How Measuring Key Performance Indicators Can Improve E-Commerce Strategy - Part One
The problem with most e-commerce marketing strategy today is that companies don't understand how they use things like web analytics. Most e-commerce directors or web marketers are given a budget and told to stick to it, and good analytics don't usually come cheap. Without web analytics you can't even begin to measure key performance indicators (KPI's), which should be a part of any good e-commerce strategy. We often see that marketers face a problem in that they know they need Web Analytics, they just don't know why they should pay for it and don't know what to measure. This three part series of articles will hopefully help clear up some of the things that marketers should measure as key performance indicators concentrating on one KPI per article.
What is a key performance indicator?
In website measurement terms a key performance indicator is a metric which will help your organization define and measure progress toward your websites business objective. Key Performance Indicators are quantifiable web site measurements that reflect whether you are successfully meeting or falling short of your websites business goals.
That's quite a boring definition of a KPI even if it is important, so in a last ditch attempt to keep you from falling asleep lets talk about Formula 1 (or the Indy 500) and the KPI's they use.
What has Formula 1 got to do with KPI's?
There are many minute factors in formula one that constitute being a winner. Everything down to the performance of the fuel, the tires, the speed of the pit stops, the quality of engine parts, the weight of the car, it's aerodynamic ability, everything is measured and tested, long before the driver even gets into the car. The difference between the winner of a formula one race and second place can be as little as a hundredth of a second.
That extra hundredth of a second could be because the fuel used on that particular race day allowed the driver to get more out of his car than the guy in second place.
How did the race team know which fuel to use?
Because before hand they had tested maybe 50 different types, each one tuned for the demands of different circuits - or even different weather conditions.
They got that extra performance by knowing the key performance metrics of the fuel, so they could say with confidence that 'fuel a' was better for their car if 'condition a' was satisfied.
Condition 'a' might have been the cars weight that day the type of road surface and the weather. When all matched together it meant that the race team had a particular choice to make when selecting the fuel for the car.
The web site KPI I'm about to discuss is the fuel that powers your e commerce sales and lead generation strategies. Both are measured by practically all web analytics systems, but both not commonly measured to their full potential.
Page views per session, the fuel behind your web business objectives
For those of you that know why page views and sessions are important bear with me for a paragraph or two. For those of you that don't here we go.
Why are page views and sessions important?
Page views are a metric that represents the amount of times your pages are viewed by the people that visit your website. On it's own it might be an important measurement if you're a very well trafficked content website looking to sell B2B advertising in the form of some kind of ad (banners for instance).
If you can accurately say to an advertiser that you have 10 million page views per week, it's very likely that this alone will be one of your KPI's, simply because if it goes down, your advertisers will most likely not want to pay you as much to advertise with you. It would be important in this case that you keep the page view count at least to the same level every week in order to keep the same level of banner revenue for example.
Sessions represent the amount of users (people) visiting the website over a given period. Again it's a very important metric to know, the general idea being that more of the right kind of people visiting your pages will eventually mean your bottom line improves.
By combining these two metrics however we get a much more powerful way to use the figures.
Combining the two metrics as one KPI is done by taking a ratio of page views per session as an average. So if 1000 visitors viewed 2,000 pages the mean page views per visit KPI is 2, (2,000 / 1000 = 2).
Why is this combination important?
If your website e-store system required that you need to view 5 pages in order buy a product and your KPI is telling you that your site gets an average of 2 page views per session, then the site is under performing badly.
If it takes 5 pages for your visitors to buy something then your goal should be to get an average KPI of at least 5 page views per session. Otherwise it means that the vast majority of your visitors aren't going deep enough into the process.
Much more importantly deciding on a KPI like this is giving you a measurable objective to work towards. If you know that the vast majority of people are abandoning your website after only viewing one or two pages there is a problem which you need to work hard to solve.
It means you know that somewhere within your web analytics you will be able to detect the areas of abandonment that are the problem. The simple fact of the matter is, if you have a low page views per session KPI then your analytics system (if it's any good), WILL be able to show you where the problem lies. Once you have found the problem areas, congratulations, you're becoming a web analytics expert. Now you know which pages have the problem and you just need to figure out the why.
