Showing posts with label web analytics. Show all posts
Showing posts with label web analytics. Show all posts

Tuesday, February 15, 2011

The Curse of Knowledge: Creating a Culture of Web Analytics

Presenting the data is what Web Analysts do majority of the time. It is critical for Web Analysts to present the data in a way that is easily understood by their intended audience. However, I have seen time and again that this simple rule is missed. Why? Because we all suffer from what is known as "The Curse of Knowledge".

What is The Curse of Knowledge?

Here is what 37Signals.com write on this subject:
Lots of research in economics and psychology shows that when we know something, it becomes hard for us to imagine not knowing it. As a result, we become lousy communicators. Think of a lawyer who can�t give you a straight, comprehensible answer to a legal question. His vast knowledge and experience renders him unable to fathom how little you know. So when he talks to you, he talks in abstractions that you can�t follow. And we�re all like the lawyer in our own domain of expertise.

"Curse of Knowledge" becomes a big issue for Web Analysts and Managers who are trying to create a Culture of Web Analytics. We assume that people know what we know because it seems so simple, right? Think again. Even simple metrics such as Visits, Visitors and Page views that seem so simple and no-brainer to you are difficult for others to understand.

If the numbers/data/reports that you present to the stakeholders do not provide them what they need in a simple and easy to understand format then you are in for a very though journey to building a Culture of Web Analytics.
To further illustrate my point, let me tell you about a situation that I personally had to go through.

I was approached by a mortgage agent who wanted me to refinance my mortgage and claimed that he had better rates than any other lender in the area. So I thought, sure let me see what this guy has to offer. So we met and I gave him my goals

  1. The amount that I wanted to refinance
  2. The interest rate range that I was comfortable with
  3. $0 closing fee

I also asked him to tell me how much my monthly payment was going to be for those interest rates. We decided to watch the interest rates to see when they fall in my range and he promised to send me the daily interest rates.

That�s all.

Next day he sends me the following table with some explanation of the two columns. All this did not make sense to me, and I deal with numbers all day long. He also wrote that he will explain this to me over the phone.


So he called and tried to explain me the above chart but he still did not answer my earlier questions. See the problem?


If you have to call someone to explain your data that mean you have not done a good job of understanding him and his needs.

You see how easily you can alienate someone by not presenting the information in the right way. That�s the issue you face when you are trying to sell value of analytics within your organization. People look at your reports few times, find it too complex to understand and move over to other things. If that happens then you are done.

So do not fall a victim to �Curse of Knowledge�, step in your audiences� shoes and make your reports really simple and actionable. Three key points to remember when presenting the data are
  1. Understand your audience and their goals
  2. Understand their level of understanding of the subject matter
  3. Customize the data presentation to meet your audience level of understanding of web analytics and needs. Make it a no-brainer to understand and tie everything back to the business goals
Questions? Comments?


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Looking to fill your Web Analytics or Online Marketing position?  Post your open jobs on Web Analytics Job Board.

Current Open Positions




  • Web Analytics Analyst at Designory. (formerly Agency.com) (Chicago, IL)



  • Web Games Analyst at Arkadium (New York, NY)



  • Online Performance Data Analyst at Announce Media (St Louis, MO)



  • Web Data Analyst at Genworth Financial (Richmond, VA)



  • Web Games Analyst at Arkadium (New York, NY)



  • Web Metrics Analyst at Omnitec Solutions (Alexandria, VA)



  • Web Data Analyst at Alzheimer's Association (Chicago, IL)

  • Friday, January 7, 2011

    Creating a Culture of Web Analytics

    All those who have worked at companies which never used or do not use web analytics to make decisions about site changes, know how difficult it is to create a culture of web analytics. It is very hard. Building a culture of web analytics is a grueling uphill task.
    After working with various client I have found that reasons for not using web analytics vary from company to company, some of the common ones are:
    • Gut feel has always worked or at least it seems like it has worked
    • It is an additional step in the process
    • New skills are required to use web analytics. They feel they don�t have the required skills for using web analytics
    • Fear of accountability i.e. now I will be measured and I don�t like that
    • The reports that they got in past were pretty useless
    • They didn�t believe in web analytics data because they have no clue on how the data was collected
    • They don�t understand how web analytics can help them
    • They don�t understand what web analytics is

    The first reaction of many newly hired analyst/analytics manager is to start talking about KPIs, reports, what web analytics can do etc. But before you start digging into the data and analysis and start to talk about KPIs, dashboards etc. you need to understand the root cause of why analytics has not been used in the past. Understanding and tacking those issues will give you a better platform to build the culture of analytics on.

