MBA 640: Google Analytics Analysis of CompanyOne E-Commerce Data

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Added on  2022/08/12

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Homework Assignment
AI Summary
This assignment analyzes CompanyOne's e-commerce data using the Google Analytics demo account. The analysis covers various aspects, including active users, demographic trends, bounce rates, and revenue generation across different age groups and genders. The assignment addresses questions about user retention, marketing effectiveness, and the impact of marketing campaigns on attracting new users. It also explores the performance of different countries and US states in driving traffic to the online store. Furthermore, the analysis delves into user affinity categories and identifies high-value user segments based on e-commerce conversion rates and average order value. The assignment concludes with recommendations for CompanyOne's future marketing efforts, focusing on targeting specific age groups and demographics to maximize revenue and improve overall performance.
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Assignment on Google Demo Account
To,
The concerned personnel,
Subject: Details of analysis by Google Analytics for CompanyOne.
Introduction
The assignment is written with a purpose to analyse, active users, demographic, revenue etc from a set
of consumers for Company One using Google Analytics Demo. There are ten questions that form part
of this assignment and which has been answered in detail in the later part of this report. The case
pertains to Company One which is a e commerce site as given to understand from Google Analytics
Demo. The question and answers have been detailed here in below:
Questions
Question 1
Find the number of active users (1-day, 7-day, 14-day, and 28-day) during January 2019. Calculate
the ratio of 1-day active users to 28-day active users, expressed as a percentage. Typically, this ratio is
considered a measure of the "stickiness" or retention of users for your website. It should be 10% or
higher for sites where content is refreshed daily, like news sites, or where the site derives its revenue
primarily from advertising. For social sites like Facebook and WhatsApp, the ratio could be a lot
higher (> 50%). For e-commerce sites like CompanyOne, where usage is less frequent but of higher
monetary value, the ratio is typically lower than 10%.
Also, compare the graphs for 1-day active users to 28-day active users. What conclusions can you
derive? Provide a screenshot to support your analysis.
Answer
From data obtained on Google Analytics Demo for the period January 2019, it has been given to
understand that one day customer base of the company for the month of January, 2019 is 1685 active
user, 7 day active user is 11,815, 14 day active user is 22,682 and 28 day active user base is 45,274.
The table has been presented here-in-below:
1 day 1685
7 day 11815
14 days 22682
28 day 45274
The ratio of 1 day active user to 28 day active user in terms of percentage is 4%. Thus, the company
satisfies the criteria for an e-commerce company as the ratio is below 10%. From the data a
conclusion can be derived that active user base increase with increase in days. The secreen shot of the
data obtained from Google Analytics Demo is detailed here-in-below:
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Question 2
Plot graphs of 1-day active users for the first quarter in 2018 and the first quarter in 2019. Compare
the number of active users for both periods from the two plots. What do you conclude about the
change in marketing effectiveness, if any, from 2018-Q1 to 2019-Q1? Provide a screenshot to
support your analysis.
Answer
From data obtained on Google Analytics Demo for the period first quarter of 2019 and first quarter of
2018, it has been given to understand that there has been a decline in active user over the period for
one day active user. The decline percentage is roughly 20.94% which is significantly high. The
market effectiveness has decreased as the number of one day active user has declined over the one
year period.
The graph along with the screenshot is presented as under:
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Question 3
Compare bounce rate for 2019-Q1 to 2018-Q1. What do you conclude? Similarly, compare page
views for 2019-Q1 to 2018-Q1. Provide screenshots to support your analysis.
Answer
From data obtained on Google Analytics Demo for the period first quarter of 2019 and first quarter of
2018, it has been given to understand that bounce rate has been higher for 2018 as compared to 2019.
Further, bounce rate symbolise percentage of single page visits or web sessions. It is the percentage of
visits in which a person leaves your website from the landing page without browsing any further. It is
a positive symbol for the company that the same has decreased over the period.
The screenshot has been enclosed here-in-below:
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Question 4
CompanyOne wants to focus on younger users (18–24 and 25–34) who shopped during the 2018
holiday shopping season. Has the share of younger users changed from the holiday shopping season
in 2017? Note: November 1 and December 31 are the start and end dates for the holiday shopping
season for CompanyOne. How about changes in the proportions of older users during the same
period? Provide screenshots to support your answer.
Answer
From data obtained on Google Analytics Demo for the period November 1 and December 31, 2018
and 2017, it has been given to understand that young people in the age group of 18-24 has shopped for
19.21% while the age group 25-34 has shopped for 46.18% of the total sales during the festive season.
On the other hand for 2017, young people in the age group of 18-24 has shopped for 23.16% while the
age group 25-34 has shopped for 37.61% of the total sales during the festive season. On the basis of
above it may be seen that there has been a decline in % sales and volume sales for age group 18-24
while for age group 25-34 there has been an increase in % terms but decline in absolute terms for the
said group. Overall there has been decline in absolute terms but in relative terms there has been an
increase. The screenshot has been enclosed here in below:
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Question 5
What about gender? CompanyOne's objective was to attract a larger proportion of female visitors to
its online store during the 2018 holiday shopping season as compared to the same period in 2017.
Was that objective met? Provide a screenshot to support your answer.
