Discover 3 Free Trial - Retail Quick Wins from Adobe Consulting

The retail indus­try experts in Adobe Con­sult­ing con­tinue to share a series of analy­sis quick wins for retail­ers, using Adobe Dis­cover 3. For a lim­ited time, Adobe Site­Cat­a­lyst 15 clients can inquire with their account team and ask to take part in a free trial of Adobe Dis­cover. We’ve made it eas­ier than ever to try Dis­cover, and we’re show­ing some great Dis­cover analy­sis oppor­tu­ni­ties spe­cific to the retail indus­try. For more infor­ma­tion and to request trial access, con­tact your account man­ager or account executive.

Adobe Dis­cover — Retail Quick Win #7
Price Point Analysis

Price point analy­sis reviews dif­fer­ing total pur­chase sale amounts that occur on site. Dis­cover pro­vides an effi­cient tool to run data slices of con­verted order visit char­ac­ter­is­tics. Dis­cover users can uti­lize this data to high­light site expe­ri­ences that impact vis­i­tor intent and con­ver­sion behav­ior. In the below exam­ples we will cover two appli­ca­tions of price point analy­sis and addi­tional data dimen­sion opportunities.

Dis­cover enables price point analy­sis through flex­i­ble seg­ment builds and the exploratory nature of Table Builder. We might under­take a price-point analy­sis to answer ques­tions such as: Which set of dif­fer­ent price point ranges is gar­ner­ing the largest share of rev­enue? What prod­uct dimen­sions are most pop­u­lar with dis­tinct price point rev­enue ranges? Which site con­tent or site paths are most com­mon for a given set of cus­tomers pur­chas­ing above or below a spe­cific price-point range? Are there price point rev­enue total sales dif­fer­ences as a result of mar­ket­ing chan­nels or pro­mo­tional offers?

Price point analy­sis is yet another way that Dis­cover can pull apart high level site trends and dive into the spe­cific traits of valu­able cus­tomer segments.

Price Point Analy­sis Exam­ple 1:
Cus­tomer Price Point Review

CRITICAL UPDATE: 7−19−13

  • Start­ing with the 7−19−13 main­te­nance release, ad hoc analy­sis (Dis­cover) will be chang­ing cur­rency for­mats in cus­tom events that will affect reports and seg­ments in some cases. For exam­ple, ad hoc analy­sis uses a penny (.01) as the base­line value, but start­ing next month, all cur­rency will be based on the dol­lar (1.00). This is the same for all currencies.

In most cases, reports and seg­ments pre­vi­ously built will remain unchanged. Most exist­ing reports and seg­ments in the new for­mat will see no changes in val­ues or func­tion­al­ity. The data val­ues in the report will not change but the val­ues in the seg­ment rules will change for cur­rency oper­a­tions. For exam­ple, if you cre­ated a cus­tom event that runs in seg­ment with a 50 cent value, then it will be changed to a .50 dol­lar value and return the same val­ues as it did previously.

When con­vert­ing for­mats is not pos­si­ble, an error will dis­play in the Seg­ment Builder stat­ing that the vari­able is obso­lete. See the KB arti­cle for addi­tional infor­ma­tion about rebuild­ing your seg­ments if needed.

Ques­tion: What is the spend share across prod­uct depart­ments for pur­chases by dif­fer­ent total rev­enue price point seg­ments? How are prod­uct depart­ments sales linked with dis­tinct price point segments?

Poten­tial Action: Iden­tify com­mon prod­uct price point group­ings to inform site mer­chan­dis­ing and cat­e­gories pre­sen­ta­tion. Review the influ­ence of mar­ket­ing cam­paigns and pro­mo­tions on prod­uct pur­chas­ing pat­terns by prod­uct dimensions.

Analy­sis approach:

-          Identify/segment order vis­its using spe­cific rev­enue amount tiers. For exam­ple in our first seg­ment we built a Visit con­tainer that includes ses­sions with an Order where the ‘Rev­enue is less than or equal to 5000’ ($50.00).

Dia­gram 1.1: Vis­its with an Order where the Rev­enue is less than or equal to $50.00

 

Dia­gram 1.2: Vis­its with an Order where the Rev­enue is greater than $50.00 and less than or equal to $100.00

 

Dia­gram 1.3: Vis­its with an Order where the Rev­enue is greater than $100.00 and less than or equal to $200.00

 

-          The next step is to run the desired prod­ucts dimen­sion reports. Observe the dif­fer­ences in the con­text of Prod­ucts, Depart­ment, Cat­e­gory, Ven­dor, or Line.

-          As shown in Dia­gram 1.4 below we observe the rev­enue spread across the Prod­uct Depart­ments and note the con­cen­tra­tion of the two lower price-point tier seg­ments (Vis­its with an Order where the Rev­enue is less than or equal to $50.00, Vis­its with an Order where the Rev­enue is greater than $50.00 and less than or equal to $100.00) is in ‘Beauty & Fra­grance’ and ‘Chil­dren & Toys’. The higher sales price point seg­ment is gar­ner­ing addi­tional rev­enue through increased prod­uct depart­ment diver­si­fi­ca­tion and higher ‘Wom­ens’ traf­fic and pur­chases. This may be an oppor­tu­nity to expand the inter­nal cam­paign foot­print of higher sales achiev­ing prod­uct depart­ments, bol­ster cross-promotion efforts, and exam­ine ways to up-sell the two lower price-point main­stay departments.