    Here are few things you need to do before jumping into KPIs
    • Identify various stakeholders, who could benefit from web analytics, in the company. You don�t have to have a comprehensive list of every person but some that you think could immediately benefit and you can immediately help is also a good list to start with
    • Get a meeting with them, individually or grouped together in groups based on their roles/departments etc.
    • Agenda of the first meeting should be to understand why they have not used web analytics in the past and what they would like to see from web analytics group. Don�t talk about KPIs yet. This meeting is about hearing them, if they talk about goals, metrics etc. then fine but don�t jump to discussing KPIs
    • Make sure they understand that there will be a follow-up and you are there to help them not to use numbers to find faults. You need collaboration. Don�t let other people�s opinion about HiPPOs put you in an offensive or defensive position
    • Schedule a follow-up meeting to go over you analysis of the past meeting, address any concerns/issues that are preventing them to use analytics

    The goal of this exercise is to make people feel confident that you can truly help them make data driven decisions without jeopardizing their job. You understand their concerns and are willing to address them.

    During this process you will also find out who all (groups/individual) are more willing than others to help you build your case and will provide you small wins that you can use to garner more support. If you have an executive support e.g. your bosses boss then leverage that to help you.

    At the end,remember, every company is different. The culture is different, challenges are different, political structure is different so it is critical you understand all those elements. It is not going to happen overnight so be prepared for a long rocky journey.

    Comments/Questions?




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    Looking to fill your Web Analytics or Online Marketing position?  Post your open jobs on Web Analytics Job Board.

    Current Open Positions


  • Web Games Analyst at Arkadium (New York, NY)

  • Online Performance Data Analyst at Announce Media (St Louis, MO)

  • Web Data Analyst at Genworth Financial (Richmond, VA)

  • Web Games Analyst at Arkadium (New York, NY)

  • Web Metrics Analyst at Omnitec Solutions (Alexandria, VA)

  • Web Data Analyst at Alzheimer's Association (Chicago, IL)

  • Web Analytics Manager at Tig Global (Chevy Chase, MD)


  • Monday, December 13, 2010

    HiPPO: Wrong Advice That Will Get You In Trouble

    HiPPO is an overly used in the web analytics community to make the web analysts feel good. But this term, in my opinion, does more harm than good to you.

    Though I meant to write this post a long time ago, today a post by Steve Jackson - HiPPO could be your best friend finally prompted me to write it.

    For those how don�t know, HiPPO is a term used to describe the opinion of the Highest Paid Person (HiPP) i.e. Highest Paid Person�s Opinion. This terms basically says that the person who gets paid the most (it assumes that this person is also the highest authority position) will make decisions that are not based on any facts but rather based on his/her gut feel. As a result his/her opinions are generally wrong. Really? Do you really think that they got into their position by giving wrong opinions?

    Some experts even encourage analysts to publicly embarrass HIPPOs by proving them wrong? Really? How do you think it is going to help you? Will you have a job tomorrow?

    As an analyst, your job is to help your organization make better and smarter decision by using the information you gain from the data. How is calling Highest Paid Person a HiPPO or embarrassing your boss in public going to help it?

    To make your point and get someone to listen to you, you have to make friends and not enemies. Just thinking that all the opinions expressed by the HiPP are wrong and not based on fact will automatically put you in either a defensive or an offensive mode instead of a collaborative mode. You need collaboration to succeed. Web analytics is still not integrated into business optimization process and the wrong attitude towards HiPPO will hinder it further.

    Think about this, if you are an analyst attacking a HiPP in the room, who do you think will win at end?

    Thoughts? Comments?

    ----------------------------------------------------------------------------------------------------
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    Monday, July 12, 2010

    3 Ps of Dashboard Creation

    In a recent article on Ad Age, I came across an interesting article around increasing importance and emphasis on Dashboards. I always thought that Dashboards are native to analytics and that it ought to be adopted by everyone organizations by now. Aren�t discussion around Dashboard as old (even older) than Web/Multi channel analytics.

