How to analyze the effectiveness of promotion channels?

A complete channel process is off-site channel - display advertising creativity - enter the landing page - visit the conversion copy of the landing page - activate users - submit orders. So how do we analyze the effectiveness of channels? This article provides you with some small ideas, enjoy~

A complete channel process

1. Users see various advertising creatives on off-site channels (including but not limited to SEO, SEM, DSP, social media , etc.);
2. Interested users click on the URL link we put in to enter the corresponding site, and the first page they see is the landing page ;
3. Next, the user visits our landing page in depth. During this process, the user may show a willingness to convert (download, register, or try our products or services for free). We call this process user activation ;
4. After the user is activated, he clicks CTA (Call To Action), selects the product to add to the shopping cart and completes the payment, which is a complete purchase conversion.

In other words, a complete channel process is: off-site channel - display advertising creativity - enter the landing page - visit the conversion copy of the landing page - activate users - submit orders.

Case

An online education company provides paid training courses, obtains user leads through SEM, and then has sales follow up on the leads and promote sales. At present, it is known that the company invested 100,000 yuan in SEM in February, obtained 200 complete sales leads, successfully completed 20 orders, and achieved a total sales amount of 1 million yuan (average order value of 50,000 yuan).

The overall channel effect diagram is as follows:

Now the goal

In March, the total sales target increased by 50%, which means the total sales amount is 1.5 million. How do we need to achieve it?

The actual situation of the project

The total output target has been determined, with total sales of 1.5 million yuan, but the investment has not been determined.

Ideas

plan

1. Increase access traffic. Increase the advertising exposure by increasing the SEM budget;
2. Improve traffic conversion rate. By optimizing pages, increasing click-through rate, registration conversion rate or increasing order conversion rate.

Because our investment is not determined, and based on our existing channel ROI we cannot achieve the current total sales amount. So the first thing that comes to mind is to increase investment and improve advertising exposure. But this is also what we usually call "burning money".

But when our investment is determined and cannot be increased, we can only improve our conversion rate by optimizing existing channels or changing channels. Let’s look at another case. Since the above case does not have channel segmentation data, we found another set of data separately.

Whether we want to optimize existing channels or add new distribution channels, we must first analyze the situation of existing channels. To determine whether a channel is effective or not, we usually look directly at the result indicators.

The cost here is already known. We can roughly look at the number of orders to preliminarily judge the quality of the channel. We found that channel E is the best, with an investment cost of 133,637 and the first number of orders: 20,2016. (PS: It mainly depends on the business situation of your own company, and some depend on the number of registrations)

The data in the table are serial indicators. We determine the specific channel situation by calculating the conversion rate and the corresponding cost.

Judging from the data, the first-order cost of channel E is 66% lower than the overall first-order cost, and the total conversion rate is 64%. Therefore, the channel with the best delivery effect is channel E, the second is channel D, and the worst is channel C.

Back to our question above, when the total sales target has increased but the investment has not increased, our solution is to add new investment channels and optimize the conversion rate of existing channels (increase the conversion rate of each node in the existing channels or adjust the delivery structure of existing channels).

• If you want to add a new delivery channel, you can search for it according to channel E or channel D (PS: find new channels based on the channels with the best delivery effect. If you can't find the best one, find a channel with a lower effect);
• Adjust the existing channel delivery structure.

From the above figure, we can find that the proportion of channel E is: 9%, and the proportion of first orders is: 27%. Can we increase the investment in channel E to increase the overall number of first orders? (PS: It is not ruled out that channel E is a niche channel, and the increase in investment did not increase the number of first orders)

Optimize the conversion rate of each channel node. By comparing different channels, it is found that the first call conversion rate of channel C is 7% lower than the overall conversion rate. It can be assumed that most of the users coming from channel C are not target customers.

In the previous article, how did I analyze the decline in product daily active users (DAU), our final analysis result was that the decline in DAU was caused by the loss of users in channel 3. We can use a complete channel process to analyze which specific node has a problem or whether there is a problem with channel 3.

Real-life problems:

1. Channels E and D increased their investment, but the number of orders from Channels E and D did not increase much. The volume of Channels E and D is just the same.
2. A new channel is added, but the effect may not be as good as channel ABC;
3. We also optimized the nodes, but the conversion rate has not increased.

These are all things that we may encounter. We can only analyze the current situation clearly and then ask the boss for money reasonably. If the data is that of Case 1, the conversion rate can definitely be improved.

I hope this article will be helpful to your future work. You are welcome to follow and like it. We can also discuss more work issues together in the future.

Author: Yayi

Source: Yayi Notes