-          As show in in Dia­gram 1.5 we observe a sim­i­lar acqui­si­tion mar­ket­ing trend across the three dif­fer­ent price point tier seg­ments. The high­est price point seg­ment has the best traf­fic spread across acqui­si­tion chan­nels, but no one acqui­si­tion chan­nel seems to be a dif­fer­en­tia­tor across the var­i­ous price points. A chan­nel or cam­paigns report in the con­text of price point tiers is a great way to val­i­date assump­tions about the value var­i­ous acqui­si­tions efforts are bring­ing into the site.

Dia­gram 1.4: Price Point Seg­ments by Prod­uct Depart­ment Vis­its, Orders, and AOS (Cal­cu­lated Met­ric: Revenue/Orders)

 

Dia­gram 1.5: Price Point Seg­ments by Acqui­si­tion Chan­nel Vis­its, Orders, and AOS (Cal­cu­lated Met­ric: Revenue/Orders)

 

Price Point Analy­sis Exam­ple 2:
Cus­tomer Price Point Site Entry Areas

Ques­tion:  What is the entry page or site sec­tion of pur­chases by dif­fer­ent total rev­enue price point seg­ments? What is the entry Depart­ment, Cat­e­gory, or Sub­cat­e­gory site con­tent sec­tion by dif­fer­ent total rev­enue price point segments?

Poten­tial Action: Iden­tify the areas of the site that are draw­ing spe­cific con­vert­ing seg­ments by price point tier and tai­lor the site to their his­tor­i­cal pref­er­ences or con­ver­sion char­ac­ter­is­tics. Reaf­firm mar­ket­ing offers and use inter­nal mar­ket­ing to shift vis­i­tors to higher price point tiers through user indi­cated prod­uct affinities.

Analy­sis approach:

-          Identify/segment order vis­its using spe­cific rev­enue amount tiers. As men­tioned before the total rev­enue amount in the Dis­cover rule build must be entered as a whole num­ber and mul­ti­plied by 100 with­out dec­i­mal points.

-          Run an entry pages, sec­tion, or any cus­tom traf­fic entries report as the main dimen­sion element.

-          Eval­u­ate traf­fic trends against the dif­fer­ent seg­ments and over time in the con­text of spe­cific mar­ket­ing, inter­nal cam­paign efforts, and prod­uct mer­chan­dise sea­sonal periods.

-          As shown in Dia­gram 1.6 and 1.7, the high impor­tance of the home page on con­vert­ing vis­its is a major ele­ment in all three price point tier seg­ments. Social site con­tent ele­ments along with spe­cific high traf­fic prod­uct depart­ment site sec­tions also sur­face in the reports. An oppor­tu­nity to engage test­ing or drive fur­ther traf­fic to these site con­tent areas could result from these insights.

Dia­gram 1.6: Price Point Seg­ments by Entry Page Vis­its, Orders, and Revenue

 

Dia­gram 1.7: Price Point Seg­ments by Site Con­tent Entry Sub­cat­e­gory Vis­its, Orders, and Revenue

 

Tips & Tricks

  • As my col­league David Yoakum men­tioned in his Bas­ket Analy­sis blog post (http://blogs.adobe.com/digitalmarketing/analytics/discover-3–0-fundamentals-basket-analysis/), it is a key skill to be com­fort­able export­ing data out of Dis­cover into Excel. Often times you can copy down a series of sim­i­lar data out­puts and then per­form Excel for­mula sub­trac­tion cal­cu­la­tions to deter­mine over­lap across seg­ments and derive even nar­rower data slices.
  • A retailer may want to enhance their report­ing with prod­uct view price or cart add price into sep­a­rate cus­tom events as this will allow for pre-purchase price seg­men­ta­tion views. It also allows for an analy­sis into cap­tured rev­enue start­ing from ini­tial vis­i­tor prod­uct inter­est points.
  • Lever­age an order con­fir­ma­tion # cus­tom con­ver­sion vari­able to ver­ify seg­ment def­i­n­i­tions are accu­rate on a per trans­ac­tion level quickly using the low/high value sort arrow function.
  • If your site cus­tomers have a high propen­sity for mul­ti­ple pur­chases over the same visit, this will cre­ate crossover among your price point seg­ment tiers on a per vis­its basis. Be sure to account for or exclude mul­ti­ple orders within the same visit from seg­ments in the end data reports.

Con­clu­sion

As the prior exam­ples illus­trate, there are numer­ous price point analy­sis appli­ca­tions pos­si­ble in Dis­cover. The power of Dis­cover rests in the abil­ity to cre­ate and iter­ate on these price point builds in con­junc­tion with any other seg­ment char­ac­ter­is­tic a user requires to ana­lyze a busi­ness sce­nario. Dis­cover shows how a nuanced view of site vis­i­tor con­ver­sion behav­ior can be gained through inves­tiga­tive efforts from a straight com­par­i­son stand­point all the way up to a detailed trend view. I would encour­age all Dis­cover users to take a long review of all con­ver­sion char­ac­ter­is­tics that stand out to inform strate­gic plan­ning and guide opti­miza­tion efforts.

Brian Au is a con­sul­tant in Adobe Con­sult­ing, focused on dig­i­tal strat­egy, ana­lyt­ics & opti­miza­tion for retail & travel clients. He tweets at @brianau.

If you’re an online or cross-channel retailer using Adobe Site­Cat­a­lyst 15, you should try these Retail Quick Wins in Adobe Dis­cover. We’ve made it eas­ier than ever to expe­ri­ence a free trial of Dis­cover. For more infor­ma­tion and to request trial access, con­tact your account man­ager or account executive.

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