    After reading the Ad Age article along with my experience with clients I have come across an increasing need by clients to PROVE the effectiveness and efficiency of ad spend. Presently, marketing executives appear to be singularly focussed on ROI. The question we ask ourselves is that is it the holy grail of all measures? Should we move away from ROI as a single measurement of performance and add other factors to provide a (more) comprehensive view or a meaningful picture of marketing effectiveness? If so how do we share or present this data? When we ask these questions the importance of Dashboards and Scorecards become increasingly relevant and important.

    Are there any fundamental (building block) principles one can apply at a tactical level to drive this initiative...Here, we list some key principles we have found useful as practitioners. Call it the 3P framework ?

    Process & Priority

    Whether you are a CPG, B2B, Telecom, or Retail it is critical to align yourself with your corporate strategy. If the priority is to democratize data then every effort should be made to integrate online and offline systems to share the data up and down the value chain. Usually creating a deployment plan for Dashboards is a good start. One doesn�t have to create an all encompassing, visually appealing dashboard from the get go. Start somewhere, even if it is excel, ensure data integrity, and most important think action/outcome as opposed to numbers. The next important area where organizations generally miss out on is creating target and benchmarks. If you don�t aim you can�t hit the target. Consider targets based on priority or goals based on historic measures and ad spend. This will be the first step towards transparency and data democracy in your business unit or organization.

    Performance Measures

    Ask yourself this question: If you were the top brass in your company or your marketing organization what would you care about? This question is easy at first but as you drill in you will find yourself in a rabbit hole. At least I still do. Executives will think about Branding, Voice of Customer, and Demand Generation. CXOs will always have an interest in understanding these activities. It�s important for you as a practitioner to obtain these inputs which ought to be the second step in the Dashboard creation process.

    A CFO would care about:
    • Net Present Value: How much value an investment will result in? Usually, this is done by measuring all the cash flows over time to a future date. If I had 100K in 1910 how much will the 100K be in 2010? Usually calculating NPV is difficult because you don�t know what discount rate to use (rate of inflation vs. Treasury index) but one can think in these terms when considering large scale projects and it�s potential return.
    • Payback Period: Say you invested 100K in your marketing program, if it returns 50K per year then you would have a two year payback period. It is a good metric for calculating and minimizing operating costs.

    A CMO would care about:
    • Customer Satisfaction: It measures how products or services meet or better yet surpass customer expectations? In a competitive market space, CS is a key differentiator and a key element of business/marketing strategy.
    • Brand Awareness: It measures the consumers knowledge of brand existence or recall as many like to call it. It is usually qualitative in nature.
    • Cost Per: These are the compound metrics which Anil has written about and it�s all about integrating disparate data sources to provide a transparent view on the success of a program. I am sure you get the idea now, having carefully selected measures will not only allow you to get a pulse on the reality, it will also allow you assign accountability to the right people. If for example, customer sat is low, consider taking immediate action on areas where this can be mitigated. If your Cost Per�s are underperforming, you can pick up the phone and ask your marketing guy/gal/agency as to where or how the money is being spent and to have them consider optimization strategies.
    Presentation

    In the Process and Priority section I talked about this briefly. I have often seen that practitioners get too detailed. It becomes almost second nature for them to add more metrics. Usually, these are perceived to be intermediaries. It is really important to consider dashboard design. Keep in mind some best practices:

    • Data overload: At most have no more than 7-10 performance measures. This way end users are not overwhelmed and data is actionable as opposed to regurgitable.
    • Lack of Benchmarks: Smart marketers understand the value of benchmarking. Context is king. It allows you to measure yourself against past performances as well as set standards for ongoing campaigns.
    • Scoring System: Consider the �traffic light� scoring system. This is a quick indicator and allows users to focus on areas which need attention. 

    Thoughts? Comments?

    This is a guest post from my friend and ex-coworker Kanishka Surana. Kanishka is currently the Head of Web Analytics for Ogilvy. He runs Ogilvy's Web Analytics group in North America, he has been in the Web Analytics space since 2002 and has worked in London, Seattle, Greece, Seattle, San Francisco, Salt Lake City, and most recently in New York.
    Before that Kanishka worked at Gerson Lehrman Group a pioneer in proprietary research space. Kanishka and his wife Mini live in New Jersey.

