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Google Merchandise Store: E-commerce Funnel Optimization & Unit Economics Analysis

A comprehensive data analytics project focused on evaluating user behavior, product funnel conversion efficiency, cross-platform technical health, and marketing ROI for the Google Merchandise Store using raw event-level GA4 data.


🛠️ Project Ecosystem & Tech Stack

  • Data Warehouse & Processing: Google BigQuery (SQL) using advanced techniques (UNNEST for parsing event parameters, Window Functions for marketing touchpoints, and Cohort Analysis).
  • BI Visualization: Looker Studio (Interactive Executive Dashboard featuring key KPI scorecards, multi-step funnels, and retention heatmaps).
  • Framework: Pure E-commerce Analytics (Session tracking, Product performance, Conversion diagnostics, and Unit Economics).

📁 Repository Structure

├── Google_Merchandise_Store_SQL_Queries.pdf  # Comprehensive technical archive with all SQL queries
└── README.md                                 # Main portfolio presentation, dashboard link, and business analysis report

💻 SQL Data Analysis & Key Insights

1. E-commerce Purchase Funnel Performance

By parsing nested raw GA4 logs, I mapped the complete user journey from landing to purchase to isolate the exact friction points.

Funnel Stage Unique Users Step Conversion Rate Total Drop-off Rate
1. Session Start 78,383 100.00% 0.00%
2. View Item 21,089 26.91% -73.09%
3. Add to Cart 2,042 9.68% -90.32%
4. Begin Checkout 1,047 51.27% -48.73%
5. Purchase 445 42.50% -57.50%
  • Analytical Insight: The primary bottleneck is located strictly between View Item and Add to Cart, experiencing an intense 90.32% drop-off. Once a user successfully adds an item to the cart, their purchase intent spikes, leading to a strong checkout-to-purchase conversion rate of 42.50%.

2. Cross-Platform Technical Diagnostics

I segmented the final purchase stage by operating systems to test the hypothesis of a potential technical or payment gateway failure on mobile platforms.

Platform OS Total Sessions Successful Purchases Session-to-Purchase CR (%)
iOS 12,352 183 1.48%
Android 9,459 142 1.50%
  • Analytical Verdict: The initial hypothesis regarding a platform-specific bug or payment failure on Android was completely refuted. Both mobile operating systems display near-identical, stable conversion performance (~1.5%). The minor variance falls strictly within the statistical margin of error, proving that the checkout infrastructure is technically sound across platforms.

3. Cohort Retention & Cumulative LTV Modeling

I tracked the user cohort acquired in November 2020 over a 6-month observation window (through April 2021) to analyze user retention alongside revenue velocity.

  • Product Retention (Cohort Size: 79,421 Users):

    • Day 7 Retention Rate: 2.69% (2,138 returning users)
    • Day 30 Retention Rate: 1.16% (918 returning users)
  • 6-Month Cumulative LTV Expansion (Google Traffic Group):

    • Month 1 Cumulative LTV: $2.47
    • Month 3 Cumulative LTV: $3.10 (+25.5% expansion)
    • Month 6 Cumulative LTV: $3.16
  • Analytical Insight: Despite a steep drop-off in user retention by Day 30 (1.16%), the returning core segment drives reliable repeat transactions. This increases cumulative LTV by 25.5% by Month 3, validating that long-term cohort monetization effectively mitigates high Customer Acquisition Costs (CAC).


4. Marketing Attribution & Traffic Source Performance

To evaluate the true value of acquisition channels, I mapped user paths to analyze how customers initially discover the store (First-Touch) versus which touchpoints directly precede their sessions and final interactions (Last-Touch).

First-Touch Source Last-Touch Source Tracked Users Cohort % of Cohort
Organic Search Direct 24,152 30.41%
Direct Direct 18,491 23.28%
Organic Search Organic Search 12,043 15.16%
Referral Direct 5,832 7.34%
Youtube Direct 3,114 3.92%
  • Analytical Insight & Channel Decay Effect: The data reveals a strong brand recall and intent retention pattern. A dominant segment of users (30.41%) find the store via Organic Search but return to execute final actions via Direct traffic. This proves that organic positioning effectively feeds a high-retention pipeline, transforming casual searchers into users who bookmark the site or enter the URL directly.
  • Top-of-Funnel Value of YouTube: While YouTube shows lower bottom-funnel direct attribution, it acts as a critical top-of-funnel awareness builder, successfully introducing 3.92% of the total tracked cohort who later navigate back to purchase directly.

📊 Actionable Strategic Recommendations

  1. Optimize Product Card UX/UI: Focus engineering and design resources on the 90% friction gap between product viewing and cart addition. Run A/B tests on "Add to Cart" button prominence and streamline the product detail layout.
  2. Global Checkout Optimization: Since iOS and Android perform uniformly, future checkout enhancements (e.g., one-click checkout or immediate Apple Pay/Google Pay placement) should be deployed globally rather than targeting platform-specific codebases.
  3. Triggered Post-Purchase Retargeting: Revenue expansion stalls significantly between Month 3 and Month 6 ($3.10 to $3.16). Launch automated lifecycle email tracks and personalized win-back offers around day 60–90 to stimulate repeat purchases.

📈 Dashboard Preview

Product_Funnel_ _Marketing_ROI_Performance

📊 Live Interactive Dashboard

To explore the data insights, filters, and dynamic metrics components built for this project, access the live Looker Studio report:

View Live Dashboard

Alternative link: Open Looker Studio Report

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A comprehensive data analytics project focused on evaluating user behavior, product funnel conversion efficiency, cross-platform technical health, and marketing ROI for the Google Merchandise Store using raw event-level GA4 data.

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