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Chap 10 ● Hits ( trường huy) ○ Definition: A count of the number of files served to visitors on the Web Because Web pages often contain multiple files, hits is a function not only of pages visited, but also of the number of files on each page ○ Formula ○ Purpose: To assess Web site traffic and activity Vinfast website served files per page and generated 500,000 pageviews => Hits = * 500,000 = 2.500,000 (files) The result indicates that the website served a total of 2.5 million files or "hits" during the time period in question Hits are a measure of server requests for specific files, such as images, scripts, and other resources that make up a web page However, it is important to note that hits are not always a reliable metric for web traffic analysis because a single page view may generate many hits, particularly for pages with many images and other resources Therefore, other metrics such as page views, unique visitors, and session duration may provide a more accurate picture of web traffic To improve web traffic analysis, it is recommended to use a combination of different metrics and tools, such as Google Analytics, to gain a deeper understanding of user behavior and engagement on a website This can help to identify areas for improvement and optimize website performance to better meet user needs and achieve business goals ● Pageviews ○ Definition:: The number of times a specific page has been displayed to users ○ Formula ○ Purpose: To assess Web site traffic and activity There are 500,000 hits on Vinfast website that serves five files each time a page is accessed => Pageviews = 500,000/5 = 100,000 (views) It means that the Vinfast website had 500,000 files served, but since each page view involves accessing five files, the actual number of pages viewed was 100,000 This metric, known as pageviews, is commonly used to measure the number of times a page is viewed on a website To make the most out of this metric, Vinfast could analyze the pages with the highest number of views and determine what content or features are driving traffic to the website This could inform their content and marketing strategies, as well as any necessary improvements to the user experience to increase engagement and retention Additionally, they could use this metric to track the effectiveness of their marketing campaigns, as an increase in pageviews could indicate successful promotions or advertising efforts ● Rich media display time and interaction rate (trường huy) ● Cost per Impression, Cost per Click, and Cost per Order ○ Formula Vinfast online advertising campaign for the Vinfast lux a2.0 and lux sa2.0 cost 20 billion and genereted 10 millions impressions Cost per Impression = 20,000,000,000 VND / 10,000,000 impressions = 2000 (VND) This led to 500,000 click Cost per Click = 20,000,000,000 VND / 500,000 = 40,000 (VND) Only per 100 people who clicks finally purchased the product Cost per order = 20,000,000,000 / 5000 = 4,000,000 (VND) ● Visits, Visitors, and Abandonment ○ Definition: ■ Visits: measures the number of sessions on the Web site ■ Visitors: measures the number of people making those visits ■ Abandonment Rate: This measures the percentage of carts that were abandoned before completion The percentage of shopping carts that are abandoned Vinfast found that of the 10,000 customers who loaded the Batteries for Electric VF9 car into their electronic baskets, only 9,000 actually purchased Calculate Abandonment Rate Abandonment Rate = (10,000 - 9,000) / 10,000 Abandonment Rate = 1,000 / 10,000 Abandonment Rate = 0.1 or 10% Therefore, the Abandonment Rate for the Vinfast batteries for Electric VF9 car is 10% This means that 10% of the customers who added the product to their electronic baskets did not complete the purchase ● ● ● Prospect Lifetime Value ○ Prospect lifetime value is the expected value of a prospect It is the value expected from the prospect minus the cost of prospecting ○ Purpose: To account for the lifetime value of a newly acquired customer (CLV) when making prospecting decisions Formula ● Arcording to 2022 report, VinFast Fadil has sold 10,000 cars with an average price of 500 million Vietnam dong (VND) per car, the total revenue generated from these sales would be: Total Revenue = 500 million VND x 10,000 = 5,000,000,000,000 VND From user's experiences, we keep our car for years and spends an average of 15 million VND per year on maintenance and repairs This means that the average we will spend a total of 75 million VND on maintenance and repairs over the course of their ownership So Customer Lifetime Value = (Average Annual Revenue per Customer - Average Annual Cost per Customer) x Average Customer Lifespan Customer Lifetime Value = [(500 million VND / years) - 15 million VND] x years Customer Lifetime Value = (100 million VND - 15 million VND) x years Customer Lifetime Value = 425 million VND Therefore, the customer lifetime value for VinFast Fadil is 425 million VND per customer VinFast could focus on improving customer satisfaction and loyalty through initiatives such as providing excellent customer service, offering personalized promotions, and implementing loyalty programs By retaining customers and building brand loyalty, VinFast can increase the likelihood of repeat purchases and referrals, ultimately increasing the prospect lifetime value ● Acquisition versus retention cost ○ The firm’s average acquisition cost is the ratio of acquisition spending to the number of customers acquired ○ The average retention cost is the ratio of retention spending directed toward a group of customers to the number of those customers successfully retained ○ Purpose: To determine the firm’s cost of acquisition and retention ● Formula VinFast spent 1,000,000,000vnđ on marketing and advertising campaigns and acquired 12,000 new customers as a result The company also spent 550,000,000vnđ on customer retention programs and was able to retain 70% of its existing customer base, which equates to 8400 customers So the acquisition cost per customer would be: Acquisition Cost per Customer = 1,000,000,000 VND / 12,000 = 83,333.33 VND VF spent an average of 83,333.33 VND to acquire each new customer The retention cost per customer would be: Retention Cost per Customer = 550,000,000 VND / 8,400 = 65,476.19 VND Therefore, VF spent an average of 65,476.19 VND to retain each existing customer Comparing the two costs, we can see that the retention cost per customer is lower than the acquisition cost per customer This suggests that VF may benefit from investing more in customer retention programs to further reduce its overall customer acquisition costs and Investing more in customer retention programs can help the company reduce its overall customer acquisition costs and increase profitability over time