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Sunday, 2 September 2012

Web Analytics: 10 performance indicators (KPIs) on effectiveness of marketing campaigns

The performance indicators or KPIs (Key Performance Indicators) are metrics used to quantify objectives to reflect the performance of an organization. Web analytics, officially known as Web Analytics, also makes use of certain key indicators which illustrate the performance of our website on your goals.
Every website, depending on their nature, will use a specific KPIs to evaluate not only whether it is working well in terms of attracting new visitors or customers, but also to help make strategic decisions both on the web and the business particularly in whole.
Therefore it is important to remember that before diving fully into the KPIs or indicators may interest thought we should set objectives for our website, from the most abstract to the most concrete, and relate each with one or more indicators help assess their achievement.
This time we will focus on indicators related to the effectiveness of marketing campaigns. Some of them are second-level KPIs, ie face two simple KPIs for information in context. So sometimes sound like tongue twisters. Ready?1. Average cost per visitor versus average revenue per visitor
The average cost per visitor is the total cost of the campaign divided by the number of visitors. The average income per visitor is the revenue generated directly by the campaign by the number of visitors. This metric is critical to know whether the campaign in which we have invested is a source of income or else is a disaster, if the cost per visitor is higher than the revenue generated, it is better to look for more profitable alternatives.
Sometimes it is not easy to know what income is for a particular campaign, this uncertainty is higher than in traditional campaigns conducted through the Internet, where the results are generally more measurable.2. Percentage of revenue generated by new visitors versus repeat visitors generated
Do you make a small purchase our customers to try our products and see how our logistics before spending a larger amount? Should we therefore encourage major purchase by sending a promotion in the first order that serves the customer for the second?
This is the information we can get from this KPI and as we see the decisions that you take are quite interesting.3. Percentage of revenue from new customers compared to those generated by repeat customers
Although at first glance this may seem identical to KPI above, we are actually referring to those who have already purchased our product or service and not only those who have visited our site.
We help you decide if we direct our marketing efforts to find new customers or offer benefits and promotions to loyal customers.4. Percentage of orders for new visitors versus repeat visitors made by
This KPI helps us to know if our marketing efforts must be directed at converting visitors into buyer on their first visit or buyer to become regular visitors to our website.
Its value depends on the type of product or service you offer, because normally the long buying cycle (which require a more complex process of purchasing decision making) will be in the second case.5. Percentage of orders placed by new customers compared to those made by repeat customers
Closely linked to the above, this KPI helps us know if we can retain our customers properly or otherwise not repeat their purchases. Are we to improve after-sales service, logistics, presentation? If a product is capable of a repeat purchase, why not repeat purchases?6. Average number of items per cart completed
If we can cross-sell other products in the store, this number should be greater than 1. Amazon does a good job on this (in fact always used as an example, we are nothing original) with the information provided under the product (Frequently Bought Together Customers who bought and This Item Also Bought ...).
If we offer our visitors related articles that may be useful to them or whose purchase find it advantageous (for example, a filter if you are buying a tea kettle, or a pair of socks at a discount if you are buying socks), surely can not resist.7. Cost per conversion
This is the father of all KPIs. Well, if not, at least it is quite important, because it tells us how much it has cost obtained every action, be it a sale, a lead or a potential customer information, a subscription to our newsletter, or whatever that we should seek to obtain the marketing campaign.
We will be used to calculate the effectiveness of campaigns, knowing what works and what does not and where we put our money next time.8. Average order value versus average cost per order
The average order value is the total revenue generated by the campaign divided by the total number of orders. The average cost per order is the total cost of the campaign divided by the number of orders generated by the campaign. If the first number is less than the second ... well, we have a problem.9. Percentage of open messages
Naturally, this refers specifically KPI campaigns email marketing or email marketing.
This figure however must be taken with some reservations. Email programs do not interpret JavaScript for security reasons, so it starts counting is usually done by a beacon (in Castilian "beacon" for bit technical sounding), which is nothing more than an image, usually 1 × 1 pixel, which is hosted on the server that makes the account open messages. If the image is loaded, the message has been opened.
Naturally this brings some problems. For starters, many users configure their email programs (including webmail, which are queried via the Internet) so that the images do not load, so the "snitch" will not load and openness are not counted. Then there are users who prefer to receive the message in text and no images at all. And finally there are those who do bear the images but go through the same message several times (because I reread because deleted one and the program displays the next after they happen ...). That is, the fact that a message is opened does not mean it is read.
Therefore it is better to use this KPI only in a relative (ie, comparing the pre and post campaign) and not absolute.10. Percentage of clicks
Also called clickthrough or clickthru, is the number of clicks that have been made on the link that we sent in our campaign e-mail marketing in relation to the number of open messages. As this last figure we have said that it is not very reliable, always there to put the result of this calculation in context. So many marketing managers prefer not calculate using as a basis the number of open messages, but the number of messages that are supposed to have reached its destination (ie, messages sent fewer have been returned).
If this number is high, it means that we have called the attention of the recipient well and we managed to take him wherever he wanted. If after the conversion (or whatever we wanted to do on the landing page) is not carried out, we know where to look for the problem.
Of course, there are more KPIs that can help us evaluate the success of a marketing campaign, and we always adapt we will use the campaign in particular, to our business and our aim at all times. KPIs back with more, so stay tuned to their screens!