Google Analytics Case Study CostaRicaFlores.com

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Barrie Victor Taylor
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1 Google Analytics Case Study CostaRicaFlores.com Client Name: Lorena Delgado, CostaRicaFlores.com (Spanish language) Client Contact Information (phone/ ): , Client URL: Background: In 2006 the small local family business Flor del Este located on the east side of downtown San José, Costa Rica decided to explore e-commerce as an option for the marketing and sale of the company s flower-delivery service. The business had found itself in a declining market for their local business due to demographic changes and changes in the street traffic patterns in their area of San José. The family owners/operators were considering exploring online marketing and sales and had very limited resources to invest in the new venture and needed to know if this would work. The owners had concerns about how they would reach their audience online and, ultimately, how they would determine if an online option was financially feasible and if the sales cost would permit operating in this market. The business did possess good information on their product and service costs. We proposed a service that included developing and online presence, marketing the e-commerce site and providing digital analytics. We proposed doing this in a series of short iterations in which each iteration would use Google Analytics to evaluate its hypothesis, ROI and next steps. This iterative process of test-and-prove has resulted in 80 months of continued growth and ever greater ROMI. Technical Ability The solution involved applying customized e-commerce tracking to the Joomla CMS e-commerce module Virtuemart. We created custom page tracking in order to track the purchase process. We connected the client s Adwords to Analytics to do conversion tracking by this channel. We use a Custom Variable to differentiate between the logged-on and non-logged users. We implemented Site Search tracking to capture and report on the queries users were making on the site, whether product-related or for ecommerce support issues. We implemented Advanced Segments and Custom Reporting to better understand the unique audiences and behaviour.

com Background: In 2006 the small local family business Flor del Este located on the east side of downtown San José, Costa Rica decided to explore e-commerce as an option for the marketing and sale

2 Analytical Ability We began at the end of 2006 by developing a pilot project with a simple web presence and ecommerce solution (online ordering for the Xmas holiday). We set up Analytics and began PPC marketing in Adwords. This initial test allowed us the opportunity to validate for the client that it was possible to use PPC to attract consumers in the Costa Rica market and the orders the store received validated that consumers were looking for options and willing to order online. For Valentine s Day 2007 we released a full ecommerce solution (Joomla CMS with Virtuemart Ecommerce extensions) including a shopping cart and online payment system. We used the pilot project GA results to estimate a PPC budget for the Valentine s Day campaign. Each holiday since, we use past seasons GA traffic and sales patterns to estimate the holiday campaign budget as well as the optimal start and end dates. For example, we thought initially that we would need to start Valentine s Day PPC spending 2 weeks before the holiday but now know that the optimal spend begins four or five days before and increases each day up until and including the holiday. Last minute shopping online for flower arrangements is an excellent opportunity for PPC. We were able to discover through a Goal Funnel of the purchase funnel that customers most frequently abandoned the shopping process at two steps: the delivery cost step and the credit card payment step. Based on this, we reviewed these steps and presented our finding to the client. Based on this, the delivery costs were re-assessed. The payment screen was modified to allow clients the option to complete their order by phone, thus providing an option for customers that were unwilling to enter credit card information online. We also added more information about the business, its physical location and telephone numbers elsewhere on the site in order to increase consumer trust in the vendor.

This initial test allowed us the opportunity to validate for the client that it was possible to use PPC to attract consumers in the Costa Rica market and the orders the store received validated that

3 We discovered through Analytics that their were international markets interested in buying CostaRicaFlores.com flowers for delivery to their loved ones in Costa Rica. We learned that the international market offered an even better ROAS. This was a discovery that prompted creating an English-language version of the site and allowed us better Adwords targeting. Presently, about 40% of the sales are to the non-costa Rica market. The following image shows the Costa Rica versus non-costa Rican consumer behaviour.

This was a discovery that prompted creating an English-language version of the site and allowed us better Adwords targeting.

4 We learned through Site Search, for example, about interest in flower arrangements consisting of tulips. Today, the flower shop promotes several tulip products and has found this to be a unique and distinguishing product line for the store. We have also discovered through connecting the GA to Webmasters Tools in the Queries reporting that there are special occasions for which consumers search for flower arrangements that were not being offered by the flower shop and now are offered. Centerpieces is an example of this as well as arrangements for children s birthday parties. We learned through Analytics that Mobile consumer traffic is growing rapidly in Costa Rica but that the current site is performing poorly as a sales channel on mobile devices. We are in the process of redesigning our mobile experience.

We have also discovered through connecting the GA to Webmasters Tools in the Queries reporting that there are special occasions for which consumers search for flower arrangements that were not being

5 Business Impact Evolution of online sales (80 months) ROMI - Return On Marketing Spend In 2007, the first year of operation the ROMI was $4.32 (each $1 of online marketing generated $4.32 in earnings). Over the past 80 months, the average ROMI has ascended to $6.80. During the past 12 months, the ROMI stands at $10.07.

32 (each $1 of online marketing generated $4.32 in earnings).

6 For the ROMI graph, we use a spreadsheet to track product, service and marketing costs each month (these are provided by the client and via Adwords). Based on this, and the online sales data, we can generate this graph of the ROMI. The actions that impacted this business are primarily due to improvements in the user experience during the purchase process including the English-language interface and telephone support, better and more targeted investment in PPC marketing and by providing feedback to the client regarding consumer search trends and product ideas. We have recommended that the business take actions to improve the experience for mobile shoppers. Although the mobile traffic has grown rapidly over the past couple of years, the ecommerce conversion rate for mobile devices is only a third of those of desktop and tablet

The actions that impacted this business are primarily due to improvements in the user experience during the purchase process including the English-language interface and telephone support, better and

7 devices due to the fact that the site is not responsive to the mobile screen and the shopping experience is poor. Finally, beginning in January 2014 we will be assisting the client in enabling a mobile-friendly shopping experience. The graph below shows the growth of mobile visits and the low conversion rate. END

Finally, beginning in January 2014 we will be assisting the client in enabling

Enhancing the Consumer Shopping Experience with Google Analytics. Presented by:

Enhancing the Consumer Shopping Experience with Google Analytics Presented by: & Who are we? Andy Gibson, MBA Analyst Marcia Jung Product Manager, Google Analytics Agenda E-Commerce Trends and What s New