spacc it day azul7 analytics presentation

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

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?

5

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

subscribers2

» 55% of all US Households have

high-speed Internet Access3

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

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 SurveyWeb Analytics Demystified Research Covering Global Use andAttitudes 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

ObjectiveIncrease 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

http://www.epmreview.com/KPI-Library.html

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”

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

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 protected]

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Thank You for Participating

Questions?