How to get the most out of your ad spend this Black Friday and Cyber Monday.

How to get the most out of your ad spend this Black Friday and Cyber Monday.

We’re down to the wire when it comes to Black Friday and Cyber Monday 2019. Because of the way that Thanksgiving fell this year, the holiday sales cycle is compressed and shortened. This compression has already had tremendous impacts on ecommerce businesses this month. Ecommerce companies across the spectrum are struggling to get traffic and conversions out of their standard ad spends.

In this post, we’ll walk through ways that you can leverage data to help you maximize your ROI and ROAS. While we’re focusing on Black Friday and Cyber Monday, these tips and this information is applicable year-round.

How to make sure that you maximize your ROI this Black Friday-

The first step to maximizing your returns is making sure that you have data.

That means getting your tracking in order. Lots of business owners and marketers put tracking off. It’s a common impulse.

Tracking takes time and it feels tedious to set up triggers and events for everything on your site; but no one can make up historical data. If you don’t set up your tracking until you’ve already been in business for 5 years, you will miss out on 5 years of data and insights.

Even waiting to start until after the holidays will cause you to miss out on potential insights into how you can better capture and serve your customers.

We recommend that everyone do a quick audit of their tracking systems to establish where they are now. Some of the things to check in this audit are:

  • Do your UTMs all track properly across your customer journey?
  • Are your UTMs organized in a way that makes sense and actually helps you better understand your customers?
  • Can you see right now where your traffic is coming from, and which traffic converts the best?

If you can’t answer yes to all of those questions, then you won’t be able to get nearly as much out of your Black Friday data.

As we talked about earlier, you can’t analyze what you don’t have. So if you don’t have your tracking set up before Black Friday and Cyber Monday, you won’t be able to know what you can do to improve your results next year.

Moving into UTMs, you NEED to make sure to track all of your marketing efforts with UTMs. They can help you track variations on ads, help with split testing, and give you clarity into what marketing efforts actually drive results for your business.

Step two to maximizing your returns is reviewing your data.

If you already have UTMs in place and feel confident in your tracking, then you can take the next few weeks to review your data. Look at what has worked for you in the past: analyze which emails have the best open and click-through rates, check which ads yield the highest ROAS, what buttons drive the highest cart values, etc.

Too often we get caught up in our plans for the future. We get locked in a cycle of what we want to test next, and we forget to look at what we’ve done in the past that worked. Those that fail to learn from the past are doomed to repeat it. If you don’t go back and review your data, you could potentially miss out on huge, easy wins for your business.

As we talked about earlier, Black Friday being pushed back a week has changed the face of the buying season. Many ecommerce companies are in full-blown panic mode right now because their year-over-year revenues are way down from last year.

We suggest that rather than making month-to-month or day-to-day comparisons, look at your data through the lense of days before Black Friday. So, if today was 5 days before Black Friday, you could compare it to 5 days before Black Friday last year. Then you can start to analyze what your marketing efforts looked like on that day last year, what worked, what KPI’s you saw success in, and how those impacted sales on Black Friday.

We recommend focusing on driving traffic to your site, and getting them browsing your products. Then you can leverage retargeting to reach them during your Black Friday sale and focus on driving them to purchase.

What metrics you can use to get a leg up this Black Friday and Cyber Monday

Now, we want to switch gears and talk about what metrics specifically you should analyze and track to make sure that you have the best Black Friday and Cyber Monday possible.

Average Order Value (AOV)-

This one seems basic, and it is, but we see ecommerce companies forget about this frequently during this time of the year.

Most companies focus on their profitability and the discount rates around this time of the year. That should be a top priority, but you also need to make sure that you have your upsell flows, recommended products, and bundles in order to make sure that your AOV doesn’t tank. While you may want to focus on client acquisition, you still need to make sure that these new customers provide value to your business.

This is one of the primary metrics that you should review from last year. Explore what bundles drove higher cart values, what products drove cross-sales, and what upsell flows performed best for your business.

