Mobile site cost benefit analysis
nuexiepan
mobile_cba_.xlsxTraffic by device
| Mobile Site Cost Benefit Analysis | ||||||||
| Site Traffic 5/1/14 - 4/30/15 | ||||||||
| Device | User Sessions | % of visits | Conv % | Orders | Revenue | Average order | Marketing Margin % | Contribution (before ad $) |
| Desktop Users | 1,634,942 | 70% | 3.61% | 59,082 | $ 5,536,521 | $ 93.71 | 48% | $ 2,657,530 |
| Mobile (Phone ) Users | 377,660 | 16% | 0.89% | 3,374 | $ 302,477 | $ 89.65 | 48% | $ 145,189 |
| Tablet Users | 328,919 | 14% | 1.81% | 5,960 | $ 525,513 | $ 88.17 | 48% | $ 252,246 |
| Totals | 2,341,521 | 100% | 2.92% | 68,416 | $ 6,364,511 | $ 93.03 | 48% | $ 3,054,965 |
| Search Traffic | 5/1/14-4/30/15 Search revenues | This is a subset of above (its already in the site traffic) | ||||||
| User Sessions | % of visits | Conv % | Orders | Revenue | Average order | Marketing Margin % | Var contribution pre adv | |
| Organic | ||||||||
| Desk | 650,509 | 70% | 2.34% | 15,222 | $ 1,247,034 | $ 81.92 | 48% | $ 598,576 |
| mobile | 151,534 | 16% | 0.69% | 1,044 | $ 81,059 | $ 77.64 | 48% | $ 38,908 |
| tablet | 121,597 | 13% | 1.30% | 1,581 | $ 132,074 | $ 83.54 | 48% | $ 63,396 |
| Total | 923,640 | 100% | 1.93% | 17,847 | $ 1,460,167 | 48% | $ 700,880 | |
| Paid | ||||||||
| Desk | 248,692 | 70% | 4.68% | 11,630 | $ 979,560 | $ 84.23 | 48% | $ 470,189 |
| mobile | 55,870 | 16% | 2.09% | 1,169 | $ 128,727 | $ 110.12 | 48% | $ 61,789 |
| tablet | 51,693 | 15% | 1.13% | 584 | $ 64,521 | $ 110.48 | 48% | $ 30,970 |
| Total | 356,255 | 100% | 3.76% | 13,383 | $ 1,172,808 | $ 87.63 | 48% | $ 562,948 |
Web P&L
| Internet P&L 5/1/15 - 4/30 15 | $ | % | ||
| Sales | $ 6,364,511 | |||
| Cost of Goods | $ 3,054,965 | 48.0% | hide | |
| Gross Profit | $ 3,309,546 | 52.0% | ||
| $ 104,167 | ||||
| Variable operating costs | $ 254,580 | 4.0% | 0.48 | |
| Marketing Margin | $ 3,054,965 | 48.0% | $ 50,000 | |
| Advertising costs | $ 954,677 | 15.0% | ||
| Contibution | $ 2,100,289 | |||
| Fixed costs | $ 763,741 | 12.0% | ||
| Operating Profit | $ 1,336,547 | 21.0% | ||
| (before Depreciation and taxes … EBITDA) | ||||
| hide | ||||
| Internet P&L 5/1/15 - 4/30 15 | $ | % | ||
| Sales | $ 6,468,678 | |||
| Cost of Goods | $ 3,104,965 | 48.0% | ||
| Gross Profit | $ 3,363,712 | 52.0% | ||
| Variable operating costs | $ 258,747 | 4.0% | ||
| Marketing Margin | $ 3,104,965 | 48.0% | $ 50,000 | |
| Advertising costs | $ 954,677 | 15.0% | ||
| Contibution | $ 2,100,289 | |||
| Fixed costs | $ 763,741 | 12.0% | ||
| Operating Profit | $ 1,336,547 | 21.0% | ||
| (before Depreciation and taxes … EBITDA) |
articles
| Articles | |
| 1 | http://money.cnn.com/2015/04/21/technology/google-mobilegeddon/ |
| 2 | http://www.forbes.com/sites/groupthink/2015/05/15/can-your-business-survive-googles-mobile-geddon/ |
| 3 | https://www.internetretailer.com/2014/10/01/mobile-shoppers-convert-160-more-often-optimized-sites |
| 4 | http://googlemobileads.blogspot.com/2012/09/mobile-friendly-sites-turn-visitors.html |
