SPACC IT Day Azul7 Analytics Presentation
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SPACC IT Day Azul7 Analytics Presentation SPACC IT Day Azul7 Analytics Presentation Presentation Transcript

  • Web Analytics : Understanding Visitor Behavior May 6, 2009 (and how this relates to the bottom line)
  • Agenda
    • Web Analytics
    • Getting started
    • What the H*** are KPIs?
    • Keeping it simple
    • Communicating
    • Questions
  •   View slide
  • Why Should I Measure?
    • Are you spending money on your website/web presence?
    • Are you expecting your website to sell products or generate sales leads?
    • Do your business goals involve an online channel?
    View slide
  • Why Should I Measure?
    • 1.3B internet users worldwide
    • Nearly 75% of US Households subscribe to an internet service
    • 92% of households with annual incomes over $70K are internet subscribers 2
    • 55% of all US Households have high-speed Internet Access 3
  • Without getting overwhelmed Getting Started
  • What is “Web Analytics”
    • Using a variety of data sources to understand how online audiences are finding you, using your site, interacting with you, buying or researching your products.
      • Are you visible online?
      • Is your website working?
      • Are your audiences engaged?
      • Are you meeting your business goals?
  •  
  • Your Tool Kit
    • Analytics software/technology
    • People
    • Practices + Process
  • Analytics Technology—Lots of Vendors Out There
  • If Nothing Else….Remember This <script type=&quot;text/javascript&quot;> var gaJsHost = ((&quot;https:&quot; == document.location.protocol) ? &quot;https://ssl.&quot; : &quot;http://www.&quot;); document.write(unescape(&quot;%3Cscript src='&quot; + gaJsHost + &quot;google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E&quot;)); </script> <script type=&quot;text/javascript&quot;> try { var pageTracker = _gat._getTracker(&quot;UA-7323138-1&quot;); pageTracker._trackPageview(); } catch(err) {}</script>
  • Get Access
    • Find out who has the keys to the treasure chest and go get them
      • IT
      • Your ISP
      • Your marketing dept
      • Somebody knows!
  • People
    • It’s hard to find people who have experience in online measurement
    • Even fortune 1000 companies are struggling to measure their online properties
    • Hire consultants
    • Build expertise in-house
  • March 2007 Global Survey Web Analytics Demystified Research Covering Global Use and Attitudes about Web Analytics Technology and Processes
  • Process
    • The web is only 16 years old
    • Companies have only been treating online as a serious business channel for 5 or so years
    • Best practices are still being developed and will vary by industry vertical and by individual business
  •  
  • Simplified Process
    • Step 1: Define what you want to measure
      • We call these KPIs (Key Performance Indicators)
    • Step 2: Assign who is responsible for measuring
    • Step 3: Determine your tools that will provide measurement data
      • Quite often it is not just software, sometimes you need human feedback
    • Step 4 : Put in place system to gather, interpret, document and communicate how you are doing against your KPIs
  • Advise
    • It’s more important to start measuring something to create a measurement practice within your organization … rather than trying to measure just the right data
  • What should I measure? What the H*** are KPIs?
  • KPIs
    • Most Simply:
      • You want to get MORE ______ ? ______
        • Leads, Sales, Visitors, Downloads, Click-Throughs, Etc.
      • You want to get LESS ______ ? ______
        • Errors, Abandonments, Un-subscribes, Customer Complaints
  • What Can We Measure?
    • From Server Logs (Basic Online Site Info)
      • Where visitors came from (site, search engine, advertisement)
      • What words they used to search and find your site
      • Where they came from (location)
      • Time of day
      • How long they stayed
      • What content they were interested in
      • Where they went next
      • With added tools – whether they have been there before
  • What Can’t We Measure
    • From Server Logs (Basic Online Site Info)
      • Who the individual is unless you set up a login account or find some other way to entice users to give your information about who they are
      • If they are a returning visitor when they delete cookies (little bits of code that tell us that a particular computer has access our site information before)
        • Some anti-spy software deletes cookies automatically
  • Server Log Information
    • This is basic data on site performance, not KPIs that drive business
    • Server logs give us valuable information but it is usually not enough to decide if marketing programs are working or not
      • Just because there is more traffic to a site, doesn’t mean there are more leads generated or more sales being made.
