Advertising is a simple way to grow your brand and increase your sales. But don’t get me wrong, developing your advertising strategy around growth can be hair-pulling difficult. It can take a lot of time to build and implement not to mention what you need in order to measure and report it.
That’s where Key Performance Indicators (KPIs) come into play. KPIs are trackable, quantifiable measurements that tell the story of, you guessed it, a brand’s performance over time. What you choose to measure determines what you choose to prioritize in your work, so KPIs are crucial for determining your strategy and benchmarking yourself against competitors.
But where do you begin with analyzing KPIs? To get the most out of your strategy, you want to reach buyers at every stage of the buying journey, also called a full-funnel approach.
The image below includes a simple advertising funnel broken down into a customer buying process. A full-funnel strategy focuses on each step in the funnel individually to help move a buyer to the next step. Viewing KPI’s through a full-funnel strategy provides a way to calculate and measure growth in each step of the buying process.
While there are a myriad of ways to track data and compare stats, knowing the metrics that contribute to your overall goal–in this case growth–allow you to focus on what counts.
With the goal of growing revenue, a simple comparison between month over month revenue** **will help you evaluate how much, or if, your brand is growing.
Breaking down your revenue by month and sectioning it out to new customers and repeat customers will help you get an idea of what is working and where your focus should be. This is because new customers generally come into the buying process when the advertiser focuses on awareness, whereas repeat customers usually enter the buying process already having intent to purchase, making them lower funnel. Dividing new and repeat customers shows whether there’s more room for growth in driving awareness to obtain new customers or a greater need to focus on customers who have intent to purchase again.
Separating search terms by those with and without your brand’s name in them can give you an idea of how many people are familiar with your brand. As you measure this over time, you can estimate what percentage of sales come from new customers versus what percentage of sales come from repeat customers, who already know your brand search it by name.
Focusing time and spend on a greater amount of impressions can naturally lead to more clicks and sales if emphasis is on the right audience and keywords. Expanding your audience and search terms can open up new channels for more prospects to find your brand.
The comparison between your number of impressions and your number of clicks is a key indicator of how well your brand fits an audience. If you have high impressions but low clicks, your audience isn’t getting what they need from your ad, so they aren’t clicking. Making adjustments based on CTR remains essential when scoping for an audience, messaging, or bid-strategy that better helps your brand.
Striving for a lower cost-per-click boosts overall efficiency. Finding search terms that have enough search volume to allow you to spend effectively and give a healthy return are key to elevate growth. This is also a metric to keep in mind on competitive, more expensive words. Only you can determine at what point the cost of a click is no longer worthwhile for that specific keyword. You can decide based on how likely a customer is to actually convert when they’ve clicked and how much revenue that conversion actually brings.
As you approach further down the funnel towards intent to purchase and purchase, RoAS becomes more relevant. Usually it costs more to obtain a new customer, so awareness will have a lower return than having placement with an audience that is already familiar with your brand. Whether you spend more on increasing awareness or driving purchases, RoAS should not be overlooked because it gives you a quantifiable, traceable measure of spend efficiency.
Remember, the overall indicator of growth is total revenue, but knowing which performance indicators are key for growth and learning how to utilize those KPIs to your advantage through different strategies will continually benefit your advertising efforts and the outcome of your brand.
At Pattern we have a team of advertisers that specialize in a variety of ad platforms and marketplaces. We’d love to help you make the most of your advertising spend, while helping you understand the KPIs driving your growth and success.
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Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces.
Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.
So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.
Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products.
An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.
An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.
Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.
At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services.
It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.
It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.
The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.
Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces.
With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.
Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.
If you’re interested in expanding your brand internationally, you’re probably familiar with Tmall. Tmall is Asia-Pacific’s (APAC) largest marketplace, and indisputably the biggest ecommerce powerhouse in the world. It represents a huge opportunity for many brands, but entering the space is also a big challenge to take on.
At Pattern, we recommend brands looking to enter international markets should first focus on dialing in their domestic presence. Once you’re satisfied that your brand is well-represented and optimized locally, you’re ready to think about tackling new regions, like APAC, and launching on marketplaces like Tmall. Our top advice for entering Tmall is to understand and strategize around its three most important metrics: service, delivery, and content.
Service, delivery, and content ratings are the three elements that make up Tmall’s Detailed Seller Rating (DSR) score. Each component is scored on a scale of 1-5 that is displayed publicly on your brand’s Tmall flagship store page. This is meant to help consumers decide whether or not to purchase your products.
DSR scores are important because they’re highly influential in driving conversions—customers see DSRs as a way to quickly understand if a brand is trustworthy and worth buying from. They also matter quite a bit to Tmall itself—they monitor these scores and will take action to close flagship stores with low scores.
Let’s go over each element of the DSR score and some steps you’ll need to take to achieve high ratings.
Service is a huge ecommerce component in APAC marketplaces. In most other regions, product listings are static, and consumers use content and reviews to make a decision about what to purchase. On Tmall, consumers want to interact with your brand and test its validity before buying—each transaction takes at least one human interaction to convert.
So, to get a great service rating, you’ll need to have a large, established customer service team dedicated to Tmall sales that can offer real, human touchpoints and very fast response times. To get an idea of the speed your agents should be capable of producing, in our Tmall benchmarking exercise, 92.5% of brands’ customer service agents replied to queries via live chat within 30 seconds, 5% replied within one minute and the remaining 2.5% of brands took longer than a minute. So, look for a Trade Partner (TP) that has enough resources to compete with those numbers, support your sales, and maintain a good DSR score.
Another thing you’ll really want to focus on is a high-quality delivery experience for consumers. As in other regions around the world, Tmall consumers have high expectations for their delivery experience. In our Chinese consumer polling report that targeted consumers buying from Tmall Global, we found that 6% expected same-day delivery, 15% expected next-day delivery, and 46% expected 2-5 day delivery.They want to receive their products fast and they want the products to be undamaged and pristine upon arrival.
So, to achieve a high score for your delivery capabilities, we highly recommend partnering with a TP or ecommerce accelerator like Pattern (which serves as a TP) who has the ability to facilitate your distribution. Make sure your TP has the right infrastructure in place to support high-quality logistics experiences for all of your consumers—they should have an established, well-oiled delivery process in place and the capability to fluidly add you to their current fulfillment system.
As in every digital marketplace, content is a huge component of the decision-making process for consumers on Tmall—they can’t touch your product with their hands or see it in person before buying, so it’s important they’re empowered to make a good decision on whether or not to purchase based on the videos, images, and copy.
The goal is to make all of the content and relevant information on your flagship site easily-accessible—consumers should be able to visit your page and make a decision about whether or not to buy without navigating to a new site/page and taking their conversions with them. Images with text and extensive product details are a great way to do this, as well as making sure your service team can speak to all aspects of your product with any consumers (via text or chat).
As the world’s foremost brand partner for ecommerce acceleration, Pattern truly understands the significance of international expansion. With regional offices around the world, Pattern knows how to successfully launch and grow brands on Tmall and other marketplaces, with the data, insights, and marketplace intelligence to build the metrics that matter.
It’s important to have a fantastic brand presence, a knowledgeable guide, and a clear go-forward strategy for your best chance at success. With our in-country resources, expert teams, and extensive experience in growing brands around the globe, Pattern can help you get there.
Set up a call to get your international expansion strategy in motion.