| 5 | http://codeboxr.com/blogs/top-5-advantages-of-responsive-web-page-design |
| 6 | This is a tool that can rate the Micromark site for its Mobile friendliness |
| https://www.google.com/webmasters/tools/mobile-friendly/ |
site metrics
| E-Commerce Dashboard | |||||||||||||
| Month | YEAR 2015 | DEC 2015 | NOV 2015 | OCT 2015 | SEPT 2015 | AUG 2015 | JUL 2015 | JUN 2015 | MAY 2015 | APR 2015 | MAR 2015 | FEB 2015 | JAN 2015 |
| Visits | 2,305,188 | 204,450 | 191,908 | 189,592 | 170,415 | 175,999 | 163,448 | 160,110 | 165,918 | 186,151 | 238,301 | 225,219 | 233,677 |
| Unique Visitors | 1,655,153 | 151,144 | 140,876 | 135,534 | 124,966 | 126,141 | 118,861 | 112,581 | 119,425 | 134,729 | 164,626 | 157,396 | 168,874 |
| Pageviews | 12,519,387 | 1,106,053 | 1,034,528 | 1,040,233 | 881,789 | 892,106 | 856,235 | 928,575 | 853,914 | 974,785 | 1,280,515 | 1,322,051 | 1,348,603 |
| Pages/Visit | 5.43 | 5.41 | 5.39 | 5.49 | 5.17 | 5.07 | 5.24 | 5.80 | 5.15 | 5.24 | 5.37 | 5.87 | 5.77 |
| Avg Duration | 3:31 | 3:29 | 3:30 | 3:21 | 3:24 | 3:31 | 3:52 | 3:23 | 3:27 | 3:30 | 3:52 | 3:49 | |
| Bounce Rate | 51.60% | 52.53% | 52.10% | 51.06% | 52.81% | 53.33% | 52.60% | 48.54% | 53.07% | 51.68% | 52.90% | 48.45% | 50.11% |
| % New Visits | 59.89% | 63.46% | 62.30% | 59.68% | 61.44% | 59.62% | 60.59% | 57.53% | 58.28% | 59.29% | 57.59% | 57.60% | 61.30% |
| % desk | 65.93% | 65.11% | 66.03% | 66.07% | 66.07% | 65.34% | 66.23% | 66.63% | |||||
| % tablet | 19.74% | 19.91% | 19.20% | 19.69% | 19.89% | 20.09% | 20.08% | 19.33% | |||||
| % mobile | 14.33% | 14.98% | 14.76% | 14.24% | 14.05% | 14.57% | 13.69% | 14.04% | |||||
| mobile +tablet | 33.55% | 34.89% | 33.96% | 33.93% | 33.94% | 34.66% | 33.77% | 33.37% | 34.04% | 32.75% | 32.64% | 32.08% | 32.55% |
| Conversion Rate | 2.84% | 3.01% | 3.21% | 2.61% | 2.68% | 2.66% | 2.89% | 3.39% | 2.62% | 2.58% | 2.80% | 2.99% | 2.63% |
| Orders | 65,370 | 6,152 | 6,152 | 4,947 | 4,566 | 4,687 | 4,724 | 5,423 | 4,355 | 4,808 | 6,674 | 6,736 | 6,146 |
| AOV | $94.45 | $95.53 | $95.53 | $97.97 | $91.96 | $96.87 | $92.37 | $102.60 | $95.49 | $96.87 | $86.91 | $89.22 | $92.05 |
| Revenue/Visit | $2.67 | $2.87 | $3.06 | $2.56 | $2.46 | $2.58 | $2.67 | $3.48 | $2.51 | $2.50 | $2.43 | $2.67 | $2.42 |
| Revenue | $6,155,152 | $ 587,677 | $ 587,677 | $484,679 | $419,893 | $454,026 | $436,351 | $556,396 | $415,869 | $465,774 | $580,037 | $601,014 | $565,760 |
| Month | YEAR 2014 | DEC 2014 | NOV 2014 | OCT 2014 | SEPT 2014 | AUG 2014 | JUL 2014 | JUN 2014 | MAY 2014 | APR 2014 | MAR 2014 | FEB 2014 | JAN 2014 |
| Visits | 2,239,579 | 218,866 | 205,060 | 183,957 | 169,486 | 194,066 | 164,139 | 159,824 | 162,775 | 157,726 | 205,762 | 201,204 | 216,714 |
| Unique Visitors | 1,610,927 | 160,625 | 149,844 | 131,061 | 123,075 | 135,422 | 118,506 | 115,431 | 117,722 | 116,366 | 145,274 | 142,412 | 155,189 |
| Pageviews | 13,080,403 | 1,271,366 | 1,147,289 | 1,082,878 | 946,068 | 1,101,534 | 937,302 | 952,019 | 962,531 | 906,629 | 1,207,627 | 1,220,187 | 1,344,973 |