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    Optizent - Convert any page into a landing page for your organic search engine traffic

    Thursday, June 10, 2010

    5 Web Analytics Misconceptions

    There are several misconceptions in web analytics (created by some author/bloggers/experts) though many others have tried to clarify them from time to time but they keep reappearing. I recently had a conversation with someone who was so much in love with one of the misunderstood metrics, listed below, that it prompted me to write this blog post. So without much delay, here are the most common five misconceptions that I come across all the time:
    1. More Page Views are good � Unless you are an ad supported site that sell advertising via CPM (cost per thousand impressions) more page views might mean that the visitors are lost on your site and can�t find what they are looking for. More pages views/visit could indicate issue with your site navigation. For effective analysis, set your baseline and then watch for significant deviations (up or down) from the baseline.
    2. All that bounces is bad � I have written 2 detailed posts showing why all that bounces is not really bad. Bounce rate is one metrics that people overly obsess with. Keep in mind all bounces are not bad. The things that cause high bounce rate are:
      1. Links to external sites that you want visitors to click
      2. Ads on your site take visitors out of your site
      3. Returning visits might bounce because they might come to your site to read your daily/ weekly/monthly update
      4. Visits that are for a specific reason e.g. find your phone number
    3. Focus on reducing the bounce rate and everything will be ok- Well that�s the advice many people give without even looking at the other data points and analyzing if reducing the bounce rate will really help you achieve your goal or not. Reducing the bounce rate might not be the most effective way to increase ROI. You should create a monetization model and determine the impact that reducing the bounce rate will have before you start creating different version of a high bounce page to A/B test to reduce your bounce rate. I have seen cases where you won�t get positive ROI even when you reduce the bounce rate to 0%.
    4. Time on site (or page) shows how much time people are spending on the site � As I wrote in my blog post titled Understanding the "Time Spent on the Site" Metrics there are many issues with measuring the actual time spent on the site or a page. One of the main reasons is that the last page that a user views/reads on your site is not counted in this calculation. So if you have a non-ecommerce sites then the chances are that the visitors spend most of their time reading the last page but that page won�t not counted in this metrics and hence your time on page and time on site metrics will be way off. As long as you know that you need to watch the trend instead of using this metrics as a absolute measure of time spent on site then go ahead and use this metrics.
    5. Referring Sites report shows all the traffic sources including campaigns � Well� not really. There are a lot of reasons for the referring source to be lost from the time the visitor clicks on the link to the time they arrive on your site, two big reasons are
      • Server redirects � This happens a lot with ad serving. Suppose you buy an ad though a 3rd party company who then uses an ad network to place your ads on a publishers site e.g. yahoo, each party does some processing and redirect of its own. In doing all these redirects the referring information is lost or shows one of the sites that does the redirect. For example, you might see atdmt.com showing up in the referring sites which means you were serving ad via Atlas even though the ad might have been served on MSN.com. Many URL shortening services used on twitter also show up as referring domain instead of twitter.
      • 3rd Party Apps � This is a big issue with Twitter URLs. A lot of twitter users use 3rd party apps and any clicks to your URL posted on twitter from these 3rd party apps will show up as direct traffic.

      If you are running a campaign or posting links in social media, blogs, forums etc, make sure to tag them with campaign identifiers so that you can use campaign reports instead of relying on referring sites report.

    Thoughts? Comments?

    image source: ct4me.net

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    Wednesday, June 2, 2010

    Compound Metrics in Web Analytics

    Should you use a compound metrics in your web analytics reporting? This was a topic of discussion in one of my classes at UBC Web Analytics course.

    What is a Compound Metrics?

    Before we get into answering the question, let�s look at what a compound metrics is.
    Simply stated a compound metrics is when you take two or more simple measures and combine them together to form one metrics.

    So should you use it?

    Short answer is - why not? Sometimes simple metrics such, such as visits, page views, clicks etc., are not enough to explain a complex concept and that's when you need a compound metrics, e.g. engagement metrics, visit quality measure etc.

    But isn't compound metrics hard to explain?

    It depends on how you define it but then a lot of people still struggle with
    visits, visitors, hits and pageviews.
    With that in mind, I agree that initially it might be a little hard to grasp the compound metrics. Over long term, compound metrics actually helps simplify the measurement of a complex concept.

    Some of the common uses of the compound metrics are
    1. Credit Score (Everybody has one and it affects them every day but how many actually know how it is calculated?)
    2. Google Page Rank
    3. Twitter Resonance (it will use several factors such as retweets, clicks on links etc.)
    4. Twitter measurement. Many twitter measurement tools use compound metrics since it is not easy to explain Reach, Impact, Engagement in simple metrics.
    5. Facebook's "Likeability Index". Ok, I made this one up but I am sure that's coming soon.

