Module 4 – Week 1

Web Analytics Measurement Framework


by Avisash Kaushik

Business Objectives -> Goals -> KPI’s -> Metrics -> Magic.

Basic  Principles (link)

      1. Business Objectives (usually 3 max 5, must be DUMB)

        • Why does our website exist (e.g. sell more stuff, improve marketing effectiveness…)
        • What are we hoping to accomplish
        • What are the 3 top priorities of our website
      2. Goals

        • Specific strategies to achieve business objectives
        • E.g. in order to achieve the (or a) goal, do x, improve y, reduce z…
        • Example: in order to achieve the business objective “improve marketing effectiveness” you are pursuing these 3 goals (strategies):

          1. identify broken things in m
          2. figure out how to do n
          3. experiment with p type of campaigns

      3. Metrics

        • Is a number
        • Technically a metric can be a Count (a total) or a Ratio (a division of one number by another). Examples of metrics that are a Count is Visits or Pageviews. Examples of a Ratio is Conversion Rate (a quantitative metric) or Task Completion Rate (a qualitative metric).

      4. KPIs

        • Key performance indicators (KPI’s) are metrics.
        • Definition: A key performance indicator (KPI) is a metric that helps you understand how you are doing against your objectives.
        • Example: Business objective: Sell Stuff. KPI: Average Order Size.
      5. Targets

          • Targets are numerical values you have pre-determined as indicators success or failure.
          • A must for each KPI! Not necessarily for each metric.
      6. Dimensions

          • A dimension is, typically, an attribute of the Visitor to your website.
          • The source that someone came from (referring urls, campaigns, countries etc) is a dimension in your web analytics data.

          • So is technical information like browsers or mobile phones or (god save you if you are still doing daily reports on) screen resolution or ISP used.

          • The activity a person performed such as the landing page name, the subsequent pages they saw, videos they played, searches they did on your website and the products they purchased are all dimensions.

          • Finally the day they visited, the days since their last visit (if returning visitor) the number of visits they made, the number of pages they saw are all dimensions as well.

          • This is a crude way to think about it but… Dimensions almost always appear in rows in a report / excel spreadsheet.
      7. Segments (All data in aggregate is “crap” by Avinash Kaushik)

        • A segment contains a group of rows from one or more dimensions.
        • In aggregate almost all data is useless (like # of Visits). The best way to find insights is to segment the data using one or more dimensions (like # of Visits from: USA, UK, India as a % of All Visits).

        • You segment by dimensions and report by metrics.

        • Think of how many segments you need to truly analyze your Key Performance Indicators to understand causes of success or failure of your Business Objectives!
        • Segment examples:
          • Analyzing people just from North Carolina (because there was an ad campaign targeted just to NC)
          • People who spend more than one minute on the site
          • People who click on the link to go to Feedburner to sign up for my RSS feed
          • People who come from and smart mobile phones
          • People who visit from one source, Wikipedia, AND only one page on Wikipedia (the bounce rate article)

Web Analytics Measurement Framework

  1. Step one  is to force us to identify the business objectives upfront and set the broadest parameters for the work we are doing. Sr. Executives play a key role in this step.
  2. Step two is to identify crisp goals for each business objective. Executives lead the discussion, you’ll play a contributing role.
  3. Step three is to write down the key performance indicators. You’ll lead the work in this step, in partnership with a “data person” if you have one.
  4. Step four is to set the parameters for success upfront by identifying targets for each KPI. Organization leaders play a key role here, with input from Marketing and Finance.
  5. Step five, finally, is to identify the segments of people / behavior / outcomes that we’ll analyze to understand why we succeed or failed.

A complete, and competent, Digital Marketing & Measurement Model will focus on three key areas of your marketing, and in each answer the cluster of questions provided:

1. Acquisition. How are you anticipating acquiring traffic for your website / YT video / whatever else you are creating? Did you cover all three components of successful acquisition: Earned, Owned, Paid media? How would you prioritize each? Where are you spending most of your efforts?

2. Behavior. What is the behavior you are expecting when people arrive? What pages should they see? What videos should they watch? Should they visit repeatedly? Are there certain actions they should take? What is unique about your effort that ties to an optimal experience for a customer?

3. Outcomes. What outcomes signify value delivered to the business bottom-line? A download? A phone call to your call center? A qualified online lead? Signing up for email promotions? People buying your product / services ? A 95% task completion rate? A 10 point lift in brand perception?

Simply put: Why are we undertaking this digital initiative

digital_marketing_measurement_model_step_five 2

Web decision making program

For each of those 5 Pillars you’ll need a unique and specialized tool.

ClickStream: Omniture, Google Analytics, NetInsight, WebTrends, IndexTools, ClickTracks, CoreMetrics, Gatineau etc (that list was longer just a couple weeks ago! :)).

Multiple Outcomes: Web Analytics tools Plus ones like iPerceptions, ForeSee, etc.

Experimentation & Testing: Google Website Optimizer, Offermatica, Optimost etc.

Voice of Customer: iPerceptions, Ethnio, ForeSee, perhaps even self service mechanisms.

Competitive Intelligence: Compete, HitWise, Technorati etc.

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