Web Metrics Part II: Conversion

In continuation from part one, let us focus our attention on the metric category “conversion.” As previously discussed, the primary goal of web analytics is to track fiscal return on investment (ROI) for companies. Because of this, the conversion metric plays a key role in web analytics and business goals.

According to Reed College of Media at West Virginia University (2016), the conversion category contains two metrics: conversion and conversion rate. The Web Analytics Association (WAA) explains that the conversion metric records “special activities on a site, such as purchases, that have particular business value for the analyst” (2008). Conversion and conversion rate are especially important to businesses, as they typically unveil and “represent the bottom-line ‘success’ for a visit” (WAA, 2008).

In the world of web analytics, the conversion metric is quite popular and for good reason. Out of the number of people visiting your website, those that ultimately make a purchase, subscribe to receive emails, make comments, register (create a login profile) or simply contact you for more information allows businesses to effectively track ROI and maximize their bottom line.

So what exactly is conversion and conversion rate? Conversion is the number of times a visitor performs a desired action, such as making a purchase or inquiring about more information. Conversion rate is the percentage of site visitors who perform a desired action. Businesses can use web analytics and these specific metrics to identify and monitor obstacles to increase conversion. After all, we all want higher conversion rates as this represents maximized engagement with users and customers.

Focusing on the power of conversions, specifically purchasing conversions, customers are known for browsing a site, putting items into a “shopping cart” and then abandoning the cart. This can be attributed to getting distracted, suddenly becoming disinterested or noncommittal, having to consult with a loved one or deciding to simply buy it in-store instead so the product can be seen in person. By using web analytics and the conversion metric, businesses can use this data to turn those non-purchasers into purchasers. By knowing what visitors are already interested in, businesses can then make informed decisions to either change the layout of a page, design better offer content to engage visitors, etc., in order to diagnose the issue and increase the bottom line (which we all know is a top goal for businesses).  

Furthermore, instead of focusing on the overall website conversion rate (or macro conversions), it is just as important to focus on micro conversions, as well. Micro conversions go beyond e-commerce actions on a website. Visitors browse websites for multiple reasons, and it is those micro reasons that need attention, too, when analyzing user and customer behavior. As Kaushik (2010) recommends, “...focus on measuring your Macro (overall) Conversions, but for optimal awesomeness, identify and measure your Micro Conversions as well.”

Looking at conversion and conversion rates put into practice, Maciej Fita, SEO director at Brandignity, focuses his companies efforts on “micro conversions” in order to help other brands grow (Drell, 2013). He explains, “If our goal is a ‘thank you’ page from a lead form submission, we need to know how they are getting there from organic referral sources. Knowing this allows us to focus and refine every step of the marketing process” (Drell, 2013). In addition, if Fita knows conversions are derived from a paid ad source, this signals whether or not to increase or decrease spending due to the ROI of the paid ad. Fita adds, “Without seeing that metric you simply can’t make that decision. It is the blind leading the blind” (Drell, 2013).

While conversion and conversion rate metrics are crucial to any business investing in web analytics, remember that these metrics alone do not paint a complete picture of a business’s online presence. As Drell (2013) notes, “Conversion rates don’t measure time spent or pages per visit or how much a user is engaged with your site, and those are three very important behaviors that develop brand affinity, boost brand sentiment and could lead to conversion down the road.”

References

Drell, L. (2013, November 21). Marketing 101: The importance of conversion. Mashable.com. Retrieved from http://mashable.com/2013/11/21/conversions-metrics/#IvnXapinESqr

Kaushik, A. (2010). Web analytics 2.0: The art of online accountability & science of customer centricity. Indianapolis, IN: Wiley Publishing, Inc.

Reed College of Media, WVU. (2016). Lesson 1: Intro to web analytics and the basics of web analytics. eCampus.WVU.edu. Retrieved on May 21, 2016, from: https://ecampus.wvu.edu/webapps/blackboard/execute/displayLearningUnit?course_id=_64077_1&content_id=_2976590_1&framesetWrapped=true

Web Analytics Association (WAA). (2008, September 22). Web analytics definitions. Retrieved on May 22, 2016, from: http://www.digitalanalyticsassociation.org/Files/PDF_standards/WebAnalyticsDefinitions.pdf

Web Metrics Part I: Bounce Rates

Welcome to Interconnect and thanks for stopping by! As we begin to explore web metrics (also called web analytics), it is important to understand what this even means. So, let us get right to it.

