Marketing Data & Analysis Problem Worksheet

This PDF contains 25 problem sets (75 total) each for three key marketing areas: Acquisition Marketing, Retention Marketing, and eCommerce. Each section is designed to challenge and enhance your understanding of critical metrics and strategies in these domains. An answer sheet follows the problem sets, providing detailed explanations, calculations, and formulas for each problem.

Sections Included

1. Acquisition Marketing Problem Sets

• Purpose: These problem sets focus on key metrics and strategies used to acquire new customers, including cost-per-acquisition, conversion rates, and return on ad spend.
• Example Problems:
  • Calculate the Cost-per-Acquisition (CPA) given a total ad spend and number of new customers acquired.
  • Determine the conversion rate from visitor to customer for a given campaign.
  • Evaluate the effectiveness of different acquisition channels based on their ROAS (Return on Ad Spend).

2. Retention Marketing Problem Sets

• Purpose: These problems address metrics and strategies related to keeping existing customers, such as churn rate, customer lifetime value (CLV), and retention rates.
• Example Problems:
  • Calculate the churn rate given the number of customers lost and the total number of customers at the beginning of the period.
  • Determine the Customer Lifetime Value (CLV) based on average order value, purchase frequency, and customer lifespan.
  • Evaluate the impact of a new loyalty program on retention rates.

3. eCommerce Problem Sets

• Purpose: These problems cover essential eCommerce metrics and strategies, including average order value (AOV), cart abandonment rate, and revenue per visitor.
• Example Problems:
  • Calculate the Average Order Value (AOV) given total revenue and number of orders.
  • Determine the Cart Abandonment Rate based on the number of carts created and abandoned.
  • Assess the potential revenue lost due to cart abandonment and suggest strategies to mitigate this issue.

Answer Sheet

The answer sheet for each problem set includes:

1. Formulas: Each problem includes the relevant formula needed for calculations. This ensures you understand the mathematical relationships between different metrics.
2. Calculations: Step-by-step calculations are provided to show how each formula is applied to solve the problem. This helps in understanding the process and ensures accuracy in your calculations.
3. Explanations: Each answer is followed by a detailed explanation that contextualizes the result within real-world marketing scenarios. This includes interpreting the results and understanding their implications for marketing strategy.

Example Answer Sheet:

Problem 1 (Acquisition Marketing):

• Question: Calculate the Cost-per-Acquisition (CPA) if the total ad spend is $5,000 and 500 new customers are acquired.
• Formula: CPA = Total Ad Spend / Number of New Customers
• Calculation: CPA = $5,000 / 500 = $10
• Explanation: The CPA of $10 indicates that it costs $10 to acquire each new customer. This metric helps evaluate the efficiency of your acquisition campaigns and compare it against your target CPA.

Problem 1 (Retention Marketing):

• Question: Calculate the churn rate if you started with 1,000 customers and lost 100 customers during the period.
• Formula: Churn Rate = (Number of Customers Lost / Number of Customers at Start) × 100
• Calculation: Churn Rate = (100 / 1,000) × 100 = 10%
• Explanation: A churn rate of 10% means that 10% of your customers were lost during the period. Monitoring this rate helps assess the effectiveness of retention strategies and identify areas for improvement.

Problem 1 (eCommerce):

• Question: Determine the Cart Abandonment Rate if 1,500 carts were created and 600 were abandoned.
• Formula: Cart Abandonment Rate = (Number of Abandoned Carts / Total Carts Created) × 100
• Calculation: Cart Abandonment Rate = (600 / 1,500) × 100 = 40%
• Explanation: A Cart Abandonment Rate of 40% indicates that 40% of carts were abandoned. This high rate suggests potential issues in the checkout process that need addressing to improve conversion rates.

This structured approach ensures that each problem set is not only a practice exercise but also a learning opportunity, with comprehensive answers that foster a deeper understanding of key marketing concepts.