Promo Code effectiveness-

This seems like a no-brainer, and hopefully you already have examined this data. Looking back at what discounts you ran last year and seeing what worked, what failed, and what fizzled will help inform you as to what you should do this year.

In addition to just looking at the surface-level of this metric, we recommend that you deep-dive into when your customers used your different codes, what time of day they purchased, what the AOV was based off discount code, and what was the average discount per code.

Inventory-

Black Friday and Cyber Monday are some of the worst possible times to run out of inventory. Obviously you can’t perfectly predict this year based off last year, but by examining your historical data and comparing that with this year’s demand, you can get a better feel for how much you need to order.

Staffing-

Many ecommerce companies neglect to factor staffing into their costs. During this time of increased demand, lots of businesses need to bring on extra help; but they fail to account for this increased cost in their cost of goods sold.

Not accounting for this can easily turn your sale from an asset to a liability. Typically, as you increase sales, you also increase the amount of customer service tickets that you receive. If you don’t have the bandwidth in place for that you may need to bring on additional support, but they may not get fully trained in time. Additionally, the increased wait time to have issues resolved can cost you sales.

If you don’t have a solid plan in place, issues can sneak up and turn your holiday into a nightmare.

Lifetime Value of Customers (LTV)-

One of the biggest dangers that businesses face during this holiday season is acquiring unprofitable customers. Many businesses run loss-leader deals in order to acquire new customers and think that they’ll make up the loss sometime down the line.

Without tracking the lifetime value of those customers over time, you’re stuck guessing about their profitability. We have dealt with clients who offered discounts in order to acquire new customers, believing that they would make it back over time, only to discover later that they had overestimated the value of those customers. They thought that these new customers drove their profitability, but as it turned out, they dragged down profitability.

In order to maximize the effectiveness of your Black Friday and Cyber Monday marketing efforts, you need to understand what these clients purchase initially, what they come back to purchase, and when they come back to purchase. If you understand those three things, you can tailor your marketing efforts to their natural buying tendencies and dramatically increase your effectiveness.

Going through last year’s data and then looking at this year’s plan and making sure that they align is the key to a successful Black Friday.

How to leverage pre-Black Friday sales to your advantage-

We have found that if you can give your clients a juicy enough discount code, you can entice them to spend their money with you even if they know that they’ll likely get a better discount later. Some of the larger retailers have decided to just launch their official Black Friday deals before the official holiday.

You could also promote your pre-Black Friday sale exclusively to your email list. This provides value to those who have signed up for the list, and could entice others to sign up.

We have also tested the tactic of offering a sale before the holiday by pitching it as a way for the customer to make sure that they got their orders on time. If they took advantage of this sale before the holiday rush, they could get a good deal, and also avoid the hassle of holiday shipping issues.

How real-time reporting can increase your ROI this Black Friday-

Tracking and reviewing your data make up the first two pillars of your data temple. The third pillar is automation.

In today’s world, every system tracks one specific thing, and it refuses to share that information with any other platform. Because nothing communicates, it falls to humans to aggregate and gather all of the data together. It can take days or even weeks for people to pull together the data, get it placed in the right location for analysis, and then take action from it.

Praxis Metrics specializes in automating the process of gathering the data from all of the different systems where it lives, cleaning it so that all of the metrics align properly, and then visualizing it in real-time.

This real-time reporting allows you to adjust and tweak your efforts much faster than if you relied on manual reporting. This decreased time to insights allows you to experiment and improve your marketing much faster, allowing you to drive immediate results, rather than having to wait a full year to improve your strategy.

The goal this Black Friday and Cyber Monday-

The goal of this entire process is to help you have the best Black Friday and Cyber Monday possible. If you have set up your tracking properly, you should know where your best customers come from and what efforts drove those customers to your ecommerce site. These insights will allow you to double down on the things that actually drive results, and cut the things that didn’t work for you. You can reallocate your budget from the things that didn’t drive results to the things that do drive results, allowing you to increase your ROI, and bringing in more money that you can then reinvest into the marketing efforts that are actually working.