| Pages/Visit | 5.83 | 5.81 | 5.59 | 5.89 | 5.58 | 5.68 | 5.71 | 5.96 | 5.91 | 5.75 | 5.87 | 6.06 | 6.21 |
| Avg Duration | 3:53 | 3:48 | 3:41 | 3:55 | 3:44 | 3:39 | 3:43 | 3:57 | 3:55 | 3:57 | 4:02 | 4:07 | 4:13 |
| Bounce Rate | 48.42% | 49.28% | 49.30% | 47.56% | 48.97% | 48.53% | 48.56% | 48.19% | 48.49% | 48.97% | 47.11% | 46.53% | 49.57% |
| % New Visits | 59.42% | 62.75% | 61.76% | 59.03% | 59.39% | 57.14% | 59.45% | 59.15% | 59.35% | 60.71% | 57.21% | 57.61% | 59.45% |
| % Mobile | 27.26% | 31.70% | 30.39% | 28.22% | 28.93% | 28.88% | 28.07% | 26.57% | 25.97% | 25.13% | 25.10% | 24.24% | 23.86% |
| Conversion Rate | 3.07% | 3.19% | 2.95% | 3.02% | 2.92% | 2.74% | 2.90% | 3.31% | 3.16% | 3.11% | 3.27% | 3.15% | 3.03% |
| Orders | 68,701 | 6,985 | 6,058 | 5,547 | 4,943 | 5,312 | 4,762 | 5,296 | 5,139 | 4,904 | 6,734 | 6,461 | 6,560 |
| AOV | $92.19 | $94.14 | $89.09 | $100.57 | $96.80 | $90.42 | $99.77 | $94.65 | $89.82 | $91.86 | $83.83 | $88.95 | $90.26 |
| Revenue/Visit | $2.83 | $3.00 | $2.63 | $3.03 | $2.82 | $2.48 | $2.89 | $3.14 | $2.84 | $2.86 | $2.74 | $2.86 | $2.73 |
| Revenue | $6,333,784 | $ 657,572 | $ 539,734 | $557,887 | $478,477 | $480,326 | $475,084 | $501,245 | $461,603 | $450,481 | $564,538 | $574,708 | $592,129 |
| Month | YEAR 2013 | DEC 2013 | NOV 2013 | OCT 2013 | SEPT 2013 | AUG 2013 | JUL 2013 | JUN 2013 | MAY 2013 | APR 2013 | MAR 2013 | FEB 2013 | JAN 2013 |
| Visits | 2,297,499 | 199,645 | 189,956 | 186,553 | 180,978 | 169,825 | 168,220 | 173,373 | 170,214 | 193,788 | 208,175 | 209,245 | 247,527 |
| Unique Visitors | 1,639,731 | 142,630 | 137,991 | 132,255 | 126,941 | 121,366 | 119,598 | 122,756 | 125,167 | 138,637 | 149,862 | 150,121 | 172,407 |
| Pageviews | 13,461,935 | 1,266,481 | 1,147,209 | 1,121,810 | 1,002,353 | 969,195 | 979,525 | 1,039,573 | 935,343 | 1,096,956 | 1,171,978 | 1,206,471 | 1,525,041 |
| Pages/Visit | 5.85 | 6.34 | 6.04 | 6.01 | 5.54 | 5.71 | 5.82 | 6.00 | 5.50 | 5.66 | 5.63 | 5.77 | 6.16 |
| Avg Duration | 3.79 | 4:17 | 4:06 | 04:08 | 03:48 | 04:00 | 03:57 | 04:04 | 03:45 | 03:53 | 03:45 | 03:53 | 04:09 |
| Bounce Rate | 48.70% | 45.20% | 46.76% | 46.95% | 48.28% | 49.13% | 49.15% | 48.64% | 51.98% | 50.79% | 51.42% | 50.24% | 45.90% |
| % New Visits | 59.18% | 59.24% | 60.72% | 57.92% | 56.93% | 59.33% | 58.99% | 58.59% | 61.82% | 59.59% | 60.33% | 59.05% | 57.69% |
| % Mobile | 19.30% | 23.70% | 22.18% | 20.91% | 21.10% | 20.51% | 20.13% | 19.07% | 18.10% | 17.13% | 16.55% | 16.28% | 15.97% |
| Conversion Rate | 3.14% | 3.57% | 2.96% | 3.08% | 3.01% | 3.04% | 3.18% | 3.21% | 2.90% | 3.36% | 3.04% | 3.15% | 3.14% |
| AOV | $94.62 | $97.36 | $90.23 | $102.60 | $86.76 | $98.93 | $93.94 | $100.60 | $94.46 | $93.47 | $91.29 | $89.79 | $95.99 |
| Revenue/Visit | $2.97 | $3.48 | $2.67 | $3.16 | $2.61 | $3.00 | $2.99 | $3.23 | $2.74 | $3.14 | $2.77 | $2.83 | $3.02 |