Figuring out why is the real secret
It may be that you're driving the wrong kind of visitors, such as people who aren't interested in your offer. It may be that you don't have enough compelling content to keep visitors interested. It may be that your shopping cart has a problem with abandonment or your lead generation process is too long or has a scary form to fill in. In all cases your page views per session KPI is the first warning signal and you can monitor it quite easily.
Other warning signals
The other side of the coin is if this KPI is too high. What if you have a 1000 people viewing 20,000 pages? Unless you have incredibly compelling content there is a problem. It probably means that people are very interested in something but can't find it on your site. So having this KPI be too high is also a warning flag that means you need to analyze your web analytics and see where the problems are. Are people skipping around pages? How long do they stay on your site? (another KPI we'll come to in the next article of this series), have you got site architectural problems with navigation?
Too high or too low, it's all useful measurement
The point is to find out how to use the fuel remember? If you start measuring page views per session as a KPI, you will begin to see if you have a problem or not. You can get as deep and as sophisticated as you like, I'm just trying to show you the idea with this article.
For instance you could measure page views per session of visitors only hitting your shopping cart, or lead generation system. Content websites could use page views per session in particular content groups to work out how compelling particular kinds of content are. It all depends on the web site business objective.
Developing KPI's allow you to measure things on your website which directly effect your business objectives. In the example I've demonstrated by finding ways to improve the number of pages people view per session there is more chance that those users will complete your calls to action (buy, register, subscribe, whatever web business objective you may have). This first KPI that I'm suggesting you consider is an early warning signal that something is wrong and it's very easy to determine how to set a measurement. The next KPI I'll discuss is time spent on site and why it is also important as well as how you can use this in combination with page views per session.
Author: Steve Jackson, Editor - Conversion Chronicles
Steve Jackson is CEO of Aboavista, editor of The Conversion Chronicles and a published writer. You can get a free copy of his e-book sent to you upon subscription to the Chronicles web site (http://www.conversionchronicles.com).
15 Ecommerce SEO Experts Reveal Top Insights For 2023 Search Engine Journal
Customer Retention Strategies Ecommerce Companies Should Apply In 2023 Search Engine Journal
Give your customers what they want with ecommerce AI Search Engine Land
Nestlé aggressively pursues online sales, predicting a 'rebound' in e-commerce, rise of 'channel-less commerce' - FoodNavigator-USA.com
Nestlé aggressively pursues online sales, predicting a 'rebound' in e-commerce, rise of 'channel-less commerce' FoodNavigator-USA.com
Ecommerce SEO & UX: 4 simple tips to boost traffic and sales Search Engine Land
More European companies engage in B2B ecommerce Digital Commerce 360
Ecommerce Product Releases: December 4, 2022 Practical Ecommerce
Nestlé projects ecommerce will be 25% of sales by 2025 Digital Commerce 360
Mark Zuckerberg admits he over estimated e-commerce boom amid layoffs The Washington Post
Daily Research News Online no. 34307 - WPP Buys Canadian eCommerce Agency Diff - Daily Research News Online
Daily Research News Online no. 34307 - WPP Buys Canadian eCommerce Agency Diff Daily Research News Online
Intelligent Recommendation Algorithm for Ecommerce Market 2023 Top Manufacturers, CAGR Status, Industry Size, Upcoming Trends, Emerging Growth Factors, Dynamics and Forecast to 2029 - Digital Journal
Intelligent Recommendation Algorithm for Ecommerce Market 2023 Top Manufacturers, CAGR Status, Industry Size, Upcoming Trends, Emerging Growth Factors, Dynamics and Forecast to 2029 Digital Journal
Quantifying the global e-commerce slowdown TechCrunch
Social Commerce is Expected to Contribute US$42 Billion to Southeast Asia's E-Commerce Market by end of 2022: Cube Asia's Inaugural Report - Yahoo Finance