How can you assess your data maturity to understand next steps?

We always start with an audit of where you stand. In order to understand your next step, you need to understand where you are.

Even if you have set up your tracking previously, we recommend an audit. As your website grows and you make additions and changes to it, you can easily break your tracking, or miss out on tracking valuable insights.

Praxis Metrics Data Maturity Spectrum

Stage 1-

If you fall into stage one, your entire goal is to gather as much information as possible. You can do this through Google Analytics, UTMs, defining your Key Performance Indicators (KPIs), and above all else, create Standard Operating Procedures (SOPs). If you can standardize your naming conventions for UTMs, SKUs, etc., you can save yourself hours of cleanup down the line.

Stage 2-

If you fall into stage two, your focus is on automation. What compound interest is to your money, automation is to your time. We have had clients cut the number of man-hours required to complete a data project from 10 hours per month to 1. Automation allows you to scale your efficiency and effectiveness across the board.

Stage 3-

The focus of stage three is optimization. Everything before this point deals with historical data. Optimization leverages the wisdom and knowledge gained from the previous stages and applies it to your future endeavors. This allows you to predict outcomes from your actions. This stage is where the magic truly happens. Your efforts yield predictable, exponential results, allowing you to rapidly scale your business.

Stage 4-

Stage four is the buzzword stage. This stage focuses on leveraging AI, machine learning, etc. These technologies allow you to improve your business at scale through incremental adjustments.

In conclusion-

No matter where you fall on the data maturity spectrum, Praxis Metrics is here to help. We offer free data roadmaps and coaching, analytics audits, dashboarding solutions, etc. If you want to learn more about Praxis Metris, visit praxismetrics.com or drop a line here.

Using data to drive business growth

Using data to drive business growth

AJ and Meaghan recently had the opportunity to have a chat with Bernard Kelvin Clive of the BKC podcast.

It was a great opportunity to get a multi-cultural perspective on business growth and development. Check out the full interview below:

Data is the fuel for business success

In today’s marketplace, every business works in the data business. No matter what business or industry you fall into, data is vital to your success. While many people still think about data in terms of “big data”, every business can capitalize on the data they have.

While almost everyone understands that data has value, few businesses know what data they need to leverage to scale.

When we talk about data, the key point to remember is that data doesn’t involve crazy math or calculations. Data is just information. Eventually, once you have enough information, you can begin to recognize patterns in the data, and predict the future.

Every business has the power to access “big data” at this point. Most programs that businesses use to run their operations contain data on the back end. This includes things like: when your clients buy, how much they buy, what they buy, and so much more. Just having that small amount of information can help you understand your customer journey’s better. Once you understand their journey, you can better market your products and services.

No matter the stage of your business, you can be doing things with data

At Praxis, we often talk about the data maturity spectrum. No matter where your business falls on that spectrum, there are things that you can and should be doing to make sure that you can get the most out of your data.

If you’re at the beginning of your business, this could be pre-revenue or just starting out, the best thing that you can do is start collecting data. Lots of businesses in the start up realm still have CRMs, POS systems, websites, etc. Each of these systems can be a treasure trove of data if you set it up to track data. Most small businesses though don’t take the time to make sure that they have everything set up to track properly.

You can’t create data from scratch

The reason that it’s so important to set these things up early on in your business is because you can’t go back in time and create historical data. So if you find yourself ready to start analyzing data three years from now, and you haven’t set your systems up to track your customers properly, then you have to start completely from scratch.

You can’t make data-driven decisions without data, and you can’t get data without taking the time to set up your tracking.

More is better when it comes to tracking

Even if you don’t have the time to analyze your data, it’s very important that you start tracking it now. The more that you can track, the better. While you may not use all of it in the future, it’s much better to have too much data than too little data.

