Demo questions

A large and well-known grocery group has refined its CRM database, by making it more robust and including information of past and recurring customers. They are, however, facing some business challenges in the past 9 months. In order to attract new prospects, they had a higher spend on paid campaigns compared to historically, which led to a 20% growth in total sessions. Their conversion rate grew 15%, due to a drop of 5% in their overall product prices. However, the number of items per order declined by 24%.

Consider that this market was projected to grow approximately 1% in this same period. Please select the 3 statements below that most accurately fit this operation.

I – Even though they are experiencing a drop in their items per order, the growth in conversion rate and sessions is enough to make their revenue increase more than the market, which indicates that the strategy is being successful.
II – The strategy is successful in attracting new customers to the CRM database. However, they might need to reevaluate as soon as possible, as the paid campaigns investment is not being offset by their revenue growth, which could harm the business profitability in the long term.
III – Leveraging artificial intelligence initiatives using customers’ previous behaviors to recommend new items could be a successful action to be taken.
IV – The company should invest in SEO strategies, such as increasing its authority. By enhancing their organic traffic, they would be able to reduce their investment in paid campaigns in the short term, thus protecting their margin.
V – Adapting their website for a more customer-centric approach allows the user to feel more comfortable throughout the entire journey. This would be an important strategy to increase the conversion rate.
VI – Progressive discounts for higher AOVs and the creation of bundles for this particular scenario would be key activities to overcome their challenge.

Pick the option with valid statements.
A) I, III and IV
B) I, IV and VI
C) I, V and VI
D) II, IV and V
E) II, III and VI

A company with $40,000,000 in yearly net revenue and 50% of COGS is adding a new business unit to its operations. To start this new unit they are planning to invest 5% of their current business gross profit. According to their projections for this new business unit, they expect $1,600,000 in net revenue in the first year, with a growth of 20% YoY for the first 5 years. The COGS of this new unit is expected to be the same as the current core business and the expenses related to this new business unit account for 20% of its net revenue in all years.

Taking that into account, how long would it take for them to pay back the initial investment? Please do not consider any interest rate, taxes, depreciation, and amortization.

A) The investment is most likely paid back at the beginning of the first year.
B) The investment is most likely paid back at the end of the first year.
C) The investment is most likely paid back at the beginning of the second year.
D) The investment is most likely paid back at the end of the second year.
E) The investment is most likely paid back after the third year.

Following an ecommerce platform migration, a fashion company experienced a sharp increase in bounce rates and a sharp drop in conversion rates, affecting 30% of their paid campaigns. Considering that their volume of sessions remained the same, define the 3 best alternatives to diagnose this scenario and take actions to tackle the challenges in the short term.

I – Platform migrations are accompanied by front end modifications. The interactive widgets, images, and graphic elements are now heavier and unattractive to the audience, leading to a performance drop. The company should perform A/B testings compared to the layout prior to migration, to evaluate the best performing settings.
II – When setting up the campaigns, the company made incorrect adjustments in the target audiences that they were segmenting. They should analyse the previous campaigns to redirect the budget to the correct audience.
III – The issue is related to a low page load speed, which is a common error in low performing ecommerce platforms, due to the nature of their architecture. The company should either migrate back or implement tools to monitor speed performance.
IV – Platform migrations are accompanied by huge operational setup workloads. Therefore, some errors occur in simple URL redirections of the campaigns, sometimes leading to broken links, causing a drop in performance. To tackle this, the company should evaluate all associated links and perform new redirects.
V – For such performance issues, when the products were created in the catalog, the company could have missed the inclusion of inventory or integrations, leading to stockout at the product page. This would be solved by analysing the campaigns experiencing this issue and adjusting the products inventory.
VI – A possibility is that the landing pages of the campaigns do not match with the communication sent, leading to incorrect products or prices. This would lead to a bad experience, thus increasing bounce rate and decreasing conversion. To tackle this, all assets should be reviewed and correctly set according to the products offered.
VII – A common mistake in platform migrations is the incorrect configuration of payment options, leading to unfeasible or unattractive methods. To overcome this, the company should add new methods that are more likely to be utilised by the target audience.

Pick the option with the correct hypotheses and actions to be taken.
A) I, II and III
B) I, IV and V
C) II, V and VII
D) III, IV and VI
E) IV, V and VI

Consider a global electronics retail store that operates from a single domain eletronicsretail.com, offering multiple languages and has had its organic traffic share decrease over the past 6 months. Review the below statements regarding actions to take to overcome this business challenge.

I – It is crucial to understand how much of the total traffic comes from each sales region. Once this is analysed, you should perform additional paid media campaigns in the regions with the lower traffic share, aiming to increase their conversion.
II – To positively impact your SERP ranking, authority and traffic share, you should build a content strategy that develops linkable content including articles and infographics.
III – In order to diagnose the operation, you should take a deeper look in all of the key pillars of Search Engine Optimisation, i.e. Mobile Score, URL Structure and Website Rendering Speed.
IV – To improve organic traffic share using SEO best practices, you should aim towards a longer page load time, by adding high quality videos and images, which would improve content.
V – In order to improve SERP ranking, you should discourage big players, i.e. manufacturers, from redirecting links to your website. This is an artificial way to improve ranking, therefore being unsuccessful in the long term even if results are seen in the short term.
VI – Developing a blog strategy to generate regular content aims to strengthen domain authority and improve SERP ranking, thus being an important strategy to increase organic traffic share.
VII – To improve SERP ranking of a product page selling a phone, a better URL structure would be electronicsretail.com/en/phone instead of electronicsretail.com/phone-en

Pick the option with the correct statements.
A) I, II and V
B) II, III and VI
C) II, VI and VII
D) III, IV and V
E) III, VI and VII

An electronics retail company has a long-term omnichannel strategy and has heavily invested in brick-and-mortar stores with the addition of the fulfillment modalities of ship-from-store and pick-up in store. Currently, their online revenue represents 12% of their business and they do not have a distribution centre, hence all ecommerce transactions are shipped directly from the stores. A few of these stores have a negative EBITDA and all of the stores are situated in the same geographical region. The stores have different sizes and the cost per square metre (already including inventory, rent, staff, etc) is the same throughout the whole region. Which of the following statements is the best to improve the operational efficiency of the company?

A) Close all stores with negative EBITDA, regardless of each of their revenue shares for each fulfilment modality.
B) Build one distribution centre for the region and utilise the stores as product demo stores.
C) Reduce the size of the stores with negative EBITDA and increase the size of the other stores, as a way to direct additional revenue to them, thus increasing profit.
D) From the stores with negative EBITDA, transform the ones with a high revenue share from ship-from-store into dark stores and close the others.
E) Transform all stores with negative EBITDA into dark stores, regardless of each of their revenue shares for each fulfillment modality.