    Example

    Let's look at an example and see where such a metrics will make sense in your current web analytics reporting.

    Lets take an example of a product information site. The products are sold offline via 3rd party retailers and since this company does not want to compete with its retailers it doesn't sell anything online. This site provides information about the various products that this company sells. It provide white papers with pre-purchase information and post purchase information/support. The site has some videos and some stories that are published every now and then. Well there is a sign-up form to allow users to save their product information.

    The whole goal of the site is to provide information to current and future customers.

    Now your big boss asks "We spent thousands of dollars to build this site, is this site working?".

    You reply, well... Visits are down but repeat visits are up so seems like people like it and are coming back. However, page views/visit are down. More white papers are downloaded as compared to last month. However, video views are down and sign ups are also down. Seems like some things are up and some things are down.

    Boss goes...."What does that mean? Is it working or is it not? Are customers finding information?"

    How do you measure that?

    As an analyst you can look at all the metrics and come to a conclusion but you have to be able to convey the end result to the VP of marketing. He needs to know if the site is successful or not.

    This is where a compounded metrics comes in handy.

    A simple formula for this could be

    (% of visits viewing X pages or more + % of visits viewing video + % of visits downloading white papers type 1 + % of visits downloading white papers type 2)/4

    we used 4 in the denominator because we are using 4 different metrics with equal weight

    Now you can add other metrics that matter to the business and also assign different weight to each, so your formula could be something like:

    (1*% of visits viewing X pages or more + 4*% of visits viewing video + 1*% of visits downloading white papers type 1 + 2*% of visits downloading white papers type 2)/8

    1,4,1 and 2 are the weights assigned to each metrics based on their importance to the business.

    Once you develop a baseline for your metrics, you can confidentially tell you boss if the sites performance is better or worse than the last month. Keep in mind that you are an analysts and you should always get under the hood to analyze each component and find opportunities for improvement.

    What do you think?

    Questions? Comments?

    Other articles on similar topics are


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    Thursday, May 6, 2010

    Web Analytics is Money


    How do you convey the value of Web Analytics to an organization that has never used web analytics or has used it but at a very elementary level? This is one of the questions that I constantly get from students of my UBC Web Analytics classes, where I am an online tutor.

    My answer to them is they should start the conversation with something like, �Web Analytics is Money� or �Web Analytics helps companies make more money� etc.

    When you say those words, you are very likely to get audience who want to know more. Money invokes curiosity.

    You should not tell the CEO how web analytics can help the company understand customer behavior, find bottlenecks in the site, improve bounce rates etc. You should show him/her the impact in terms of dollars (or Euros, Rupees etc.).

    Every web site analysis can lead to actions that have an impact on the money. You can tie web analytics to:
    • Additional revenue
    • Cost Savings
    • Profit
    • Doing more with less money (particularly for non-profits)

    Example:

    Let�s take a simple example to illustrate this.

    Reducing Bounce Rate

    If you are not getting any traction, I assume your analysis might look something like:
    �Home page is the top most landing page with 80% of the visits entering through this page. However, 60% of the visits bounce i.e. leave the site immediately, after landing on this page. 60% bounce rate is very high as compared to the industry average.* There is a huge opportunity for us to lower the bounce rate on this page by testing the page layout�..(you provide your reasoning on what should be changed and why).�
    Great. As an analyst I can understand and you can understand it. But what about CEO of the company? Will he/she understand it? Why should he/she care about the bounce rate?

    *Typical Bounce Rates by Anil Batra

    Now, try the following:

    Generating More Revenue

    �Our analysis shows that there is an opportunity for us to increase our revenue by $300,000 for the year by optimizing our home page. Home page is the top most landing page with 80% of the visits entering through this page. However, 60% of the visits bounce i.e. leave the site immediately, after landing on this page. 60% bounce rate is a very high number compared to the industry average.* There is an opportunity for us to lower the bounce rate on this page by testing different page layouts. Lower bounce rate will help us drive more people to the purchase funnel and even if our funnel completion rate remains at 20%, by sending more people to the top of the funnel we will have additional 3000 sales leading to $300,000 in additional revenue for the year.�

    Tying your analysis and recommendations to money makes it easier to understand the benefit of Web Analytics. Money will make it easier for you to overcome organization barriers and make you a hero.
    Web Analytics is money!!!

    What do you think?



