Posts Tagged ‘Web Analytics’

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This is our fourth post in the ‘Small Business Series‘ which features where we feature industry leaders on how small businesses can better leverage their strengths.  This week we are interviewing Hiten Shah, the founder of three successful startups (Survey.io, Crazy Egg and Kissmetrics) on understanding metrics that a small business should focus on. I have been using Crazy Egg for a while now and its a great tool to understand click patterns, and just yesterday tried out KissInsights (a new product as part of Kissmetrics).  KissInsights is one of the best feedback tools I have seen, I am not a fan of the pop-up technique of inviting people to participate in surveys and love the widget you have to install.

Romy Misra (Pear Analytics): First Hiten, thanks so much for taking out the time to do this. Why is it important to develop metrics for success for small businesses? How does one develop these metrics?

Hiten Shah: I believe that the metrics for success are important in any business, because they can be used to help the whole organization focus on a single goal. If you pick the right metrics for success, you will be able to significantly improve the focus of the whole team and thus improve your business. Developing these metrics should be done first by making hypothesis about your business and validating / invalidating these hypothesis. From there you will have a good base understanding that will allow you to determine what metrics to focus on and how to define success for your business.

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This is the second post in our “Small Business Series” where we are interviewing a few industry experts on how small businesses can better leverage their strengths. Today we are interviewing Ken Hilburn, from Juice Analytics, one of my personal favorite data visualization companies, on how to create awesome surveys. Surveys are traditionally one of the best ways to understand your customers, but at the same time getting your customers to participate and engage in surveys is a huge challenge. I thought of interviewing Ken when I took a survey Juice Analytics sent to me by email, and it was the most engaging survey I had taken in months.

Note: As a bonus, Ken has generously shared that survey with us.

Romy Misra (Pear Analytics) : First Ken, thanks so much for taking the time to do this. The importance of surveying your customers has been repeatedly talked about. Why do you think it is important to survey your online customers/visitors?

Ken Hilburn: I have to start off by saying that Juice Analytics has an awesome community and we love talking, listening and working with them. But even with such a strong group, it’s critical to talk less and listen more.
It used to be, for the most part, that customers were at the mercy of vendors when it came to communication – it was pretty much a one-way street. However, that’s changing now. With the pervasive use of social media sites, there has been a tremendous shift toward “power to the people.” It’s certainly in a company’s best interest at this point to make sure they’re in touch with their customers and how well their customer’s needs are being met. We get to choose: we can either do that proactively, or we can wait to see it on the twitter “Popular Topics” list and hope it’s positive.

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Sniffing out the next Google algorithm

Sniffing out the next Google algorithm

It’s been my first week of work (already!) and I am still learning the ropes of web analytics. Here are my first words of wisdom:

1. Search Engine Optimization (SEO) is another fancy way of saying you are trying to beat Google. Yes, that’s what everyone tries to do constantly: Guess what the Google algorithm is.
2. There is no real expert out there, some people just make better guesses and use a lot of jargon.
3. All SEO self declared experts are self educated. To learn SEO all you have to do is stop being lazy and read a lot.
4. Google’s problem: Trying to beat all these people and get people the best content irrespective of those people who do SEO magic and get their site structure right.
5. Granted the people at Google are smarter than us, but they have a lot of people to try and beat with a search tool that crawls over pages. Can’t be easy work, although we make it easy for them by constantly telling them what we are doing.

Would love to hear your take on SEO as well.

That’s right – you can’t measure everything online that you might think.  Analyzing click traffic on websites has become much more difficult to get anything close to accurate.

One of the most difficult problems to solve is the issue with giving proper credit to the “original source” of the lead or sale.  Some of the PPC systems refer to this as the “assist” and they pass special tracking cookies to the user that will help indicate in the click stream data future visits from this user.  This typically helps credit PPC campaigns and reduces the cost per acquisition (CPA) for that channel.

This is great, but it is flawed.  This generally assumes that the visitor used one computer, and few of us use one computer.  We usually have an office computer, a home computer (we have 2), plus mobile devices.

