1. E-metrics Business metrics for the new economy

2. E-business has generated:
A number of new business models
New types of of partnership
New ways how to succeed

3. Traditional managemnet adage:
You can not manage what you do not measure

4. What types of customers are driving profitability?
Which web technology investment yield the greatest return of investment?
How can we best respond to new and potential competitive threats?

5. Traditional business metrics
Overall corporate value:
Market capitalization
Price to earnings ratio
Fixed assets
Corporate process management:
Cash flow
Inventory turnover
Net profits
Customer turnover
Financial expectations:
Market share
Book to bill ratios
Revenue per customer
Revenue per employee
Industry sector growth

6. E-business is fundamentally different
Suppliers Back Office Front office Customers and channels
E-business
Front/Back office integration
Supply chain
Demand chain

7. Customer life cycle Which advertising is the most effective?
Which types of prospects are most likely to buy?
Which offers will have the highest impact on which prospects
Which customers will be the most profitable over time?

8. The hierarchy of web site activity
User
Visit
Page view
Hit

9. The customer life cycle from introduction to loyalty
attrition
abandon - ment
loyality
retention
conversion
acquisition
reach
churn

10. Online stores are taking action based on:
The ratio of abandoned carts to completed purchase per day.
The number of items per abandoned carts vs. completed transaction.
The profile of items abandoned versus purchase.
The profile of a shopper versus a buyer.

11. Best customer metrics
Recency: Has the customer made a purchase – or visited your site – recently?
Frequency: How often has the customer placed orders – or visited your site – historically?
Monetary value: What is the customer’s total spending and profitability?

12. Promotion calculations:
Acquisition cost = Advertising and promotional costs
Number of click – thoughts
Cost per conversion = Advertising and promotional costs
Number of sales
Net yield = Total promotion cost
Total promotion results
Connect rate = Promotional page views
Promotion click-troughs

13. Life time value optimization process
Loyalty
Reactivate good customers
Retain good customers
Increase customer loyalty
Reduce Cart
Abandonment
Generate revenue
Best customers
Acquire good prospects

14. The typical stages of a sales cycle pipeline:
Prospect: Someone who has responded to a promotion, expressing interest in making a purchase.
Suspect: A suspect who fits the profile of current customers. Valuable for targeting advertising and promotional efforts.
Qualified prospect: A prospect who has been contacted and their need, desire, and ability to purchase has been verified.
Closing prospect: a qualified prospect about to become a customer.
New customer: One who has just made a purchase?
Novice customer: One who is in the process of implementing the product and getting training
Unhappy customer: One with a problem to solve
Referring customer: A happy customer who is willing to talk to qualified prospects.
Company advocate: a very happy customer who helps to recruit customers.

15. Customers in different stages of the cycle pipline
Suspect
Technical
Approach
Product Set
Overview
Requirements
Needs
Analysis Survey
Account
Application
Products
Creation
Term of use
Pricing
Shipping
Order complete
Add-on product
FAQ
Training
Account Status
Home page
Closing customer
Referring customer

16. Another e-metrics provide customers behavior:
Stickiness
Slipperiness
Focus
Velocity
Seducible moments

17. Stickiness Stickiness = Frequency X Duration X Total site reach Where
Frequency = Number of visitors in time period T
Number of unique users who visited in T
And
Duration = Total amount of time spent viewing all pages
Number of visits in time period T
Total site reach = Number of unique users who visited in T
Total number of unique users

18. Attempting to locate the correct information
Focus = Average number of pages visited in a given section Total number of pages in the section
Low Stickiness
High Stickiness
Wide Focus
Either quick satisfaction or perhaps disinterest in this section. Further investigation required.
Either consuming interest on the part of users or users are stuck. Further investigation required.
Narrow Focus
Attempting to locate the correct information
Enjoyable browsing indicates a site “magnet area”.

19. Segment velocity trajectories
Determined
time
stage
Identivy register
Explore, Browse
Focus on details
Select, Engage
Convinced
Purchase, sign-up, agree
Unfocused
Researcher
Uncommited
Determined
time
stage
Identivy register
Explore, Browse
Focus on details
Select, Engage
Convinced
Purchase, sign-up, agree
Unfocused
Researcher
Uncommited

20. Several additional e-metrics:
Personalization index
Life time value
Loyalty value
Freshness factor

21. Personalization index
Total number of profile elements used in customer interaction
Total number of pages in the section

22. The formula for loyalty will include the following variables:
Visit frequency (number visits per month)
Visit duration (minutes per visits)
Visit depth (number of page views per visit)
Purchase per visit
Number of items purchased per visit
Profitability of purchases per month

23. customer might be evaluated on factors such as:
Number of referrals per month (did the customers refer others?)
Value of referrals per month (did those referrals buy? How much?)
Questionnaire propensity (how willing is the customer to answer survey questions?)
Contest participation (how willing is the customer to participate in contest?)
Reward points program (how willing is the customer to participate in affinity programs?)

