Business Context

NovaCart, a mid-market ecommerce app for home goods, ran a 6-week paid marketing campaign across Meta, Google Search, email, and influencer channels to grow new customers ahead of a seasonal sale. The CMO says the campaign generated strong traffic, but finance is questioning whether it created profitable growth.

Metric Scenario

During the campaign, NovaCart spent $480,000 and generated 2.4M impressions, 96,000 clicks, 18,200 app installs, 11,400 product detail views, 4,100 add-to-carts, 1,650 first purchases, and 620 repeat purchases within 30 days. Average order value for first purchases was $72, gross margin was 38%, and projected 12-month LTV for acquired customers is $118. Baseline monthly site conversion before the campaign was 2.1%; campaign traffic converted at 1.7%. Email drove the highest conversion rate (3.8%) but low scale, while influencer traffic had high click-through (6.2%) and the lowest purchase conversion (0.9%).

Stakeholders want a clear recommendation on which metrics matter most, how to prioritize them, and whether the campaign should be scaled, redesigned, or cut.

Requirements

1. Define the most important metrics for evaluating this campaign across acquisition, conversion, engagement, and retention.
2. Identify which metric should be the primary success KPI and which should be guardrails.
3. Calculate and interpret at least 5 campaign metrics using the data above.
4. Decompose performance by channel and funnel stage to explain where value is being created or lost.
5. Recommend 3 concrete next steps for the next campaign cycle.

Data Available

• ad_spend_daily: channel, campaign_id, date, spend, impressions, clicks
• web_app_funnel_events: user_id, session_id, channel, install_flag, product_view_flag, add_to_cart_flag, purchase_flag, order_value
• customer_orders: user_id, order_id, order_date, order_value, gross_margin
• retention_cohorts: acquisition_channel, cohort_week, repeat_purchase_30d, repeat_purchase_90d, projected_ltv