what can an e-commerce store do with the insights gained from analytics?

COURSE 7 – Satisfaction Guaranteed: Develop Customer Loyalty Online QUIZ ANSWERS

Week 2: Analyze Trends for an Online Store

Google Digital Marketing & E-commerce Professional Certificate

Complete Coursera Answers & Study Guide

Analyze Trends for an Online Store INTRODUCTION

The Coursera Google Digital Marketing & E-commerce Professional Certificate provides a comprehensive overview of digital marketing and e-commerce.

As part of the course, students will analyze trends for an online store and discover how to reach customers online through methods like advertisement campaigns. Participants will examine the benefits of online advertising, explore how seasonality affects e-commerce businesses, and learn how to optimize an e-commerce marketing strategy to meet campaign goals.

This certificate will help professionals understand the ever-evolving world of digital marketing and gain valuable skills that can be applied in any business setting.

Learning Objectives

  • Explain the uses and benefits of online advertising for e-commerce.
  • Use Google Ads to engage e-commerce customers.
  • Define what Smart Campaigns and Smart Shopping campaigns are.
  • Explain how trends and seasonality affect e-commerce businesses.
  • Optimize e-commerce campaigns and strategies.

TEST YOUR KNOWLEDGE: E-COMMERCE ANALYTICS TOOLS

1. What can an e-commerce store do with the insights gained from analytics? Select all that apply.

  • Better understand customer behavior (Correct)
  • Determine which sales and marketing tactics are the most effective (Correct)
  • Learn how to conduct A/B testing
  • Discover which tactics provide the best results (Correct)

Correct: With the insights gained from analytics, an e-commerce store can determine which sales and marketing tactics are the most effective. Analytics also help a store understand customer behavior and discover which tactics provide the best results. A/B testing is a tool for gathering data, not an action a company would take after reviewing the insights gained from analytics.

2. Consider the following scenario:

Customers at an e-commerce store are getting stuck on the promotion code field during checkout and end up leaving the checkout process to search for promotions. However, the retailer is not aware of what is happening. All they notice is numerous instances of cart abandonment.

What tool can this retailer use to understand why customers are leaving the checkout process without completing their purchase?

  • The Net Promoter Score
  • The customer lifetime value
  • A key performance indicator (KPI)
  • A heat map (Correct)

Correct: A heat map is a tool that demonstrates how visitors interact with a website. A heat map can provide data that helps an e-commerce store make improvements to their checkout process, so customers do not get stuck on the promotion code field.

3. How do e-commerce stores measure customer loyalty? Select all that apply.

  • By analyzing the customer lifetime value (Correct)
  • By using Live View
  • By setting a key performance indicator (KPI)
  • By measuring brand advocacy (Correct)

Correct: E-commerce stores measure brand advocacy because it is the strongest form of customer loyalty. Brand advocacy measures the number of customers who promote a brand through elements like word-of-mouth marketing.

Correct: The customer lifetime value is a helpful metric to measure customer loyalty because it estimates the total amount of money that a customer is expected to spend with a business over their lifetime. The higher the number, the better, because retaining existing customers is more cost effective than acquiring new ones.

4. What are the benefits of Shopify analytics? Select all that apply.

  • Test the site speed (Correct)
  • Review store’s recent activity (Correct)
  • Analyze the store’s transactions (Correct)
  • Get information about their competition

Correct: Shopify’s analytics allow companies to review their store’s recent activity, get information about their customers, test the site speed, and analyze their store’s transactions.

Correct:  Feedback: Shopify’s analytics allow companies to review their store’s recent activity, get information about their customers, test the site speed, and analyze their store’s transactions.

5. What types of reports can a company access with Shopify? Select all that apply.

  • Finance reports (Correct)
  • Marketing reports (Correct)
  • Seasonal trend reports
  • Customer acquisition reports (Correct)

Correct: With Shopify, a company can access multiple types of reports. These include reports on finances, customer acquisition, inventory, customer behavior, and marketing.

6. Which type of company would likely use micro conversions to track when a potential customer is moving towards a completed purchase transaction?

