PetBox is a fictional eCommerce company that sells monthly subscription boxes containing animal care products. Currently, they have four marketing channels through which users are acquired:
- Search - Users acquired through paid search.
- Social Media - Users acquired through campaigns on Facebook and Instagram
- Affiliate - Users acquired through a link from an affiliate partner.
- Organic - Users acquired through google search or other search engine.
PetBox wants to evaluate the conversion percentage of users acquired through each of these channels. This analysis will determine which channels will receive a greater investment of marketing resources, and which channels are underperforming.
Question: What is the most valuable acquisition marketing channel by conversion percentage?
Note: In this walkthrough, we will build off of a query that has already been created to help identify which acquisition campaign sources are seeing higher conversion rates from “Homepage View” to “Subscribe”.
Open the Bookmarks Tool: Let’s click the Bookmarks icon in the Navigation Bar.
- Let's select the bookmark “Conversion From Homescreen View to Subscribe”
- Next, let’s collapse the query builder so we can focus on the funnel.
This is a three-step funnel showing the conversion from “Home Screen View” to “How It Works Video” to “Subscribe” over the last 7 days. The percentages in the webbing between steps indicate the percentage of users that have moved from one step to the next.
The percentages in the webbings should be interpreted as:
- 47.33% of users who viewed the homepage continued to watch the “How it Works” video.
- 1.94% of users who watched the “How it Works” video went on to subscribe
The total conversion rate of .92% is displayed above the funnel. Percentages will change if the date range is adjusted. For example, conversion percentages across 30 days will be different than those across 7 days.
Breakout by “Marketing Channel”: To break out our results, let’s drag in a User or Event Property. In this case, we’ll use the Event Property “Marketing Channel”. Breaking out our funnel by this property will group users based on the marketing channel they were acquired through. Using the data panel on the right, let’s open the Event Properties tab.
- Let’s drag “Marketing Channel” into the “Segment By” drop zone.
Select from First/Last/All: We’re interested in understanding the marketing channels these users were acquired from.
- Let's re-expand the query builder.
- Select “First” next to the event property “Marketing Channel” in the query builder. “First” will only display the channel that first led users to the homepage within the specified date range and will exclude marketing channels users were re-acquired through later on.
Remove “not defined” using a “Where” Clause: Sometimes, a portion of a property’s breakout results will display under the value “not defined”. This indicates that a property value was unavailable for a user.
To exclude these from our results we’ll make use of a “Where” clause, which enables us to create a filter.
- Let’s drag the “Marketing Channel” event property from the data panel into the “Where” dropzone in the query builder to add an additional filter.
- Select “is defined” from the drop down-menu to return only properties that are defined. This limits results to users with a defined value for “Marketing Channel”.
The table below the chart is broken out by events along the X axis, and by marketing channel along the Y axis.
For example, the first row tells us that of users who were acquired through Search:
- 26,506 completed “Homescreen View”
- 12,526 completed “How It Works Video”, a 47.26% conversion from “Homescreen View”
- 241 completed “Subscribe”, a 1.92% conversion from “How It Works Video”
- The total conversion rate across all steps was .91%
Compare Conversion Rates: Let’s click the row corresponding to the largest count in user signup, which is “Search”.
Clicking a row in the table expands the selection. All conversion rates within the webbings and top line update to reflect the selected campaign source.
The total conversion rate is .92%, while the conversion rate for users whose acquisition marketing channel was “Search” is 0.91%. Now, let’s compare that to the row with the highest conversion rate, which is Social Media (1.06% conversion).
While Search is the largest source of users, users from Social Media convert at a higher rate. PetBox should explore investing additional resources into social media campaigns.