The Metrics That Matter: Website analytics that show you how to improve conversions and lift ROI August 2, 2012 A special thank you to: Thank you for joining us – we will be starting at 2:00 PM ET/11:00 AM PT If you are unable to hear music at this time, please make sure that your computer speakers are turned on and that your system has not been muted. #TMGWebinar Today’s Speakers Rio Longacre Amy Africa Managing Consultant Marketing, Sales & Service Consulting Capgemini Consulting President Eight by Eight Moderator Thorin McGee Editor in Chief Target Marketing #TMGWebinar Tips for Webinar Attendees • Technical difficulties? Let us know by using the “Q and A” box, or trouble-shoot by clicking the “Help” widget below → Quick tip: Common problems (like loss of sound and/or stall in the slides) can often be fixed by a quick refresh of your browser. • Have a question for today’s speaker? Submit via the “Q and A” box • Please disable pop-up blockers • See what this console can do! Click on the “Tips for Attendees” widget for the complete rundown. Don’t forget to “share” this webinar! #TMGWebinar Please Welcome Rio Longacre Managing Consultant Marketing, Sales & Service Consulting Capgemini Consulting #TMGWebinar By Rio Longacre • Marketing professional 15 years of experience • Blogger & journalist • Columnist with Target Marketing Magazine • Consultant at Capgemini Consulting, Marketing, Sales & Service Practice Rio Longacre What is Web Analytics? What you need to know Web Analytics Strategy Creating a Web Analytics Program Web Analytics 3.0 Web analytics is the measurement, collection, analysis and reporting of internet data for understanding and optimizing web usage • Companies use Web analytics to: Assess and improve the effectiveness of websites Measure the results of marketing campaigns Provide information on the number of visitors to a website and the number of page views Gauge traffic and popularity trends for market research Logfile Analysis – done by analyzing file the web server normally already produces; almost always done inhouse ◦ Advantages: data is already available ◦ Disadvantages: Less accurate; requires technical skills Page Tagging – tags are inserted on page that capture and store data. Most companies now rely on Page Tagging to track Web Analytics ◦ Advantage: more accurate; does not require access to web server; can leverage cookies to track individuals ◦ Disadvantages: requires third-party software; national privacy laws Most firms use Page Tagging Hit – a request for a file from the web server Page View – visit to what is defined as a ‘page’ Visitor – uniquely identified person arriving on website Visit/Session – series of page requests from unique visitor within 30minute time frame Pageview – request for a file whose type is defined as a page Click – user visiting a hyperlink on a Web page Click Path – sequence of hyperlinks a website visitor follows on a given site Impression – number of times a banner (advertisement) loads on users’ screen Conversion – an action that is the objective of the page itself, which is defined by the page owner (usually a sale or lead) Conversion rate – percentage of visitors who complete the desired action on the page Heatmapping – a graphical representation of data where the individual values contained in a matrix are represented as colors. In Web Analytics, a visual heatmap reveals clicks on a HTML page, showing hot and cold click zones. Visitors don't read, they scan. People tend to scan pages in an F-shaped pattern. The heat map shows red colored markings which are the areas visitors look at the most frequently. *Source: http://www.squidoo.com A cookie is a small piece of data sent from a website and stored in a user's web browser while a user is browsing a website When the user visits the same website in the future, the cookie can notify the website of the user's previous activity Cookies cannot carry viruses or malware Cookies are commonly used as ways to compile long-term records of individuals' browsing histories — a major privacy concern that has prompted lawmakers to take action For firms operating in Europe, the 2012 Data Protection Directive requires that member states pass legislation that: ◦ Requires ‘consent’ (opt-in) for data collection on websites in the European Union ◦ Restricts transfer of data to third-party countries not offering adequate levels of protection EU directives are addressed to the member states, and aren't legally binding for citizens in principle. All member states have enacted their own data protection legislation. When passed, these national laws may affect your Web Analytics program… so be aware! Contemporary Web Analytics strategy has four main attributes: 1. 2. 3. 4. Continuous in nature – ongoing feedback loop Multi-channel in scope – tracking Web visitors from different sources and channels Attribution focused– understanding marketing spend and effectiveness Action oriented – turning insight into action Web Analytics Strategy: 1. A continuous feedback loop between Measuring, Reporting, Analyzing & Optimizing 2. Multi-channel data captured by the Web Analytics platform is provided to the various marketing departments 3. Successful Marketers use data to enhance marketing effectiveness and improve ROI Measure Optimize Web Analytics Analyze Report Multi-Channel Traffic ◦ Multi-Channel – traffic from different channels, including Social Media, email, Organic SEO and Paid Search ◦ Cross-Media – traffic from non-interactive channels, such as direct mail and broadcast Mobile Web ◦ Mobile – smart and feature phone traffic to Web and Mobile websites ◦ Tablet – traffic to iPad and other tablet devices • Attribution is the act of determining what marketing channel and budget is responsible for generating Web Traffic Organic SEO Attribution is the holy grail of Web Analytics, as firms strive to determine the origin