Whoever has the greatest understanding of their customers will win in the end.

Several of the biggest companies in the world are strictly data companies, and part of the reason that they got so big is because they collected data to better understand their customers.

Data helps you better understand your customers needs and wants; this allows you to better target and attract the right customers, as well as retain your current customers.

As a business owner, data analysis isn’t your responsibility

Your job as the business owner is to make sure that you have properly invested the time and resources into gathering the data. If you’ve done that, you can have specialists analyze the data for what they need. Your marketing team can scour the data for better customer insights, your project management team can find bottlenecks in your processes, etc.

In order to make sure that you track the right things, you need to know what metrics matter. Too many businesses track everything and then get caught in paralysis by analysis. They end up spending time worrying about metrics and numbers that will only make a small difference, if any.

The key to analyzing your data is making sure that you look at the metrics that will yield results for your business.

The best way to find these “needle moving” metrics is to figure out what business questions you need answers to. Generally, you can narrow down the metrics that you need to keep an eye on down to 5-10 metrics. We recommend “leading with revenue”, which means that you should focus on marketing and sales first.

Wrapping up the foundation level

To summarize the foundation level of data maturity, track everything, but don’t feel like you need to analyze everything that you collect. That is reserved for stage 2.

Stage 2: Analysis

Once your business has matured to the point where you want to start leveraging your data, you’ve reached stage 2.

You don’t necessarily need to analyze the data yourself. You can have your team analyze it, agencies that you work with, or you can do it yourself if you’re data inclined.

One way to start analyzing your data is to figure out the business questions that you want to answer.

The number one question we recommend that every business owner ask is “where do my best customers come from?”. Every business should have a clear answer to this question. You should know what marketing efforts create customers that come into your business and stay with your business.

Another way to analyze your data is to just start looking, and then see what questions arise as you look at the data.

Sometimes, by digging into the data, you can spot anomalies or outliers that spark your curiosity.

Many business owners think that they don’t have the time to analyze their data, and that’s why it’s important to set aside time to do it. Make data analysis a priority and chunk out time to at least poke around in the data. You can spend that time looking for answers to questions, or looking for anomalies. Either way, it’s important to keep your finger on the pulse of your business.

Most businesses are just one data-driven decision away from exponential growth

As we said in the last section, it’s very important to at least wade into your data once a week. Additionally though, it’s important that you schedule time to deep dive into your data, at least once a year.

AJ and Meaghan realized during one of these deep-dive sessions the key to exponentially growing their business. They realized that they wrote off hours like crazy in order to keep their clients happy. They over-delivered on their promises to make sure that they had raving fans.

This yielded them happy clients, but when they looked at their numbers, they realized that it had cost them $500,000 across the course of a year. This one thing was preventing them from scaling their business properly.

They decided to start scaling back the amount that they would write off with each client. They decreased how much they would write off each month by just 25%. This caused them to increase their revenues by 350% year-over-year, and their profit margin skyrocketed up by 1,000%! This allowed them to scale their team up to 10X the size that it was.

The definition of insanity is doing the same thing over and over and expecting different results. Until you analyze your data though, it’s hard to know what you need to change.

A positive data-driven decision

We had a client who came to Praxis looking to get better information on the lifetime value of their customers (LTV). They thought that they had an accurate idea of what it was, but wanted to double check to make sure that it was accurate. Together, we discovered that the lifetime value of their customers was much higher than they initially thought. Upon realizing this, they decided to increase their allowable cost per acquisition by just $5. This decision caused the funnel to go from about 12 sales per day to 350 sales per day in just 2 weeks.

From there, the funnel kept expanding, and within a month, they started to average 600 sales per day on this funnel… All from one data-driven decision.

