Adobe Analytics Challenge 2021: Team Mavericks

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Adobe Analytics Challenge 2021

Team Mavericks

Faculty Mentor:
Prof. U Dinesh Kumar

Team Members:

Arjun Mehra Madhur Butke Raja Ram Pandey


Executive Summary
Considering business goal to increase Revenue, We factorise that in three components:
Number of Visits Conversion Ratio Avg. Order Value

✓ Using Marketing Channel ✓ App users engage and purchase


depending on geographies more than Web
✓ Converting web users to App
user
✓ Improving SEO for Disney’s ✓ Target abandoned cart using
website Affiliates within 15 days

Strategic & Tactical Recommendations

Creating Ecosystem: Simplify Checkout: Cross-selling item: Use of Homepage:

- Use of gamification to - Remove clutter at the - Finding categories to - Affiliates should


increase user checkout stage cross selling redirect to Homepage
engagement - Decrease bounce rate - Bundling products to - Homepage has shown
- Presenting products as of new customers at increase avg. order highest conversion
collectibles checkout value rate
Understanding Disney’s Business and Business Goals
strives to: Parks, Experiences & Products
"entertain, inform and inspire people around the
globe through the power of unparalleled includes…
storytelling, reflecting the iconic brands, creative Parks &
Theme Park Resorts & Parks
minds and innovative technologies that make Admissions
Experiences,
Vacations licensing &
merch, F&B
ours the world’s premier entertainment company" ($7.5Bn)
($6Bn)
($6.2Bn) other ($2Bn)

by operating through (ann. revenue):


Merchandise is being sold through:

Parks,
Studio
Experiences &
Entertainment
Products
$9.6Bn
$16.5 Bn

Direct-to-
Media
Consumer &
Networks Amusement Parks Physical Stores Digital Channels
Intl.
$28.4Bn
$17Bn Pronounced importance due to COVID-led
restrictions & behavioural changes

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
Factorising Disney’s website revenue into components…

Number of Conversion Average


Revenue = Visits × Rate × Order Value

Hence, the key objectives are…

Number of Visits: Conversion Rate: Average Order Value:

- Increase number unique - Add experiential value to - Number of units per


customers purchase process order
- Increase frequency of - Decrease user - Average price of units
visits inconvenience sold

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
Number of Visits
While organic search is best at attracting new customers…

Natural search

Paid Search

Affiliates

Direct
Email

Social Net.,
DCom

Direct and paid search are two dominant Though Affiliate’s performance on
marketing strategies aggregate First and Last Touch is low, it
offers lowest bounce rates among
prominent channels.

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
… loyal customers are being channeled in through affiliates. Channel
performance also depends on the geography.

Also, ‘Affiliates’ and ‘Paid Search’


channels are best for generating
customer loyalty
Time period: Jan 1, 2020 – Dec 31, 2020

There exists a geographical


variation in marketing channel.

Hence, Disney should customize


marketing strategy based on
geographical dominance
marketing channel..

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
However, the SEO success of affiliates also means fewer
customers landing directly on Disney’s websites.

A simple ‘spiderman toy’ Google search


in the US, shows that Disney’s website
appears at the far end of the page,
vastly reducing the chances of a visitor
landing directly on it.

Thus, it is suggested to improve SEO


operations on Disney’s website to
increase web visibility.

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
Conversion Rate
App users engage more…..

App users Web users

App purchasers follow more of a exploratory navigating Web purchasers follow a more straight forward journey:
pattern, iterating between Section and Product pages. {Appendix 4}
{Appendix 2} Home -> Section / Category -> Product Detail -> My Bag ->
Even if we back trace purchase journey, in Appendix 3, we Check out
see a confusing pattern.

Secs spent by an app users


annually on Disney app
Vs Secs spent by a web users
annually on Disney app

times “app users” visit times “web users” visit Disney


Disney annually on average annually on average

Time period: Jan 1, 2020 – Dec 31, 2020

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
…and hence they purchase more as compared to web users.

Vs

Further, {Appendix 5} shows App users have less fallout and more conversion compared to web users.

