E-commerce Case Study
Introduction
In this chapter, we will explore Trendzy, a fast-growing online fashion retailer, offering a wide selection of clothing, shoes, and accessories for trend-savvy shoppers across Europe. Launched in 2015, Trendzy has quickly gained popularity with its user-friendly platform, personalized shopping experiences, and competitive pricing.
Questions - 1) here are 4 metrics, choose the vanity metric, maybe something like page visists - Leadership is obsessed with quantitative metrics such as revenue, GMV, installs, downloads, etc not to improvide value, but to please external stakeholders over their customers—for public companies the stock market, for private companies—the investors. When this happens, organizations overoptimize on metrics instead of truly understanding their customers.
2) mention retention rate and that it's a lagging metric, and not really a good thing for ecommerce
3) something good about revenue per user
4) we have product recommedation feature, we should track page conversions
5) if conversion rate suddenly spiked, what would you do? we could check the number of users in the denominator decreased because of tracking error
Innovation is challenging, whether you're disrupting an industry or challenging corporate norms. In today's digital world, it's easier than ever to create and test new ideas, allowing for rapid iterations and informed decision-making. As Peter Drucker famously said, "If you can't measure it, you can't manage it." Accurate measurement and learning are essential to understanding what customers want and refining your approach to achieve success.
Metrics are the lifeblood of any business, providing crucial insights into revenue streams, cost drivers, and the effectiveness of customer acquisition strategies.
By focusing on the right metrics, businesses can gain a clear understanding of their performance, make informed decisions, and optimize strategies for growth. Metrics are essential for identifying what works, what doesn't,
and where to direct resources for maximum impact.
Review the upcoming Business Report
There are many frameworks for choosing metrics, each with its own strengths and applications. One popular framework is SMART, which is designed to help set objectives and key performance indicators (KPIs) in a precise and easy-to-communicate way. First introduced by George T. Doran in 1981 and later expanded by Professor Robert S. Rubin,
Task 1
Sarah Johnson
Senior Product Director
Hi! We are about to present the yearly report to the board.
Page views grew by 88% from 2022 to 2024. It sounds like a big win! Should we focus on highlighting this increase in the presentation?”