of all Web traffic, and attribute it to the appropriate budget Mobile Paid SEO Email Marketing Broadcast Website Social Media Direct Mail Display Catalogs True cross-channel integration turns Web Data into actionable follow-up: Web Lead Sales Call Anonymous Web Visitor Known Customer or Prospect Abandoned Shopping Cart Automated Follow-up Print-Web visitor Personalized Email Outreach Business objectives. What is the purpose of the website(s) you’re collecting data on? Website goals. What actions do you want people to take on the website to meet your business objectives? Key performance indicators (KPIs). What metrics can be used to measure and evaluate the website’s performance over time? How can you make your analytics actionable by connecting them to ongoing marketing activities? Governance Objectives Scope Process & methodology Tools & data Actions & optimization What does the future state structure of your Web Analytics program look like? Who is going to manage your program? What skills sets does the current team lack/require? Are the right people on the job? What is the best plan for implementing the changes you have identified? No program can succeed with a clear mandate and set of objectives Have you decided what your program seeks to accomplish? For example: ◦ Website optimization ◦ Channel attribution ◦ Campaign management/optimization ◦ Market research Is corporate leadership aligned to your goals? Today’s Internet is more than the World Wide Web: ◦ Mobile Web ◦ Apps ◦ Social Media websites Different websites serve different markets and purposes, including specialized landing pages and product-specific sites What is the scope of your initiative? Which online destinations do you wish to get analytics on? Once you have the data, what processes and procedures have you set up to evaluate the program? What Key Performance Indicators (KPIs) will you be measuring? Who will analyze the data, and what will they be looking for? What Web Analytics Software will you use? Are the tools you’ve selected aligned to your departmental goal and reporting needs? What outside tools (if any) will you need to help analyze the results? What additional insight can you draw from the data that you may be missing? Web Analytics data is worthless if you don’t plan to do anything with the information How can you use what you learn to improve your marketing program? ◦ Learn more about your customers, who they are, where they are, and what they want ◦ Optimize your website for improved performance and user experience ◦ Improve the performance of your marketing campaigns ◦ Rationalize your marketing spend to segments based on ROI analysis ◦ Connect your data to a marketing automation program In a digitally-driven multi-channel world, Web Analytics becomes an important cog in the enterprise firm’s global data strategy Three main trends are affecting us today: Big Data – the proliferation of data across the enterprise organization has transformed the way firms look at their customers Mobile Web – Today’s Internet is much broader than just the World Wide Web Social Media – Social Media Analytics has become critically important to every firm’s marketing strategy Proliferating channels are providing us with an unprecedented amount of data – Big Data refers to the drive to make sense of it all More data has been created in the last three years than in ALL past 40,000 years of human history! Marketers are beginning to break down their various silos and unify their data - Website Analytics is but one component of this ecosystem Social Media CRM Data Marketing Automation Email Software Website Data Location Time Role Action • Geographic • When does a customer interact with a marketing message (time of day or day of week) • Research • What was the customer doing at the point of interaction whether it be ‘Liking’ a Facebook post, reading a blog, or retweeting a Twitter message • In store or venue • On street near venue • Home based • Aisle browsing • Length of time that they interacted with the message • Shopping • Buying • Point of Sale • Post Sale • Seeking Support Community Activity Sentiment Context Influence •Facebook •Post •Positive •Location •Reach •Linkedin •Like •Negative •Activity •Amplification •Quora •Respond •Mixed •Time •Network •Twitter •Tweet •Role •Topic Influence •Pinterest •Retweet Past Present What happened? What is happening now? What will happen? (Reporting) (Alerts) (Extrapolation) What’s the next best action? What’s the best/worst that can happen? Information How and why did it happen? Insight (Modeling, experimental design) (Recommendation) Future (Prediction, optimization, simulation) 5-6% IMPROVEMENT IN PERFORMANCE For firms that emphasize decision-making based on data and analytics 26% 2/3 of executives describe themselves as “Data Driven” 76% Energy and Natural Resources 54% PERCIEVED IMPROVEMENT For firms that emphasize decision-making based on data and analytics 73% Financial Services Sector 41% EXPECTED IMPROVEMENT In performance due to Big Data in the next 3 years Assert that management decisions are increasingly based on ‘hard analytical information’. 75% Healthcare, pharmaceuticals and biotechnology 65% Regard management decisions based on intuition or experience suspect. Say that Big Data management is not viewed strategically at senior levels of their organization. 