24. B2B bond Visit frequency Visit duration Visit depth Visit tenure
Purchase tenure
Purchase frequency
Total life time spending
Visit recency
Purchase recency
Required clicks to first purchase
Actual clicks to first purchase
Actual clicks to purchase

25. First purchase momentum = Required clicks to first purchase
Actual clicks to first purchase
Repeat purchase momentum = Required clicks to repeat purchase
Actual clicks to repeat purchase
Freshness factor = Average content area refresh rate
Average section visit frequency

26. How to Use (Google) Analytics to Improve Your Website
Smart Marketing. 
How to Use (Google) Analytics to Improve Your Website
This presentation uses Google Analytics to demonstrate what information you need to be looking for to make smart decisions about how to improve your website and internet marketing. There are other tools available! Google is a free tool, so no real support from Google is implied. If you are somewhat tech savvy and willing to spend the time learning how to use the tool, this workshop is intended to show you what to do with all that information.
"It's not just about having a website
…it is about marketing smarter."

27. What Is Web Analytics? Wikipedia.org says:
Smart Marketing.
What Is Web Analytics?
Wikipedia.org says:
“Web Analytics is the measurement of the behavior of visitors to a website. In a commercial context, it refers to the measurement of which aspects the website work towards the business objectives.”
What do they find most interesting, least interesting,

28. What You Can Expect to Learn
Smart Marketing.
What You Can Expect to Learn
How to tie your business goals to your website and internet marketing.
How to determine if you are getting the right traffic coming to your site.
How to optimize your site to capitalize on the right traffic.
What do they find most interesting, least interesting,

29. What You Can Also Expect to Learn
Smart Marketing.
What You Can Also Expect to Learn
How to measure other (internet) marketing efforts like:
PPC
SEO
Social Media
Offline (radio, TV, print)

30. Smart Marketing.
Step 1- Have An…

31. Who is your customer? Marketing 101- Identify your audience
Smart Marketing.
Who is your customer?
Marketing 101- Identify your audience
Demographics
Age, Sex, Income, Family, Geography, etc
Motivations
Their goals
Their needs
Their wants
The risk to them ($, esteem, stature, job)
Why is this so important? This tells you where you should be visible and what you should be targeting. This tells you what you need to have on your website. Talk about them more than you talk about you!
Motivations-Personas definition. Why and how to use.

32. What do you want them to do?
Smart Marketing.
What do you want them to do?
Set your business goals and marketing objectives.
What steps of your sales process are completed online?
Plan out your micro and macro CTAs page by page.
Some examples:
Registration for events
Shopping cart adds
Learn more about your products, services, policies
Sign up for mailing list
Visit your store or contact you
Why is this so important? This tells us what to measure against.

33. Smart Marketing.
An example.
Acme Software company needs their website to generate and nurture their sales leads.
Their macro goal is for visitors to request a software demo or free trial.
Some examples of the micro actions visitors might take:
Product Page Views
Case Study Downloads
Read a blog post
Follow on Twitter
View Customer testimonials
Why is this so important? This tells us what pages to set as goals in Google Analytics.

34. How to measure what you want them to do.
Smart Marketing.
How to measure what you want them to do.
Identify your Key Performance Indicators (KPIs)
Business Goal
Success Event
KPI
Increase online leads
Completed RFP or RFI form
Form Conversion Rate
Page Bounce Rate
Why is this so important? This tells us what metrics to look at to measure the effectiveness of the site in accomplishing the goals. This will also help you to not get lost in data.

35. Now that you have your new found data
Smart Marketing.
Now that you have your new found data
Take on the role of an analyst and fix the holes in the funnel.
Don’t just say, “Oh, look at what happened to our page views yesterday when we sent that …”
The goal of using analytics is not to observe the data and then stop.
What you should do is to take a look at the data and use it to make the next decision.
Why is this so important? Don’t do nothing or wonder- act.

36. Now that you have your new found data
Smart Marketing.
Now that you have your new found data
This brings us to the third question in our action plan.
“How to get them to take action?”
Instead of reacting to your data, look for ways to improve the process for your customers.
Example: 10% of our visitors left the conversion process at this page. What is missing from the page, what is not appealing on the page?
This is again why personas are key to success.