Posts filed under 'Web Analytics'

A Web Analytics Measurement Model Strategy

We no longer live in a world where only last-touch direct response metrics suffice. The web influences both online and offline sales, every customer surveys competing sites and brands, they spend more time researching online and they research across multiple devices. This makes for a very convoluted purchase funnel. As people continue to browse constantly the amount of touchpoints before a purchase will continue to increase. So the question becomes how to quantify the value of all those touch points and create a strategy for growth?

Avinash has multiple great posts on this subject  micro-conversions, net income & goal values.  I’ve tried taking all of this in and meld together an approach to make all of these ideas work together. You should read Avinash’s posts first and then take a look at my conclusion. So I see three steps to putting together a strategy that values all the objectives of a website.

Step 1: Quantify All Actions Taken On The Site.

Look at all the micro-conversions that take place on the site and calculate their worth. This takes some creativity. You end up with something like this:

Micro-Conversion Value

Step 2: Extrapolate Those Value Across All Channels

You’ve deduced how much a new email subscriber is worth, now multiply that value to the amount of email subscribers organic search has driven in the last week. Do this with each metric and each channel and you’ll end up with a report that encompasses the value that each channel has for each micro-conversion. This is a good looking weekly report to show how the site is doing overall. But where should you focus?

Micro Conversion Report

Step 3: Focus Strategy Going Forward Based On Categorization Of Micro-Conversions

At a very simplistic level most businesses work under a pretty basic premise: buy stuff at one price and then sell it for more than you bought it for. There are four main strategies to do this: price strategies – sell at a higher price, cost strategies – sell at the same price but lower your costs, market share strategies – take more customers from your competitors, & market size strategies –  go into new places where you haven’t sold before.
Divide your micro-conversions and other metrics that are important to your business into one of the four buckets.  Now if you want to focus your strategy on volume you know the micro-conversions and metrics that each marketing channel should be driving to.

Micro Conversion Net Income Strategy

Add comment June 21st, 2013

What Happens When Conversion Rate Is So Low It Doesn’t Matter?

Of course conversion rate will always matter but what happens when your site’s conversion rate is consistently below 1% or .5%? It won’t be long before conversion rates less than 1% are the new normal.

There are two forces at work here: 1. Increased com­pe­ti­tion as peo­ple spend more time shop­ping online—more shop­ping equals more vis­its per pur­chase and con­ver­sion rates will nat­u­rally fall. 2. Increased mobile vis­its where shop­pers seem to pre­fer to use smart­phones to browse, price check, and find store loca­tions – not purchase.

Lower conversion rates aren’t a bad thing since incre­men­tal traf­fic still means more revenue. What will be bad is if the only metric you look at to measure success on your site is your conversion rate. What about the other 99% of traffic? Is that not worth trying to quantify?

No one gets married on the first date, likewise no one buys something the first time they meet your site. How many little interactions, downloads, engagement, likes, views, subscriptions, reviews does it take to add up to a conversion?  Like Avinash says, If you solve for conversion rate are you solving for all your traffic and are you improving the website experience for all your customers?

Add comment April 22nd, 2013

Web Analytics Starts With Asking The Right Questions

Web analytics tools are only as good as the questions you ask of them. Knowing how to use Google Analytics or Omniture – how to pull certain metrics and create reports, doesn’t do you any good until you have a reason to do so.

There are two kinds of questions: reactionary questions and investigative questions. Reactionary questions come from looking at trends and reacting to the results to find out why those trends happened.

Here are some reactionary questions:

  • Why did revenue dip week over week?
  • Why is cost per acquisition going up?
  • Why is site traffic increasing?
  • Why is bounce rate increasing?
  • Why is traffic decreasing from X traffic source?

Investigative questions are a result of discovering trends before they cause a reaction. These questions are the little discoveries that yield big results and the best questions are the ones that have a desired outcome tied into them.

