Website Metrics and ROI Stephan Spencer, Founder & President, Netconcepts Avinash Kaushik, Author, Web Analytics: An Hour A Day © 2008 Stephan Spencer.
Download ReportTranscript Website Metrics and ROI Stephan Spencer, Founder & President, Netconcepts Avinash Kaushik, Author, Web Analytics: An Hour A Day © 2008 Stephan Spencer.
Website Metrics and ROI Stephan Spencer, Founder & President, Netconcepts Avinash Kaushik, Author, Web Analytics: An Hour A Day © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) There’s a Lot More to Measuring Online Success than Unique Visitors or “Hits” Bounce rate Shopping cart abandonment Top failed searches Goal funnels Exit ratios Life Time Value Behavioral segmentation Spam score Ripple index Page strength Page yield Keyword yield Multi-dimensional outcomes analysis …to name a few! © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Abandonment Metrics For uncovering why visitors are leaving your site prematurely Bounce rate – Referring websites – Landing pages Funnel visualization – Exit ratios © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Abandonment Metrics Shopping cart abandonment – Ratio of abandoned carts to completed purchases – Number of items per abandoned cart vs. completed purchases – Profile of items abandoned vs. purchased – Profile of a shopper vs. a buyer Top failed searches © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Conversion Metrics For insight into your acquisition funnel Goals – Ecommerce / Non-ecommerce – Revenue / sales data analysis Non-obvious metrics – Average time on site – % of new visitors © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) B2B vs. B2C B2B: Longer lead time, more complex sale, more considered purchase, more technical keywords used, purchase often done offline, lead generation phase is crucially important B2C: Easier to track and measure ROI, thus easier to justify expense with upper management, purchase on the first visit is common © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Acquisition Funnel Click to Web site CPM = $100 1%* Download attempt 50* Download success 75* Registration 90* CPU0 =$30 4-wk user 70* 12-wk user 80* CPU84 =$53 CPV0 = cost per new user CPV84 = cost per user retained for 84 or more days © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Getting to the Optimal Landing Page Want to up your conversion rate? Optimize your landing pages for maximum conversion! Eye tracking Click tracking Test everything! – A/B split test – Multivariate testing (e.g. Google Website Optimizer) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Sample heat map from eyetracking (MarketingSherpa Ecommerce Benchmark Guide) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Sample heat map from click tracking (using CrazyEgg.com) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Playback of user sessions, including mouse movements and form fill-out (using RobotReplay.com) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Retention Metrics A look at the customer life cycle and customer lifetime value (LTV) Behavioral segmentation – Demographics vs. psychographics RFM analysis © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) The Customer Life Cycle Reach stage – goal is awareness Acquisition stage – goal is participation, failure is abandonment Conversion stage – goal is turning them into a registered and/or paying customer, failure is attrition Retention stage – goal is securing repeat purchases, failure is churn © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Life Cycle Failure Metrics Attrition Rate – the number of customers who have ceased buying from you and have gone elsewhere during a given time period ÷ total number of existing, converted customers during that time period Churn Rate – the number of customers who attrite during a given time period ÷ total number of customers at the end of the time period © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) The Life Cycle Funnel Illustration courtesy of Emetrics White Paper by Jim Sterne © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Best Customer Metrics Target the most profitable customers Behavioral Segmentation, i.e. segment based on value Analyze demographics, psychographics, and clickographics (visiting behavior and transaction history) – The pattern of visits and orders becomes the pulse of the buyer/seller relationship. Identify cross-selling opportunities © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Statistical Segmentation By using past behavior to predict future behavior, Personify software discovered five distinct audience segments for Virtual Vineyards. Slide courtesy of Steve Krause of Personify © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Customer/Prospect Value A single segment, Core Visitors, accounted for 82% of the people who ordered, even though the segment was only 8% of the overall audience. Slide courtesy of Steve Krause of Personify © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Marketing-Program ROI With Core Visitors identified as the best customers and