Chapter 8: Website Analytics

Chapter Objectives Select the best KPIs (Key Performance Indicators) for a website of any variety. Determine the most needed improvements for an eCommerce website based on an analysis of its conversion funnel. Describe the strengths and weaknesses of the various attribution methods.

Tracking Visitors to Your Website Website analytics refers to the data generated by website viewers Google provides a free analytics package: There is also free in-depth analytics training: You can get certified in Google Analytics: to-take-the-google-analytics-individual-qualification- gaiq-exam-and-get-certified

What does Analytics Track? Analytics does not know the identity of a user (i.e. name or address) However, it knows when the same computer is making multiple requests of a server. This allows analytics to track a user through several pages on a site It also recognizes cookies from previous visits Each server request is time stamped (helps to calculate time on site) For users coming to a site, analytics know how users arrive at a website (i.e. through search engines, direct URL entry, links from other sites, ads) Analytics also technical information about each user including the operating system, browser, screen size and internet connection type Though address is known of users, it knows general geography such as the zip code

Terms to Know Pageview/Hit=occurs any time a user accesses a page on a website Visit=any time a user enters a website, he has created a visits. A visit may consist of one or more pageviews. Time on Page=the amount of time the user spent on a page before navigating to a different page Entry=the first pageview of a visit is the entry point, which often not the home page. Exit=the last page view of a visit. An exit may occur because the user navigated outside the website or after 30 minutes of inactivity.

Calculated Metrics Average Page Depth=pageviews/visits (measure of user engagement) Average Visit Duration=sum of time on page for every pageview in the visit Site Bounce Rate=percentage of all visits that consist of only one pageview Page Bounce Rate=the percentage of visits that begin on that page that consist of only one pageview Entrance Rate=the percentage of visits that begin on that page. Exit Rate=the percentage of pageviews that result in an exit Unique Pageviews=removes double counts of hits from the same visitor to give a more realistic picture of volume Unique Visitors=counts only unique visitors to give a different picture of website traffic

Goals Source:

Retail KPIs Visits-should be always looking to increase # of visitors Conversion Rate-increase the percentage of visitors who complete a transaction is extremely beneficial for a retail website Average Order value-a website can increase the amount of money it makes from each transaction by 1) enticing shoppers to purchase additional items 2) entice shoppers to purchase higher- priced items Revenue Per Visitor-

Last Month’s Numbers: Retail Site Visits12,483 Conversions512 Total Revenue$17, $ % $34.26 Conversion Rate AOV RPV

By Channel: Same Retail Site Organic SearchPaid SearchDirectDisplay AdsReferral Social Media Visits 2,129 1, ,238 4, ,613 Conversions Total Revenue $1, $5, $ $2, $2, $1, $4, Organic SearchPaid SearchDirect Display AdsReferral Social Media Conversion Rate 3.4%5.6%9.2%2.5%1.6%7.3%10.3% AOV$20.73$64.77$34.26$40.08$37.04$23.75$26.03 RPV$0.70$3.62$3.16$0.99$0.61$1.74$2.68

Lead Generation KPIs Unique Visitors-should be looking to increase the number of new visitors to the site Conversion rate-a generated lead (either through filling out a form or by calling the company directly) Close rate-percentage of leads that convert into revenue for the company as a customer Closed Deal Value-how much is a closed deal worth to company? Revenue Per Visitor-though may be difficult to track, it is valuable to have at least a reliable estimate

Last Month’s Numbers: Lead Gen Site Visits722 Leads65 New Contracts28 $ % RPV$ %Conversion Rate Close Rate Average Contract Value

By Channel: Same Lead Gen Site Organic SearchPaid SearchDirect Display AdsReferral Social Media Visits Leads New Contracts Organic Search Paid SearchDirect Display AdsReferral Social Media Conversion Rate 2.4%7.6%14.2%--1.3%-- Close Rate0.0%14.3%55.3%--0.0%-- Average Contract Value --$870$

Media KPIs Media sites make money through advertising on the site so the goal is to generate traffic and keep visitors engaged. Visitors-care about generating a high number of visits of any kind Average Page Depth-generate a high level of engagement with visitors (ex: written content like a news site or blog showcasing interesting articles) Average Visit Duration-for media sites with video content, so the focus could be on keeping users watching videos so they can insert video advertising Conversions-possibly sign up for regular s, create an account or pay for premium membership

