The method of quantifying the advertising effect from a macro perspective is the “quadrant analysis method for multiple advertising groups”, and operators can apply this method to the management and data analysis of the operation team. When an operator has been engaged in Amazon cross-border e-commerce operations for two or three years, the team he manages will generally operate multiple stores at the same time. At this time, how to conduct a unified and intuitive analysis of the data of these stores has become one of the difficult problems for many middle and senior managers. In this section, the “quadrant analysis method” will be applied to the management of the operation team.
Generally speaking, the indicators of Amazon stores are the following three points.
1 Profit margin.
2 Sales.
3 Single order cost.
The first two points are easy to understand, but the third point cannot be calculated intuitively. This is because the cost of a single order involves product cost, logistics cost, labor cost, etc., so the total cost needs to be calculated, and then the total cost is divided by the order volume. In this way, the cost of a single order can be calculated.
After calculating the above three values, set the profit margin as the horizontal axis, the cost of a single order as the vertical axis, and the sales volume as the area of the bubble in the bubble chart (the larger the sales volume, the larger the area). After substituting the specific sales data of each store, the chart is obtained.
Since the “quadrant analysis method” is to be used, the operator needs to divide the chart into 4 quadrants.
Combining the attributes of each quadrant, the operation team manager can know that the value of quadrant I is the lowest, that is, the store in quadrant I has the worst operating status, while the store in quadrant V has a better operating status. Note that a better operating status does not mean that there is no need for optimization. It is also necessary to further consider the sales volume. Then the team manager can choose two management methods: optimization methods or adjustment methods.
1. Optimization methods
The optimization methods are consistent with the advertising optimization direction.
In short, the operation team manager should optimize the stores in quadrants I, I, and sub-quadrants to quadrant V as much as possible through some operation countermeasures, so as to improve the team’s operating efficiency.
2. Adjustment means
The biggest difference between adjustment means and optimization means is that the focus is placed on sales, that is, the store adjustment method of “increasing revenue and reducing expenditure” is adopted. In the above case, the sales of stores in quadrants I and V are adjusted respectively.
Assuming that the stores in quadrant I are all old stores, although the stores have a certain sales volume, because the stores themselves have a large number of negative reviews, and the quality of the products sold is also average, then for such stores, the operation manager can also directly choose not to optimize, that is, “abandon” the store.
At the same time, for stores in quadrant V, the operation manager does not need to optimize their existing operation model too much, but can focus on the expansion of sales, such as adding variants of existing popular products (adding a color or increasing the size), trying on-site marketing or off-site traffic diversion, etc.
For stores in other quadrants, optimization means are still the main means, supplemented by adjustment means, until all stores can reach a balanced state of development.