A negative data-driven decision

We had another client who thought that they knew their LTV, but once we got into their data, we discovered that they had overestimated their LTV. Because of this, the company found out that they were actually losing about $3 per customer that they brought in. And they were doing a lot of sales…

Because they sought Praxis help though, they managed to stop the bleed and update their spend to reflect their reality.

The data will tell you what to cut and what to double-down on.

What is the next step, where should businesses go from here?

The answer to that question depends on where you fall on the data maturity spectrum. If you are stuck in phase one, you need to get your tracking set up. If you’re stuck in phase two, you need to determine if you need help understanding the data and taking action from it.

The best thing that everyone can do right now is run an audit of your systems and see where you stand in your business. Diagnose where you fall on the data maturity spectrum, and from there you can see what next steps you need to take.

Another huge thing that helps all companies regardless of size, is to aggregate your data in one place. Some people call this phase “spreadsheet hell”, because it generally requires a lot of spreadsheets. If you want to avoid spreadsheet hell, we recommend leveraging a business intelligence (BI) tool. BI tools are much more expensive than just using spreadsheets, but they also allow you to perform much more complex analysis and leverage the data in new ways.

Tools won’t solve your problems

It’s important to remember that even if you buy a BI tool, it’s not going to solve your data problems. You still need to have your tracking in place, and you still need someone to analyze the data. Additionally, you need to have plans in place to take action on the data. If you see a dip in your data, you should have a plan in place as to how you want to deal with it.

Every company needs to start thinking about their data as one of their most valuable resources.

Data just surpassed oil as the most valuable commodity on the planet. Information is king. If you know more than your competitor does, then you have an opportunity to outmaneuver and outperform them at every turn.

Caesar’s Palace recently went bankrupt. On their balance sheet, they listed out their data as the most valuable asset that they had.

Every interaction with your clients is an opportunity to learn something new. If you’re properly tracking everything, then you can gain insights and scale your business infinitely faster than by going off gut instinct.

The fastest way to scale your business is to figure out what is already working, and double down on it.

What can people do to better use data in the world of branding?

Start tracking creatively. Tracking doesn’t have to just be about how many people came to the website, or how many people clicked a button. You can track anything that you can imagine. We had a client come through who used Instagram as their primary lead source. They went through all of their posts and tracked what colors they used in the post, how they framed the image, the location, everything. They then overlaid this data with their like, share, and comment data to find optimal posts.

Because they had this data, they knew exactly what their customers wanted to see from them and when. This allowed them to double down on the things that worked for them and cut out the waste.

Praxis Metrics- Are you getting the most out of your ecommerce data?

Are you getting the most out of your ecommerce analytics?

What can your data do for you?

Your data may be the most valuable asset in your organization. The question that you need to answer is, “Are you getting the value out of it?”

In our guest appearance on the JetRails podcast, we cover everything from what metrics are actually important to growing ecommerce businesses, to how to make sure that you’re prepared against the upcoming data privacy changes. Check out the episode and our insights below:

What does Praxis Metrics do?

Praxis is an outsourced data team. We specialize in helping businesses gather, store, validate, and visualize their data. As data becomes more and more valuable, we help remove the strain of having to extract that value. Our goal is to help you understand your data in a way that makes it actionable, scalable, and valuable.

Many businesses think that they can’t compete with the big businesses with their “big data”, but as with all things, data intelligence has funneled down to the SMB market. This shift allows any business to take control of their data from inception and use it to rapidly scale.

Why did Praxis start?

Prior to starting Praxis, AJ and Meaghan created a digital marketing agency. They quickly found though that reporting on their marketing efforts was taking more time that actually implementing their strategies. Because of this, they began researching automated solutions to the reporting problem. Once they finally created a solution, they found that more people needed that solution than needed marketing help.

They decided to pivot and become an outsourced data agency, and Praxis Metrics was born.

What is the solution they created?

