Website Metrics and ROI Stephan Spencer, Founder & President, Netconcepts Avinash Kaushik, Author, Web Analytics: An Hour A Day © 2008 Stephan Spencer.
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Transcript 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])