Last Month’s Numbers: Media Site Average Page Depth 2.56 Average Visits per User2.31 Visits36,745 Page Views94,232 Unique Visitors15,931

Social Media KPIs Make money from advertising so they care about user engagement New Account Sign-Ups (Conversions)-need a large user base Posts/Tweets/Pins-reflects the amount of content being created by users Likes/Re-Tweets/Re-Pins-for content consumption, each site will determine its own measure to use on this dimension Average Time on Site-amount of time spent on the site

Search Engine KPIs Goal is to provide the best list of content possible to users so they can find the best content and get on their way Searches-wishes to generate searches Conversion Rate-search engines for hotels, flights, rental cars receive a commission on each conversion Average Page Depth-goal is to minimize it because navigating to the second or third page of results show the search engine is not doing a good job

Conversion Funnel Rates & Availability 2,347,892 Review Itinerary 367,495 Guest Info 103,471 Confirmation 72,498 Revenue: $23,464,220 Room Nights: 143, What is the conversion rate?72,498/2,347,892 = 3.09% 2. Calculate each micro-conversion rate. Rates & Availability 2,347,892 Review Itinerary 367,495 Guest Info 103,471 Confirmation 72, ,495/2,347,892 = 15.7% 103,471/367,495 = 28.1% 72,498/103,471 = 70.1%

Conversion Funnel Rates & Availability 2,347,892 Review Itinerary 367,495 Guest Info 103,471 Confirmation 72,498 Revenue: $23,464,220 Room Nights: 143, What is the average number of nights per booking? 143,285/72,498 = What is the average revenue per booking? $23,464,220/72,498 = $ What is the average revenue per night? $23,464,220/143,285 = $163.76

Conversion Funnel Rates & Availability 2,347,892 Review Itinerary 367,495 Guest Info 103,471 Confirmation 72,498 Revenue: $23,464,220 Room Nights: 143, If traffic increased by 10%, how much would revenue increase? How many more conversions would result? $23,464,220*1.1 = $25,810,642 72,498*.1 = 7, If you could increase the percentage of people who arrive at the Review Itinerary step to 20%, what would the conversion rate be? How would revenue be affected? Review Itinerary: 2,347,892 *.2 = 469,578 Guest Info: 469,578*.281 = 132,213 Confirmation: 132,213*.7007=92,637 Conversion rate: 92,637/2,347,892 = 3.95% 92,637*$ = $29,982,152

Conversion Funnel Rates & Availability 2,347,892 Review Itinerary 367,495 Guest Info 103,471 Confirmation 72,498 Revenue: $23,464,220 Room Nights: 143, You believe that if the website offered a 10% discount, the conversion rate would increase to 3.5%. Would this increase or decrease revenue? Would it be profitable, assuming a 50% gross profit margin on bookings (before the 10% discount)? Conversions: 2,347,892*3.5% = 82,176 Revenue per conversion: $323.65*.9 = $ Revenue: $291.29*82,176 = 23,936, Gross profit (before): 72,498*($ $161.83) = $11,732,110 Gross profit (after): 82,176*($ $161.83) = $10,638,643

Alternative Funnels Viewed Home Page Viewed Category Page Viewed Sub-Category Page Viewed Product Detail Page Warranty Selection Page Viewed Shopping Cart Viewed Checkout Options Shipping Info Page Billing Page Review Page Confirmation Viewed Home Page Viewed Shopping Cart Confirmation

Destination Goals Viewed Home Page Viewed Category Page Viewed Sub-Category Page Viewed Product Detail Page Warranty Selection Page Viewed Shopping Cart Viewed Checkout Options Shipping Info Page Billing Page Review Page Confirmation

Visits to a Site Generated from: Organic Search Paid search ads (AdWords or Bing ads) Display Ads s (likely to be higher than the conversion from any other source) Social Media External links Affiliate links (company pays referral fees to a partner website for quality traffic)

Segmentation Geography New Versus Returning Visitors Timing (seasonality) Browser Screen Size Device (need to have a responsive design site which adjusts positioning to fit particular screen types)

Last-click Attribution-gives too much credit to the last touchpoint in the marketing channel First-click Attribution-first customer interaction receives all the credit for the sale Linear Attribution-all prior customer touchpoints that can be tracked in analytics

Attribution