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    Landing Page Optimization Analyst, at Red Ventures (Fort Mill, SC)

    Friday, April 2, 2010

    Three Paid Search Lessons Learned from Topeka Tourism Board

    This morning I read a blog post titled "How Topeka Capitalized On Google's April Fools' Joke". In my opinion the only company that capitalized on this was Google not Topeka Tourism Board. There were three big mistakes Topeka made in trying to cash in on the Google�s April fools prank.


    Hopefully, they did not lose a lot of money on this campaign and generated some awareness of Topeka. At least they got free placement on my blog.

    There are three lessons to be learned from their mistakes:

    1. Determine the goals of your paid search - What is the purpose of your Paid Search Campaign? Make sure you are not attracting a lot of unqualified clicks. In this case the purpose of buying paid search was not clear. Just because a high volume on a keyword was happening does not mean all that traffic is qualified for your business.
    2. Define KPIs before you start spending money - Figure out how you will measure success. In this case they did not have any way to measure success. They listed number of impressions and clicks. So they paid for clicks but don�t know how many of them generated into anything of value? To me it seemed like that the visitors were tricked into clicking something but had no intention of visiting Topeka site. In other words they got a lot of unqualified visitors. I bet you that the bounce rate is huge (see my next point).
    3. Make sure your analytics setup is correct�Google� Mike, an Implementation Analyst on my team verified that the Google Analytics on their site is broken. One of the most glaring issues he found was the home page fires 2 page views per page view (i.e. it fires twice) so the reported bounce rate is lower than the actual bounce rate, which means it is wrong. In this case they are not getting the correct stats. Wrong web analytics implementation leads to wrong data and that leads to wrong decisions.



    Comments? Questions?


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    Tuesday, March 9, 2010

    Free Tools for Web Analytics, Search, Social Media & Competitive Analysis

    Last week I was on a �Measuring Success� panel at PR+MKTG camp in Seattle. Someone from the audience asked if there were any tools for a newbie to start measuring PR & Marketing efforts and learning. I uttered the names a few tools that came to my mind.

    Considering that there might be many others in the same situation I decided to write this blog post. In this post I am listing some of the tools that you can start using for free. Please note that this is not the most comprehensive list of the free tools.

    Side Note: All the panelists unanimously agreed that you need to first figure out your measurement needs based on your business requirements and KPIs and then find the tools that meet your needs. One of the biggest mistakes most companies make is that they pick the tools first and then try to modify their measurement needs according to the tools they have in place.

    However, I recognize that someone who is not familiar with the various measurement tools needs some exposure to the tools to really think about the questions they might want to ask before making an investment in a paid tools.

    With that, here is the list of tools that you can start using today for free:

    Web Analytics

    For monitoring the on-site behaviors of your users and the performance of your site, use the following free tools
    1. Google Analytics � http://www.google.com/analytics
    2. Yahoo Web Analytics � http://analytics.yahoo.com/

    Search

    Use the following search tools to learn what keywords your customer/potential customers are searching for so that you can optimize your site accordingly.
    1. Google Adwords Keyword Tool - https://adwords.google.com/select/KeywordToolExternal
    2. SEOMOZ has set of Free tools - http://www.seomoz.org/tools
    3. Google Webmaster Central � Provides you data on how your sites in crawled and indexed by Google.
    4. Bing Webmaster Center - Provides you data on how your sites in crawled and indexed by Bing.
    5. Google Trends - http://www.google.com/trends
    6. Google Insight for Search - http://www.google.com/insights/search/#

    Social Media

    I already mentioned two tools in my blog post titled �Free Social Media Monitoring Tools for Small Businesses�, here they are again (and two new ones) :
    1. Google Alerts � http://www.google.com/alerts
    2. SM2 by Techrigy � http://sm2.techrigy.com/
    3. Twitter Search � http://search.twitter.com/
    4. Yelp.com � Good for small and medium size businesses. Find out what customers are saying about you and your competitors.
    Here are some more but I have not used all of them, http://mashable.com/2008/12/24/free-brand-monitoring-tools/

    Competitive Analysis

    Want to know how your competitors are doing compared to you? Use some of the tools listed below. Keep in mind that all of these tools use different ways to collect the data and hence the actual data you get from one tool will differ from the other but overall it should provide you good competitive information.
    1. Search and Social Media Tools � Many of the tools listed above can provide you competitive information as well. E.g. Set SM2 to monitor the keywords that describes your competitor and you can start to see what customers are saying about your competitors
    2. Alexa - http://www.alexa.com/siteinfo
    3. Compete - http://www.compete.com/
    4. Quantcast - http://www.quantcast.com/
    5. Google Trends for Websites - http://trends.google.com/websites
    6. Google Ad Planner - http://www.google.com/adplanner. Here is my review of Google Ad Planner

    Like, I mentioned above this is not the most comprehensive list but it should get you started. Do you have a favorite free tool that is not on this list? Leave a comment on this blog post or send me an email with the name of the tool.