Social Commerce is Expected to Contribute US$42 Billion to Southeast Asia's E-Commerce Market by end of 2022: Cube Asia's Inaugural Report Yahoo Finance
Retail eCommerce Platform Market 2023 Top Manufacturers, CAGR Status, Industry Analysis by Geographical Regions, Latest Trends, Share, Type, Application and Forecast to 2029 - Digital Journal
Retail eCommerce Platform Market 2023 Top Manufacturers, CAGR Status, Industry Analysis by Geographical Regions, Latest Trends, Share, Type, Application and Forecast to 2029 Digital Journal
Ecommerce Week 2023 | Events Retail Week
TikTok Launches eCommerce Feature in US PYMNTS.com
12 Online Business Tips for Your eCommerce Store to Enhance Customer Experience & Drive Sales - Customer Think
12 Online Business Tips for Your eCommerce Store to Enhance Customer Experience & Drive Sales Customer Think
Searchspring Honors Its Outstanding Ecommerce Partners at Third Annual “Partner Cheers!” - Business Wire
Searchspring Honors Its Outstanding Ecommerce Partners at Third Annual “Partner Cheers!” Business Wire
Black Friday sales skyrocket for Upstream e-commerce partners using its mobile marketing technology - RealWire
Black Friday sales skyrocket for Upstream e-commerce partners using its mobile marketing technology RealWire
The Gummy Project Officially Launches in U.S. Market with Ecommerce Site and Nationwide Shipping - Yahoo Finance
The Gummy Project Officially Launches in U.S. Market with Ecommerce Site and Nationwide Shipping Yahoo Finance
New Empirical Research Report on Ecommerce Order Fulfillment Platforms Market by Forecast From 2022 to 2029 With Covid-19 Impact Analysis and Future Business Opportunities: SAP Ariba, Amazon, Intuit, Salesforce, NetSuite - Digital Journal
New Empirical Research Report on Ecommerce Order Fulfillment Platforms Market by Forecast From 2022 to 2029 With Covid-19 Impact Analysis and Future Business Opportunities: SAP Ariba, Amazon, Intuit, Salesforce, NetSuite Digital Journal
The Future Of eCommerce Delivery We Heart
Council reviewed £202mn 'loan to THG' but lent to ecommerce group's founder instead - Financial Times
Returns Management Software for Ecommerce Market Value In 2022 with Competitional Analysis Data of Top Key Players - Digital Journal
Returns Management Software for Ecommerce Market Value In 2022 with Competitional Analysis Data of Top Key Players Digital Journal
The Future of Ecommerce Demands a Better Understanding of Online Consumer Journeys - Retail TouchPoints
The Future of Ecommerce Demands a Better Understanding of Online Consumer Journeys Retail TouchPoints
3 Tools to Identify SEO Competitors Practical Ecommerce
15 Best E-Commerce Stocks to Buy Now Yahoo Finance
Mobile Ecommerce Success Calls for the ‘Instagramification’ of the App Experience - Retail TouchPoints
Mobile Ecommerce Success Calls for the ‘Instagramification’ of the App Experience Retail TouchPoints
Black Friday 2022 e-commerce reaches record $9.12B, Thanksgiving $5.3B; BNPL and mobile are big hits - TechCrunch
Black Friday 2022 e-commerce reaches record $9.12B, Thanksgiving $5.3B; BNPL and mobile are big hits TechCrunch
Emergence of e-commerce in northeast Indiana – Inside INdiana Business Inside INdiana Business
#MarketingExcellenceAwards 2022 highlight: ASUS Singapore's best practice in eCommerce marketing - Marketing Interactive
#MarketingExcellenceAwards 2022 highlight: ASUS Singapore's best practice in eCommerce marketing Marketing Interactive
Sustainable Ecommerce Packaging Trend Hunter
Latin America Retail Ecommerce Players Q2 2022 Review and 2023 Outlook Insider Intelligence
How e-commerce, food-delivery firms are driving EV sales Economic Times
World's First eCommerce Metaverse Fashion Mall, Avatly, Launches Using Cutting-Edge Technology - MarTech Series
World's First eCommerce Metaverse Fashion Mall, Avatly, Launches Using Cutting-Edge Technology MarTech Series
Ecommerce industry’s Black Friday performance hurt by inflation Digital Commerce 360
B2B eCommerce for building materials: A digitizing guide @AuManufacturing
Food Service Industry Growing E-commerce Adoption to Improve Prospects for the Food Service Companies: Industry Predicted to Cross US$ 5.8 Tn by 2033 - Yahoo Finance
Food Service Industry Growing E-commerce Adoption to Improve Prospects for the Food Service Companies: Industry Predicted to Cross US$ 5.8 Tn by 2033 Yahoo Finance
Grocery e-commerce sales fall 3% in October Grocery Dive
‘Godzilla’ Studio Toho Makes Key Appointments for U.S. Outreach, E-Commerce Venture (EXCLUSIVE) - Variety