Here are some investigative questions:

  • Where do my most valuable customers come from, and how do I get more of them?
  • Which keywords should I be focusing on in paid search and seo to decrease cost and increase relevant traffic?
  • What content is most persuasive at driving desired outcomes so that I can make more of it?
  • Which marketing channel is performing the best/worst according to sales and leads?
  • Is the content on my site causing people to return frequently and how can I make it more “sticky”?
  • How many page views does it take for someone to convert, is that the right amount or are we making it too hard for them to find what they are looking for?
  • In what stage of the shopping cart are people abandoning so that we can fix the leaks and increase conversion rate?
  • Which sources of traffic are driving the most new visitors so that we can continually add new prospects to the top of the funnel?
  • How do we get users to add more items to their cart so we can increase average order value?
  • What things are visitors searching for the most in site search? Are there opportunities to create content that doesn’t yet exist or make existing content easier to find?
  • How do smart phone visitors differ from tablet users and desktop users? Could we make a better user experience for those different users that would lead to higher conversion rates?
  • How long does the average paying customer spend on the site? Should we try to get everyone to spend the same amount of time or is it too long?
  • What effect would increasing rankings on organic search have on revenue and leads?
  • Which sources of traffic are assisting in conversions even if they aren’t the last source before the visitor converts?

Add comment February 27th, 2012

The Essence Of Web Analytics

The essence of web analytics is to boil down business objectives into unique actions on a web site. Its not about amount of visits, time on site, or most visited pages. When you match a desired outcome from a web site to a business goal and then devise a strategy around getting that desired outcome to happen more, by analyzing the data around that desired outcome, you’re doing web analytics.

Essence Of Web Analytics

Get enough of these and you can separate them into small objectives and large objectives where smaller ones lead to bigger ones, like it takes 10 sign-ups for every 1 sale. Then you build your marketing strategy off of these business objectives: “we need an increase of sign-ups if we are going to reach our sales goal so how can we optimize the content on the site by looking at bounce rate?” etc.

On a side note: Can the same methodology be used on optimizing your life? What is your personal life purpose and how can you boil it down into unique outcomes that you can track to measure your progress?

Add comment January 2nd, 2012

The Balance Between Visits And Conversion Rate

See if this scenario sounds familiar:

This report shows visits are up year over year. Yea! Well done everyone, the markting budget is paying off! Let’s keep the momentum going and see if we can continue to drive even more visits to the site!


This report shows conversion rate is down year over year. Boo! What the heck is going on everyone! Let’s optimize our accounts, cut cost per acquisition in all channels and limit non-qualified visitors entering the site!


The truth lies when you look at conversion rate on top of visits. Obviously, if you’re spending more on reaching out to drive more visitors to the site, chances are they are new visitors and not very low in the conversion funnel, causing a drop in conversion rate. Do you ask someone to marry you on the first date? No of course not, yet that is what too many companies expect when they pay to drive new traffic and expect them to purchase after their first interaction with the site.
What is a “good” conversion rate? Is less than 1% bad? Is greater than 7% amazing? Neither. It all depends on volume of traffic, average order value and margin. If you sell a product for $50 online, would you rather have a site that gets 100,000 daily visits and have a dismal looking conversion rate of .9%, or a site with an amazing conversion rate of 6% but gets 1,000 visits? Option one would be making $45,000 while option two makes only $3,000.
It gets dangerous when an organization has its mind set on a specific conversion rate and makes short term changes to maintain it – like managing their marketing channels so that only the most qualified and interested visitors come to the site. These visitors tend to be repeat customers already far down the conversion funnel – converting the converted. A healthy business will continue to invest in adding more new customers into top of the the bucket. If not, and the tyranny of maintaing conversion rate runs rampant, the amount of people leaking out the bottom of the bucket will exceed the amount going in the top. A target conversion rate should allow for a healthy amount of new visitors who are an investment in the long term. Today’s expensive, non-converting visitors are tomorrows cheap, high-converting visitors.

