Web metrics: deriving Web metrics: deriving value from evalue from e--businessbusiness

Rolan Micallef AttardFreelance,Trusted Business Consultantrolan@vol.net.mt

Its all about customerIts all about customer--centric measurementcentric measurement

Web Metrics are measurement techniques utilised to track and identify what is happening on the Internet and on your website

Web Analytics is a discipline aimed at understanding your website visitor’s on-line experience, seeking methods that meet your user’s requirements, and optimising your organisation’s ultimate goals

Tracking trolleys vs. tracking clicks Tracking trolleys vs. tracking clicks

Its all about…Its all about…

• Increasing sales• Reducing costs• Improving return on investment

(ROI)• Fine tuning online marketing

strategies• Outperforming your competition• Knowing who’s behind the browser

Do you measure ?Do you measure ?

• Online website traffic• How traffic arrives to your website• Where visitors come from• What users do on your website• Your online advertising campaigns• Technology users use• How well your site is performing technically• User visits• Website paths• Website visits• Complete browsing history by unique visitor analysis

ee--Metrics customerMetrics customer--centric sophisticationcentric sophistication

2nd Generation e-metrics

ee--BusinessBusinessintelligenceintelligence

RFMAcquisition costsConversion ratesSales trendsAverage basket sizeClick-through ratesRepeat visitsetc. etc. etc.

3rd Generation e-metrics

ee--CustomerCustomerintelligenceintelligence

SegmentationPath analysisLoyalty/churnPropensity1 to 1 relationshipROI per customerCustom metricsetc. etc. etc

1st Generation e-Metrics

Website Website StatisticsStatistics

HitsVisitsSessionsPage ViewsAccessed pagesSite referralsUnique visitorsetc. etc. etc.

CustomerCustomer--centric web metrics evolutioncentric web metrics evolution

2nd Generatione-metrics

(e(e--BusinessBusinessintelligence)intelligence)

3rd Generatione-metrics

(e(e--CustomerCustomerintelligence)intelligence)

1st Generatione-metrics(Website (Website Statistics)Statistics)

Persistent userIdentifier

Anonymous userProfile

Discreet userIdentity

User Cat. 1 User Cat. 2 User Cat. 3 User Cat. 4

Its all about customer loyalty & reducing dropoutsIts all about customer loyalty & reducing dropouts

Online Customer Life Cycle frameworkOnline Customer Life Cycle framework

Reach Acquire Convert Retain Loyalcustomers

AbandonmentAttrition

Churn

Leakage

Website users dropout patternsWebsite users dropout patterns

Optimisation of Reach through web analyticsOptimisation of Reach through web analytics

Reach is an activity aimed at attracting the attention of your target audience to your

website through a specific activity

Measuring the ROI of Reach techniques through:

•Pay-per-click Analysis•Advertising Revenue Analysis•Self-Service Analysis

PayPay--perper--click analysis click analysis –– Search engine campaignSearch engine campaign

Web metrics revealed that website visitors, having typed general phrases in a pay-per-click search engine, browsed only for a short time and contributed to no significant revenue, while visitors who typed specific words browsed longer, viewed more pages and shopped online.

Kalmbach reduced $4,000 per month promotional partner’s costs

Advertising revenue analysis Advertising revenue analysis –– Banner adsBanner ads

Web metric results from banner ad click-throughs for easyJet•40% booked 1st visit•17% booked same day•20% took over 2 weeks

Marketing ROI increased by 86% in one month by refining banner ad media strategy, by analysing performance, creativity and timing

Optimisation of Acquisition through web analyticsOptimisation of Acquisition through web analytics

Acquisition is the stage when your target audience has been successfully reached and

persuaded to visit your website

Measuring the ROI of Acquisition techniques through:

•Affiliate Marketing Analysis•Landing Page Analysis•Email Marketing Analysis•Search Engine Marketing Analysis

Landing page analysis Landing page analysis –– leading visitors to your goalleading visitors to your goal

Web metrics revealed that visitors were landing on pages considered ‘less important’. Inserting the necessary leads on these pages increased conversion by 33% through newsletter signups and form-filling

Email marketing analysis Email marketing analysis –– FollowFollow--up emailsup emails

Web metric results revealed that emails sent immediately after registration generated 9.4% click-throughs, while 3 timed (4 days – 1 week –1 week) follow-up emails generated 5.4% click-throughs from the unconverted.

