Module Four

Analyzing Your Marketing Strategy and Modifications

 

In our previous chapters of this module, we saw different marketing strategies one can utilize in an eCommerce business. In addition, we also explored marketing automation and how it can work wonders for your eCommerce business. 

 

But wait! How will you be able to measure the success of your efforts? How will you know if you are making marketing efforts in the right direction? You will get these insights by analyzing your marketing strategies. 

 

In this chapter, we are going to talk about analyzing marketing strategies and the ways to do it. We will also talk about the modifications that you can keep in consideration if the strategies that you are already using are not working. 

 

So, let us proceed with the discussion of this chapter and make your marketing strategy work wonders. 

 

Aligning Marketing Goals with Business Objectives

 

The first thing that you have to consider is to analyze if your marketing goals are aligned with business objectives or not. What does this mean? We will understand this using a simple example. 

 

Let us suppose your goal is to increase sales of your business by 20% in the next quarter. For this, you need to ensure that your marketing strategy is also geared towards the same objective. 

 

For example, you are running a small online clothing store and your goal is to expand to a new market. What will your marketing plan be focused on for this? For this, you will be focusing on aspects like increasing brand awareness in the region. It can be done by using targeted ads. 

 

Is there something specific that you should be focused on? There is one framework that you can always keep in consideration when forming your marketing goals. Always keep in consideration that your marketing goals are SMART. Smart refers to specific, measurable, achievable, relevant, and time-bound. 

Thus, in this manner, you can ensure in the first place that your marketing strategies are in the right alignment with your visions and goals. 

 

Key Performance Indicators (KPIs)

Now that we understand what we should consider when aligning our marketing strategies to grow our eCommerce business. However, one question that you must have in your mind is to analyze your current marketing performance. 

 

Let us take an example to understand this better. For your eCommerce business, you are using different marketing strategies. For one month, you are putting efforts into reaching your audience and ensuring they become your potential customers. 

 

But what is something that you can check to measure how well your marketing strategies are performing? KPIs are the answer to your question. KPI stands for Key Performance Indicators (KPIs). 

 

KPIs are metrics that help you measure how well your marketing strategies are performing. In other words, KPIs work as the door that provides you insight into whether you are on track to meet your goals or not. 

Some of the most important examples of KPIs are as follows:

Conversion Rate: Talking about conversion rates, refers to the percentage of visitors who come to your website or platform and make a purchase. It is one of the most important KPIs you cannot overlook. 

Customer Acquisition Cost: How much does it cost to gain a new customer? Having an understanding of this KPI can help you manage costs for your business. 

Return on Ad Spend: Let’s take an example you are running ads for your business. Through ads, you are marketing various products and reaching multiple customers. But what is the outcome of your efforts? It is measured by ROAS and is important for you to know for your business. 

Customer Lifetime Value (CLV): Customer Lifetime Value (CLV) refers to the total revenue a business can expect from a single customer account through a business relationship. Your eCommerce business needs to know this for running campaigns like loyalty programs. 

Identifying and Tracking Relevant KPIs

Now you need to understand that you don’t need to find out about each KPI for the success of your eCommerce business. Really! You just need to start with the basics and identify the KPIs that are directly tied to your business goals. 

For example, if your current goal is to boost sales, then you need to take care of conversion rate and CLV as your primary KPIs. Once you identify the KPIs that are important for your business, it is essential to track these relevant KPIs. 

Are there any tools that can be used to track these KPIs? You can utilize the following tools to track essential KPIs essential to your business:

1. Google Analytics to track website traffic and conversions.
2. Social media insights (Instagram, Facebook, LinkedIn) for tracking engagement.
3. Email marketing platforms (Mailchimp, Klaviyo) to measure open rates, click-through rates, and sales from email campaigns.

Collecting and Interpreting Data

You are putting in a lot of effort in each aspect of your eCommerce business. In addition, you also have the tools to track your KPIs. But how are you going to measure what’s working and what isn’t? 

By regularly collecting data, you can make informed decisions instead of guessing them. Let us understand this with an example. Imagine that your ads are bringing in a lot of traffic but few sales. What can be the issue behind this?

Well, in this case, it is time for you to rethink your targeting or messaging. Maybe, this is something that needs your attention and targeting.  For this, you can:

• Set up regular reports (e.g., weekly, or monthly) to track your performance. 
• In addition, look forward to tracking trends over time rather than checking day-to-day fluctuations. 

Spotting Weaknesses in Your Marketing Strategy

Do you know what is the most important requirement for making progress in your eCommerce journey? Well, it is identifying and looking for red flags such as high bounce rates on your website, declining engagement rates on social media, and also a large number of abandoned shopping carts. 

 

Once you identify such issues, it is then time to fix each of them. For this, you can follow some simple steps that are: 

• Testing different ad creatives (images, videos, text).
• Adjusting your messaging to better match your audience’s needs. 
• Simplifying your website’s checkout process. 

 

Implementing steps like these and many more will help in streamlining your marketing strategy. 

Implementing Modifications

Now, after spotting weaknesses, the next step for you is to take action. If your data shows that people abandon their carts during checkout, try offering free shipping or improving the user experience on mobile.

Use A/B testing to try different variations of ads, email subject lines, or product pages. You should also keep an eye on the results and refine your approach until you see improvement.

Always consider that marketing is not a “set it and forget it” effort. Regularly adjust your strategy based on the latest data. 

Crucial Takeaways From This Chapter

• Align your marketing goals with your business objectives for better results.
• Use Key Performance Indicators (KPIs) to measure your marketing success.
• Focus on tracking only the KPIs that are important for your goals.
• Collect and analyze data regularly to spot weaknesses in your strategy.
• Adjust and modify your marketing strategy based on performance data.