In creating their automated reporting system, Meaghan and AJ found ways to pull in data from all of the platforms and data silos of a business, allowing businesses to see all of their data gathered and aggregated in one place. A “command center” of sorts. This “command center” helps solve many common issues that ecommerce companies regularly face.

Where does the name “Praxis Metrics” come from?

The term “Praxis” comes from Aristotle’s foundational truths. He believed that there were three main constructs of man: Theory- which is thinking about things, Theoria- which takes the information that you thought about in theory and combining them together to create knowledge, and then there is Praxis- which is the practical application of the knowledge and wisdom that you gained by combining your theories and knowledge together.

Praxis Metrics- Data Maturity Scale

The process of Praxis is simple: data leads to information. Information can be turned into knowledge. Knowledge then transitions into wisdom. And taking action from that wisdom is praxis.

Data never solves a company’s problems. Data simply points out facts. You need to interpret those facts and find the driving force. Once you understand the driving forces, you can take action to impact those forces. Your actions are the only thing that will change your business. The practical application (praxis) of your wisdom will help you scale your business; not your data.

The goal of Praxis Metrics is to give businesses data that they can take action from. We want for everyone to leverage their data into action that helps them grow their business.

Every metric should have an action tied to it. Metrics without action tied to them are just vanity metrics.

How can I take strategic action from my data?

We start every client journey with a process called “metrics mapping”. Metrics mapping allows us to figure out what data you actually need to gather in order to reach praxis.

Pictured below is an example of the process of metrics mapping:

Praxis Metrics- Metrics Mapping

Metrics mapping starts with the goals that your business wants to achieve. In this example, this company wanted to double their revenue year over year. Once you have your goals in mind, you need to start asking the questions that will lead you to that goal. In this case, they need to increase conversions on their website in order to reach their goal. The question that they need to answer is, “how?”.

Once we know the questions that we need answers to, we know the metrics that we need to pull. We’ll begin pulling the metrics that help us answer the question: conversion rates, customer LTV, acquisition costs, and profitability.

From there, we need to find the “source of truth” for each of these metrics. The source of truth is the place where we can find the most accurate data. For financial data, this can be your bank account, Stripe, or Paypal. For traffic data, it could be Google Analytics, or the back end of your website. The point of this stage is to find the most accurate data source to pull from.

The rest of the steps would be carried out with the help of the Praxis team as we help you build out your dashboards.

How do I justify spending money on data?

It’s important to remember that data is an investment, not a cost center. Data recently surpassed oil as the most valuable resource on the planet, so any investment that you make into harvesting, leveraging, and improving your data should return massive dividends if implemented properly.

There’s a reason that data is now recognized as “king”. It has the power to create and destroy massive corporations, swing elections, and generate untold wealth for those who leverage it properly. If you know why something happened and your competitor doesn’t, you can pivot and adjust in order to take advantage of their ignorance.

Taking action from data is the new competitive advantage.

Companies that capitalize on data will scale, those who do not will fail. Speaking about the hurricanes, they mentioned that Walmart and Target were receiving huge shipments of Pop-Tarts, as they know that they are a staple during hurricanes.

Many businesses think that big data is reserved for enterprise-level companies; but tools have gotten cheaper, talent has gotten more affordable, and data has become more plentiful. One of the goals of Praxis is to bring those big, enterprise-level insights down to the SMB market and help them see hockey-stick growth.

Before you begin investing in your data though, it’s important that you know where you should invest your money. That is where the data maturity spectrum comes into play.

What is the data maturity spectrum?

The data maturity spectrum helps you identify where you are, and what your current data priorities should be.

The Foundation Stage-

In the foundation stage, everything revolves around tracking. You can’t analyze data if you don’t have data; so you need to make sure that you gather the data that you need in this stage.

Praxis Metrics- Data maturity stage one

Many companies ignore this step until they’re looking to move to the next stage. Unfortunately, by that time they’ve lost out on all of their historical data. We see many businesses come to us that want to build out amazing dashboards, but we discover that they haven’t tracked the data until this point. That means that they have lost out on years of data that could provide crucial context to the data that they gather from here forward.