    Comments? Questions?


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    Friday, January 22, 2010

    Is Your Conversion Rate Wrong?


    According to Web Analytics Association (WAA) standard definition, a conversion is a visitor completing a target action.

    Conversion rate is calculated by total number of visitors completing a target actions divided by a �relevant denominator� (Sometimes it is total number of target actions divided by a �relevant denominator).

    The key here is �relevant denominator�. This is often ignored by many organization and they tend to use the default denominator provided by their Web Analytics tool provides. The most common denominator used by most of the tools is either total visits or total visitors.

    If you are an eCommerce site then potentially every visitors or visit is a target for conversion and �Total Visits� or �Total Visitors� as a denominator might make sense. However if your site is a non-eCommerce site and conversion to you means getting people to register on the site then using a denominator like total visits or total visitors to calculate conversion rate, wrongly assumes that all of the visits to sites have not previously converted (registered) and hence are potential conversion worthy. We all know that�s not the case. These sites get a mix of visitors, visitors who have registered in past and are not going to register again and, visitors who have not registered yet and hence are a potential target. Examples of such sites are facebook, WSJ.com, espn, yahoo etc.

    Calculating the Right Conversion rate

    In my examples I will assume that number of visits is equal to the number of visitors.

    Hypothetical site in our examples is a portal that requires visitors to login (register) for some actions but also has content that does not require a login.

    This sites gets an average of 1000 visits a day and gets 50 new registrations (conversions) a day. By most common way of calculating the conversion rate, the conversion rate for this site is 5% (i.e. Conversion Rate = Conversions/Total Visits = 50/1000 = 5%)

    Let�s assume that every day this site gets 50% of the visits from the people who have registered in past. So that means 500 (50% of 1000) are registered and won�t register again. Since they are not going to register, why do we even consider them when calculating the conversion rate? By removing them from the calculation of conversion rate, the new conversion rate becomes:
    50/500 = 10% (Immediately you doubled your conversion rate)

    Why is this important?

    Let�s look at two scenarios to illustrate the importance of choosing a relevant denominator.
    1. Scenario 1
      One day the customer retention department sends some emails to previously registered visitors that result in 500 more visits from people who had previously registered. As a result the site got 1500 instead of 1000 visits it used to get every day. Considering that nothing else changed on the �not-registered� visitor base, the site got 50 conversions, just like any other day.

      Using �Total Visits� as the denominator, it appears that the conversion rate drops to 50/1500 = 3.33%

      It looks bad, and might cause you to panic. Won�t it? However if you choose the right denominator you will find out that nothing really changed. The pool of people who had not previously registered is still 500, so the true conversion rate is still the same
      50/500 = 10%.
    2. Scenario 2
      The �customer acquisition� department bought a new email list and sends emails to this list which resulted in 500 extra visits. Overall the site got 1500 customers, 1000 who had never registered and 500 who had registered previously. That day the site got 60 registrations, resulting in a conversion rate of
      60/1500 = 4%.

      Look like our email list did not work because it caused the conversion rate to go down.

      This might cause you to wrongly assume that the email list that the retention department bough was not as good as the other traffic that you have been getting. However when you calculate the true conversion rate, it turns out that the email list actually worked; it resulted in a conversion rate of 6% (60/1000).
    Note: Some might argue that why won�t this company tag all the emails with proper campaign identifiers so that we can track the performance of the emails. In theory this sounds great and that�s how it should be. In reality though, many departments work in isolation and never interact with the �Web Analytics� or follow their best practices. Now you know why marketing departments should share the marketing calendar/activities with �Web Analytics� group and involve them before running any campaign.

    Hope this gives you an a reason to investigate what denominator you are using in your conversion rate.

    In the next post, I will show you how you can calculate the �True Conversion Rate� using Google Analytics.


