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Measuring Holiday Success

Now that most 2020 holiday sales are over, we wanted to explain how to translate these sales into measurements for your business’ performance.

Casey Carroll
19 Dec

Now that most 2020 holiday sales are over, we wanted to explain how to translate these sales into measurements for your business’ performance.

The best way to analyze how your business has done this year is to look at the key performance indicators--which include marketing success factors, e-commerce data, and general business metrics. We are now going to detail what each of these categories entails.

Marketing success factors can help you understand how specific marketing campaigns are working. Analyzing these factors can make you see what marketing strategies have been working or not so you can pick the most efficient and effective ways to market your products. Some ways to measure this include:

Click-Through-Rate (CTR) is a metric that measures the number of clicks you receive on your ads per number of impressions and can tell you how effective a marketing campaign is.

Subscriber Growth Rate measures the percentage growth of your customer/follower base in a given time period compared to the previous time period. Measuring this is important to see if your business is gaining traction in the marketplace.
Social Followers
Tracking how many social media followers your business has and their level of engagement can show you
Number and Quality of Product Reviews
are a good way to get new customers so checking them and taking customer feedback into consideration can help your business in the future.

Average Position (Search) This is the position your ads and/or products hold against others. Researching your average position can give you an insight into your competition and help you find ways to outsell them.

E-commerce data helps measures business aspects such as your website’s performance, customer journeys, and what content or products are selling best. Some ways to measure this include:

Sales show what you have sold throughout this year. Organizing this information can help you see what product sold best, what months you sold the most, etc.
Average Order Value (AOV)
tracks the average dollar amount spent each time a customer places an order. This helps you understand your customers' purchasing behaviours.
Conversion Rate is the percentage of customers who take a desired action, such as visiting your website or buying your product.
Traffic (New vs. Returning) describes the type of customers you’ve gotten this year. You want to analyze your customer’s and see if your business would do better with new or returning customers.

Product Affinity is the customer’s natural liking of a product. Product affinity segmentation shows meaningful differences in product buying patterns across the customer base and can be used for identifying cross-selling and up-selling opportunities.

Finally, the general business metrics describe the basic metrics that tend to be recorded throughout the year. General business metrics include:

Customer Lifetime Value (LTV) LTV measures the net profit contributed to the whole future relationship with a customer. This is important because it predicts the value your relationship with a customer will be.

Customer Acquisition Cost (CAC) compares total sales and marketing expenses associated with gaining a new customer with the increase in the gross profit associated with those new customers during a given period of time. CAC tells you whether specific marketing strategies are worth the cost and can help you save money.

Gross Profit is the profit your business is making after deducting costs.

Average Margin calculates total costs and profits in order to give the overall profit margin. Simply, your average margin will show you how much money your business is making.

Competitive Pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition. This could make or break your business.

Now that you’ve measured the key performance indicators, what do you do with this information?

You start preparing your business for success in 2021!

Before this, however, you can use this information to plan a final push for New Year’s celebrations. Depending on what your key performance indicators told you, you can try to market one product over another, change your marketing campaigns, etc. Finish the year strong!

After this, you can start setting goals for 2021! You can find weaknesses in your business and focus on fixing them while maintaining the strong points you found in your analysis. This will hopefully allow your sales and business to grow. Most importantly, you can now set realistic and helpful goals for the new year!

We hope that this was helpful and you will be able to take this information to help your business thrive in 2021.

Until next time, let us know if you have any questions or comments below!

Casey Carroll
19 Dec

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