Web analytics allows companies or individuals to measure the success of their online presence. Or as the Web Analytics Association (WAA) puts it: “Web Analytics is the measurement, collection, analysis and reporting of Internet data for the purposes of understanding and optimizing Web usage” (2008). This definition applies most notably to company websites, whether for e-commerce purposes or not, but to blogs and other social media, as well. The primary goal of web analytics is to track fiscal return on investment (ROI) for companies. In addition, web analytics allows marketers to track and analyze user and customer behavior, so as to tailor marketing initiatives and justify and optimize digital marketing budgets. In all, web analytics provides companies with valuable data that they can then use to improve websites and overall business.

According to Reed College of Media at West Virginia University (2016), “Web Analytics essentially provided the linkage between Marketing, Revenue, Site, and People.” See the graphic below.

Figure 1: Web analytics provides the connection between Marketing, Revenue, Site and People (Reed College of Media, WVU, 2016).

As you can see, it is through web analytics, and specifically thoughtfully chosen metrics, that companies can measure the impact of their online efforts. But I bet you are now wondering, “What are metrics?”

Metrics are quantitative measures, and there are two types of web analytics metrics – counts and ratios – per the WAA (2008). A count is “the most basic unit of measure; a single number, not a ratio,” and a ratio is “a derived metric, obtained by dividing one number by another” (WAA, 2008). From page views to click-throughs and bounce rates to conversions, there are numerous metrics that fall under six distinct categories: foundational, visit characterization, visitor characterization, engagement, conversion and miscellaneous.

Now that we are all clear on the purpose of web analytics and what metrics are, including the categories they may belong to, why don’t we explore the “engagement” category. Specifically, how engagement metrics are used to identify issues and help businesses accomplish goals.

There are four engagement metrics. They include page exit ratio, single page visits (bounces), bounce rate and page views per visit. These terms “describe the behavior of visitors while on a website,” and “they are often used to infer a visitor’s level of interaction, or engagement, with the site” (WAA, 2008).

Now some will say there is no way to measure engagement online. I beg to differ. Looking specifically at bounce rate, this metric is key and can effectively gauge online engagement for a company. While business goals most often include generating traffic to a website, the key is to keep users and customers on the site. This helps to maximize brand engagement. Avinash Kaushik, author of Web Analytics 2.0, explains that bounce rate is “the percentage of sessions on your website with only one page view” (2010). Of course, to keep a positive level of engagement, companies want their bounce rates low. However, finding out that your bounce rate is high helps to identify internal issues, such as online content that is not resonating with users and customers or the placement of a call-to-action button is ineffective, thereby decreasing conversions. Thus, gathering and analyzing bounce rate data about your users and customers will help improve intended business goals.

Take for instance, Robert Greiner’s website. His site’s bounce rate “went from an embarrassingly high 86% to a much more favorable 1.5% in a matter of two days” (Greiner, 2012). How did he do it? He implemented a responsive design for his site. Without knowing his bounce rate, he would not have been able to continuously engage with his readers. Greiner states (2012), “At the end of the day, anything you can do to increase the comfort level of your users is always a good thing.”

Click here to see an infographic on how to decrease your bounce rate (Patel, 2014). Compiled by Quick Sprout, a business and marketing content blog, the infographic offers great information on why bounce rates matter and additional case studies on reduced bounce rates (Patel, 2014).

Also, be on the lookout for part two of this post as we explore yet another metric category: conversion.

References

Greiner, R. (2012, October 11). Reduce your bounce rate by implementing a responsive design [Blog Post]. RobertGreiner.com. Retrieved from http://robertgreiner.com/2012/10/reduce-your-bounce-rate-by-implementing-a-responsive-design/

Kaushik, A. (2010). Web analytics 2.0: The art of online accountability & science of customer centricity. Indianapolis, IN: Wiley Publishing, Inc.

Patel, N. (2014, April 17). How to decrease your bounce rate [Infographic]. QuickSprout.com. Retrieved from https://www.quicksprout.com/2014/04/17/how-to-decrease-your-bounce-rate/?display=wide

Reed College of Media, WVU. (2016). Lesson 1: Intro to web analytics and the basics of web analytics. eCampus.WVU.edu. Retrieved on May 21, 2016, from: https://ecampus.wvu.edu/webapps/blackboard/execute/displayLearningUnit?course_id=_64077_1&content_id=_2976590_1&framesetWrapped=true

Web Analytics Association (WAA). (2008, September 22). Web analytics definitions. Retrieved on May 22, 2016, from: http://www.digitalanalyticsassociation.org/Files/PDF_standards/WebAnalyticsDefinitions.pdf