Knowing how frequently to deliver follow-up emails to entice prospective clients to engage in online activities, improved ROI by 125%.

Search engine analysis Search engine analysis –– Search engine indexingSearch engine indexing

Investigating search behaviour and linguistic patternsFacilitating the indexing of each page by search enginesModifying its single dynamic site to a multi-page static site.

FordDirect.com managed to increase its search engine rankings and its search engine referrals by 940% and 4,838% equivalent to 73,000 visitors per month.

Optimisation of Conversion through web analyticsOptimisation of Conversion through web analytics

Conversion is the stage of leading potential customers to your website’s predetermined

goal

Measuring the ROI of Conversion techniques through:

• On-Line Analysis• Lead Generation Analysis

OnOn--Line Analysis Line Analysis –– ‘The Moment of Truth’‘The Moment of Truth’

Lead generation analysis Lead generation analysis –– Activity schemesActivity schemes

On-line registration is essential for marketing purposes.

Black & Decker increased leads by 40% by changing the position of the registration icon.

Optimisation of Retention through web analyticsOptimisation of Retention through web analytics

Retention is the stage of turning your website users into loyal customers making them return over and

over again, preventing their migration to competition

Measuring the ROI of Conversion techniques through:

• Recency, Frequency and Monetary Value Analysis

• Path Analysis• Content Analysis

Content analysis Content analysis –– SegmentationSegmentation

Web metrics revealed that visitors interested in skiing, browsed the ski gear pages, while retained visitors who had previously purchased ski gear were more interested in purchasing expensive skis. Delivering selected content to

repeat customers increases repeat purchases

Web analytics that contribute to RevenueWeb analytics that contribute to Revenue

Number ofClients

Websiteturnover

Averagecart value

Number ofuser visits

ConversionRate

3%10,000 300 €190 €57,000* * ==Point of departure

↑ Reach techniques↑ Acquisition techniques↑ Retention techniques

3%11,000 330 €190 €62,700* *= =

Up-sell Cross-sell 3%10,000 300 €200 €60,000* *= =

↓ Dropouts rates↓ Trolley abandonment

↑ Personalisation↑ Website Usability

4%10,000 400 €190 €76,000* *= =

MBA (MBA (eBusinesseBusiness) Dissertation ) Dissertation -- survey findings (1)survey findings (1)

Popularity

Tourism

Telecom, media, publishing

Government organisations

MBA (MBA (eBusinesseBusiness) Dissertation ) Dissertation -- survey findings (2)survey findings (2)

42% take a reactive approach to changing

on-line strategies based on Web

Analytics for the purposes of ROI, yet

the level of sophistication of web

analytic applications is low.

MBA (MBA (eBusinesseBusiness) Dissertation ) Dissertation -- survey findings (3)survey findings (3)

MBA (MBA (eBusinesseBusiness) Dissertation ) Dissertation -- survey findings (4)survey findings (4)

71% of organisations with access to Web tracking applications have

identified the following factors to be a limiting factor in maximising their Web

analytics potential

•Lack of Time•Budget Limitations•Lack of specialised personnel

The way forward …………..The way forward …………..

• Invest in the right web analytic solution that suits your needs and budget, and that will allow you to achieve your goals

• Invest in staff training, or outsource interpretation of web metrics to web analysts that understand your business

• Focus on business critical aspects of your website to improve its overall performance and prevent the migration of your customers to your competitors

QuestionsQuestions

Thank YouThank YouThis presentation can be downloaded from

www.icon.com.mt

Rolan Micallef AttardFreelance,Trusted Business Consultantrolan@vol.net.mt