KPIs
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KPI guides
KPIs mean key performance indicators. They are defined as
business metrics (units of measure) that enables your organization to define,
evaluate and analyze its progress towards organizational goals. KPIs do possess
a signifying place in web analytics. Each website is created with certain
objectives to be attained within the given time span.
KPIs provide a detailed data of the nature of our progress towards achieving
the objectives of the organization. It will help us to re-establish our goals
according to the analytics report of the KPIs.
It depends upon the nature of your site to select the significant KPIs. The
basic KPIs in Google Analytics are covered in detail here. It is important to
note that the KPIs that work for a particular site may not work for another
site.
Number of visits
It studies the number of visits on a site over a specific time period. Most
people analyses this KPI on a regular basis. The best practice is to set a
target for this KPI, say, for over a period of one month. Try to improve your
marketing strategy to achieve your aimed web traffic for the fixed period. This
KPI is related to the web traffic and the majority of the web business is much
concerned about its value. You should give your maximum talent to increase the
value of this KPI to meet your targets. Give more attention to the trends in
the visitor numbers in relation to your targets.
Pageviews
Pageviews is the total number of pages viewed on your site and is a general
measure of how much your site is used. It is more useful as a basic indicator
of the traffic load on your site and server rather than as a marketing measure.
Absolute Unique Visitors
“Absolute Unique Visitors” is how many visitors (people) came to your site,
counting each person only once for the entire time period. Google Analytics
seem to use IP adresse + User Agent + First Party Cookies to identify a
visitor. Unique visitor is an ultimate measure to reflect the number of people
that visited your site.
Bounce rate
Bounce Rate is the percentage of single-page visits (i.e. visits in which the
person left your site from the entrance page). Bounce Rate is a measure of
visit quality and a high Bounce Rate generally indicates that site entrance
(landing) pages aren’t relevant to your visitors. You can minimize Bounce Rates
by tailoring landing pages to each keyword and ad that you run.
Landing pages should provide the information and services that were promised
in the ad copy.
High bounce rate means that the visitor was not attracted by the attributes of
your site and visitors retracted their steps. The satisfaction of visitors is
what matters here most. The main reason for this phenomenon is inappropriate
content according to their taste on the landing page, unalluring design and
technical problems.
It is clear from the above description that lower bounce rate is the
indication of the success of your online marketing strategies. Your website is
functioning in the best possible way according to your best efforts. Try to
analyze the data of the bounce rate based on the trends in a given period of
time rather than on daily basis, and by content or pages. A point to be noted
here is that higher bounce rate does not always show a poor website
performance. For example, in the case of blogs, a visitor may be directed to
your website to read only a particular article in a particular page.
Time on site
Time on Site is one way of measuring visit quality. If visitors spend a long
time visiting your site, they may be interacting extensively with it. However,
Time on Site can be misleading because visitors often leave browser windows
open when they are not actually viewing or using your site.
Conversion rate
For a non-ecommerce site, Conversion Rate is the primary metric for assessing
how well marketing, site, and content work together to achieve business
objectives. Conversion Rate is the percentage of visits that result in the
visitor taking an action that you have defined as important to your business.
Every website is created with a pre-defined goal. It may be of various
natures such as to contact the organization, to fill in a registration form or
to purchase a product. In the case of blogs the goal may be to subscribe to the
RSS feed. Thus, goals differ.
Conversion rate is an effective KPI that help to monitor the goals of the
website. It is the rate at which the visitors take your goals or positive
measures. If you have a high conversion rate, then it indicates that you have
made a considerable amount of customers act according to your wishes in your
website. To manage a high conversion rate your site should have the perfect mix
of quality web traffic, an excellently managed customer experience or the right
product offerings as a business.
The conversion rate KPI extracts the best value of such good measures.
Google Analytics provide you with enormous stats of all the factors that affect
the conversion rate. If you make improvements to your customer experience, your
conversion rate will really improve. Blaming your low conversion rate on low
traffic volume or the particular period of the year is bad practice.