  • Fancier Systems
    • Use Page Tagging in combination with log files to tell us such things as:
      • Performance of online advertising in relation to site traffic and conversion
      • Do customers buy?
      • If they don’t buy, why?
      • Who’s talking about you online in blogs and social media
      • How all your customer touch points (from your call center to your bricks and mortar shop, align with online sales) to give you customer lifetime value information.
  • KPIs
    • http://www.epmreview.com/KPI-Library.html
    Objective Increase customer satisfaction / loyalty through quality products & services   KPI   Number of visits to customers   Response rate   Customer-loyalty index   Number of customer complaints   Customers lost (in number or %)   Customer retention   Number of negative feedbacks from customers   Annual sales per customer   Response time Objective Increase revenue from common customers   KPI   Annual sales per customers   Average customer size   Customers per employee   Customer service expense per year Objective Increase the market share   KPI   Current market share   Sales volume   Sales per channel   Frequency of sales transactions
  • General KPIs
    • Average Order Value (AOV) =
      • $__Total Revenue /___# of orders
      • $1,000,000 total revenue / 438 orders =
      • $2,283 AOV
  • General KPIs
    • Customer Lifetime Value (CLV) =
    • $__Average Order Value x __ # of orders by Customer per year x ___ Number of Years for Customer
    • $2,283 x 3 = $6,849 x 3 = $20,547 CLV
  • General KPIs
    • Contribution Margin =
    • Amount you’ll invest to to get a new customer —20-25% of AOV is common
    • For our $2,283 in revenue, we can expect to spend around $457—$570
  • General KPIs
    • Cost-Per-Acquisition or Cost-Per-Action (CPA) = $__Customer Lifetime Value (CLV) x 20% Contribution Margin (CM)
    • $20,547 x .20 = $4,109 CPA
  • General KPIs
    • Close Rate (CR)
    • – ratio of how many leads become customers) =
    • __Customers / Leads = ___ x 100 = ____% Close Rate (CR)
    • 34 customers /100 leads = .34 x 100 = 34% CR
  • General KPIs
    • Cost-Per-Lead (CPL) =
    • $___ CPA x _____% Close Rate
    • $4,109 x .34 = $1397 CPL
  • Value of KPIs
    • Am I measuring the right things?
    • Am I spending the right money in the right places?
    • Where am I getting the best return?
    • Where do I have a competitive advantage?
  • If this is too much… Keeping it simple
  • If That Last Bit Was Overwhelming…Don’t “Frees Out”
  • Go Back To This <script type=&quot;text/javascript&quot;> var gaJsHost = ((&quot;https:&quot; == document.location.protocol) ? &quot;https://ssl.&quot; : &quot;http://www.&quot;); document.write(unescape(&quot;%3Cscript src='&quot; + gaJsHost + &quot;google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E&quot;)); </script> <script type=&quot;text/javascript&quot;> try { var pageTracker = _gat._getTracker(&quot;UA-7323138-1&quot;); pageTracker._trackPageview(); } catch(err) {}</script>
  • Crawl, Walk, Run
    • Set up soft conversions
      • Top content viewed on the site
      • Keywords searched to find you
      • Visitor location
    • Set up hard site conversions
      • Form submissions
      • File download
      • Inbound phone call
      • Newsletter open rate
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  • Without getting overwhelmed Communicating
  • This is NOT a Report
  • Report Looks Like this
    • We’ve seen a 15 % visitor drop off rate on our technical publication downloads.
    • Recommendation: Simplify form to eliminate address requirement and test for 30 days.
    • Goal: Improve form completion rate by 20%
  • Analytics: Just Get Started
    • Step 1: Assign responsibility
    • Step 2: Define what you want to measure – business objectives
    • Step 3: Define the process (who, how, what)
    • Step 4: Collect data and review to see you have the right information
    • Step 5: Evaluate if your reports are useful and being used - refine
    • Step 6: Evaluate if you have the right resources - refine
    • Step 7 : Use your analysis to inform further marketing/ops investment
    • Test, refine and implement (continual process)
  • Thank You!
    • Lisa Helminiak
    • Principal | Strategist
    • Twitter: helmin7
    • Email: [email_address]
    • View a copy of this presentation at www.azul7.com/blog
    • Twitter: Follow Azul7 – Get a free site evaluation
    • Facebook : Azul7
  • Thank You for Participating Questions?