Add comment October 6th, 2011

Don’t Write Checks With Your Ads That Your Site Can’t Cash

Landing pages are underestimated in the role they play in paid search. I think the reason is because it’s a lot easier to tweak adtext, bids and keywords than the landing page. For the query “front load stacked washer and dryer” this is the ad and landing page Sears gives me:

Can you imagine walking into a sears and telling the rep that you are looking for a front loading stacked washer and dryer and in response he says, “sure, all washers and dryers are in the back, go ahead and find it yourself.” Yet that is what this landing page is telling me – “here’s everything we sell related to washers and dryers, figure it out.”

You can discover where your ads are writing checks that your landing page can’t cash in Google Analytics. Pull up your keyword report under Advertising > AdWords and add the secondary dimension of Destination URL (or make a custom report like mine below). Sort by bounce rate and here you will see all the keywords that aren’t matching very well with their chosen landing pages.

In my example below, line 2 has spent $335 and has a bounce rate of 90% and -40% ROI – ouch. Time to rethink the quality of this keyword and the quality of this landing page.

Add comment August 16th, 2011

Analyze Search Terms On Paid Search Landing Pages

Is the keyword you’re bidding on in AdWords a good match for the landing page you have chosen for that keyword? And if not, (after looking at low conversion rates or high bounce rates) what landing page would be better? One way to find out is to see if the visitor does an internal search after landing on that search page.
Navigate to the Content > Site Search > Pages in Google Analytics. Use an advanced segment to show only visitors from your Google AdWords ads. Click on one of the landing pages and then add a secondary dimension of keyword.
In the second column is the paid keyword someone used to get to this landing page. In the first column is the keyword the person used in your internal site search after landing on the page. Essentially visitors clicking on your AdWords ads are telling you with their search term what they want to see after clicking on your ad that you’re not showing them. This can give you insight into changing the landing pages that you have set up with your keywords. Pair keywords that you are bidding on with landing pages that people find after doing a search.

Add comment May 27th, 2011

Conversion Funnel Web Analytics Measurement Model

Instead of using margin and volume to make your web analytics framework, It may be easier to build it out using a conversion funnel. The different steps of the funnel give you ideas and starting points for brainstorming the functions your site has. It also forces you to think through your marketing and web analytics strategy for each step of the customer acquisition cycle. The steps are awareness, consideration (desire, interest), conversion, loyalty and advocacy.
Each step has Key Performance Indicators and their associated targets and goal values. For some of the goal values you’ll have to determine internally, (Avinash’s post on this is rad) and other goal values are the Per Visit Values calculated by Google Analytics (dividing revenue by visits).

I like this kind of view because it puts into prospective where the majority of your advertising efforts are going. It’s easy to heavy up on everything leading up to the conversion and then forget about loyalty and advocacy, or vice-versa.

1 comment January 26th, 2011

What Does Web Analytics Tell You About How You Are Training Your Customers?

After reading a post by Seth Godin the other day called Train Your Customers, I asked myself, “how could you measure in web analytics the ways in which you are training your customers on your website?” So I took his list and thought up how to measure them using different metrics for each. I think if you can first tie a behavior to a metric, you can start to discover ways to increase or decrease that behavior, once you start measuring it.