Time period: Jan 1, 2020 – Dec 31, 2020

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
Loyal customers engage more with the platform
Number of daily orders are
high when average time spent
per visit is high.

Loyal customers engage more Further, first time purchasers


with the platform as compared exploit discount more compared to
to new purchasers. loyal customers. {Appendix 6}
Time period: Jan 1, 2020 – Dec 31, 2020

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
Affiliate marketing channels can convert abandoned carts…
• Appendix 9 shows, customers who converted
abandoned cart are more focused (than those who
don’t abandon the cart)

• Hence if Disney can get them back to site, they are


likely to convert.

Most of the abandoned cart purchasers come


organically, though Affiliates can lead significant mass
to conversion.

• Thus, Disney should target this cohort using


Affiliate channel

• Cohort Analysis in Appendix 8 suggests targeting


them within 15 days of cart abandonment
Time period: Jan 1, 2020 – Dec 31, 2020

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
Average Order Value
Loyal customers have a larger average web order value, hence
nudge customers to buy more often.
Push users to buy through smartphone app to
increase engagement time.

The given recommendation is supported by the


following average order value statistics:

Average Web Order

Average App Order

As stated earlier, engagement time strongly


affects the average number of orders.

Time period: Jan 1, 2020 – Dec 31, 2020

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
Strategic & Tactical
Recommendations
i) Build Disney ecosystem and Gamify the experience
• When customer makes a new purchase, she will be Challenges can be added to increase user
exposed to eco-system of related products. engagement on the Mobile App.

• This will expose and entice customer towards


potential purchases, which will act as collectibles Create a leader
board based on
user purchases and
pursued challenges

Result:

1. Higher discovery
of products

2. Higher user
engagement

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
i) Revenue Impact of Gamification
Assumptions / Source
Expected Increase in Time Spent on App 37% Refer Appendix 17

Initial Average time spent 450 s


Average Number of Orders per day 11938

Change in Avg. Number of Orders per unit increase in avg time100


spent Refer Appendix 18

Increase in Avg Time Spent 164.25


Increase in Avg Number of Orders per Day 16425

Increase in revenue in 2 years $ 2,39,80,500

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
ii) De-Clutter the check out process

Too Overwhelming
for First time users &
Non-Logged In Users
Bounce rate at Checkout page is significantly
higher for first customer xx% than loyal
customers yy%

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
ii) This is how Amazon does it… Break it down into steps
First Sign In / Create Account
Address and Payment Details
(Logged In Users purchase more)
Step 1: Step 2: Step 3:

Assuming a 3 % decrease from xx% to yy% in


bounce rate will increase the revenue from
first time purchasers by 30%.

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
iii) Cross selling can help us in increasing the revenue
Refer Appendix 11 Of all the customers who purchased this… Recommendations:

Toys Accessories Home Buttons Plush Play Sets • As Accessories and


Also purchased these categories.

Toys are purchased by


Toys - 4% 21% 0% 0% 0% those who also bought
Home.
Accessories 14% - 25% 0% 7% 7%
• Bundle or recommend
Home 17% 6% - 0% 1% 1% these items
Buttons 0% 3% 1% - 2% 1%
• And as their Average
Plush 0% 2% 1% 5% - 7% Price is higher, it will
increase overall
Play Sets 0% 2% 1% 3% 7% - Average Order Value

• Similarly this can be


From Appendix 12, Average Order Value of applied for other
Play Sets > Buttons > Home > Toys > Plush > Accessories products categories

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
iv) Increase conversion using affiliate channel, directing users to home
landing page
When Affiliate Channel
Refer Appendix 10

Conversion Rate
redirects to…

Home Landing Page xx%


Category Page yy%
Product Detail Page zz%

• When a visitor comes to Home Page using


Affiliate Channel conversion rate is way higher Time period: Jan 1, 2020 – Dec 31, 2020
than users who come to Category and Product
Detail Page

• Further, 44% of customers buying abandoned Recommendations:


cart items enter through home landing page. {
Appendix 7} • Affiliate Channel should redirect users to Home Page rather
than Category or Product Detail Page.
• However, currently majority of traffic form
Affiliates is directed to Category Page (33.8%) • Hypothesis can be validated by running a small test

