How would you define success for Facebook Shops?

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How would you define success for Facebook Shops?

Asked at Meta (Facebook) over a year ago

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rahul_g · Answer 1 · 2021-03-28T08:57:33+0000

Facebook execution question: How would you define success for Facebook Shops?

Clairifcation

What is Facebook shops?

Powers the ecommerce experience on IG and Facebook, allows you to discover product on platform and then purchase them off facebook/IG(usually users go to the respective brands site for purchase)

Launched about a year ago.

Small/large business both can use them.

it's a 2 sided marketplace

Supply: business selling on FB

Demand: user's browsing shops/looking to purchase

Since its a nascent product success would be focussed towards growth - more so sustainable growth , given Facebook's reach growth is not a major concern however given this is a new product you ideally want to measure - product - market fit

User journey

Buyer

- Opens FB or IG app

- Discovery a shoppable product on a post

- Clicks on post

- Discovers catalogue

- Finds something to buy and then goes to brand site to transact

- experience on brand site can vary so conversion can vary as well

Seller

- Sets up shop on FB

- Keeps catalogue updated

- Sees customers coming

- Adds more catalogue if traffic is enough

buyer primary metric

From an E2E perspective the success metric for Buyer should capture growth(user adoption) and retention both so I would want to track

- Number of purchase intent clicks - unique users and absolute (since actual transaction if happening off FB/IG)

- Number of purchase with FB/IG attribution (if available however this would not be primary since experience can vary from site to site so wont be a consistent way of benchmarking)

Secondary

- Returning users for FB shop ( came back to shop on FB again) to ensure growth has necessary retention

What I considered but didn't finalise

- GMV as a primary metric: It captures the $ side of things however doesnt necessarily imply user growth - GMV can creep up with users shrinking + goal is adoption right now , not GMV growth

- Traffic browsing such listings: It again is a vanity metric since its not a representation of how much actual traffic is being sent to seller's site

Seller primary metric

Similarly for sellers I want to ensure sustainable growth - for a seller it means conversion however its a bit tricky since each seller's site can technically have a different experience and hence conversion can vary.

More so the goal is adoption and conversion is not the right metric

Similarly Traffic is a vanity metric since even with a lot of traffic you can have low purchases (due to conversion)

Primary

- Number of purchases that are attributed to FB ( if this is not available then number of click traffic being sent to partner site)

Secondary

- Number of listings active/seller /total listing growth weekly - this is a leading incicator of if businesses are finding value or not , it they are not -this number will start plateauing

Tushar · Answer 2 · 2021-06-13T20:57:03+0000

First, i would like to validate my understanding of FB shops.

It is a free feature embedded in the Facebook app that allows businesses to personalize their product catalog, interact with customers thru messenger/Instagram and make a sale. It helps provides businesses with deep insights/analytics of how their products are doing. Does that sound good? IVR: Yes

Clarify: When you say I am PM for shops, I am assuming that I am responsible for all platforms and geography as USA? IVR: Yes

Any specific category of products who want me to focus upon. IVR: All

Approach: I will start with the company's mission and how shops fits into it. Analyze the market, choose a goal and then look at the users, their motivation behind using shops, journey and then dive into metrics. How does that sound? IVR: Pls continue

Mission: FB mission is to build communities and cultivate meaningful conversations among people. Shops provide SMB's to make their products available to consumers and helping the businesses flourish in both regular and challenging times. So it complements Fb overall mission to build stronger communities

Analyze Market: Shops is a free feature for SMB's. Fb makes money thru commission on sold products and ad revenue that comes in from businesses as they set up campaigns for their products. Marketwise i see shopping on snap, Venmo but not sure if they allow curating catalog. There is companies like shopify and bigcommerce, that allow in doing so but reach is completely dependant upon the business as they set up their own website/portal.

As shops is relatively new feature in FB app, I would like to focus on adoption and engagement. Does that sound good?

Users:

businesses: they will use shops to sell their products quickly
consumers

I would want to focus on businesses, as they need to take an action for using shops and the feature exclusively is built for helping them.

Journey: Enroll in shops --> download commerce manager--> curate content --> interact with customers ---> make sale ---> look at analytics dashboard and improve targetting/pricing

Metrics:

Awareness
- #/% of businesses who are aware of shop feature from businesses who have pages on FB: This can be achieved through shop feature visits (marketing emails/organic on FB)
Acquisition:
- #/% of businesses enrolled in shops (DWM)
- #/% of enrolled businesses who downloaded commerce manager (DWM)
Activation:
- #/% of businesses who curated and submitted at least one product (DWM)
Engagement
- #/% ^ in products curated on shops (DWM)
- Average # of products per business curated on shops (DWM)
- #/% ^ in msgs sent + received with customers for products in shops (DWM)
- Median time to sell a product: Not taking average because some high ticket items make take long time and may skew the average
Revenue
- Gross Merchandising value (DWM)
- #/% ^ in products sold (DWM)
- Median $ value of product sold
Satisfaction
- NPS rating

Looking at these metrcis, I would choose my north star as "Median time to sell a product" and should be low because it contributes very heavily towards the impact of the feature. Secondary Metric would be "Average # of products per business D/W/M" curated on shops.

Counter metric: Return rate of the products - if % is increasing it could lead customers to loose interests in products on FB and can even potentially push them away from Fb platform.

Gaming metric: % ^ in customer complaints - businesses may curate catalog that is attractive (product/pricing), but the quality is much lower than displayed. I would also look at ensuing quality check by banning businesses who do so and doing preliminary check before exposing their catalog to customers (difficult to do operationally)

Thank you. Please provide feedback.

Nitnan · Answer 3 · 2022-06-25T05:26:23+0000

Facebook execution question: How would you define success for Facebook Shops?

Product: This should be a module within facebook that allows for buyers to create products, set the branding, market it to the community of users, sell and get paid. In a nutshell it is a ecommerce within Facebook

Users:

Buyers

Sellers

Value Proposition:

Seller gets a tool that is felixble enough to help him list his products and reach to a larger community and thereby increase the probability of selling the goods faster and for a much better price

Buyer: Being within facebook it lets them to browse thought and get to see a lot of products of their interest. They also get to see a lot of products coming out from a known community rather than buying from a unknown users sitting somewhere in a corner of the world

NSM

Total number of products purchased per users - It is important to track it per user as there are changes that one group of people are actively involved in purchase. Therefore, tracking it per user will give us the overall midset of users towrds Shops

Other supporting Metrics:

Seller's perspective

1. Total number of sellers in the platform - This denotes a healthy supply

2. Total number of products listed per seller - Denotes the option are more from a sellers and users dont have to jump from a seller to seller

3. Product sales percentage - Average percentage of products sold per seller (To make sure the business are making profit)

4. Total number of sellers who attempted to set up the shop account and did not succeed (This helps us understand the usability of the shop manager)

Buyers Perspective

1. Total number of users who made atleast one purchase (Adoption)

2. Total number of people who made the second purchase (Retension)

3. Time spent on FB shops in viewing items (Engagement)

4. CTR on the shops (Engagement)

5. Number of users who spent atleast 10 hours per week and still did not checkout any thing - This is to track people who are not getting what they want and try to motivate sellers of that category to be in facebook shops

6. Number of users who cliked through a product within a shop and did not make payment - To understand the ease of checkout process

7. Total number of purchases made on similar products listed

Tradeoff:

1. Groups has been used for selling and buying and there can be a slight drop in group engagements

2. There can be slight a bit of users migrating from marhet place

Counter metrics:

1. Number of buyers/Seller reported

2. Number of products that are returned

3. Number of sellers or products that has less ratings