  • A food delivery service
  • A company that sells high-priced products (Correct)
  • A new e-commerce store
  • A nonprofit organization

Correct: Customers purchasing high-priced products, such as diamond jewelry or upscale furniture, may take longer to complete a purchase. Companies that sell these types of products would find it helpful to track micro conversions.

7. Which of the following Shopify features provides a real-time view of the store’s activity as it happens?

  • Activity View
  • Real View
  • Live View (Correct)
  • Replay View

Correct: Live View provides a real-time view of the store’s activity as it happens.

ACTIVITY: ANALYZE AN E-COMMERCE STORE’S PERFORMANCE

Year_Over_Year_Performance_Result_Study_Guide
Year_Over_Year_1
Year-Over_Year_Performance_Result_Study_Guide
Year-Over_Year_2

Here are the company’s performance goals:

  • Increase total revenue by 20%
  • Increase total traffic by 8%
  • Increase conversion rate by 6%
  • Decrease cart abandonment rate by 5%
  • Increase average order value by 5%

1. Which of the following year-over-year performance goals did the company meet? Select all that apply.

  • Increase average order value by 5% (Correct)
  • Increase total revenue by 20% (Correct)
  • Increase conversion rate by 6%
  • Increase total traffic by 8%

Correct: In the average order value column, the percent change for the year-over-year comparison was 7%. This met and exceeded the company’s performance goal to increase average order value by 5%.

Correct: The percent change for the year-over-year comparison was 20%. This met the company’s performance goal to increase total revenue by 20%.

2. Your manager wants to know which traffic sources decreased over the past year so that the company can concentrate on generating more traffic from those sources. Which traffic sources decreased year-over-year?

  • Organic search and direct
  • Direct, paid search, and referral (Correct)
  • Paid search, email, and referral
  • Organic search and email

Correct: In the traffic by source data, the percent change for the year-over-year comparison was −5% for paid search, 15% for email, and −2% for referral. Although paid search and referral traffic decreased over the past year, the amount of traffic from email increased.

3. The company is seeking to increase qualified traffic to their website. They want to know which traffic source led to the most sales. Which traffic source brought in the most revenue for both years combined?

  • Organic search
  • Email
  • Paid search (Correct)
  • Direct

Correct: In the revenue by traffic source data, the combined results for revenue from email traffic was $166,948. This traffic source did not generate the most revenue for both years combined.

4. One of the company’s performance goals was to decrease the cart abandonment rate for each device by 5%. To learn if the company met its goal, you’ll need to review the data to find a negative percent change in cart abandonment. Which device met this performance goal?

  • Desktop (Correct)
  • Mobile
  • Tablet

Correct: The percent change for the cart abandonment rate for desktop users was −5%. The company met its performance goal to decrease the cart abandonment rate for desktop users by 5%.

TEST YOUR KNOWLEDGE: MONITOR AN E-COMMERCE STORE’S PERFORMANCE

1. Fill in the blank: _____ is an important metric to monitor for a new e-commerce store, because if there are few visitors, there will be even fewer sales.

  • Inventory
  • Cost
  • Competition
  • Traffic (Correct)

Correct: Monitoring traffic is important to a new e-commerce store, because if there are few visitors, there will be even fewer sales.

2. Why is it important to monitor conversion rates?

  • It conveys the amount of revenue generated by customers over their lifetime.
  • It demonstrates whether users are taking actions that contribute to the success of a business. (Correct)
  • It reveals key customer demographics that enables a company to create effective customer personas.
  • It illustrates the amount of loss a company will experience if their cost per acquisition is too high.

Correct: Monitoring conversion rates is important because it demonstrates whether users are taking actions that contribute to the success of a business.

3. Fill in the blank: By increasing _____, a store can increase their revenue regardless of whether they are able to acquire new customers or improve conversion rates.

  • the Net Promoter Score (NPS)
  • the average order value (Correct)
  • qualified traffic
  • cost per acquisition

Correct: By increasing the average order value, a store can increase their revenue regardless of whether they are able to acquire new customers or improve conversion rates. The NPS score helps companies measure brand loyalty.

