Web Analytics and Key Performance Indicators

The good news in web analytics is that current tools can virtually tell you anything you want to know about traffic and user interaction with
your web site; the only hard part is knowing which questions to ask and which data you can safely ignore (or conversely, which data you should
focus on). With so much data literally at your fingertips, sometimes it seems that analytics packages can even tell you what your site visitors
and customers had for breakfast. Little wonder, then, that the most incisive and useful analytics programs (reporting strategies, that is, not
software) are those based on a manageable number of Key Performance Indicators, the distilled data that empowers you to measure the effectiveness
of your site and ultimately improve the user experience.

It might come as a surprise that, generally, it’s best to limit the number of measurable data to 10-15 KPIs, which allows for a laser-like focus
on true web site performance without forcing your metrics professionals to invest precious time and resources in tracking data which truly
doesn’t affect your web site’s financial performance. It’s an attitude and a precise mental set, to be exact about it, a determination to use
your metric reporting tools to answer a set of pre-defined questions instead of allowing the software itself to dictate the scope and terms of
your reports.

Here are just a few KPI’s which are generally applicable to all web sites, no matter what industry you’re in. Before we begin, though, it’s good
to remember that there are two types of metrics: those which apply to the physical performance of your web site, and those by which you measure
financial success. So, here are some metrics you can use:

• Conversion Rate: The percentage of site visitors who become customers, subscribers, or otherwise engage in a lasting interaction with your web site (and your company)
• Unique Visitors: The true number of individuals who visit your site, providing a snapshot of how busy your site truly is
• Length of Visit: How long, in average terms, that visitors remain on your site; close examination is required, because a longer length can indicate greater interaction with your site or simply that your site is difficult to use

These metrics are just the beginning, of course. Although all metrics reporting programs will share some similarities (such as the KPIs listed above), your company or business will require unique and custom metrics–because, after all, you run a unique company and a unique web site.  So get started on deciding which KPIs are important to you–and use the resulting intelligence to improve your company’s bottom line.

Advertisement