Measuring Web Site Performance Are companies making the leap?
Background Web sites are important marketing tools Most sites share the same purpose Big investment to build and maintain site but…. Attempts to measure web site ROI? Web Site ROI
Definition of return on investment(ROI) The financial impact of the web site vs. initial and ongoing maintenance costs Web Site ROI
Why Do The Research?: Find out if companies are measuring ROI If so: How? --systems? tools? Based on what criteria? vs. other site objectives? Expectations? Web Site ROI
Research Question Do web enabled businesses develop and apply criteria for measuring return on investment for their company web site? Web site ROI
Literature Review Little accountability for web site ROI Sites built with “foggy” expectations Few resources to measure ROI Success measured by opinion, not fact Evaluation methods/tools: yesterday & today Conclusion: Can’t avoid ROI anymore!
Research Objectives Web Site ROI 1.Determine criteria for success? Is ROI a factor? 2. What kind of measuring is being done? 3. Specific ROI goals and expectations?
Who Will Care? Results will be valuable to anyone involved with making decisions about their web site! Web Site ROI
The Survey LIMITATIONS No e-commerce sites 50 employees or more 6 months old SURVEY DESIGN Online Web Site ROI TARGET RESPONDENTS Webmaster Marketing Mgr Owners
The Results SITE PRIORITIES 1) Brand Image 2) New customers 3)Feedback ……….. 5) Profitability
The Results CURRENT MEASURMENTS & SYSTEMS Number of daily visits Database for customer information (leads) Web site feedback Web Site ROI
Results Web Site ROI Initiatives
Results Only 10% had ROI goals yet… 95% chose strongly agree/agree site when asked: “Is site doing what it is supposed to be doing” Web Site ROI
Results Web Site ROI
How are site evaluations performed? METHODS Committee = 64% or individual Surveys = 18% Software = 18% Web Site ROI
Validity/Reliability 43 surveys out of 203 Diversity of the respondents Average respondent: - 4 year old site - Publicly held - Web master Web Site ROI
Review of Findings Literature Review revealed: 1) a need - ROI 2) the market’s response – ROI Tools Research revealed: 1) lots of measuring and evaluating: --user hits, feedback, new leads etc. 2) No ROI focus
Conclusions Companies are measuring web site activity, but… ROI is not a top concern. In fact, -- less than 50% had ROI criteria --less than 20% had ROI measurement tools Web Site ROI
Conclusions/Key Learning brand image new leads site feedback rated above profitability content graphics navigation Web Site ROI
The Answer! Companies are NOT developing and applying criteria for measuring ROI. …but, the subject is not being ignored. Web Site ROI
Interesting Data Point Despite this apparent lack of focus, most believe their site is generating a positive ROI. But “how much” is usually a guess! Web Site ROI
Follow-up research WHY NOT ROI? Software too expensive? Too difficult to measure? ROI evaluated with each component? Web Site ROI
The Future ROI cannot be ignored. Maximizing potential for web site success requires ROI as an evaluator. Opportunity to improve with software
Think of it this way… “Enterprises are not in the business of increasing page views, they are in the business of making money. Web analytics should support this objective.” --Business Wire,2001
Web Site ROI QUESTIONS???