4. What does it mean if the cost of acquiring a paying customer is higher than the average order value?

  • It means that the amount a company is spending to get customers is greater than the amount of money it is receiving in return. (Correct)
  • It means that a company may be able to re-engage the potential customer with a reminder to complete their order.
  • It means that a company can track the average amount of money a customer spends each time they complete an order.
  • It means that in order to accurately calculate the amount of revenue earned, a company needs to monitor their customer traffic sources.

Correct: If the cost of acquiring a paying customer is higher than the average order value, then the amount a company is spending to get customers is greater than the amount of money it is receiving in return.

5. Which is a metric that helps companies measure loyalty?

  • Qualified traffic
  • Cart abandonment rate
  • Customer acquisition cost
  • Customer retention rate (Correct)

Correct: Customer retention rate is a metric that helps companies measure loyalty. The customer retention rate is the percentage of customers that a company retains over a certain period of time. It gives companies an idea of how satisfied their customers are with the brand.

TEST YOUR KNOWLEDGE: DATA ANALYSIS

1. Why should an e-commerce store make updates based on data? Select all that apply.

  • It can improve the customer experience (Correct)
  • It can attract more qualified traffic (Correct)
  • It can increase sales (Correct)
  • It can customize their platform

Correct: There are many updates a company can make to their e-commerce store based on data. The updates they make can help attract more qualified traffic, increase sales, and improve the customer experience.

2. Consider the following scenario:

An e-commerce store is experiencing a steady increase in traffic, but the additional traffic is not leading to an increase in revenue.

What could be the reasons why the store is not experiencing an increase in revenue? Select all that apply.

  • The store’s online site was optimized for SEO.
  • The additional traffic is coming from customers who are not likely to make a purchase. (Correct)
  • There might be a low conversion rate. (Correct)
  • The store updated the checkout process.

Correct: One reason why the store is not experiencing an increase in revenue could be that the additional traffic is coming from customers who are not as likely to buy. The company’s goal should not be more traffic but qualified traffic. Another possible reason that the increased traffic is notleading to more sales could be a low conversion rate.

3. How can a company discover the barriers that might prevent a customer from making a purchase? Select all that apply.

  • Use upselling to improve the average order value
  • Use metrics to better understand the impact of cross-selling
  • Use heat maps and record how customers interact with the site (Correct)
  • Use analytics to determine at what point customers are leaving the site (Correct)

Correct: A company can discover the barriers to making a purchase by using analytics to determine at what point customers are leaving the site. They can also use heat maps and record how customers interact with the site to better understand how customers interact with the website.

4. Fill in the blank: _____ is a sales technique used to encourage customers to spend more by purchasing a product that is related to what they are already buying.

  • Optimizing conversion rates
  • Upselling
  • Cross-selling (Correct)
  • Attracting traffic

Correct: Cross-selling is a sales technique used to encourage customers to spend more by purchasing a product that is related to what they are already buying. Upselling is a sales technique used to encourage customers to spend more by upgrading to a more expensive product.

5. What strategies can a company use to increase average order value? Select all that apply.

  • Create an order minimum for free shipping (Correct)
  • Offer bundle deals (Correct)
  • Provide incentives for a rewards program (Correct)
  • Convert qualified traffic into customers

Correct: In order to increase the average order value, a company can create an order minimum for free shipping, offer bundle deals, and provide incentives for a rewards program when customers spend a certain amount.

ACTIVITY: ANALYZE PRODUCT PERFORMANCE FOR AN E-COMMERCE STORE

Quarter_Over_Quarter_Performance_Result
Quarter_Over_Quarter_1
Quarter_Over_Quarter_Performance_Result
Quarter_Over_Quarter_2

Here are the company’s performance goals:

  • Increase the number of product views by 20% quarter over quarter
  • Increase the number of units purchased by 10% quarter over quarter
  • Increase the product revenue by 10% quarter over quarter
  • Increase the conversion rate by 5% quarter over quarter
  • Keep the net profit margin above 11% for both quarters
  • Keep the return rate below 6% for both quarters

1. Consider the following performance goal:

Increase the number of product views by 20% quarter over quarter.

