5 Fundamental Steps to Effective Web Measurement
Many marketers shy away from Web analytics because it sounds more like a logarithmic equation than a marketing solution. But at its core, Web analytics is simply measuring the behavior of visitors to a Website, particularly those measurements that indicate what aspects of the Website are helping to drive the business objectives. After you strip away the multi-syllabic veneer, Web analytics is really nothing more than an incredibly effective tool to help you grow your business. It's a surefire way to determine the success of your new online advertising campaign. It is a definitive answer to perplexing questions such as: Is rich media more interesting to consumers than text content? It allows you to quit guessing about which promotion works better: a free toaster or a new Porsche GT3. (Okay, you already know the answer to that question, but you get the idea.) And it takes the focus of measurement away from just raw data reporting, and more towards a model of total business reporting. In short, it allows you to better optimize your ROI.
But with a nearly unlimited amount of data available about your Web site, Web analytics can seem complex and overwhelming. But it doesn't have to be. It's really surprisingly simple, and the results are nothing less than stunning. In fact, by following five simple steps, you can ensure a successful Web analytics program for your company's Web site. So rather than just paying lip service to a solid program, arm yourself with some Web analytics basics and start to reap the rewards of a more productive and profitable Web site. Web Analytics: A process for collecting data, conducting analysis, and reporting Web site activity and results.
But First, the Challenges
A Forrester Research study indicates that the number one obstacle (cited by 46% of all respondents) to successful Web analytics is figuring out how to take action from the data collected. With so much information available, a multitude of questions can arise: Have I captured the right information? Is it usable and actionable? What does this data tell me? How can I use it immediately?
Many online marketers start by structuring a program based on the performance of others companies or general market research studies. Don't make this mistake. Focus on optimizing your own objectives, and Web analytics will be successful for you. And all you need to get started is a well thought-out strategy that will shape your Web analytics program.
There are five steps to structuring a Web analytics program. Plan each one carefully, and you'll be well on your way to a more successful and profitable Web site. The steps may seem intuitive, but discussion and agreement with your team now will avoid problems as the program unfolds.
Step 1: Measure
Capture Success Metrics and KPIs (Key Performance Indicators) Recently, companies have moved away from measuring volumes of raw data that may provide little or no insight, and have instead focused on measuring the impact on key business objectives. By determining what metrics to measure, you greatly simplify your Web site analytics, and help ensure success. And, it's usually pretty simple to figure out just what metrics you should be capturing. First of all, determine what type of site you have. A lead generation site will have very different measurements than a subscription content site, and a customer service site is a million miles away from an ecommerce site.
Most sites can be defined by one of four categories (Ecommerce, Content & Advertising, Lead Generation, or Customer Support). Most sites in these categories share similar business objectives and Key Performance Indicators (KPIs).
A site often can have more than one purpose and may require additional measurements. But the key is to define the site's purpose first, and then make sure that appropriate measurements can be made for each aspect.
Don't make the mistake of assuming that what works for one company will work for yours as well. Define your unique needs and objectives accurately, and you'll be off to a good start.