  • Be respectful – You got me on this one. Maybe measure the amount of positive vs. negative comments on a blog? (Crap, blowing it on the first one, keep reading they get better I swear)
  • Be patient – In terms of how long it takes the visitor to find what they are looking for: measure Length of Visit under Visitors > Visitor loyalty > Length of Visit. Then use a Visits With Conversions advanced segment to see how patient those people who buy are. Is there a threshold of patience where people give up? How many steps does it take to convert? In terms of page load time use Google’s Page Speed to measure page load times. Another one: bounce rate – this will show how many people are patient enough to read the stuff you put up on your site.
  • Keep their satisfaction to themselves – Just like spread the word below except this one is more subjective. You would need to measure the amount of positive feeback compared to negative. How many opportunities to you give people to share with others?
  • Be selfish – If the site had any kind of donation aspect you could look at the conversion rate of donations. Or selfish in terms of the kind of content that most interests people. Is  product-centric or customer-centric content more popular? Look under Content > Top Content, use advanced filters.
  • Be focused on a superstar – I think measuring the conversion rate of traffic from social media could work for this one. Maybe people are really focused on all the noise you make on Twitter and the amount of visits from those sources turn out to add very little to the bottom line.  Look at Traffic Sources > Referring Sites > flilter for Twitter and then look under the Ecommerce or Goal tab to see conversion rate.
  • Demand personal service – Amount of inquiries to customer service. The amount of browsing between different categories could show that amount of personalization someone would want to help them shop.
  • Be calm – Pageviews per visit? Bounce rate? Depth of visit? Some visitors can be more click-happy thank others.
  • Never settle for the current iteration – kind of like Demand for personal service.
  • Be cheap – Ecommerce > Average Order Value. How small of purchases are people making and how are you aquiring for those kinds of visitors?
  • Embrace acceptance – how much traffic comes form comparison and review sites? Do people need to be reassured by others or their social circle that purchasing from you is the right decision?
  • Spread the word – Amount of clicks on the social “share this” buttons and the amount of inbound links and referring traffic. This can be done in Google Analytics using onclick events.
  • Expect pampering – Goal Abandoned Funnels under the Goals tab. Does the lack of free shipping make someone abandon? What kind of pampering is needed to keep people from abandoning the funnel?
  • Demand free – How many blog posts, ebooks, free consultations and touches with the customer does it take before they buy? Ecommerce > Visits to Purchase.
  • Be eager to switch brands to save a buck – Make a custom segment of Return Visitors and apply it to the transactions report under the Ecommerce tab. If the line is going down returning visitors aren’t coming back to buy. To be able to see the number of purchases from people who previously bought use the User Defined Report.
  • Value and honor long-term loyalty – Visitors > Visitor Loyalty > Loyalty. This will show you how many visits were the visitor’s nth visit. The more visits, the more loyal. Also do this test with traffic that comes from paid channels. How many people who come from banener ads end up coming back? Set up an advanced segment from the Campaign Dimension and then put that over the Loyalty report.
  • Be skeptical – Amount of visits to purchase. If someone visits the site multiple times before they purchase, chances are they are skeptical. This metric is found under the Ecommerce tab > visits to Purchase. What is causing the skepticism? Make a custom segment  with Count of Visits to a Transaction as the dimension and set it to greater than 3 and see what content these people look at that makes them so skeptical.

Add comment August 20th, 2010

Using Goal Compleation In Advanced Segments

I really like using goals as advanced segments to find out what is working on the site.

Say your Goal #1 is a lead generation goal to get email sign-ups from people who want you to contact them later for more information. Set up an advanced segment for Goal1 Completions and then add it, and only it, to your report.

Now you’re looking at everything that went just right with these visitors: 1. Their expectations of what they were going to see before they clicked matched what they saw. 2. What they saw was engaging. 3. They trusted you enough to give you a chance and then they converted. Here’s some ideas on how to figure out what those 3 things were so that you can make it happen more often:

1. What kept these visitors from bouncing was that what they were expecting, by clicking on the search result or link in a referring site, is what they got. This can be found under Traffic Sources. What keywords and referring sites are driving these visitors who convert? I’m going to try to maximize the traffic from these sources especially to the page that they landed on. Under Content > Top Landing pages I can find out which landing pages worked. Make more content like that with those same keywords. Include those keywords in your SEO efforts.

2. How engaged does someone need to be before they convert? Back to Visitors > Visitor Loyalty > Depth of Visit you can see how many pageviews it it takes on average before someone converts. If the sweet spot is between three and four pages then I can start trying out strategies for getting more pageviews per visit. More up-sells (people who like this also like this) and more links to similar content to keep people on the site.

3. The amount of trust it takes can be found under Visitors > Visitor Loyalty > Loyalty. Here you can see how many visits on average it takes for someone to convert. Once I see how many visits it takes before someone trusts me enough to convert I can set a goal to get those repeat visitors. Creating content more frequently and maximizing the ways people can get alerted to new content (Twitter, RSS, Facebook) can help get repeat visitors.

Add comment July 9th, 2010

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Hi, my name is Zach Olsen, internet marketing professional, web entrepreneur & proud dad. Read more...

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