1. WEB ANALYTICS
March 30, 2010
NYU Internet Marketing Strategies
Tuesday, March 30, 2010
2. Goal of Most Marketing Sites
E-Commerce - Amazon, Sephora, Buy.com, Screenstyle
Lead Generation - Insurance, Service Companies, Real Estate
Advertising - YouTube, CollegeHumor.com, HuffingtonPost.com
Tuesday, March 30, 2010
3. Web Analytics
Web Analytics Measures the Performance of Your Website and all
Online (and perhaps Offline) Marketing and Advertising Efforts
We Measure the Website using KPIs. Key Performance
Indicators.
Tuesday, March 30, 2010
4. Key Performance Indicators
(KPI)
Increasing Number of Visitors
Higher Conversion Rate (Transactions/Visitors)
Increasing Revenue
Increasing Number of Subscribers to Newsletter
Increasing Number of Demo Downloads
Tuesday, March 30, 2010
5. Define your goals
I want to get more __________
Sales
Leads
Email signups
Phone Calls
Viewers
Tuesday, March 30, 2010
6. PRR – Project Rate of
Return
How much money can you spend on internet marketing
to remain profitable?
15%? 25%? 10?
For every dollar you spend on marketing efforts, what
is your revenue goal?
Better than ROI because ROI negates expenses
such as overhead, salaries, etc.
PRR is generally determined by Finance but you can
use industry best practices also.
Tuesday, March 30, 2010
7. AO – Average Order
Average Order should increase
Raise prices
Increase average # of items
You may also like:
Complementary products e.g. shoes and socks
Upsell
For just $50 more you can double your memory
You can assign dollar values to leads, phone calls, email
signups, downloads, etc.
Tuesday, March 30, 2010
8. (LV)Lifetime Value
Multiply AO (Average Order) by number of annual
purchases and/or length of customer relationship.
Big stores like Amazon and Zappos know you’ll probabl
come back over and over again. So your lifetime value
is high.
Hair salons, gyms, yoga studios, and many service
companies should also focus on lifetime value.
Tuesday, March 30, 2010
9. CPA – Cost per Action
How much money can you spend for each completed
action by a visitor to your website?
Multiply LV x PRR
Examples: A health club has a 1-year contract of
$1000. The average member leaves after 1.8 years so
the LV = $1800. The PRR is 15%
$1800 x 15% = $270 CPA
Tuesday, March 30, 2010
10. Conversion
How many leads out of 100 convert to your goal?
100 people click on your display ad. 10 purchase a
product. 10% conversion.
1000 people visit your site after hearing a radio spot.
10 call you and 1 person becomes a cutomer. 1%
conversion.
Tuesday, March 30, 2010
11. Cost per Lead
How much can you spend per lead and remain
profitable?
Multiply the conversion rate by CPA.
From an earlier example, the health club has a CPA of
$270. If a conversion rate is 10%, then the club can
spend $27 for every lead.
Tuesday, March 30, 2010
12. AMAT
ACQUIRE VISITORS
MEASURE INTERACTIONS
ANALYZE RESULTS
TEST IMPROVEMENTS
Tuesday, March 30, 2010
13. What is the ROI of measuring
your ROI?
Assume your site gets 100,000 visitors a month and your
conversion rate is 0.5% with an average $ of $200. Your site
makes 500 * $200 = $100,000 per month.
Assume you can make changes that raise your conversion rate to
0.7% with an average $ of 220.
Your site makes an average $154,000. Extra $54,000 per
month.
Tuesday, March 30, 2010
14. Conversions
3% Example
Visitors = Potential Conversions
Non-Bouncing Visitors Bounced Visits
3% Abandoned
Tuesday, March 30, 2010
16. Small to Midsize Businesses
WebTrends (also Enterprise player)
Google Analytics
Yahoo! Analytics (formerly Index Tools)
ClickTracks
Tuesday, March 30, 2010
17. Things that Can Go Wrong
Code Installed Incorrectly One IP address for multiple
persons
Firewalls can block tags
Robots can multiply figures
Some tags only measure when
pages are requested and not Cookies Expire (long
when activities are completed. purchase cycle business is
skewed)
Corporate sites block cookies
Same visitor logs in from
multiple computers
Tuesday, March 30, 2010
18. E-Commerce KPI
(How does website perform?)
Visitor Volume New Customer on First Visit
Index
Average Conversion Rate
Average Order Value
Average Per Visit Value
Average ROI
% Revenue from New Visitors
Tuesday, March 30, 2010
19. Marketer KPI
(How does marketing perform?)
% Visits by Medium Type Average ROI by Campaign
Type
% Goal Conversion Rate by
Medium Type % New vs. Returning Visitors
% Visits by Campaign Type % New vs. Returning
Customers
%Goal Conversion by
Campaign Type
Goal Conversion Index by
Campaign
Tuesday, March 30, 2010
