calculate gross profit and margins, as well as perform a variety of other functions, all from raw data. No mess, no fuss. » Want to connect with BeProfit? Start optimizing your profits by registering with BeProfit
Micro vs. Macro Conversions: Formula, Examples, & Use Cases
Business metricsMicro vs. Macro Conversions: Formula, Examples, & Use CasesConversion rate optimization (CRO) is the process of increasing the percentage of conversions on your website. Why would you want to optimize conversions? As your conversion rates increase, so does your bottom line because it generates ideas for improving various elements within your website, which will improve your website's performance in turn. You can validate the improvements using A/B testing and multivariate testing. Just remember, you must choose the correct conversion metrics—those that suit your specific business. » Want to increase your conversion rates? Follow this easy guide Micro vs. Macro Conversions A micro conversion is the completion of secondary actions by a user that indicates that they're likely to convert. This is not generally considered in a website's overall conversion rate, but it does tell you how well your sales funnel is working. Some examples of micro conversions include adding a product to a shopping cart, proceeding to checkout, and providing an email address. A macro conversion is a primary conversion on a website. This includes when a sale is successfully completed as well as a completed lead generation form. You should only choose one or two macro goals, while you can have as many micro goals as you see fit. If you have too many macro goals, your business objective won't be clear and your macro conversion rate will be diluted. There are various formulas that you can use to calculate your conversion rate. This is the formula we will use for our example: Total number of conversions / Total number of sessions X 100 Other formulas replace "total number of sessions" with "total number of leads" or "total number of visitors". The version you decide to use will depend on what you define as your conversion event and how you plan to measure your traffic. Common Examples Selecting the right macro and micro goals can give you valuable nuggets of information that accurately pinpoint the strengths and weaknesses of your e-commerce website. Macro Goals Signing up for a newsletter: brick-and-mortar storesFinalizing a sale: e-commerce storesCreating an account: social networksRequesting a demo: SaaS companiesFollowing a sponsored link: affiliate sites Micro Goals Watching a video: fitness industryAdding to a wish list: e-commerce storesAdding to a shopping cart: e-commerce storesBrowsing a defined number of products: e-commerce storesScrolling down a page: brick and mortar storesLiking or upvoting: social networksNavigating through a catalog: e-commerceExecuting a product search: e-commerceClicking on a search result: e-commerceCreating an account: social networks Respective Use Cases Let's look at an example scenario so that you can get a better understanding of how these conversions work as a team. Our chosen business is an e-commerce store that sells sports equipment for the fitness fanatic. Macro Conversions Macro conversions are used to calculate the overall conversion rate of your website. In the case of the fitness e-commerce store, macro conversions would be: Sale of a productSigning up for the referral program Micro Conversions Micro conversions are used for conducting a funnel analysis. This will help you to understand where your users are dropping off on their path to macro conversions. Micro conversions will also help to identify opportunities to improve your macro conversion rate. In the case of the fitness e-commerce store, micro conversions would be: Navigating to the store's homepagePage visits for each pageClicking on a fitness product to get more detailed information about itClicking on social media navigationSigning up for marketing emails or for the rewards programUsing the online store's search functionWatching videos explaining how to operate equipment correctly or offering nutritional adviceAdding a product to the wish list or to the cartAdding delivery details or banking detailsWriting a review of a fitness product As you can see, the micro goals start at the homepage and end when a product has been bought and reviewed. The order is important because it will tell you where customers are dropping off, where there is a lot of traffic, and where traffic is low. You can use this information to optimize your online store. » Can you improve your sales funnel? Discover how to manage your micro and macro goals in Google Analytics 4 Conclusion It's really important to understand the difference between macro and micro conversions. To get the maximum benefit out of these metrics, they need to be defined so that they complement each other. Don't underestimate the power of clearly selected and defined macro and micro goals, otherwise you may spend your time chasing after a goal that's not beneficial for you.