Too many businesses want to get started, and push to start selling before they set up their tracking; but they need to realize that you cannot retroactively track. Any changes that you make to your tracking only adds data moving forward, and any data that you missed out on previously is lost.

Revenues do not determine your place on the data maturity scale, the only thing that matters on this scale is how well you handle your data.

What are the questions that you will have in the future?

You need to think on what things you may want to know in the future, and start tracking those things today. It may seem tedious right now, but in the future, it may drive your success.

Typically, the cost of marketing far outweighs the cost of taking the time to track these things. Tracking can inform and optimize your marketing budget, allowing greater success than previously imaginable.

What are the metrics and behaviors that allow for rapid scaling?

Automation-

Phase two of the data maturity spectrum is automation. What compound interest is to your money, automation is to your time.

Automation increases efficiency, accuracy, and profitability of organizations. Automation is one of the primary drivers of rapid scaling and growth.

Customer Lifetime Value-

Understanding the lifetime value of your customers is one of the keys to rapidly scaling. The business that can afford to spend more on their customers will win every time. Understanding the value of your customers over time allows you to predict break-even points and therefore allows you to determine higher acceptable acquisition costs than those who base their spend exclusively off initial order value.

Why do averages suck?

By definition, averages pull in all of your data, the highs and the lows, and gives you one number. You don’t want to base your decisions off just one number though. The 80/20 rule applies to almost everything in life, and business is no exception. An average will hide the 80% of things that do nothing for your business behind the 20% of things that actually drive your results. We want to know what falls into the 20% category so that we can eliminate the 80% scale the 20% that works! Averages keep you growing at a steady pace; we want to deliver explosive, hockey-stick growth.

Too many businesses treat all of their customers the same way; whether they came in and spent a dollar, or a thousand. In order to scale though, you need to invest time and effort into your customers in proportion to the value that they bring to your organization.

Once you know where your most valuable customers come from, and how to properly target them, you can essentially print money for your business.

What should ecommerce companies know about their business?

Ecommerce companies should know what technology stacks they use in their business, and how those technologies handle data.

Amazon is a wonderful example of this. In the last couple of months, they have completely changed their terms of service (ToS) to restrict the data that merchants can access. Amazon collects a vast amount of data on the customers that come to your store and purchase, but they will now only allow you to see certain parts of that data. The worst part is that this is not unique to Amazon. Platforms across the web and world are cracking down on the data that they share with third parties. Because of this, you NEED to know how the companies that you work with handle data.

What should you do to protect against data loss?

You need to make sure that you either own the data completely, or that you have a backup of the data stored off of these platforms. In the podcast, we discuss how these platforms are your “frenemy”. They may seem nice, but the relationship can turn on a dime; so you need a backup plan.

As data becomes more and more scarce and consolidated within platforms, the value of that data will increase dramatically. For that reason, it’s imperative that you take ownership over your data and protect it from outside sources that would limit your access to it.

What sort of subscription metrics should ecommerce companies look at?

We see so many companies come to us and ask what their average subscription length is. As we already discussed, averages are evil.

Instead, we build a chart that shows how many cancellations they have per day. If you have an average, it will tell you that your average subscription length is 60 days; this chart will show you that 30% of your cancellations occurred between day 3 and 7, so you can take action during that time period to reduce that churn.

Everyone wants to increase the average, but the average in and of itself doesn’t help with that. You need granular detail in order to actually make an impact.

What are the next steps?

The first step is to start investing in your data. No matter where you fall on the data maturity spectrum, it’s important to start investing time, energy, or money into advancing your data.

If you need help diagnosing where you fall on the data maturity spectrum, or how to get to the next level, we can help you discover where you fall on the data maturity spectrum, and build a custom data roadmap for your business. Schedule a free appointment with a Praxis Metrix data expert.