Goal tree E-COMMERCE AND RETAIL When you build an

Transcript:Goal tree E-COMMERCE AND RETAIL When you build an:
Goal tree E-COMMERCE AND RETAIL When you build an optimization strategy, you’ll first align your program’s testing efforts to your company goals. We recommend that you start by focusing your program on achieving quick wins with impactful tests that affect the bottom line. A goal tree is a map of metrics that are critical to your company’s success. Break each of these metrics down into focused objectives that your program can move the needle on, through testing and personalization. Read this article to learn more about goal trees. Your company metric measures a high-level goal: an increase in revenue for example. Before you build a goal tree, let’s take a look at the structure behind it. Goal trees help you define the strategic KPIs that your program will optimize through testing and personalization. Notice how the company-level metric cascades directly into experiment-level goals. The optimization program breaks down a major KPI such as RPV into more focused targets, such as average order value (AOV). Individual experiments test ways to create lift in the metrics that matter to the program. One might improve the AOV by optimizing the average order quantity, for example. EXAMPLE Goal trees break metrics down mathematically. Take a look at a category: Revenue per Visitor, for example. This is the root for two branches: Average Order Value and Conversion Rate. Notice how the branches multiply to equal the root. Average order Value x Conversion Rate = Revenue per Visitor. Use this method to create your own goal tree. Build your own tree Identify the goal tree that aligns best with your own. Modify it to align it to your own company and program goals. Begin at the top of the tree What does your company do to generate revenue? How does each metric break down into a smaller set of metrics? Remember! Each set of branches should equal the value of the root it springs from. Digital Commerce + Physical Retail Internet & Telecom Travel & Hospitality Goals Tactics Out of scope Travel & Hospitality (Dutch) Financial Services Goal mapping Once you identify the KPIs your program will target directly, you’ll be able to hypothesize strategies and tactics that make an impact. Use strategies and tactics to create meaningful experiments and campaigns. Goals Strategies Tactics Goal Mapping Goals Strategies Tactics Goal Mapping