Ecommerce Ecommerce Marketing & SEO 2 — Questions and Answers
Question 1: What is a customer lifetime value (CLV or LTV) and why is it critical for ecommerce marketing budgets?
- The total revenue a customer generates over their entire relationship with the brand — it sets the ceiling for acquisition cost (Correct answer)
- The average order value on a customer's first purchase
- The number of loyalty points a customer has earned
- The discount percentage offered to VIP customers
Correct answer: The total revenue a customer generates over their entire relationship with the brand — it sets the ceiling for acquisition cost
CLV tells merchants how much revenue to expect from a customer long-term, enabling smarter decisions about how much to spend acquiring and retaining them.
Question 2: What is the purpose of a canonical tag (<link rel='canonical'>) on ecommerce product pages?
- To tell search engines which URL is the preferred version when duplicate or similar pages exist (Correct answer)
- To set the page's primary color scheme
- To link the page to its category in the sitemap
- To enable structured data for product reviews
Correct answer: To tell search engines which URL is the preferred version when duplicate or similar pages exist
Canonical tags prevent duplicate content issues common in ecommerce (e.g., the same product accessible via multiple URLs with different filters or parameters).
Question 3: Which social commerce feature allows US consumers to purchase products directly without leaving the Instagram or Facebook app?
- Facebook/Instagram Shops with in-app checkout (Correct answer)
- Instagram Stories highlights
- Facebook Marketplace listings
- Pinterest Save buttons
Correct answer: Facebook/Instagram Shops with in-app checkout
Meta's in-app checkout on Instagram and Facebook Shops lets shoppers complete purchases entirely within the social app, reducing friction.
Question 4: What is an abandoned cart email and at what point in the funnel is it triggered?
- An automated email sent after a shopper adds items to their cart but leaves without completing checkout (Correct answer)
- An email sent when a product goes out of stock after a customer orders it
- A re-engagement email sent 90 days after a customer's last purchase
- A promotional email sent when items in a wishlist go on sale
Correct answer: An automated email sent after a shopper adds items to their cart but leaves without completing checkout
Abandoned cart emails are triggered when a user with a known email address leaves items in their cart without purchasing, typically sent within 1–24 hours.
Question 5: What does 'cost per acquisition' (CPA) measure in ecommerce marketing?
- The average amount spent on marketing to acquire one paying customer (Correct answer)
- The wholesale cost of acquiring new product inventory
- The fee charged by an affiliate for each referral click
- The platform fee for running a paid ad campaign
Correct answer: The average amount spent on marketing to acquire one paying customer
CPA is calculated by dividing total marketing spend by the number of new customers acquired, helping merchants evaluate campaign efficiency.
Question 6: What is influencer marketing in the context of US ecommerce brands?
- Partnering with social media creators to promote products to their engaged audiences (Correct answer)
- Paying search engines for top placement on brand keywords
- Sponsoring TV commercials on national cable networks
- Running affiliate programs through coupon sites
Correct answer: Partnering with social media creators to promote products to their engaged audiences
Influencer marketing leverages creators' trusted relationships with their followers to drive brand awareness and direct sales for ecommerce businesses.
Ecommerce Ecommerce Marketing & SEO 2
What is a customer lifetime value (CLV or LTV) and why is it critical for ecommerce marketing budgets?