Problem Definition No. of Visits Conversion Rate Average Order Value Recommendations
Stretch task
Customer segmentation using purchase journey
Purchase journey

Awareness Customer
Aware Unaware
Aware customers use direct and natural awareness
search while unaware customers are
routed through other inorganic marketing
channels

Interest & Desire


Customers with page depth less Customer Customer
than 41 pages are focused High Low High Low
exploration exploration
purchasers while those with visit
depth more than 41 are
exploratory in nature

Customer Customer
spending spending
Action
High Low
Customer High Low Customer
spending spending
Purchasers who pay tax
amount more than $4.87
per purchase are high Segment 1 Segment 2 Segment 5 Segment 6
ticket purchasers. While High Low High
Low
others are low ticket.

Segment 3 Segment 4 Segment 7 Segment 8

Time period: Jan 1, 202 – Dec31, 2020


Customer segmentation using purchase journey

Platform Customer Customer


awareness exploration spending
Segment 8 Low Low Low
Segment 4 High Low Low
Segment 6 Low High High
Segment 5 Low High High
Segment 7 Low Low High
Segment 3 High Low High
Segment 2 High High Low
Segment 1 High High High
Appendix
Appendix 1: Average order vs time suggests no evident impact of
COVID in Disney’s business in year 2020.
Appendix 2: App users have a exploratory navigating pattern
after they enter through landing page
Appendix 3: App users have a exploratory navigating pattern
before they exit through exit page
Appendix 4: Web purchasers follow a more straight forward
journey
Appendix 5: App users have less drop off at each funnel stage and
hence have high conversion rate
Appendix 6: First time purchasers exploit discounts more
compared to loyal customers.

Time period: Jan 1, 2020 – Dec 31, 2020


Appendix 7: Entering content page for customers buying
abandoned orders

Time period: Jan 1, 2020 – Dec 31, 2020


Appendix 8: xx% customers come back within 3 weeks of
abandoning cart. Post which the conversion is very low.

Time period: Apr 1, 2021 – May 31, 2021


Appendix 9: Segment comparison of “session in which customer added
to cart and bought” vs “sessions in which customer bought item
already present in cart”

Customers are engaging


more when they are
adding to cart and
buying in the same
session compared to that
in a session where they
are buying items already
present in cart
Appendix 10: Affiliate channel redirected page and corresponding
conversion rates

Conversion Rate: 10.9% Conversion Rate: 4.0% Conversion Rate: 4.2%


Appendix 11: Cross selling table across different categories

Time period: Sep 1, 2019 – Aug 31, 2021


Appendix 12: Top 5 categories ordered in terms of order value
Appendix 13: Top 5 marketing channels in terms of average web
revenue

Time period: Jan 1, 2020 – Dec 31, 2020


Appendix 14: If a customer is directed to product detail page, he
is twice more likely to be converted on app compared to web

Time period: Jan 1, 2020 – Dec 31, 2020


Appendix 15:Logged in customers order more and are more loyal
compared to anonymous

Time period: Jan 1, 2020 – Dec 31, 2020


Appendix 16:Logged in customers have higher order value in web
while the opposite is true for apps.

Time period: Jan 1, 2020 – Dec 31, 2020


Appendix 17: Financial impact calculation

Let the number of purchasers making an order be 100


Let the % of orders where end consumers are kids be 80%
Number of orders where end consumers are kids 80
% of loyal customers 10%
Number of loyal customers 8
% of return customers 20%
Number of return customers 16
% of first-time purchasers 70%
Number of first-time customers 56

Average purchase value $ 5.00

Estimated effect of gamification on engagement metrics

Let maximum increase in engagement metrics be 100%

Loyal customers Time spent increase by 0

Return customers Time spent increase by 50% 75% 100%


% return customers 70% 20% 10%
105% 35% 20%
% Increase in time spent 60%
First-time customers Time spent increase by 25% 50% 75%
% return customers 70% 20% 10%
88% 30% 18%
% Increase in time spent 35%
Appendix 18: Increase in average orders with increasing average
time spent

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