Traffic sources
Google Analytics traffic sources report provides an overview of the different
kinds of sources that send traffic to your site. The graph shows traffic
trends; the pie-chart and tables show the traffic sources driving the trends.
“Direct Traffic” is visits from people who clicked a bookmark to come to your
site or who typed your site URL directly into their browser. “Referring Sites”
shows visits from people who clicked to your site from another site. “Search
Engines” shows visits from people who clicked to your site from a search engine
result page.
Now, search engines marketing is on the top list of online marketing. Most
of the organizations try hard to move up the search engine rankings for a
better web traffic. This KPI will analyze the nature of the sources from which
your web traffic has arrived on your sites. Depending entirely on search
engines is a risky thing. If we depend on search engines for 90% of web
traffic, then think about the day, suppose, when Google modify their algorithm
or may remove your company from their database. This will put a sudden stop to
your major revenue share. Therefore, it is better to increase your traffic from
all sources including the small traffic sources over time. It will help you to
stand in the long run.
Make sure that your Google Analytics report of traffic sources should not
show any source of traffic dominating for a long period, unless it is part of
your strategies. Keywords data shows the actual keywords used in search that
referred traffic to the site. Additionally, Google Analytics is capable of
segmenting the keywords by paid, non-paid (organic), and overall. Carefully
monitor how your added or changed content affects the keywords searched over a
period of time.
E-commerce
Google Analytics is great for tracking e-commerce transactions. There are
various KPIs under e-commerce report, and it will help you measure your site’s
success to your revenue and sales over time.
Here are some KPIs under e-commerce are:
Total Revenue: Revenue is determined by the number of purchases and the
average purchase value. Some important steps you can take to maximize revenue
are:
– Purchase targeted advertising and write effective ads (see the Traffic
Sources reports)
– Make sure your landing pages show the information, services, or products that
you promise in your ads (review the Content reports to help minimize bounce
rates)
– Simplify your conversion funnels so that fewer would-be customers abandon the
checkout process (review the Goals reports)
Conversion Rate: This report shows the rate at which visits to your
site result in purchases. Tracking conversion rates over time is an effective
way of determining whether your marketing and website are becoming more or less
efficient at turning visitors into customers. Note that conversion rates are
most useful as company-specific benchmarks against which to assess marketing
and site effectiveness because conversion rates vary considerably across
businesses (even within the same industry).
Average Order Value: Tracking changes to the average order value over
time is important to catalog sites that may change and shift which products and
services they are actively marketing. Many ecommerce sites monitor this metric
to see if cross promotions are working. This is an important metric that works
its way into many higher level executive and shareholder reports.
Product Overview (Product Performance): How much of each product do
you sell? This report shows the number of items sold, the total revenue, the average
price, and the average order quantity for each product you sell online. Click
any SKU to drill down and view detail.
Product SKUs (Product Performance): This report shows the number of
items for each SKU sold, the total revenue, the average price, and the average
order quantity for each product you sell online.
Categories (Product Performance): How much of each product category,
product, and SKU do you sell? For ecommerce sites, understanding which products
are selling online is crucial for generating relevant content, promotions and
advertisements. This report shows the number of items sold, the total revenue,
the average price, and the average order quantity for each product you sell
online.
Transactions: This report is a list of all transactions on your site,
useful for auditing your transactions.
Visits to Purchase: How many visits does it take for visitors to
purchase? Understanding your sales cycle is important to the overall success of
your site. This report helps you understand how many visits it takes to convert
your visitors into customers and, by extension, the kind of content you need to
create in order to reach your prospects.
Time to Purchase: How long does it take before visitors make a
purchase? Understanding your sales cycle is important to the overall success of
your site. This report helps you understand how long it takes to convert your
visitors into customers and, by extension, the kind of content you need to
create in order to reach your prospects.
What is a Key Performance Indicator (KPI)
How to Develop Key Performance Indicators (KPIs)
