How to Choose the “Right” Web Metrics without Becoming Overwhelmed

Source:  http://tinyurl.com/a3eyn4k   

I’m new to Web analytics (and blogging), but I usually consider myself a pretty analytical thinker.  However, right now I’m overwhelmed by all the options to analyze metrics on the Web.  Are you overwhelmed by what to measure as well?  There are so many different things you can focus on to measure, so how do you know which metrics are the “right” metrics for your company?  


Start with knowing your company’s objectives.  It’s easy to get caught up in looking at different metrics, but what are you really spending your time on if you don’t know your objectives.  According to Joe Hendershot, “Marketers need to determine very specific objectives of their websites(s), email marketing, AdWords campaign, social media, etc.  With objectives from all these channels, marketers will be able to better use analytics to measure the results” (“Baking in”, 2012, p.1). 

To determine your most important business objectives which will lead to the “right” metrics to measure you might ask yourself some of these questions,

·         What five things will most impact the business in the next 12  months?
·         What are specific revenue objectives, both for the year and for each quarter?
·         What are the “subjective” criteria for success in the next 12 months?  (Moore, 2012, p. 1). 

Once you have answered these questions about your objectives it should make it easier for you to choose metrics that help identify whether or not they are being met.  If an outsider could come in, look at your objectives and the metrics you choose to track at the end of a quarter, and understand what’s going on then you’re on the right track (Moore, 2012, p. 1). 

Source:  Kaushik 2007

Another way to consider whether or not you are addressing the “right” metrics is by considering your business size.  Are you a small, medium, or large business?  Different size businesses have different resource allocation, time-management, and ultimately goals.  According to Kaushik if you are a small business you should be focusing on:  cost per acquisition, bounce rate, checkout abandonment rate, and macro conversion rate (Kaushik, 2011).   If you are a medium size business you should measure the small business analytics as well as:  click-through rate, page depth, loyalty, micro conversion rate, and per visit goal value (Kaushik, 2011).  As a large business you’ll measure the small and medium business metrics as well as:  percentage of new visits, events per visit, days to conversion, and percent assisted conversions (Kaushik, 2011).  

I work in a small business so I’ll start with cost per acquisition, bounce rate, checkout abandonment rate, and macro conversion rate.  Once these four metrics are mastered then you can move on to the next group of metrics specific to your needs. 

  

If businesses are basing their analytics off of their objectives for their overall marketing strategy broken into specific areas, decision making from Web analytics becomes integrated, useful and much less overwhelming.  When Web metrics are used in this context they become a more strategic and ultimately a more worthwhile task.     

References

Baking in analytics from the get-go is a winning strategy. (2012). B to B, 97(4), n/a. Retrieved from http://search.proquest.com/docview/993587419?accountid=2837  

Kausik, A.  (2011, December 12).  Best Web metrics/KPIs for small, medium, or large sized business [Web log post].  Retrieved from http://www.kaushik.net/avinash/best-web-metrics-kpis-small-medium-large-business/    

Moore, J.  (2012, July 9).  7 tips on building your business with better metrics.  Forbes.  Retrieved from http://www.forbes.com/sites/ciocentral/2012/07/09/7-tips-on-building -your-business-with-better-metrics/