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The Incentive Recommendation Dashboard
The Incentive Recommendation Dashboard serves as a monitoring screen for the feature.
Please note that if your sales data is outdated, sending of campaigns with incentives is not possible, since we cannot calculate buying probability properly.
The Dashboard is divided into four sections:
- Campaign revenue - displaying the revenue attributed to campaigns using Incentive recommendation, on a daily break-down.
- Estimated savings on incentives - summarizing the savings achieved by using incentives.
- Lifecycle overview - displaying the overall purchases made by customers in different lifecycles.
- Engagement - displaying a breakdown of messages, opens, clicks and purchases.
For more information on the metrics used in the widgets, see Incentive Recommendation Metrics.
How do we calculate the numbers on the dashboard?
The first step is to define when is a purchase attributed to an Incentive Recommendation campaign.
The method we use is similar to to what Predict uses. First we examine whether there were any clicks within a 7-day period before the purchase. If not, then the purchase is not attributed to any campaign. If there were clicks, the closest one to the purchase is considered and it is attributed to that campaign. After all attributing has been done, we select the ones that used Incentive Recommendation.
The Campaign Revenue widget
In the Campaign Revenue widget, the following data is displayed:
- All revenue - This is the sum of all purchases attributed to the incentive campaign launched on a given day.
- Smart incentive revenue - If measurement is turned on, this is the sum of all revenue coming from contacts who received incentives distributed by the algorithm. If measurement is off, this is the same number as All revenue. For more information on measuring Incentive Recommendation campaigns, see Measuring the effectiveness of smart incentives.
- Control group revenue - If measurement is turned on, this is the sum of all revenue from contacts receiving the benchmark (control group) incentive set by the customer.
- Messages sent - The sum of all messages sent.
The Estimated Savings On Incentives widget
In the Estimated Saving On Incentives widget the following data is displayed:
- Savings - We calculate this at contact level. When a purchase occurs, we compare the price the contact paid to the the price they would have paid had they received the highest possible incentive in that campaign. The difference between these two figures is the saving. All savings for a given day are summed up and displayed.
- Messages sent - The number of all messages sent.
Here are two examples:
Example 1: Based on the sales amount, we presume that the incentive was used.
In this case we presume that the incentive was used. We calculate a theoretical full sales amount, that is the sales amount plus the discount the customer received from the incentive. Using this we calculate the discounted price with all incentives that the customer could have used (having a minimum cart value less than the theoretical full sales amount). The saving is the difference between the actual sales amount and the minimum of the theoretical discounted sales amounts.
Example: the customer gets a $10 discount if purchasing above $75. The other two incentives in the campaign: discount of $5 above $50 and $20 above $100.
Let's assume we see that the customer makes a purchase with a sales amount of $95. We assume this is the discounted price. The theoretical full sales amount in this case is $105. This is above the $75 limit so we assume that the customer used the incentive. From the other incentives the customer could have used both, since their minimum cart values are below the theoretical full sales amount. The discounted theoretical prices are $100 for the $5 incentive and $85 for the $20 incentive. Thus, the saving is $95 - $85 = $10.
Example 2: Based on the sales amount, we presume that the incentive was not used.
In this case we presume that the incentive was not used. Thus, the sales amount is undiscounted and it equals the theoretical full sales amount. From this point the calculation is the same as in the first case. In practice this means that the incentive in this case acts as a trigger for purchase without costing anything, just like a zero incentive.
Example: same as above, except that the sales amount observed was $60. In this case the theoretical full sales amount would be $70, which is below the minimum cart value limit. Thus we are sure that the incentive was not used. The theoretical full sales amount is then $60.
There is one incentive that she could have used: $5 above $50. Had she received this incentive the sales amount would have been $55. This means that the saving is $5 in this case.
The Lifecycle Overview widget
In the Lifecycle Overview widget the following data is displayed:
Here we summarize all purchases of customers, based on their current lifecycle. For more information, see Customer Lifecycle Report.
Please note that the numbers above are calculated based on what we know about the customer at the moment of the purchase. In some rare cases it is possible that some purchase data are uploaded and taken into consideration after we determine these numbers, which may cause some distortion in this data.
The Engagement widget
In the Engagement widget the following data is displayed:
- Message deliveries - This number reflects all messages delivered to contacts' inboxes.
- Opens - This is the number of all message opens.
- Clicks - This is the number of all clicks in the messages.
- Purchases - This is the number of all purchases attributed to the clicks.