how it works
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| goals, events and KPIs |
When it comes to web analytics and conversion optimisation, it is all about preparation.
It is not just about collecting data, you need to know what data you are going to use.
Once data has been collected, you need to analyse it and let the numbers inform your
optimisation tasks.
goals, events and KPIs
The key to the success of any web site or online campaign is that it is designed with
clearly defined goals in mind. These will be used to measure the success of the web
site or campaign, and are crucial to maintaining focus within online activities.
It is not just about collecting data, you need to know what data you are going to use.
Once data has been collected, you need to analyse it and let the numbers inform your
optimisation tasks.
goals, events and KPIs
The key to the success of any web site or online campaign is that it is designed with
clearly defined goals in mind. These will be used to measure the success of the web
site or campaign, and are crucial to maintaining focus within online activities.
The goal of a web site or campaign may depend on the type of industry, but usually it will be an action that results in revenue for the company. The goal of a web site is also intrinsically linked to the action that you want visitors to perform.
Although a web site has an ultimate goal, the process of achieving that goal can be broken down into several steps. These are called events or micro-conversions.
Analysing each step in the process is called funnel analysis or path analysis and is critical to understanding where problems in the conversion process may lie. The clicks a visitor makes once landed on a site, whether they follow the desired steps or not, are referred to as a click path.
For example, on a hotel web site, the ultimate goal is that visitors to the site make a booking on the web site with a credit card.
Each step in the process is an event which can be analysed as a conversion point.
Although a web site has an ultimate goal, the process of achieving that goal can be broken down into several steps. These are called events or micro-conversions.
Analysing each step in the process is called funnel analysis or path analysis and is critical to understanding where problems in the conversion process may lie. The clicks a visitor makes once landed on a site, whether they follow the desired steps or not, are referred to as a click path.
For example, on a hotel web site, the ultimate goal is that visitors to the site make a booking on the web site with a credit card.
Each step in the process is an event which can be analysed as a conversion point.
Event 1: perform a search for available dates for hotels in the desired area
Event 2: check prices and amenities for available hotels
Event 3: select a hotel and go to checkout
Event 4: enter personal and payment details and confirm booking (conversion)
One expects fewer users at each step that’s why it’s called a funnel. Increasing the number of visitors who progress from one step to the next will go a long way to improving the overall conversion rate of the site.
Event 2: check prices and amenities for available hotels
Event 3: select a hotel and go to checkout
Event 4: enter personal and payment details and confirm booking (conversion)
One expects fewer users at each step that’s why it’s called a funnel. Increasing the number of visitors who progress from one step to the next will go a long way to improving the overall conversion rate of the site.
There are also other pointers, or indicators, that you are achieving your goals. These are factors that can be optimised to ensure that your ultimate goal is being met. In web analytics, these are referred to as key performance indicators (KPI). These need to be defined so you monitor the entire process to achieving your web site goal. They can also give clues as to what factors you need to work on so as to reach your goal.
Here are some example goals and KPIs for different web sites: Hospitality ecommerce site, such as www.expedia.com
Goal: increase bookings
Goal: decrease marketing expenses
KPIs: Conversion rate Cost per visitor Average order value News and content sites, such as www.news24.com
Goal: increase readership and level of interest
Goal: increase time visitors spend on web site
KPIs:
Length of visit
Average time spent on web site
Percentage of returning visitors KPIs help you to look at the factors that you can influence. For example, if your goal is to increase revenue, you could look at ways of increasing your conversion rate (that is the number of visitors who purchase something). One way of increasing conversion rate could be to offer a discount. So, you would have more sales, but probably a lower average order value. Or, you could look at ways of increasing the average order value, so the conversion rate would stay the same, but you increase the revenue from each conversion.
Once you have established your goals, events and your KPIs, you need to be able to track the data that will help you analyse how you are performing, and will indicate how you can optimise your web site or campaign.
KPIs and events break down the factors and steps that can be influences so as to achieve the goals of the web site. They allow you to see on a micro level what is affecting performance on a macro level.
Here are some example goals and KPIs for different web sites: Hospitality ecommerce site, such as www.expedia.com
Goal: increase bookings
Goal: decrease marketing expenses
KPIs: Conversion rate Cost per visitor Average order value News and content sites, such as www.news24.com
Goal: increase readership and level of interest
Goal: increase time visitors spend on web site
KPIs:
Length of visit
Average time spent on web site
Percentage of returning visitors KPIs help you to look at the factors that you can influence. For example, if your goal is to increase revenue, you could look at ways of increasing your conversion rate (that is the number of visitors who purchase something). One way of increasing conversion rate could be to offer a discount. So, you would have more sales, but probably a lower average order value. Or, you could look at ways of increasing the average order value, so the conversion rate would stay the same, but you increase the revenue from each conversion.
Once you have established your goals, events and your KPIs, you need to be able to track the data that will help you analyse how you are performing, and will indicate how you can optimise your web site or campaign.
KPIs and events break down the factors and steps that can be influences so as to achieve the goals of the web site. They allow you to see on a micro level what is affecting performance on a macro level.