Which of the company’s products, if any, met or exceeded this performance goal?

  • Product 1 (Correct)
  • Product 2
  • Both products
  • Neither product

Correct: The percent change in Column B, Row 10 demonstrates that the number of product views increased 20% for Product 1. This met the company’s performance goal.

2. Consider the following performance goal:

Increase the number of units purchased by 10% quarter over quarter.

Which of the company’s products, if any, met or exceeded this performance goal?

  • Product 1
  • Product 2
  • Both products (Correct)
  • Neither product

Correct: The percent change in Column D, Row 10 demonstrates that the number of units purchased increased 10% for Product 1. This met the company’s performance goal. The percent change in Column D, Row 20 demonstrates that the number of units purchased increased 12% for Product 2. This also met the company’s performance goal.

3. Consider the following performance goal:

Increase the product revenue by 10% quarter over quarter.

Which of the company’s products, if any, met or exceeded this performance goal?

  • Product 1
  • Product 2
  • Both products (Correct)
  • Neither product

Correct: The percent change in Column E, Row 10 demonstrates that the product revenue increased 10% for Product 1. This met the company’s performance goal. The percent change in Column E, Row 20 demonstrates that the product revenue increased 12% for Product 2. This also met the company’s performance goal.

4. Consider the following performance goal:

Increase the conversion rate by 5% quarter over quarter.

Which of the company’s products, if any, met or exceeded this performance goal?

  • Product 1
  • Product 2
  • Both products
  • Neither product (Correct)

Correct: Neither product met the company’s performance goal. The percent change in Column F, Row 10 demonstrates that the conversion rate decreased by 9% for Product 1, and the percent change in Column F, Row 20 demonstrates that the conversion rate decreased by 2% for Product 2.

5. Consider the following performance goal:

Keep the net profit margin above 11% for both quarters.

Which of the company’s products, if any, met or exceeded this performance goal?

  • Product 1
  • Product 2
  • Both products (Correct)
  • Neither product

Correct: The net profit margin for Product 1 was 11.12% in Quarter 1 (Column G, Row 3) and 11.83% in Quarter 2 (Column G, Row 4). The net profit margin for Product 2 was 12.98% in Quarter 1 (Column G, Row 13) and 13.11% in Quarter 2 (Column G, Row 14). The net profit margin was above 11% in both quarters for both products.

6. Consider the following performance goal:

Keep the return rate below 6% for both quarters.

Which of the company’s products, if any, met or exceeded this performance goal?

  • Product 1
  • Product 2 (Correct)
  • Both products
  • Neither product

Correct: The return rate for Product 2 was 5.75% in Quarter 1 (Column I, Row 13) and 5.32% in Quarter 2 (Column I, Row 14). The return rate was below 6% for both quarters.

Google Digital Marketing & E-commerce Professional Certificate

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Satisfaction Guaranteed: Develop Customer Loyalty Online WEEKLY CHALLENGE 2

1. Which of the following information can email marketing analytics provide to help a company improve their campaigns? Select all that apply.

  • The percentage of email recipients who unsubscribe from the send list after opening an email. (Correct)
  • The percentage of email recipients who clicked on a link in an email and took a desired action, like making a purchase. (Correct)
  • The attention a company’s brand received across all social media platforms during a reporting period.
  • The percentage of users that open a company’s email. (Correct)

2. Which of the following describes the purpose of brand advocacy?

  • Gauge how successful a business is in its effort to reach a business or marketing goal
  • Measure the number of customers who promote a company through elements like word-of-mouth marketing (Correct)
  • Indicate that a potential customer is moving toward a completed purchase transaction
  • Estimate the total amount of money that a customer is expected to spend with a business over time

3. What type of company would find it helpful to track micro conversions?

  • A company that sells high-priced products, such as diamond jewelry or upscale furniture (Correct)
  • A company that has been in business for at least a couple of years
  • A company that sells low-priced products, such as office supplies or groceries
  • A newer e-commerce store

