What is the reason for the low GMV? How to use BI to gain insight into e commerce live streaming str

Mondo Technology Updated on 2024-02-01

In 2022, the scale of online retail users in China will reach 84.5 billion people, accounting for 79% of the total number of Internet users2%, and online retail sales of physical goods reached 138 trillion yuan, a year-on-year increase of 489%。E-commerce platforms have become an indispensable and important marketing platform in the market economy, and live streaming, as a new marketing model in e-commerce, has a rapid increase in market share, and by 2023, the scale of live streaming in China will be about 492 trillion yuan, although the growth rate has slowed down compared with the previous year, but it is still as high as 40%.

Countless merchants and anchors are rushing to the live broadcast e-commerce industry to join this "Spring and Autumn Competition". To survive in such an "involutional" industry, merchants are bound to adjust their live broadcast strategies in time to optimize the live broadcast effect and stand out from the crowd of competitors to drive the growth of GMV.

In this case, as a data analyst, you will definitely be given the task of analyzing the data in the live broadcast room. Traffic, interaction, and transaction are the three aspects that need to be focused on when conducting live data review and analysis. After the live broadcast ends, you need to extract value from various types of data, understand the conversion effect of the entire live broadcast, and analyze whether the live broadcast strategy adopted in the current period has brought growth to conversions and transactions.

Combing, insight, and review are the most basic and critical operations for e-commerce operations in the digital era, so as to integrate the best and continuously improve the live broadcast effect.

Today, we will take a case of e-commerce live streaming analysis as an example, conduct a full-dimensional analysis of GMV through data dashboards, and put forward suggestions for adjusting live streaming strategies from multiple perspectives.

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Pay attention to Finefine, we will continue to explain data analysis methods and tools and solutions for enterprise digital transformation

1. Business background

Company A is the world's leading cross-border e-commerce export platform, committed to providing high-quality services to customers around the world. As one of the important means of company A's marketing, overseas online celebrity sales are an effective way to attract customers and increase sales. In the past three years, the GMV of overseas influencers has been growing, however, this year, the marketing volume of influencers has slowed down, which has brought certain challenges and pressures to the company's business development.

The following diagram illustrates the company's influencer business process.

2. Demand pain points

In order to find out the reasons for the slowdown in the marketing volume of overseas influencers, it is necessary to dig deep and score the data of this year's influencer traffic, marketing strategies and activities, and formulate more effective countermeasures and plans by clarifying actionable OKRs (goals and key results) and key goals.

At the same time, the use of data analysis can also find new overseas Internet celebrity resources, expand the company's marketing channels, to better meet customer needs, and enhance the company's competitiveness and profitability in the market.

The main ideas for analyzing the slowdown in the growth rate of GMV with Internet celebrities include the following four aspects:

Analysis of the current situation:Gain an in-depth understanding of the GMV trend chart and business process in the past three years, and clarify the development history and trend of the business.

Data analysis:Analyze the influencers who bring traffic, and pay attention to key indicators such as the average traffic of influencers, traffic conversion rate, the number of orders per fan, and the unit price of fans. Through data mining, identify possible problem points.

Solution:Propose solutions to the problems found. Focus on the three directions of influencer recruitment, product selection, and related product recommendation to improve the effect of influencer sales.

Influencer Business Opportunity Points:Find new influencers to work with, offer curated products to existing influencers, develop promotions, and develop effective marketing strategies. Introduce measurement tools to evaluate performance and identify potential business opportunities.

Through this analysis, we can fully understand the reasons for the slowdown in the growth rate of GMV of online celebrities, and formulate targeted solutions and business development strategies to enhance the company's competitiveness in the market.

The data in this case is not edited much in the finebi >>>, and several summary analysis tables are generated for chart display. In daily work, it is often necessary to filter, merge, group, summarize, and sort the raw detailed data in Finebi to complete data processing.

The logical schema of the data table processing in this analysis is shown in the following figure:

The caliber of indicators used in this analysis is shown in the following table:

According to the GMV trend chart, we will analyze the reasons for the slowdown in the growth rate of GMV of online celebrities from the following five aspects:

Influencers who bring traffic:Analyze the quality and quantity of traffic generated by individual influencers. There may be some influencers who have lost their influence or appeal, resulting in a slowdown in traffic. Compare the performance of different influencers to find out the specific reasons for the drop in traffic.

Influencer traffic per capita:Observe the changes in the average traffic of influencers and check if there is a significant decrease in the influence of individual influencers. Analyze possible causes, such as insufficient content updates, high market competition, etc., to determine if the partnership needs to be re-evaluated.

Traffic Order Conversion Rate:Examine the conversion rate from traffic to actual orders. A low conversion rate can indicate traffic quality issues or a poor shopping experience. Through user behavior analysis, find possible bottlenecks and optimization points to improve conversion rates.

Per capita order volume of fans:Check the shopping behavior of fans and analyze the changes in the number of orders placed per follower. If there's a drop, it could be a drop in the alignment of influencer content and products, or a lack of activity to motivate followers to place a purchase. Develop strategies to increase shopping engagement.