55% Let’s keep the conversation going: @rio_longacre www. whos-your-data.com Rio Longacre http://www.linkedin.com/in/riolongacre http://www.targetmarketingmag.com/channel/who-s-your-data Please Welcome Amy Africa President Eight by Eight #TMGWebinar METRICS THAT MATTER… Amy Africa, CEO, Eight By Eight Follow me on Twitter: @amyafrica Read the QLOG: amyafrica.com E-mail: [email protected] CRITICAL NUMBERS Sales, Number of Orders, Average Order Leads (Ranked on propensity to buy) RFQ’s (requests for quotes) Sign-ups (email, podcasts, webinars, catalog requests) • Overall traffic (especially unique visits) • Traffic make-up (SEO, PPC, affiliates, email, etc.) • • • • QLOG: www.amyafrica.com * Twitter: @amyafrica * © 2012 METRICS THAT HELP US… • • • • • • • • Exit pages Entrance pages Keywords (used to find you and within your site) Referring URL’s Bounce rate New versus returning traffic Percentage of mobile traffic Top products and their respective performance QLOG: www.amyafrica.com * Twitter: @amyafrica * © 2012 WHAT ABOUT CONVERSION? There’s no doubt that you should measure your conversion. However, it’s not the be-all-end-all metric that you may have been led to believe. METRICS THAT MATTER… Nobody ever tells you the things that will really make a difference in your business… Until today… AAUS • AUS = average user session • AAUS = average active user session • AUS/drills = AAUS • This is, by far, one of the best ways to know whether or not your navigation is any good. • Look at your overall AAUS and be sure to look at the time spent on your major entry page(s) as well. ATC (ADOPT TO CART) • Out of 100 people, how many folks add an item to their basket. • This is one of the best metrics you can measure. It’s far more telling than abandons, it’s just not as sexy. ATA (ADOPT TO ACTION) • ATA (Adoption to Action) looks at every action that is important to you and its respective adoption rate. In other words: out of 100 people, how many do it: – How many people sign up for your emails? – How many users start your lead forms? (Catalog requests, quote requests, podcast/webinar sign-ups, survey/poll completions, etc.) – If you use video, how many people click on it? How long do they view the video? Do they put the item in their basket (or start the lead generation process) afterwards? • Again, you want to know, out of 100 people, how many people start this action. Then you need to look at how many folks finish it. DIRECT/NO REFERRER • If you want to fix/improve your business today, this is a metric you simply must know. • What percentage of your traffic is direct/no referrer/branded? • How do these folks behave differently from the other folks? (For example, SEO and PPC leads.) • These users often deserve separate programs, including their own entry pages, carthoppers, lead forms and checkouts. APS (ABANDONS PER STEP) • Abandons per step takes a critical look at your checkout or multi-step lead forms. • Looks at abandons per step and/or per field. (Per field really works especially on shipping and payment screens.) • This helps you identify what specifically to fix on your website and more important, how you can best market to your abandons. DTS (DAYS TO SALE) • How many does the average sale take? • Change your email follow-up program (especially your triggers) if you want to decrease this number. VISITS TO SALE (VTS) • How many times does the average user visit your site before they purchase/inquire? • Track all site visits including email visits. (Some people look at email opens instead of visits. This can be effective, just be consistent with your measurements.) INTERNAL SEARCHES • Out of 100, how many visitors use your internal text search function? – How many searches are conducted? (Overall? Per visit?) – Of those folks, how many have “successful” searches? “Unsuccessful” searches? – More importantly, how many of them are actually successful? (This is indeed a separate measurement.) – How often does using the search result in an exit? • At the end of studying your searches, you should know if you have a word connect. MOBILE METRICS • How many people are reading your emails on a mobile device? • Be sure to break out tablet traffic versus phone traffic. • The key is to look at the differences between your desktop traffic and your regular traffic. (Very few folks do this and it’s VERY telling.) • User linking is key. USER LINKING IS KEY I take a picture of your product with my phone. I send it to you. I get a text message back. I click on the text message. I click on the phone number in the message. I get IVR. Someone sends me info to my e-mail address. I open my e-mail at home. I click on your website from that e-mail… MOBILE TRANSFER • The mobile transfer looks at how many people start on a mobile device and finish on a desktop site. You can also measure the reverse. • Works just like regular transfer although the measurement process is indeed more complicated. • You can segregate this into several buckets: smartphones, feature phones, traditional desktop site, phone, live/instigated/video chat, email and so on. • This impacts many things. Two of the most important are your email program (especially your triggers) and your backend swaps. (It’s one of the many reasons why collecting mobile numbers is imperative for good tracking.) • Working the mobile transfer will be key for the next 18 months. Less than 1% of companies do it. SUPPORTING METRICS • Search behavior (this includes internal and external search) • Email metrics • Upsell/cross-sell information • Social media mentions • Mobile metrics • Live and instigated chat “IT’S TOO MUCH…” It’s far easier than you think. One dashboard to make sure that there’s nothing run amok and one list of things that you need to keep tabs on. THANK YOU… Follow me on Twitter: @amyafrica Read the QLOG: amyafrica.com E-mail: [email protected] Phone: 802-881-0061 Question & Answer Session If you haven’t done so already, please take this time to submit questions to our speakers using the “Q&A” box on your console. #TMGWebinar Thank You Thank you for taking the time to attend our webinar today. For additional information about our webinar series, check out the following Web site: www.targetmarketingmag.com/webinar Please take a moment to fill out our feedback survey. (It will open in a new browser window/tab momentarily!) #TMGWebinar
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