4. Which of the following information is available in Live View on Shopify? Select all that apply.

  • The percentage of email recipients who unsubscribe from the send list after opening an email
  • The number of approval actions—such as likes, mentions, retweets, or favorites—that a social media post receives relative to followers
  • The number of visitors and total sales for a day (Correct)
  • The number of customers who have added items to their cart, reached the checkout, or made purchases in the last 10 minutes (Correct)

5. What is the purpose of determining cart abandonment rate?

  • To track the average amount of money a customer spends each time they complete a purchase.
  • To determine the cost per acquisition of customers.
  • To determine what source of website traffic is made up of visitors who are likely to become customers
  • To track the percentage of customers who leave a website before completing their purchase (Correct)

6. Imagine a shoe company’s customer lifetime value is less than the cost per acquisition. What is likely to be true about the company?

  • The company is breaking even on the money they spend to gain customers.
  • The company is losing money to gain customers. (Correct)
  • The company can increase their revenue regardless of whether they are able to acquire new customers.
  • The company is spending less money to get customers than they receive in return.

7. Why might a company use a heat map on their website?

  • To track the average amount of money a customer spends each time they complete an order
  • To provide a sign up form for the potential customer to register for an email list.
  • To compare two versions of a web page to find out which updates will have the biggest impact
  • To learn more about user behavior and what visitors interact with on their website (Correct)

8. Which of the following sales techniques is used to encourage customers to spend more by upgrading to a more expensive product?

  • Rewards programs
  • Cart minimums
  • Cross-selling
  • Upselling (Correct)

9. What is the purpose of product analytics?

  • To provide a real-time view of the store’s activity as it happens
  • To gauge how successful a business is in its effort to reach a business or marketing goal
  • To measure the number of customers who promote a brand through word-of-mouth marketing
  • To monitor and evaluate data to gain insights into how users interact with a product or service (Correct)

10. Which of the following are ways a company might improve their product conversion rate? Select all that apply.

  • Use higher-quality photos that allow customers to zoom in for more detail (Correct)
  • Overpromise what the product can do for the customer
  • Update the product description to include the benefits of the product, technical specifications, a size chart, and any information that is available on the product packaging (Correct)
  • Add photos of products in all available colors and from multiple angles (Correct)

11. Which of the following metrics measures brand advocacy by using a survey to ask how loyal customers are to a company?

  • Customer lifetime value
  • Key performance indicator
  • Brand advocacy
  • Net promoter score (Correct)

12. Which of the following does the Shopify overview dashboard provide information about? Select all that apply.

  • The percentage of email recipients who unsubscribe from the send list after opening an email
  • Metrics for the store, including key data about the store’s visitors, sales, and orders (Correct)
  • How the store is performing over time across all sales channels (Correct)
  • Site traffic, total sales, conversion rate, average order value, and best-selling products within a specific time period (Correct)

13. Which of the following metrics tracks the average amount of money a customer spends each time they complete a purchase?

  • Customer lifetime value
  • Qualified traffic
  • Average order value (Correct)
  • Cart abandonment rate

14. Which of the following describes the relationship between average order value and customer lifetime value?

  • Average order value is the percentage of customers that a company retains over a certain period of time. Customer lifetime value is the average cost of acquiring a paying customer.
  • Average order value is the average revenue generated by customers over a certain period of time. Customer lifetime value tracks the average amount of money a customer spends each time they complete an order.
  • Average order value is the percentage of users who complete a desired action. Customer lifetime value tracks the average cost of acquiring a potential customer.
  • Average order value tracks the average amount of money a customer spends each time they complete an order. Customer lifetime value is the average revenue generated by customers over a certain period of time. (Correct)

15. Why might a company use A/B testing on their website?

  • To compare two versions of a web page to find out which updates will have the biggest impact (Correct)
  • To see how visitors interact with a website.
  • To track the average amount of money a customer spends each time they complete an order
  • To capture a visitor’s actions as they browse a website, including mouse movement, clicks, taps, and scrolling

16. Which of the following information can social media analytics provide to help a company improve their campaigns? Select all that apply.

