Business Context

StyleCart, a mid-market ecommerce app for fashion and accessories, ran a 4-week paid marketing campaign across Meta, Google, and email to promote its spring collection. The CMO wants a clear KPI framework to determine whether the campaign was successful beyond just traffic growth.

Metric Scenario

During the campaign, StyleCart spent $240,000 and generated 3.2M impressions, 128,000 clicks, and 41,600 landing page sessions. Of those sessions, 6,240 users added a product to cart, 2,080 completed a purchase, and 1,040 were first-time buyers. Average order value was $82, producing $170,560 in directly attributed revenue. Among first-time buyers acquired during the campaign, 31% made a second purchase within 60 days, compared with a historical benchmark of 26%. Email signups increased by 9,600, and campaign-driven users had an average 7-day app engagement rate of 22% versus a baseline of 18%.

Leadership is asking whether the campaign was efficient, whether it attracted high-quality users, and which KPIs should be treated as primary success metrics versus supporting diagnostics.

Requirements

1. Define the primary KPIs you would use to evaluate this campaign, including at least one acquisition, one conversion, one engagement, and one retention metric.
2. Calculate the core campaign KPIs using the data provided and explain what each indicates.
3. Identify which KPI(s) should be considered leading indicators versus lagging indicators.
4. Explain how you would judge success if short-term revenue is below spend but downstream retention is improving.
5. Recommend how to segment or decompose the campaign results to diagnose performance differences.

Data Available

• ad_impressions_clicks: channel, campaign_id, date, impressions, clicks, spend
• web_sessions: user_id, session_id, landing_page, source, session_start, add_to_cart_flag
• orders: order_id, user_id, order_timestamp, revenue, is_first_order, campaign_id
• user_activity: user_id, date, app_sessions, product_views, purchases
• crm_signups: user_id, signup_date, acquisition_source, email_opt_in