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Web Analytics Spring 2010

J
joemefford

Web analytics measures the performance of websites and marketing efforts using key performance indicators (KPIs) such as number of visitors, conversion rate, revenue, and subscriber growth. Common goals for marketing sites include e-commerce, lead generation, and advertising. Setting targets for KPIs allows marketers to define goals, calculate return on investment, average order value, and lifetime customer value to determine costs per action and conversion rates. Regular analysis is needed to test improvements and maximize results.

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WEB ANALYTICS March 30, 2010 NYU Internet Marketing Strategies Tuesday, March 30, 2010
Goal of Most Marketing Sites E-Commerce - Amazon, Sephora, Buy.com, Screenstyle Lead Generation - Insurance, Service Companies, Real Estate Advertising - YouTube, CollegeHumor.com, HuffingtonPost.com Tuesday, March 30, 2010
Web Analytics Web Analytics Measures the Performance of Your Website and all Online (and perhaps Offline) Marketing and Advertising Efforts We Measure the Website using KPIs. Key Performance Indicators. Tuesday, March 30, 2010
Key Performance Indicators (KPI) Increasing Number of Visitors Higher Conversion Rate (Transactions/Visitors) Increasing Revenue Increasing Number of Subscribers to Newsletter Increasing Number of Demo Downloads Tuesday, March 30, 2010
Define your goals I want to get more __________ Sales Leads Email signups Phone Calls Viewers Tuesday, March 30, 2010
PRR Project Rate of Return How much money can you spend on internet marketing to remain profitable? 15%? 25%? 10? For every dollar you spend on marketing efforts, what is your revenue goal? Better than ROI because ROI negates expenses such as overhead, salaries, etc. PRR is generally determined by Finance but you can use industry best practices also. Tuesday, March 30, 2010
AO Average Order Average Order should increase Raise prices Increase average # of items You may also like: Complementary products e.g. shoes and socks Upsell For just $50 more you can double your memory You can assign dollar values to leads, phone calls, email signups, downloads, etc. Tuesday, March 30, 2010
(LV)Lifetime Value Multiply AO (Average Order) by number of annual purchases and/or length of customer relationship. Big stores like Amazon and Zappos know youll probabl come back over and over again. So your lifetime value is high. Hair salons, gyms, yoga studios, and many service companies should also focus on lifetime value. Tuesday, March 30, 2010
CPA Cost per Action How much money can you spend for each completed action by a visitor to your website? Multiply LV x PRR Examples: A health club has a 1-year contract of $1000. The average member leaves after 1.8 years so the LV = $1800. The PRR is 15% $1800 x 15% = $270 CPA Tuesday, March 30, 2010
Conversion How many leads out of 100 convert to your goal? 100 people click on your display ad. 10 purchase a product. 10% conversion. 1000 people visit your site after hearing a radio spot. 10 call you and 1 person becomes a cutomer. 1% conversion. Tuesday, March 30, 2010
Cost per Lead How much can you spend per lead and remain profitable? Multiply the conversion rate by CPA. From an earlier example, the health club has a CPA of $270. If a conversion rate is 10%, then the club can spend $27 for every lead. Tuesday, March 30, 2010
AMAT ACQUIRE VISITORS MEASURE INTERACTIONS ANALYZE RESULTS TEST IMPROVEMENTS Tuesday, March 30, 2010
What is the ROI of measuring your ROI? Assume your site gets 100,000 visitors a month and your conversion rate is 0.5% with an average $ of $200. Your site makes 500 * $200 = $100,000 per month. Assume you can make changes that raise your conversion rate to 0.7% with an average $ of 220. Your site makes an average $154,000. Extra $54,000 per month. Tuesday, March 30, 2010
Conversions 3% Example Visitors = Potential Conversions Non-Bouncing Visitors Bounced Visits 3% Abandoned Tuesday, March 30, 2010
Enterprise Leaders Omniture Unica Coremetrics Tuesday, March 30, 2010
Small to Midsize Businesses WebTrends (also Enterprise player) Google Analytics Yahoo! Analytics (formerly Index Tools) ClickTracks Tuesday, March 30, 2010
Things that Can Go Wrong Code Installed Incorrectly One IP address for multiple persons Firewalls can block tags Robots can multiply figures Some tags only measure when pages are requested and not Cookies Expire (long when activities are completed. purchase cycle business is skewed) Corporate sites block cookies Same visitor logs in from multiple computers Tuesday, March 30, 2010
E-Commerce KPI (How does website perform?) Visitor Volume New Customer on First Visit Index Average Conversion Rate Average Order Value Average Per Visit Value Average ROI % Revenue from New Visitors Tuesday, March 30, 2010
Marketer KPI (How does marketing perform?) % Visits by Medium Type Average ROI by Campaign Type % Goal Conversion Rate by Medium Type % New vs. Returning Visitors % Visits by Campaign Type % New vs. Returning Customers %Goal Conversion by Campaign Type Goal Conversion Index by Campaign Tuesday, March 30, 2010