  • The percentage of email recipients who unsubscribe from a send list after opening an email.
  • The number of approval actions—such as likes, mentions, retweets, or favorites—that a post receives relative to followers. (Correct)
  • The attention a company’s brand received across all social media platforms during a reporting period. (Correct)
  • The number of times a piece of content is displayed to a target audience. (Correct)

17. Which of the following are reasons why a well-established e-commerce store might track metrics over a longer period of time? Select all that apply.

  • Ability to focus more heavily on metrics that relate to customer loyalty (Correct)
  • Fewer visitors and sales
  • Longer-lasting relationships with their customers (Correct)
  • Access to more data (Correct)

18. Which of the following sales techniques is used to encourage customers to spend more by purchasing a product that is related to what they are already buying?

  • Rewards programs
  • Bundle deals
  • Cross-selling (Correct)
  • Upselling

19. Which of the following information can paid advertising analytics provide to help a company improve its marketing campaigns? Select all that apply.

  • Number of users who open the company’s email.
  • Number of conversions (CORRECT)
  • Number of people who people clicked on the company’s ads (CORRECT)
  • Number of people who viewed the company’s ads online (CORRECT)

Correct: Correct

Correct: Correct

Correct: Correct

20. Which of the following does a business using Shopify have access to? Select all that apply.

  • Company-specific market research
  • Analytics reports (CORRECT)
  • Live view (CORRECT)
  • Overview dashboard (CORRECT)

Correct: Correct

Correct: Correct

Correct: Correct

21. What is conversion rate optimization?

  • The process of tracking the average amount of money a customer spends each time they complete an order.
  • The process of calculating the average revenue generated by customers over a certain period of time.
  • The process of increasing the percentage of website visitors who complete a desired action. (CORRECT)
  • The process of increasing the amount of time visitors spend on a website.

Correct: Correct 

22. What can a company use to find the percentage of products sold that are sent back by customers?

  • Customer retention rate
  • Product conversion rate
  • Return rate (CORRECT)
  • Customer satisfaction rate

Correct: Correct

23. Which of the following is a metric that estimates the total amount of money that a customer is expected to spend with a business over time?

  • Net promoter score
  • Key performance indicator
  • Brand advocacy
  • Customer lifetime value (CORRECT)

Correct: Correct 

24. Which of the following e-commerce metrics provides information about customer satisfaction so that companies can evaluate the customer experience and find ways to make improvements?

  • Cart abandonment rate
  • Conversion rate optimization
  • Customer retention rate (CORRECT)
  • Cost per acquisition

Correct: Correct

25. Which of the following are potential ways for a company to increase their average order value? Select all that apply. 

  • Overpromising
  • Upselling (CORRECT)
  • Creating an order minimum for free shipping (CORRECT)
  • Cross-selling (CORRECT)

Correct: Correct

Correct: Correct

Correct: Correct

26. Which of the following are benefits to a company using product analytics? 

  • To take advantage of customer referrals
  • To avoid selling products that do not benefit the business or could harm their brand’s reputation (CORRECT)
  • To evaluate whether a product is successful (CORRECT)
  • To evaluate the impact of marketing campaigns (CORRECT)

Correct: Correct

Correct: Correct

Correct: Correct

27. Which of the following metrics determines what website traffic is made up of visitors who are likely to become customers?

  • Conversion rate
  • Qualified traffic (CORRECT)
  • Cart abandonment rate
  • Customer retention rate

Correct: Correct

Analyze Trends for an Online Store CONCLUSION

The average person spends at least two hours per day online. With so much time spent on the internet, it’s no wonder that businesses are looking to reach customers through digital channels. In this course, you will explore how to reach customers online through methods like advertisement campaigns and examine the benefits of online advertising. Then, you’ll explore how seasonality affects e-commerce businesses.

Finally, you’ll learn how to optimize an e-commerce marketing strategy to meet campaign goals. By the end of this course, you will have a solid understanding of how to create and execute an effective eCommerce marketing strategy. So what are you waiting for? Join now in Coursera!