prospects, Virtual Vineyards could now measure marketing-program ROI by the percent of Core Visitors each program delivered. Slide courtesy of Steve Krause of Personify © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Cross-Selling Virtual Vineyards could also analyze cross-selling effectiveness: Italian wine and pasta is obvious, but what about white wine and baked goods? Slide courtesy of Steve Krause of Personify © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) RFM Analysis Recency Frequency Monetary Value Illustration courtesy of Emetrics White Paper by Jim Sterne © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Psychographic Segmentation with Claritas/PRIZM Rural, blue collar families Smoke pipe tobacco Drink Canadian whiskey Read hunting magazines Young, white collar suburban families Sophistated urban couples Small town blue collar families Rent family videos Go Sailing Rent 5+ videos monthly Drink cordials and liqueurs Own a gas grill Buy children’s frozen dinners Read fishing magazines Read travel magazines Read parenting magazines Slide © Claritas Inc., All Rights Reserved. Courtesy of Sheryl Gatto, Travelocity © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Life Time Value Calculate using retention rates, orders per year, average order size, total revenue, referrals, direct costs, acquisition costs, gross profits, discount rates, and net present value profit. Affect customer’s LTV by up-selling; cross-selling; increasing buying frequency; and reducing cost of making the sale, training, and support See http://www.dbmarketing.com/articles/Art174.htm © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Optimizing Customer Life Time Value Illustration courtesy of Emetrics White Paper by Jim Sterne © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Email Marketing Metrics Opens – Unique opens vs. total opens – Requires HTML email. Can’t track opens of plain text emails – Uses “web bugs” Clickthroughs Clickers – new clickers vs. return clickers vs. total Unsubscribes Bounce rate – hard bounce / soft bounce © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) The Email Funnel Deliverability Blacklists, Whitelists, Filters Open-ability Subject, From, Frequency Readability Design, Content, Organization © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Email Marketing Metrics Spam score – According to SpamAssassin spam filter – Cross the threshold of what the recipient’s email server admin has set, and your email won’t get delivered – Tool is built in to most email marketing solutions. Or use version available at www.gravitymail.com/spamscore.php – Aim for < 5 SpamAssassin points – Note: This tool is only indicative. Not everyone’s using SpamAssassin to filter spam. Other filters will interpret your campaign differently. © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Best rates OUCH! “Negotiate The Best Rates on Local Advertising Media” © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Blogging Metrics Raw author contribution - posts per month & words per post – – – – Consistency is key Post recency vs. frequency General Stats plugin Joost’s Blog Metrics plugin Audience growth – onsite & offsite, visitors and unique visitors Conversion rate – comments per post © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Blogging Metrics Citations – Blog inlinks, measured by Technorati rank Ripple Index - # of unique blogs linking to your blog Cost – time, technology (hardware/software), opportunity cost Benefit / ROI – Comparative vs. Direct vs. “Non-traditional” vs. Unquantifiable – You are building an asset © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) RSS Metrics Reads – Requires full text feed; Summary feed won’t work. – Uses “web bugs” Clickthroughs Subscribers – Many of the web-based aggregators (e.g. Bloglines, My.Yahoo) report subscribers with their User-Agent – Feedburner – tracks that + individuals; free; owned by Google © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Remember: A Blog is an Asset! A Blog is an Asset My 16-year-old daughter, Blogger & SEO. $10 - $30 / day passive income © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) SEO Metrics Search engine rankings – focus on Google rankings Keyword popularity – Tools include KeywordDiscovery.com & WordTracker.com – KEI (Keyword Effectiveness Indicator) score? Not so much Indexation – # of pages of your site indexed – Tool: URL Checker (www.netconcepts.com/urlcheck) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) SEO Metrics Link popularity – Tools include Yahoo Site Explorer (siteexplorer.search.yahoo.com), Google Webmaster Central (www.google.com/webmaster), Neat-o tool (www.webuildpages.com/neat-o) PageRank – Google-assigned importance score – Scores range from 0-10, logarithmic in scale – Each page has its own score – Scores reported are months out-of-date © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) SEO Metrics “Page strength” – according to SEOMoz tool (www.seomoz.org/page-strength) Traffic by engine; traffic by keyword Sales by engine; sales by keyword Page