‘Godzilla’ Studio Toho Makes Key Appointments for U.S. Outreach, E-Commerce Venture (EXCLUSIVE) Variety
Metaverse in e-commerce market 2023-2027: A descriptive analysis of parent market, five forces model, market dynamics, and segmentation - Technavio - Yahoo Finance
Metaverse in e-commerce market 2023-2027: A descriptive analysis of parent market, five forces model, market dynamics, and segmentation - Technavio Yahoo Finance
E-Commerce Payment Gateway Market – Major Technology Giants in Buzz Again | JC Market Research - Yahoo Finance
E-Commerce Payment Gateway Market – Major Technology Giants in Buzz Again | JC Market Research Yahoo Finance
Meet Aderonke Ajose-Adeyemi, the woman building an infrastructure for seamless eCommerce in Africa - Ventures Africa
Meet Aderonke Ajose-Adeyemi, the woman building an infrastructure for seamless eCommerce in Africa Ventures Africa
The challenges facing alcohol e-commerce The Spirits Business
GROWiT launches India’s first protective farming eCommerce portal Krishak Jagat English
How To Set Up E-Commerce In 2022 RealtyBizNews
Alibaba builds an army of 200,000 new influencers to sell to its shoppers - South China Morning Post
Alibaba builds an army of 200,000 new influencers to sell to its shoppers South China Morning Post
Taylor Launches New E-Commerce Site for Small Businesses, Announces 20% Discount Offer - Business Wire
Taylor Launches New E-Commerce Site for Small Businesses, Announces 20% Discount Offer Business Wire
SG eCommerce marketplace players address illegal goods being sold on platform - Marketing Interactive
SG eCommerce marketplace players address illegal goods being sold on platform Marketing Interactive
Florida Plant Grower Deroose Launches E-Commerce Site Greenhouse Grower
Is This Little-Known Company the Next E-Commerce Powerhouse? The Motley Fool
Redefining Ecommerce Democratisation A Glance At Government's Revolutionary ONDC Initiative - Content Media Solution
Redefining Ecommerce Democratisation A Glance At Government's Revolutionary ONDC Initiative Content Media Solution
E-commerce of Agricultural Products Market to Showcase Attractive Growth Opportunities Worldwide - EIN News
E-commerce of Agricultural Products Market to Showcase Attractive Growth Opportunities Worldwide EIN News
Cart.com and FedEx to Tackle E-Commerce Challenges by Enhancing Merchant Strategies and Consumer Experiences - Business Wire
Cart.com and FedEx to Tackle E-Commerce Challenges by Enhancing Merchant Strategies and Consumer Experiences Business Wire
Customer experience and the cost of living: how ecommerce brands can do more with less - Charged Retail
Customer experience and the cost of living: how ecommerce brands can do more with less Charged Retail
House OKs e-commerce bureau bill Philstar.com
RBI relaxes UPI payments for e-commerce spends The Financial Express
PayPal-backed Israeli e-commerce platform connects to Amazon, aims to triple clients - The Times of Israel
PayPal-backed Israeli e-commerce platform connects to Amazon, aims to triple clients The Times of Israel
Europe Ecommerce Tools for Small Businesses Market 2023 “A brief regionwise review of size, share, trends, growth, etc.” – PRIZM News - PRIZM News
Europe Ecommerce Tools for Small Businesses Market 2023 “A brief regionwise review of size, share, trends, growth, etc.” – PRIZM News PRIZM News
US E-Commerce Sales Surpass $1 Trillion Marketplace Pulse
Scarce City Launches Bitcoin ECommerce Platform SatsCrap Bitcoin Magazine
Global Express and Small Parcels Markets, 2021-2022 & 2026 - e-Commerce Growth, Sustainability Trends, Electric Vans Expansion, PUDO Growth and Last-mile Start-ups - Yahoo Finance
Global Express and Small Parcels Markets, 2021-2022 & 2026 - e-Commerce Growth, Sustainability Trends, Electric Vans Expansion, PUDO Growth and Last-mile Start-ups Yahoo Finance
Why This Shopify Analyst Says It's Time To Sell The E-Commerce Stock - Shopify (NYSE:SHOP) - Benzinga
How to Start E-Commerce Business and Make Money on Amazon Etsy Business Insider
Amazon is betting on the future of social e-commerce by launching a product that looks a lot like TikTok - Fortune
Amazon is betting on the future of social e-commerce by launching a product that looks a lot like TikTok Fortune
Old Habits Die Hard in the Third Age Years
I spent a lifetime in retailing and I'm still at it in retirement; albeit virtually.You know how it goes.