Fan unit price:Analyze the fluctuation of the unit price of fans to understand whether there is a decline in the sales of ** value products or changes in the shopping behavior of fans. Take steps to increase the average order value by targeting products and enhancing the shopping experience.

After a month-on-month analysis of the five components, it is found that the per capita traffic of Internet celebrities and the unit price of fans have not changed much compared with the comparative value in the current period, so we locate the problem points through data: the decrease in the number of Internet celebrities who bring traffic, the decrease in the conversion rate of traffic orders, and the decrease in the number of orders per capita of fans.

Problem 1: The number of influencers who bring traffic decreases

Analytical ideas:Through two dimensions, that is, the stratification of new and old influencers and head, waist and tail influencers, we can understand the number of influencers by comparing the current value with the comparison value. The data shows that the number of old Internet celebrities has not changed much, while the distribution of the proportion of Internet celebrities in the head, waist and tail has not changed significantly. However, the number of new influencers has decreased significantly.

The analysis found that:The number of newly registered influencers who can drive effective traffic has decreased significantly during the period.

Strategy:We conducted a comprehensive evaluation and analysis of the influencer's personal image, gender, followers, and the traffic and volume it brings, and created an influencer portrait. Through this profile, business colleagues are able to develop a practical recruitment strategy. Through the analysis of Internet celebrity portraits, we can clarify the direction of high-quality Internet celebrity recruitment: Internet celebrities who focus on women, have more than 100k followers, and have unique personalities. This strategy is expected to improve the recruitment of new influencers.

Problem 2: The conversion rate of traffic orders decreases

Analytical ideas:We broke down the conversion rate into bounce rate and non-bounce conversion rate, and found that both metrics were more problematic. Therefore, we decided to merge them and then further analyze the conversion rate and UV share of each industry (category).

Through an in-depth analysis of the data, we found that the distribution of the proportion of UVs in each industry did not change much, but the conversion rate of four major categories decreased.

The analysis found that:The products brought by the Internet celebrity do not match the image they advertise.

Strategy:

In order to achieve the goal of matching people and goods, we need to recommend the categories that Internet celebrity fans are interested in. Therefore, we conduct an in-depth analysis of the categories of interest of male and female fans of Internet celebrities, and carry out corresponding recommendation activities according to the analysis results to achieve the best effect of matching people and goods.

From an influencer's point of view, choosing the right product requires a combination of factors. In addition to the sales popularity and commission level of the product itself, the moderation of the product** is also an important consideration. When selecting products for influencers, efforts need to be made to maintain the fit between the product and the influencer's own image to improve the attractiveness and promotion effect of the product. This holistic approach helps ensure that the selection is in line with market trends and aligns with the influencer's personal brand image to better meet the needs of your audience and increase sales.

Problem 3: The number of orders per fan has decreased

Analytical ideas:In order to solve the problem of decreasing the number of orders per fan, we split them into two dimensions, namely, the number of people who purchased a single category and the number of cross-purchases in multiple categories. We then further segmented the number and proportion of cross-purchases in each category to gain insight into which categories fans with cross-buying behaviors preferred to buy. This analysis method aims to discover the correlation between categories, provide more specific data support for increasing the number of orders per follower, and help business teams develop more targeted promotion strategies.

The analysis found that:The number and proportion of people with industry cross-buying behaviors decreased.

Strategy:To better understand the relevance of cross-buying across categories, we created a heat map of the best-selling related categories to clearly show the degree of correlation between different categories. Through this analysis, we were able to determine how to increase strategies such as related product recommendations and store promotions to increase the number of orders placed by fans.

Specifically, we can implement activities such as making up orders and reducing them to encourage consumers to buy multiple products at the same time. In addition, according to the characteristics of different categories and user needs, corresponding marketing activities can be carried out in a targeted manner to promote cross-purchase between different categories, increase user purchase frequency and loyalty, and maximize business value. The implementation of these strategies is expected to re-energize consumer interest and drive an increase in cross-buying behavior.

Through the above strategies, we measured the GMV KPIs and identified some influencer business opportunities. To further tap into these opportunities, here's what we can do:

First of all, in order to maximize the promotion effect, we need to:Recommendations are made based on the categories that the fans of the selected influencers are interested inThis step can further increase the sales of influencers and provide a boost for the rapid growth of GMV of influencers.

Second, dig deeper into business opportunities in categories with relatively high influencer sales. We can develop more promotions and product mix strategies to attract more consumers to buy related products. In this way, you can maximize the influence of influencers and further drive sales.

Finally, continuously optimize marketing strategies and campaigns by continuously monitoring and adjusting key metrics. This helps create a more conducive business environment for both businesses and influencers. Through continuous iteration and improvement, we are better able to adapt to market changes and increase the long-term growth potential of influencer GMV.

BI tools play an important role in the analysis of the effect of e-commerce live streaming. By digging deeper into the data and analyzing key metrics such as live streaming GMV trends, influencer marketing revenue, and conversion rates, BI tools can provide comprehensive business insights for enterprises.

Hopefully, this article will be helpful for you and your company's live streaming data analysis!

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