yield – % of unique pages yielding search enginedelivered traffic in a given month Keyword yield – ratio of keywords to pages yielding search traffic © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) SEO Metrics Brand-to-nonbrand ratio – % of search traffic coming from brand keywords vs. nonbrand keywords Unique pages – non-duplicate pages crawled Visitors per keyword – ratio of search engine delivered visitors to search terms Index-to-crawl ratio – ratio of pages indexed to unique crawled pages Engine yield – how much traffic the engine delivers for every page it crawls © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Rankings and search referrals – According to Google Webmaster Central © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Rankings and search referrals – According to Enquisite © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Rankings and search referrals – According to Enquisite © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Rankings in common – According to Thumbshots Ranking tool © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Keyword Popularity – According to WordTracker © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Keyword Popularity – According to KeywordDiscovery © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Keyword Popularity – According to Google AdWords Keyword Tool © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Keyword Popularity – According to Google Trends © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Indexation – According to Netconcepts URL Checker (www.netconcepts.com/url check) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Indexation – According to Netconcepts URL Checker (www.netconcepts.com/url check) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Google’s Toolbar – with handy PageRank Meter © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Link popularity – According to Yahoo Site Explorer © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) SEO for Firefox Link popularity – According to SEO for Firefox © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Conduct any Google query and get results organized by PageRank © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Link Text – mined using Neat-o tool © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Link text – mined using Google Webmaster Central © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) ROI – Sales by referrer © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) ROI – Sales by keyword © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) The Long Tail of Your Keyword Portfolio © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Where do searchers look? (Enquiro, Did-it, Eyetools Study) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Where do they look? And click? (Enquiro, Did-it, Eyetools Study) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Competitive Intelligence – Compete.com © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Competitive Intelligence – QuantCast.com © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Competitive Intelligence – Alexa.com © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Competitive Intelligence – Alexa.com © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Competitive Intelligence – Hitwise.com © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Page Yield & Keyword Yield Sample KPIs © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) “Page Strength” – According to SEOMoz Page Strength tool (www.seomoz.org/pagestrength) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Missed Opportunity Costs of Not Doing SEO Calculate the missed opportunity cost of not ranking well for products and services that you offer: # of people searching forx your keywords engine share x (Google = 60%) expected average clickx conversion through rate rate average x transaction amount E.g.10,000/day x 60% x 10% x 5% x $100 = $3,000/day © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Paid Search (PPC) Metrics For obtaining the best returns on your PPC spend Standard metrics – Impressions, visits, CTR, CPC, conversion Traffic quality metrics – Time, new visits, bounce Non-obvious metrics – Multi-dimensional Outcomes analysis © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Going Deeper Book: Web Analytics: An Hour a Day by Avinash Kaushik (http://snipurl.com/wahour) Occam’s Razor Blog: www.kaushik.net/avinash WAA (www.webanalyticsassociation.org) & WAA blog (waablog.webanalyticsassociation.org) eMetrics Summit (www.emetrics.org) E-metrics whitepaper by Jim Sterne (www.targeting.com/whitepaper.html) The Loyalty Effect by Frederick Reichheld © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected]) Q&A! For an ebook on Google power searching, SEO checklists & worksheets, and audio recording, executive summary & transcript of an SEO thought leaders teleconference, e-mail your request to [email protected] To contact Stephan: [email protected] To contact Avinash: [email protected] © 2008 Stephan Spencer ([email protected]) and Avinash Kaushik ([email protected])