E-Commerce Marketing: SEO/SEM, Social Media, Email, Influencers and Customer Acquisition Metrics (CAC/LTV) Questions

Question 1

Define SEO.

Accepted Answer

**SEO (Search Engine Optimization)** is improving website content and structure to increase **organic** visibility and traffic from search engines (concept).

Question 2

SEM usually refers to paid search advertising. (True/False)

Accepted Answer

True. **SEM/PPC** commonly means paid search ads to get immediate traffic (concept).

Question 3

What is CAC?

Accepted Answer

**CAC (Customer Acquisition Cost)** is the total marketing/sales cost spent to acquire customers divided by the number of new customers acquired (concept).

Question 4

Define LTV in e-commerce.

Accepted Answer

**LTV (Customer Lifetime Value)** is the total expected value/profit contribution a customer generates over the entire relationship period (concept).

Question 5

ROAS means Return on Ad Spend. (True/False)

Accepted Answer

True. **ROAS** measures revenue generated per unit of ad spend (overview).

Question 6

Retargeting shows ads to users who have already visited the site/app. (True/False)

Accepted Answer

True. **Retargeting/remarketing** targets previous visitors (product viewers/cart abandoners) to improve conversion (concept).

Question 7

Differentiate SEO and SEM (any three points) using a table.

Accepted Answer

Difference (concept):

| Basis | **SEO** | **SEM (Paid search)** |
|---|---|---|
| Cost | mainly time/effort | pay per click/impression |
| Speed | slower to build | fast traffic |
| Sustainability | long-term | stops when spend stops |

Any three points are sufficient.

Question 8

List any three social media marketing activities for e-commerce and one benefit of each (use a table).

Accepted Answer

Activities and benefits (concept):

| Activity | Example | Benefit |
|---|---|---|
| **Content/UGC** | reels, demos, reviews | builds trust + awareness |
| **Paid ads** | targeted campaigns | drives traffic + conversions |
| Community engagement | comments/DM support | improves loyalty |
| Live commerce (overview) | live product showcase | higher engagement |

Write any three rows.

Question 9

Explain email marketing for e-commerce (any three uses) and add a simple flowchart.

Accepted Answer

Email/SMS/WhatsApp are used to communicate and retain customers (concept).

Any three uses:
- welcome series for new users
- **cart abandonment** reminders
- order/shipping updates
- personalized recommendations (concept)

Flowchart:

```text
Signup/Visit -> Segment -> Message (Email/SMS) -> Click -> Purchase/Repeat
```

Question 10

Explain influencer marketing process for an e-commerce brand (any three steps) using a table.

Accepted Answer

Influencer marketing steps (concept):

| Step | What to do |
|---|---|
| **Select influencer** | match audience/category + credibility |
| Define goal | awareness vs conversions |
| Content brief + disclosure | clear message + compliance |
| Track | links/codes for measurement |

Write any three steps with one-line explanation.

Question 11

Draw the e-commerce marketing funnel and explain any three stages (use a flowchart).

Accepted Answer

Marketing funnel shows the customer journey from awareness to purchase and loyalty (concept).

Flowchart:

```text
Awareness -> Consideration -> Visit/View -> Add to Cart -> Purchase -> Repeat/Loyalty
```

Explain any three stages:
- **Awareness**: customer discovers brand/product (ads/social/SEO)
- **Consideration**: compares options, reads reviews
- **Purchase**: checkout and payment completion
- Repeat/Loyalty: retention via email/WhatsApp offers (concept)

Question 12

Explain any three ways to reduce CAC (Customer Acquisition Cost) in e-commerce (use a table).

Accepted Answer

Ways to reduce **CAC** focus on improving efficiency of marketing and conversion (concept).

| Lever | How it reduces CAC (concept) |
|---|---|
| Improve **conversion rate** | more customers from same traffic |
| Better targeting/segmentation | less wasted ad spend |
| Increase organic traffic (SEO) | reduces dependence on paid clicks |
| Referrals/UGC | lower-cost acquisition |

Write any three points.

Question 13

Explain CAC and LTV and interpret why LTV should be greater than CAC (exam-style) with a table.

Accepted Answer

### Meaning
- **CAC**: cost to acquire one customer (marketing + sales spend / new customers) (concept)
- **LTV**: total value/profit a customer generates over time (concept)

### Interpretation (table)

| Relation | Meaning (concept) |
|---|---|
| **LTV > CAC** | sustainable growth (value exceeds acquisition cost) |
| CAC ≈ LTV | tight margins; need retention/improvement |
| **CAC > LTV** | unsustainable; loss-making acquisition |

Conclusion: Improving retention, repeat purchases, AOV and margins increases **LTV**; improving targeting and conversion reduces **CAC** (concept).

Question 14

Discuss SEO strategies for an e-commerce site (exam-style) and add a small table of on-page vs technical SEO.

Accepted Answer

### SEO strategies (e-commerce)
- optimize category pages and product titles/descriptions with keywords (concept)
- improve site speed and mobile usability (technical SEO) (overview)
- use structured attributes for better indexing and internal linking (concept)
- create content: buying guides, FAQs, comparison pages (concept)

| Type | Activities (concept) |
|---|---|
| **On-page SEO** | titles, headings, descriptions, internal links |
| **Technical SEO** | speed, mobile-friendly design, clean URLs |

Conclusion: SEO builds long-term organic traffic and improves conversion through better discovery (concept).

Question 15

Explain retargeting and its role in reducing cart abandonment (exam-style) with a simple flowchart and table.

Accepted Answer

### Meaning
**Retargeting** shows ads/messages to users who visited, viewed products, or added to cart but did not purchase (concept).

Flowchart:

```text
Visit/View -> Leave -> Retarget Ad/Message -> Return -> Checkout -> Purchase
```

| Segment | Example message (concept) |
|---|---|
| Product viewers | “Still interested? See similar options” |
| Cart abandoners | “Your cart is waiting” + reminder/offer |
| Past buyers | cross-sell/upsell recommendations |

Conclusion: Retargeting works because it targets warm users and addresses hesitation, improving conversion (concept).

Basis	SEO	SEM (Paid search)
Cost	mainly time/effort	pay per click/impression
Speed	slower to build	fast traffic
Sustainability	long-term	stops when spend stops

E-Commerce Marketing: SEO/SEM, Social Media, Email, Influencers and Customer Acquisition Metrics (CAC/LTV)

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