Problem
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
- Define the primary KPIs you would use to evaluate this campaign, including at least one acquisition, one conversion, one engagement, and one retention metric.
- Calculate the core campaign KPIs using the data provided and explain what each indicates.
- Identify which KPI(s) should be considered leading indicators versus lagging indicators.
- Explain how you would judge success if short-term revenue is below spend but downstream retention is improving.
- Recommend how to segment or decompose the campaign results to diagnose performance differences.
Data Available
ad_impressions_clicks: channel, campaign_id, date, impressions, clicks, spendweb_sessions: user_id, session_id, landing_page, source, session_start, add_to_cart_flagorders: order_id, user_id, order_timestamp, revenue, is_first_order, campaign_iduser_activity: user_id, date, app_sessions, product_views, purchasescrm_signups: user_id, signup_date, acquisition_source, email_opt_in
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