September 12, 2012

Making Sense of Web Analytics Data

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“When you can measure what you are speaking about, and express it in numbers, you know something about it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind; it may be the beginning of knowledge, but you have scarcely, in your thoughts advanced to the stage of science.”

Lord Kelvin

Topics Covered

• Fundamentals of website tracking.• Making Sense of Web Analytics Data.• Building Web Marketing KPIs for your business.

Fundamentals of Website Tracking

A website tracking system collects statistical data about your visitor traffic and aggregates the data into meaningful reports. The goal is to help make website management decisions on a regular basis.

How Website Tracking Works?

Tracking Technologies

How Google Analytics Tracking Works

1st Party vs. 3rd Party Cookie

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Making Sense of Web Analytics Data

Analytics Dashboard

Key Performance Indicators1. Measure progress made against specific goals.2. Always a Ratio.3. Can be measured over time.4. Promote objective, unified decision making.5. Unique for every business (and business function).

Right KPIs help web marketers successfully navigate through complexities.

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Big Challenges Marketers Face with KPIs

1. Do not know what data to use .. And what not to use.2. Do not know what to do with the analysis. Analysis Paralysis.3. Lack regularity in conducting KPI analysis. Resource Gap.

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Strategic Goal

s

•Expected Outcome

•Specificity

Tactics

Used

•Measurable, Fundamental Elements

•Impact Assessment of each element

KPI

•Data Availability & Integrity

•Data can be transposed on a timeline

Action

•“So what do we do now”

•Minimize deviation from expected outcomeWeb Marketing KPI Design Sheet

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Building Web Marketing KPIs for your business

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Acquisition

Retention

Web Marketing

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Strategi

c Goa

ls

•Acquire 1000 new customers/month through paid search channel.

•@ CPA $20.

Tactics

•Geo-targeted campaigns: 200 new customers@ $15 CPA; Trademark campaigns: 500 new customers @10CPA; Non trademark campaigns on “start products’: 300 new customers @40 CPA

KPI

•Cost Per Acquisition

•Conversion Rate per campaign

Action

•Deviation: CPA for Geo-Campaign 22% higher than planned.

•Evaluate the match types, keyword portfolio composition, analyze which geos are contributing to the deviation, click to conversion latency, etc.

Example: Building Acquisition KPIs

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3 Useful Acquisition KPIs

KPI Calculation Purpose

Revenue Composition % Revenue-New/Total Revenue

Measures the effectiveness of acquisition program and indicates how well the business is growing.

Value per unique visit (Revenue – Cost)/Unique visits

Measures quality of traffic per channel

Conversion Rate # of conversions/#of clicks

How well does your site convert? Per channel?

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• The RFM Segmentation– Recency, Frequency, Monetary Value.

• Establish specific goals for each of the above. (For non-ecommerce sites, monetary value can be replaced with a pertinent metric connected to your goal. Example: “Engagement Value”.)

• Historical data base-lining on 1-2 years of channel-wise data helps you establish measurable starting point and also helps you understand if the KPIs being used are the “right KPI’s”.

• Useful to consider “promotional offers applicable” during the base-lining exercise and also changes in the other Ps of marketing (product mix, pricing and place).

• Wherever clean data is unavailable, an attempt needs to be made to make smart, informed assumptions.

Customer Retention KPIs: Recommendations

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Web Analytics: Takeaways

Audit your website tracking system every six months. Know what data to analyze. Start KPI analysis process by defining specific measurable goal. Measure deviations against stated goals. Know what actions to take in case of deviations. Use the KPIs to regularly measure progress.

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