| Revenue | $6,826,894 | $ 694,839 | $ 506,527 | $589,507 | $472,353 | $509,475 | $502,978 | $559,995 | $466,386 | $608,494 | $576,645 | $592,163 | $747,532 |
| 20833 | 18724 | ||||||||||||
| 23410 | |||||||||||||
| 42134 | |||||||||||||
| Month | YEAR 2012 | DEC 2012 | NOV 2012 | OCT 2012 | SEPT 2012 | AUG 2012 | JUL 2012 | JUN 2012 | MAY 2012 | APR 2012 | MAR 2012 | FEB 2012 | JAN 2012 |
| Visits | 2,080,680 | 208,559 | 198,944 | 196,293 | 180,932 | 169,389 | 141,212 | 151,179 | 150,376 | 156,850 | 158,234 | 180,340 | 188,372 |
| Unique Visitors | 1,442,067 | 147,265 | 141,038 | 136,700 | 124,449 | 113,565 | 98,196 | 102,288 | 104,149 | 110,106 | 111,060 | 123,436 | 129,815 |
| Pageviews | 13,380,413 | 1,271,618 | 1,234,056 | 1,270,494 | 1,100,624 | 1,048,420 | 954,174 | 957,409 | 982,925 | 972,207 | 1,045,472 | 1,199,012 | 1,344,002 |
| Pages/Visit | 6.46 | 6.10 | 6.20 | 6.47 | 6.08 | 6.42 | 6.76 | 6.33 | 6.54 | 6.20 | 6.61 | 6.65 | 7.13 |
| Avg Duration | 04:23 | 04:05 | 04:04 | 04:16 | 04:02 | 04:16 | 04:36 | 04:18 | 04:27 | 04:15 | 04:31 | 04:38 | 04:55 |
| Bounce Rate | 45.79% | 48.18% | 46.78% | 44.87% | 46.47% | 46.11% | 45.16% | 45.62% | 45.84% | 47.16% | 46.05% | 43.99% | 43.23% |
| % New Visits | 56.06% | 58.70% | 58.74% | 56.72% | 55.25% | 56.27% | 55.81% | 53.26% | 55.18% | 56.23% | 56.40% | 54.17% | 56.03% |
| % Mobile | 11.69% | 15.73% | 14.34% | 13.27% | 13.67% | 12.56% | 12.09% | 11.16% | 10.08% | 10.06% | 9.37% | 9.23% | 8.66% |
| Conversion Rate | 3.69% | 3.45% | 3.22% | 3.72% | 3.09% | 3.65% | 4.03% | 3.42% | 3.79% | 3.87% | 3.72% | 4.03% | 4.26% |
| AOV | $97.84 | $98.96 | $100.05 | $106.94 | $96.50 | $97.31 | $96.10 | $103.33 | $106.62 | $86.32 | $93.99 | $88.16 | $99.85 |
| Revenue/Visit | $3.59 | $3.42 | $3.23 | $3.98 | $2.98 | $3.43 | $3.87 | $3.53 | $4.04 | $3.34 | $3.49 | $3.55 | $4.25 |
| Revenue | $7,461,864 | $713,272 | $642,589 | $781,246 | $539,177 | $581,004 | $546,490 | $533,662 | $607,519 | $523,879 | $552,237 | $640,207 | $800,581 |
| Month | YEAR 2011 | DEC 2011 | NOV 2011 | OCT 2011 | SEPT 2011 | AUG 2011 | JUL 2011 | JUN 2011 | MAY 2011 | APR 2011 | MAR 2011 | FEB 2011 | JAN 2011 |
| Visits | 1,742,605 | 154,004 | 159,733 | 153,251 | 125,733 | 146,536 | 127,012 | 140,876 | 143,893 | 134,120 | 173,096 | 155,502 | 128,849 |
| Unique Visitors | 1,207,726 | 109,981 | 112,240 | 107,250 | 89,092 | 99,856 | 88,290 | 94,030 | 99,845 | 93,973 | 116,171 | 105,820 | 91,178 |
| Pageviews | 12,068,602 | 1,075,589 | 1,034,252 | 994,931 | 856,271 | 1,053,694 | 925,370 | 946,786 | 944,510 | 911,168 | 1,152,209 | 1,191,925 | 981,897 |
| Pages/Visit | 6.94 | 6.98 | 6.47 | 6.49 | 6.81 | 7.19 | 7.29 | 6.72 | 6.56 | 6.79 | 6.66 | 7.67 | 7.62 |
| Avg Duration | 04:32 | 04:43 | 04:22 | 04:19 | 04:30 | 04:48 | 04:56 | 04:23 | 04:08 | 04:18 | 04:15 | 04:55 | 04:50 |
| Bounce Rate | 44.12% | 44.01% | 44.72% | 45.56% | 44.53% | 42.40% | 43.49% | 44.43% | 47.13% | 46.06% | 44.21% | 42.01% | 40.91% |
| % New Visits | 55.07% | 58.88% | 55.75% | 56.04% | 56.87% | 54.21% | 55.60% | 51.55% | 54.06% | 55.27% | 52.58% | 53.49% | 56.49% |