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Web Analytics Spring 2010

  • 1. WEB ANALYTICS March 30, 2010 NYU Internet Marketing Strategies Tuesday, March 30, 2010
  • 2. Goal of Most Marketing Sites E-Commerce - Amazon, Sephora, Buy.com, Screenstyle Lead Generation - Insurance, Service Companies, Real Estate Advertising - YouTube, CollegeHumor.com, HuffingtonPost.com Tuesday, March 30, 2010
  • 3. Web Analytics Web Analytics Measures the Performance of Your Website and all Online (and perhaps Offline) Marketing and Advertising Efforts We Measure the Website using KPIs. Key Performance Indicators. Tuesday, March 30, 2010
  • 4. Key Performance Indicators (KPI) Increasing Number of Visitors Higher Conversion Rate (Transactions/Visitors) Increasing Revenue Increasing Number of Subscribers to Newsletter Increasing Number of Demo Downloads Tuesday, March 30, 2010
  • 5. Define your goals I want to get more __________ Sales Leads Email signups Phone Calls Viewers Tuesday, March 30, 2010
  • 6. PRR Project Rate of Return How much money can you spend on internet marketing to remain profitable? 15%? 25%? 10? For every dollar you spend on marketing efforts, what is your revenue goal? Better than ROI because ROI negates expenses such as overhead, salaries, etc. PRR is generally determined by Finance but you can use industry best practices also. Tuesday, March 30, 2010
  • 7. AO Average Order Average Order should increase Raise prices Increase average # of items You may also like: Complementary products e.g. shoes and socks Upsell For just $50 more you can double your memory You can assign dollar values to leads, phone calls, email signups, downloads, etc. Tuesday, March 30, 2010
  • 8. (LV)Lifetime Value Multiply AO (Average Order) by number of annual purchases and/or length of customer relationship. Big stores like Amazon and Zappos know youll probabl come back over and over again. So your lifetime value is high. Hair salons, gyms, yoga studios, and many service companies should also focus on lifetime value. Tuesday, March 30, 2010
  • 9. CPA Cost per Action How much money can you spend for each completed action by a visitor to your website? Multiply LV x PRR Examples: A health club has a 1-year contract of $1000. The average member leaves after 1.8 years so the LV = $1800. The PRR is 15% $1800 x 15% = $270 CPA Tuesday, March 30, 2010
  • 10. Conversion How many leads out of 100 convert to your goal? 100 people click on your display ad. 10 purchase a product. 10% conversion. 1000 people visit your site after hearing a radio spot. 10 call you and 1 person becomes a cutomer. 1% conversion. Tuesday, March 30, 2010
  • 11. Cost per Lead How much can you spend per lead and remain profitable? Multiply the conversion rate by CPA. From an earlier example, the health club has a CPA of $270. If a conversion rate is 10%, then the club can spend $27 for every lead. Tuesday, March 30, 2010
  • 12. AMAT ACQUIRE VISITORS MEASURE INTERACTIONS ANALYZE RESULTS TEST IMPROVEMENTS Tuesday, March 30, 2010
  • 13. What is the ROI of measuring your ROI? Assume your site gets 100,000 visitors a month and your conversion rate is 0.5% with an average $ of $200. Your site makes 500 * $200 = $100,000 per month. Assume you can make changes that raise your conversion rate to 0.7% with an average $ of 220. Your site makes an average $154,000. Extra $54,000 per month. Tuesday, March 30, 2010
  • 14. Conversions 3% Example Visitors = Potential Conversions Non-Bouncing Visitors Bounced Visits 3% Abandoned Tuesday, March 30, 2010
  • 15. Enterprise Leaders Omniture Unica Coremetrics Tuesday, March 30, 2010
  • 16. Small to Midsize Businesses WebTrends (also Enterprise player) Google Analytics Yahoo! Analytics (formerly Index Tools) ClickTracks Tuesday, March 30, 2010
  • 17. Things that Can Go Wrong Code Installed Incorrectly One IP address for multiple persons Firewalls can block tags Robots can multiply figures Some tags only measure when pages are requested and not Cookies Expire (long when activities are completed. purchase cycle business is skewed) Corporate sites block cookies Same visitor logs in from multiple computers Tuesday, March 30, 2010
  • 18. E-Commerce KPI (How does website perform?) Visitor Volume New Customer on First Visit Index Average Conversion Rate Average Order Value Average Per Visit Value Average ROI % Revenue from New Visitors Tuesday, March 30, 2010
  • 19. Marketer KPI (How does marketing perform?) % Visits by Medium Type Average ROI by Campaign Type % Goal Conversion Rate by Medium Type % New vs. Returning Visitors % Visits by Campaign Type % New vs. Returning Customers %Goal Conversion by Campaign Type Goal Conversion Index by Campaign Tuesday, March 30, 2010