Consider this situation (which is probably quite typical):

web-tracking-analytics

1.  Husband is searching for vacation spots for his family during his lunch at work.  He does several searches, including hitting a few paid ads.
2.  He runs out of time and has to get back to work, so he emails himself the links to the pages of the sites he liked to his home email account so he can show his wife later that evening.
3.  He gets on email at home and pulls up the pages on his home computer to show his wife and kids what he found.
4.  They continue to do more research and even bookmark a few sites/pages and will revisit in a couple of weeks so they can think about it.
5.  They revisit the site a few weeks later by hitting the saved bookmark and from there, decide to purchase.

Now in this case, it’s going to be virtually impossible for the marketer to track this sale all the way back to the paid search ad because he lost him as soon as he switched computers (if he is even using cookie and campaign tracking in the analytics software).  And if this happens often enough, he will think his paid search campaign is ineffective because it is not driving any sales.

Newsflash: most people don’t buy anything on the first visit!

There is likely going to be multiple interactions, extensive research, bookmarking, etc. before any purchase is made over a several-week (depending on the product) sales cycle.

Secondly, consumers are not going to be as compulsive in a down economy and are going to be looking around for deals, so we can’t possibly expect them to purchase on the first visit from a Google ad.

So what can we do about this?

Well, not too much, unfortunately.  However, if you have an e-commerce site selling any sort of products, you can reduce this phnomenon by simply having a “Favorites” or “Wish List” area of the site where a user can quickly and easily open a free account and save what they like straight on your site. This would eliminate the need to bookmark and email and cookie track everything.  You would have all of the data on your site, and now you could even do session tracking by username and get other interesting information (beware that session tracking has additional privacy issues that you will want to look at closely).

Many of the large sites like Amazon, eBay and others have this feature, but even for small or medium sized business, most of the 3rd party off-the-shelf e-commerce applications (like X-Cart, Magento) have Wish List capabilities.

Happy tracking!

Below is a video tutorial of an example of how you can correlate offline media efforts to web traffic, and essentially understand the effectiveness of your offline media.

I use Clicky Web Analytics to help measure the the effectiveness of offline media because it can track visitors down to the street level. All of the other analytics tools I have used only go to the city level. (caveat: this isn’t exact, so don’t knocking on people’s doors or anything! Use this for relative measure of density in areas of a city).

How can marketers use this data? Well, I can drop a direct mail piece and a few days later see if I have a concentration of visitors in the neighborhoods the piece was dropped. You can do the same thing with billboards as well, although it may be more beneficial to place the boards in the areas with the most concentration (or least if you are after brand awareness). This could even work great for a nation-wide television campaign, to where you could follow-up with direct response marketing to the areas with the highest concentration of visitors.

Anyway, watch this short video and if you’re not already using this tool, get Clicky!

So often we are concerned with the “big conversion” on the website, like purchasing something, for example.  We call this a macro conversion – it’s your ultimate goal.  But what about other activities, maybe not as valuable, but still worth something.

We forget that marketing is basically broken down into these 3 pieces:

Everyone, including upper management, is zoning in on purchase.  But what about awareness?  Remember the circles of trust graphic?  It’s highly unlikely that many will purchase from you when they don’t know you.

My point:  create micro conversions in the Awareness and Consideration stages and measure them!

Things like entering a zip code, joining a mailing list, or subscribing to your RSS feed.  Now you have a chance to converse with some highly potential, future customers on a permission-based marketing system, versus a interruption marketing system.

Now, assign a value to these micro conversions.  A zip code might be worth $1 to you.  Asking for a zip code is great because it further refines what geo-tracking in Google Analytics can’t do.  Now you know what zip code your visitors are from, so it takes some of the guesswork out of your next direct mail piece.

Use this value to compare to the costs you’ve put into the activity, such as SEO, PPC or even web analytics.  Before long, you will be able to see which activity is driving the most value.