| % Mobile | 5.39% | 8.06% | 7.37% | 6.57% | 6.17% | 5.94% | 5.80% | 5.20% | 4.77% | 4.16% | 3.82% | 3.61% | 3.18% |
| Conversion Rate | 4.02% | 4.38% | 3.60% | 3.20% | 3.61% | 4.41% | 4.51% | 4.01% | 3.67% | 3.37% | 3.74% | 5.00% | 4.69% |
| AOV | $93.51 | $101.68 | $94.09 | $97.13 | $95.26 | $98.99 | $96.99 | $94.49 | $84.12 | $90.62 | $90.49 | $83.63 | $94.62 |
| Revenue/Visit | $3.76 | $4.46 | $3.39 | $3.11 | $3.44 | $4.37 | $4.37 | $3.79 | $3.08 | $3.06 | $3.37 | $4.18 | $4.44 |
| Revenue | $6,525,829 | $686,858 | $541,495 | $476,611 | $432,522 | $640,362 | $555,042 | $533,920 | $443,190 | $410,407 | $583,334 | $649,998 | $572,090 |
| 3.79 | 4.17 | 4.06 | 4.08 | 3.48 | 4.00 | 3.57 | 4.04 | 3.45 | 3.53 | 3.45 | 3.53 | 4.09 | |
customer rebuy
| 12 month Cust File (x1000) | 9/1/14 to 8/31/15 | % | 2014 final | % | 2013 | % | 2012 | % | 2011 |
| 12 month file retained customers | 20.1 | 34.0% | 21.0 | 34.3% | 23.1 | 36.0% | 23.9 | 34.7% | |
| 13+ reactivated customers | 16.3 | 27.6% | 16.3 | 26.6% | 15.5 | 24.1% | 17.4 | 25.3% | |
| Total existing | 36.4 | 61.6% | 37.3 | 60.8% | 38.6 | 60.1% | 41.3 | 60.0% | |
| New to file | 22.7 | 38.4% | 24.0 | 39.2% | 25.6 | 39.9% | 27.5 | 40.0% | |
| Total 12 month file | 59.1 | 100.0% | 61.3 | 100.0% | 64.2 | 100.0% | 68.8 | 100.0% | 66.7 |
| 12 month Retention rate (rebuy) | 32.8% | 32.7% | 33.6% | 35.8% | |||||
| 12 month file change from LY | -3.6% | -4.5% | -6.7% | 3.1% | |||||
| -14% | from 2012 | ||||||||
| Total 12 Month w/o foreign | 53.1 | 55.3 | 58.2 | 62.8 | |||||
| Foreign | 6.0 | 6.0 | 6.0 | 6.0 | |||||
| If you do not understand this … don't stress … its not necessary. Provided as extra information | |||||||||
| 12 month file means ... how many unique customers have bought in last 12 monthes | |||||||||
| Rebuy rate is the % of people that bought last year that bought again this year |
Instructions
| Assignment: Formulate a position on the decision as to whether to make the $50,000 investment in the development of a mobile friendly web site. Defend your decision using the data, assumptions, and financial calculations. |
| Show your analysis (numbers). Explain your assumptions. Project the financial impact of making the investment. |
| Supporting data provided in the Tabs below |
| Not more than one page of writing … but as many numbers as you’d like. |
| Situation: The Micromark web site currently is not mobile friendly. Customers that visit the site via mobile devises need to “pinch” the screen to see what is on the page. Technology exists that can optimize the user experience for the devise the customer is using. |
| I have received an estimate from our IT service that maintains our site platform. The cost of a state of the art “responsive design” platform is $50,000. |
| I have provided the following information: |
| •Historical Web Metrics |
| •Google search traffic |
| •Web P&L |
| •Articles |
| •Micromark retention rates |
| Ask me any questions |
