Measuring Success What works online, and how you can tell Dylan Tweney InfoWorld www.infoworld.com.

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Presentation transcript:

Measuring Success What works online, and how you can tell Dylan Tweney InfoWorld

ASSUMPTION #1 Your site serves a business purpose

ASSUMPTION #2 Y2K is not the end of the world

Web business models DOOMED TO FAIL Advertising-supported content Falling CPM and click-through rates Big media consolidation (e.g. AOL-NSCP) For-fee content Micropayment technologies: dead Only very valuable content can command $

U.S. online ad market Source: Forrester Research

Online ad market vs U.S. online retail sales Source: Forrester Research

… vs. overall worldwide I-commerce Source: Forrester Research

Web business models with a chance of success Commercial sales customer management / customer service marketing Corporate Intranets, extranets Communitarian Group / community facilitation

Implications: Successful Web pages will be...

Transaction-oriented Lead user to a transaction exchange of information or money response interaction Lead user away from passive consumption Action-oriented FUN! -- to encourage repeat business

Measurable Revenue Cost per order Cost of customer acquisition Repeat customer rate Time spent on site Customer conversion rate (success of leading users to transactions)

Usable Good application design Easy to navigate Easy to find information Easy to make a purchase

Useful Must offer potential customers something they want, need, or find entertaining

CASE STUDIES

A quick look at the Web after 2001

Bandwidth boom More households will be wired Internet will be everywhere: airports, restaurants, bus stations, cars … Pipes will be fatter

Back to the 2nd dimension Widespread adoption of flat-panel displays Web pages will be used more like books, magazines, newspapers Possible second chance for ad- supported content

Dylan Tweney

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