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.
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.
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
Average Order Value (AOV) =
$__Total Revenue /___# of orders
$1,000,000 total revenue / 438 orders =
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
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
Cost-Per-Acquisition or Cost-Per-Action (CPA) = $__Customer Lifetime Value (CLV) x 20% Contribution Margin (CM)
$20,547 x .20 = $4,109 CPA
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
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”
Crawl, Walk, Run
Set up soft conversions
Top content viewed on the site
Keywords searched to find you
Set up hard site conversions
Inbound phone call
Newsletter open rate
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)
Principal | Strategist
View a copy of this presentation at www.azul7.com/blog
Twitter: Follow Azul7 – Get a free site evaluation