Teva.com: An E-commerce and Branding Case Study

This week, I’m in Santa Barbara at the E-Metrics Summit with 150 other professionals discussing best practices and trends in the growing Web analytics market.

I wanted to share a case study my organization recently developed for Deckers Outdoor, the global footwear manufacturer of Teva, UGGs Australia, and Simple shoe brands. In 2005, Deckers Outdoor was named to Fortune Magazine’s 100 fastest-growing companies. Much of their strategy is about creating niche footwear products that are more than just functional. The products connect with their target customers on a more emotional branding level such as lifestyle, fashion, culture and philanthropy.

We shared this case study with our partner, Google, at the E-Metrics Summit, but I want to share a few highlights from the analysis with you.

For this project, we focused on Teva.com. As we do with every client engagement, we started the analysis process by defining Teva’s online goals and the related metrics that measure the performance of those goals. Two of their top objectives are:

  1. Sell more shoes
  2. Support the Teva brand

Goal #1 – Sell More Shoes

To monitor their e-commerce performance we started at the highest level by looking at the trends of four key performance indicators (KPIs): total revenue, total orders, average order value and shopping cart conversion rate.

For this study, we analyzed the monthly trends, comparing March versus February of this year.

Favorably, both total revenue (36 percent) and total transactions (73 percent) were trending up. One concern we identified was they experienced a dip in average order value. When we explored the data further to understand why average order value was down, it was clear they’d seen higher visitor activity and sales for clearance merchandise. So we recommended testing a few different designs to de-emphasize clearance items to see if they could continue to increase total online revenue and orders without negatively impacting average order value.

Conceptually, we’re all familiar with the upside of site optimization. You make small incremental gains in conversion, and reap big returns, right? But what’s the real monetary value of those increases in conversion rates? We did a monetization model for Teva.com to illustrate the potential annual revenue gains by incrementally increasing their average shopping cart conversion rate.

In Teva.com’s case, by improving their conversion rate from the product detail page through to order completion by half of a percentage point, they can gain over $1 million annually.

In terms of helping the organization prioritize internal resources and Web design cycles, the monetization model is a powerful tool the marketing department can use with their merchandisers, developers, designers and executive staff to take action on the opportunities with the highest financial impact to the business.

Goal #2 – Support the Brand

As a second key focus, Deckers Outdoor was interested in understanding how they can better support the Teva brand through its Web site.

As one indicator of online brand value, we took a look at all the content within their site that supported building the “Teva brand community.” They’ve created initiatives such as Team Teva, where visitors can learn about their sponsored athletes in kayaking, trail running, and other relevant outdoor sports. They’ve also created other brand content such as contests, running clubs, videos and sponsored events to enrich the customer experience of their brand beyond just the shoes they sell.

In terms of measuring visitor interest in their brand content, both unique visitors (36 percent) and pageviews (48 percent) are trending up, and the Teva Mountain Running Club has seen explosive growth since its launch earlier in the year.

Another area we analyzed as an indicator of brand loyalty was to segment returning visitors and compare their behavior against new visitors. As a positive indicator, their returning visitor segment was driving overall revenue growth online. It converted more often and spent more than new visitors.

There’s a lot more to explore on how to effectively measure brand value online. It’s one of the important topics being discussed at this week’s E-Metrics Summit. I’d like to hear your thoughts on the topic as well.

What’s Your Story?

Questions, comments, or your own case study to share? E-mail me and let me know your insights on Web analytics and site optimization. I always enjoy hearing from ClickZ readers.

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