Answer
From data obtained on Google Analytics Demo for the period for the period November 1 and
December 31, 2018 and 2017, it has been given to understand that female visitor who visited the store
during the festive season has decreased significantly as compare to 2017. Further, the new users
that visited the offline store during the period has also declined symbolising that the marketing
campaign of the company is not at all effective. The figures for new customer acquired during the
period is 16,852 for 2018 while for 2017 the said figure was 26.575. Further, the overall user during
the period in female category stood at 18,368 for 2018 and 27,804 for 2017. The screenshot has
been enclosed here-in-below:
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The objective has not been met when compared with last year figures but seeing the customer
acquired, the objective may have met.
Question 6
CompanyOne has invested in a targeted marketing campaign to attract new users to its online store
since the beginning of 2019. Did CompanyOne attract more or fewer new users in 2019-Q1
compared to 2018-Q1, irrespective of gender? What about new male users? What about new female
users? Provide screenshots to support your answer.
Answer
From data obtained on Google Analytics Demo for the period quarter 1 of 2019 and quarter 1 of 2018
to attract new users to its online store since the beginning of 2019. However, it has been given to
understand that company has not been successful in the said mission as the number of new customers
acquired during the first quarter of 2019 is 63,650. While on the other hand, the successful customer
acquired for first quarter of 2018 has been 103,263. Thus, there has been a decline of 38.26% in the
overall category.
For male user, there has been a decline of 41.6% in absolute terms with figures standing at 42,192 for
1st quarter of 2019 as compared to 72,079 for first quarter of 2018.
Similarly for female users, there has been a decline of 30.87% in absolute terms with figures standing
at 21,558 for 1st quarter of 2019 as compared to 31,184 first quarter of 2018.
The screenshot has been enclosed here-in-below:
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Question 7
(a) What were the top three countries that sent users to the CompanyOne online store in 2018? In
2017?
Answer
The top three countries that sent users of the CompanyOne online store in 2018 is India, United States
and United Kingdom. For 2017, the top three countries were same as stated above. The excel
screenshot has been enclosed here-in-below:
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(b) When parsing the percentage change in the number of new users, by country of residence, which
one of the three countries identified in (a) had the best percentage change in new users during 2018
as compared to 2017? Which one of the same three countries showed the least improvement? Use
the whole year for your comparison. Provide a screenshot to support your answer.
Answer
On the basis of data obtained from Google Analytics Demo , the best percentage has been witnessed
for India which reported an increase of 9.62%. The leas improvement has been witnessed for United
Kingdom which reported a decline of 18.03% over the period. The screenshot has been enclosed
here in below:
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c) What were the top five US states that sent users to the CompanyOne online store in 2018?
Answer
The top US states that have sent the customer base to CompanyOne in 2018 is
(a) California : 112,361
(b) New York: 27,139
(c) Texas: 17,861
(d) Washington: 10,817
(e) Illinois: 10,482
The screenshot has been enclosed here in below:
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Question 8
CompanyOne wishes to target high-value users in future marketing campaigns. These are user
groups with the highest e-commerce conversion rate or average order value. Which age group
generated the highest revenue for CompanyOne in 2018 in dollars? How much was the revenue
from this age group? Which age group generated the least revenue? Which age group had the
highest average order value? Which age group had the highest e-commerce conversion rate? Based
on these observations, which age group or groups should be the focus of CompanyOne's marketing
efforts during 2019? In other words, which age group is likely to provide the most bang for the buck?
CompanyOne desires to examine the performance across the six age groups in further detail. You
will examine the e-commerce data by selecting two dimensions: gender and age. Which gender and
age group combinations had the highest and second highest revenue in 2018? Similarly, which
gender and age group combinations had the highest and second highest average order value in
2018? What would be your recommendation to CompanyOne based on this analysis? Provide
screenshots to support your answers.
Answer
For 2018, the highest revenue generator was the age group 25-34.
The revenue generated was $787,521.22
Least Revenue was generated by 65+ age
Highest average order value was for 35-44.
Highest conversion rate for age group for 35-44.
The area of focus shall be age group 35-44
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Gender and age group is 25-34 and male.
Highest and second highest is male in the age group 35-44 and 25-34.
Focus on males.
Question 9
CompanyOne wishes to understand its site visitors better in order to fine tune its future marketing
efforts. Understanding audience composition in terms of gender, age, and interests will allow
CompanyOne to develop the right creative content and decide the media buys to make.
Google Analytics has over 100 affinity categories such as:
shoppers/value shoppers
lifestyles and hobbies/business professionals
sports and fitness/health and fitness buffs
technology/technophiles
banking and finance/avid investors
travel/travel buffs
travel/business travelers
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media and entertainment/movie lovers
lifestyles and hobbies/art and theater aficionados
media and entertainment/music lovers
Identify the top three affinity categories for CompanyOne by gender: male and female, for 2018 in
terms of the revenue from each affinity category. Provide screenshots to support your answer.
Answer
Based on data obtained, it may be inferred that the highest affinity has been observed in the field of
shoppers/ value shoppers, lifestyles and hobbies/business professionals sports and fitness/health and
fitness buffs.
Question 10
The two things every online business like CompanyOne cares about are users who convert (purchase a
product) and users who don't. Understanding users who convert (converters) will help CompanyOne
refine successful aspects of its marketing and show the company where it can improve efforts to reach
users who demonstrate untapped potential (nonconverters).
Developing insights into why certain users aren't converting lets CompanyOne address the weak spots
in how they approach them. For the purpose of this analysis, CompanyOne wishes to focus on the
back-to-school shopping season (July 15, 2018 to September 15, 2018).
CompanyOne wishes to obtain statistics of users, sessions, sessions per user, page views, average
session duration and bounce rate for these two segments (converters and nonconverters). Comment on
these statistics.
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