Getting Started: Creating a Business Plan
You're excited. You have a great idea for a profitable online business.
Retirement Signature Frames - The Perfect Retirement Gift!
When most people think of a retirement gift, they think of a watch. It's the tried and true gift that companies give employees to say thanks for all the years of hard work.
Getting Started in ECommerce - Part One
In 2004, Enquiro.com conducted a study of the search behaviors of men vs.
How To Sell Your Products Online?
E-commerce is gaining pace! Research firm eMarketer predicts that2003 will see online sales reaching US $58.2 billion excludingtravel.
Electronic Commerce and WTO
The Internet may not be useful for all businesses, nor do all have to develop an Internet information strategy. Some businesses are concerned with the start-up costs of connecting such as purchasing hardware and software, subscribing to an Internet connection or service provider, and training staff.
Shopping Online: What You Should Know
For some people, shopping online is as normal as driving a car. It's become part of the norm.
Content Ever be Profitable?
THE CURRENT WORRIES1. Content SuppliersThe Ethos of Free ContentContent Suppliers is the underprivileged sector of the Internet.
Getting Started in ECommerce - Part Two
In Part One we talked a little bit about what Ecommerce is, getting a domain name and setting up a merchant account. Ecommerce is more than that, much more.
Outsourcing Your Ecommerce Order Fulfillment
When your eCommerce business grows to the point where you can no longer package and ship the orders yourself, it's time to begin outsourcing your order fulfillment. Although all order fulfillment centers offer the same basic services, their individual methods and costs will help you choose one over the other.
Intranet Portal - Business Case ROI
The days of easy money are overIn these post-dot-com days of the 21st Century, the hype attached to IT is well and truly over. The modern Board is deeply suspicious of large IT projects with questionable benefits and a long-term payback period.
Online Credit Card Processing - How to Accept Credit Cards - Ecommerce 101
Back in 1998 (through 2000 or so), I worked for a small company (called PaymentNet / then Signio) that handled online transactions. Verisign later purchased this company, and the product team I led integrated the "client" - the portion that took the credit card information and sent it to our servers for processing.
7 Key Steps To Reduce Refunds and Chargebacks
One sure-fire way to loosing out big time on your business profits is from incidences of excessive refunds and chargeback requests. If the number is high in any period you could risk loosing your third party merchant account altogether.
Online Customer Service - The Cornerstone of a Successful Online Business
Online customer service is still one of the most frequently overlooked aspects of running a successful online business. Yet, in the highly competitive world of Internet business, it could be (and should be) the one thing that sets you apart from your competition!Most Internet businesses that have a drive to succeed focus all of their time and resources on building a great site, and then trying to drive tons of traffic to that site.
Rules for Achieving Online Success
The Internet brought a great deal of benefits to our life. Access to a lot of free and useful information is, probably, one of the most important out of them.
Tell Site Visitors What To Do
Your site visitors make all the choices when it comes to browsing the Web.No other medium gives users, readers or customers such control over their own experience.
Why Suppliers Should Use B2B Exchanges
Business to business e-commerce is on the rise! Worldwide B2B e-commerce revenues are estimated to reach around US$ 2 trillion in 2004. This is a significant leap from last year's US$ 1.
Intranet Portals - Search and Taxonomies
Knowledge Management for beginnersKnowledge Management (KM) can be defined simply as the process through which organizations generate value from their intellectual and knowledge-based assets. Knowledge assets are often grouped into two categories:(1) Explicit KnowledgeGenerally, everything and anything that can be documented, archived and codified.
Electronic Commerce Tax Jurisdiction and Principles of Permanent Establishment
The principle of "permanent establishment" is very important for avoidance the conflict of law of matter connected imposition of taxation. In the absence of a permanent establishment, a country where goods or services are sold has no jurisdiction to tax the resulting profits.
Is Your Business Afraid of the Internet?
My Business is Afraid of the InternetBill Gates, CEO of Microsoft, once said that there would soon be two types of businesses, those online, and those out of business. Those words still ring true today, and many small businesses are missing a huge boat by not getting online.
|home | site map|