Data Driven: Dashing Toward Data
I have assumed a 50 percent margin for both dashboards. If applicable, prior year results can also be added.
In the case of the print dashboard, it’s important to provide the average of printed pages in the totals. This affects the cost per thousand pages circulated (Cost/M Pgs Circ.’d) calculation. Following are the calculations embedded in the print dashboard:
- RR% (Response Rate Percent) is calculated by dividing your Orders into your Mailed Circ.
- AOV (Average Order Value) is Revenue/Orders.
- Cost/M Pgs Circ.’d is Cost/((Mailed Circ. x Printed Pages)/1,000). This metric provides an equal look at prior year results or against plan if the number of printed pages or the total circulation has changed significantly.
- Mktg. Contribution is (Revenue x Margin)-Cost.
- Contribution per Order is Marketing Contribution/Orders. This metric is useful in determining how hard each order is working toward revenue goals.
The email dashboard introduces some unique metrics that need to be followed to maintain email efficiencies:
- The Open Rate is calculated by dividing your opened emails into your delivered emails. This is a significant metric in determining both the power of your headlines and the targeted list used.
- The Unsubscribe Rate measures the impact of the frequency of your email campaigns.
- The Conversion Rate is Orders/Delivered emails. It is the online equivalent of the print campaign RR%.
Pay Per Click Campaigns
The PPC dashboard also measures unique metrics that establish campaign efficiencies:
- CTR (Click Through Rate) is calculated by dividing total Clicks into total Ad Impressions.
- CPC (Cost per Click) is Cost/Clicks. This metric should be constantly monitored to ensure profitable guidelines are maintained for the PPC program.
- Bounce Rate measures the total clicks that visit only one page on the website, or “bounce” away due to finding non-applicable material. It is an important metric in determining how targeted your keywords are to the customer.
- The Cart Abandonment Rate provides insight into how many potential customers are leaving during the checkout phase. An unusually high rate can potentially point to either a Cart design issue or higher than expected shipping charges. It is also an opportunity to design a triggered email campaign to recapture a portion of the lost sales.