You are the Growth Lead at an online fashion retail company in Mumbai that has recently experienced an underperforming ad campaign during a major sale event.
The expected increase in sales was 40%, equating to an additional ₹40 lakhs, but the actual increase was a mere ₹15 lakhs.
You are tasked with guiding your team through a Root Cause Analysis (RCA) using the structured approach as learned.
Given the following steps, identify the correct order in which they should be executed to diagnose the underperforming ad campaign effectively:
- Step I: Examine changes in key metrics like CTR, conversion rate, and average order value during the campaign period.
- Step II: Define the metric hierarchy based on the campaign's objectives, focusing on overall sales and ROI.
- Step III: Decide on the analytical technique, like correlation analysis, to delve deeper into the relationship between ad spend and conversion rate.
- Step IV: Conduct Exploratory Data Analysis (EDA) to isolate input metrics that have shown significant variation and identify trends.
Choose the sequence that reflects the correct methodology for conducting RCA on the ad campaign: