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Web Metrics: Key Performance Indicators for Websites

(Image Source: KPM Review)

Why do Analysis: When we are in the virtual World whats Imperative is Where we are Now ( as a business entity)  and Where are we heading towards...i.e. are we moving in the Right direction? that we decided and at the speed we intended?

The Fuss about & of KPI's:
We get across numerous people who waste time in locating the right KPI's the joke for them is

                     " Too much of Analysis causes Paralysis"

The problem most of web analysts face today is presenting raw technical data available from Analytics software to the top management in way such that they Understand it in the Business Language that they like most. One of the best method that is been found is by using Key Performance Indicators (KPI’s), in simple words Classify, summarize the raw technical data/information/reports into ratios, percentages, highlight the pattern and focus on parameter that can help in business-critical action. It’s very important that all the key performance indicators should highlight success and failure of the business objective of the website and can drive actions.

KPI's tell us our Current situation thats Real...whats so about our Virtual Property.


Business Intelligence Tools:
while there are numerous softwares products/packages like Business Objects, SAS, Informatica, Cognos etc its  a skill on how to what what to use in those tools/ techniques for Optimum results. webmasters get the daily webstats report from their cpanel

  • Select a date range for your report with enough data so you can highlight pattern and percent increase or decrease in any parameter. this can be done by use of bar chart, pie-chart or line graph. there are numerous free stasistical free tools that help plot the graph.
  • Always highlight any significance change in the key performance indicators and follow up with three bullet points.
    1. Probable cause for change: You may try looking at logs of series of event that happened may have impacted the KPI. For Example: Any recent change in design or validation of order form can increase or decrease orders significantly.
    2. Its impact on business : What will be the probable impact of the change on other KPI’s and overall business
    3. Recommendation to fix /sustain it depending on its impact

  • You may use color code to for better communication.
    • Green for Good viz. increase in ROI decrease in acquisition cost
    • Red for Bad viz. drop in conversion, increase in bounce rate

Now once you have the KPI report ready, the next obstacle can be presenting it to different sets of people who comes from all together different background and mindset. We can classify them into three categories viz. Senior Management (CEO, MD), Managers (marketing head, functional head) and tactical resources (webmaster, designer, developer). It’s very important that you should select different KPI’s for each set of people.
Here we will consider three type of website depending upon their nature of business and for each business we will enlist different KPIs that can be presented to each set of people viz senior management, managers and tactical resources.

Key Performance Indicators for Ecommerce Websites:

For e-commerce website the primary objective is selling the product online and all the KPIs focus around order, checkout and conversion.
KPI’s for Senior Management: total orders, visitors per order, average order value, ROI for different marketing campaigns
KPI’s for Managers: conversion rate for each campaign and source, percentage of conversion for new and existing customer, visitors per order, and geographical dispersion of customers
KPI’s for Tactical Resources: bounce rate, top entry and exit pages, top exit pages in purchase funnel, path followed in most checkouts, percent zero result and zero yield searches

Key Performance Indicators for Content Driven Websites:

All the content driven websites generate revenue from selling Ad Inventory so for them the primary objective is to generate maximum page views, registered users and newsletters signups. Hence all the KPIs are revolve around visitors loyalty, time spend and quality of traffic.
KPI’s for Senior Management: average page views and visits, average cost and revenue per visit, percentage of new and returning visitors, average newsletter and RSS feed subscribers
KPI’s for Managers: average page views, visits and time spend, percentage of new and returning visitors, average page views per visit percentage of visits to different segments,
KPI’s for Tactical Resources: average page views, visits and time spend, percentage of visits to different segments, top landing and exit pages, bounce rate

Key Performance Indicators for B2B Websites:

Goal for most of the B2B websites can be defined as potential customer requesting a proposal or downloading brochures or spending some time going through the services offered by the company. Hence KPI for B2B website can be page views and time spend on service page, filling request for quote or enquiry form or downloading service brochure.
KPI’s for Senior Management: Average cost per lead, conversion and order value
KPI’s for Managers: Average visits per visitor, average response time to enquiries, average page views and time spend on specific segment like services page
KPI’s for Tactical Resources: Bounce rate, Percent zero result and zero yield searches, top landing and exit pages.



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