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    Monday, January 4, 2010

    Predictions 2010: Web Analytics, Social Media and Digital Marketing

    This is the time of the year to make few predictions for 2010. Here are my 5 predictions for Web Analytics, Social Media and Digital Marketing.
    1. Website Testing � What�s the point of creating a cool looking site that does not engage or covert the customers? Website Testing (A/B and Multivariate testing) is the key to those conversions, Website Testing won�t be optional in 2010. Website testing will become an essential part of website design and development. Website designs will make it easier to change the elements of page and hence make it easier to test them. Jobs in A/B and Multivariate testing are about to rise. For your reference there are currently 252 jobs for �A/B testing� on simplyhired.com.
    2. Web Analytics - I have two predictions about web analytics (generally known as web analytics):
      1. Adobe will start incorporating Omniture into its products.
      2. WebTrends will be sold this year.

    3. Mobile Analytics � Mobile usage will continue its upward trend and so will the number of mobile sites and mobile applications (apps). Just like a website, mobile sites needs to be analyzed and optimized and same goes for the mobile applications. There are already tens of thousands mobile apps and this number will continue to grow. It is critical that users download your apps, number of downloads is an important measure of success. But number of downloads do not equate to usage. If your app does not get used then what�s the point of paying thousands of dollars to develop them? Usage of your apps is even more important metrics. As the market gets crowded with all the apps, app providers would want to know if there apps are getting used and what features are getting used. The need to learn from the data and optimize the apps will rise this year. See above, Optimization is not optional.
    4. Twitter � Twitter will need to prove its value to the businesses. There is a lot of noise on twitter, most of the clicks (and I have proof) on twitter links are not from real people. Is anybody reading those tweets? Yes tweets are now appearing on search engines but are they adding much value to the search results? This will be the year that will define the future of twitter. Twitter will either be sold or dead by the end of this year.
    5. Privacy � Privacy will become a very hot topic putting a lot of pressure on behavioral targeting. Mobile Tracking will also be scrutinized. Privacy watchdogs will start looking at the data collection by Mobile apps (e.g. iPhone apps), desktop widgets/pass etc.

    What do you think?
    Related Posts


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    Wednesday, October 28, 2009

    All That Bounces Is Not Bad

    If you have any connection with web analytics then, I am sure, you have heard about the bounce rates (see Bounce Rate Demystified and Typical Bounce Rates). A lot of analysts and a few web analytics tools are obsessed with the bounce rates. High bounce rate is considered bad. If you are one of those who is obsessed with the bounce rate or think that all that bounces is bad then this blog post is for you.

    I do believe that bounce rate is a great starting metrics when you are trying to optimize your site but be careful and make sure that you are measuring the true bounce rate. Below are the three factors that lead to the misreporting of the bounce rates
    1. Links to external sites - Many sites have links to the external sites such as sponsors, micro sites etc. Considering those external links as exits will count visits as bounces even though the visitors are doing exactly what you want them to do (e.g. click on those links that you provided them). See below a screen shot from First Tech Credit Union, there are few external link s contributing to the bounces.



    2. Online Ads � If you serve ads on your site you are providing links to external sites. Visitors who land on your site, see an ad that grabs their attention are going to click on it (isn�t that what you want so that you can command higher rates for the ads?). It is not really a bounce because visitors are taking the action that you want them to take. See the screenshot from Techcruch which is full of ads and I bet this page (and other article pages) has a very high bounce rate.
    3. Destination Pages � Pages that provide the information that the visitors are looking for is what I call destination pages. Usually you will see the visitors arriving from bookmark or search to the internal pages on your site that provide the visitors with the information that the visitors are looking for. Since those pages serve the visitors� need you are likely to see high bounce rates on those pages. Those bounce are not bad. Some might argue that you should try to drive visitors into the other sections of the site but I can bet that in most of the cases you won�t see significant drop in bounce rate no matter how hard you try. Below is an example of a page on First Tech Credit Union that could have a very high bounce rate. I arrived at this page by searching for the �Phone number for First Tech in Redmond�. When I arrived on this page I got what I was looking for and I bounced.


    Are you considering these factors when analyzing the bounce rates on your site? Questions? Comments?

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    Sunday, October 4, 2009

    7 Ways Of Handling 404 Error Messages

    Last week I wrote about 404 errors and how to track them in your web analytics tool. In this post I am going to look at how various sites are dealing with 404 error messages and provide your 7 ways of handling 404 pages on your site.

    The best way to handle the 404 error messages is to not have any by properly setting redirects in case of a redesign, proper sitemaps etc. But despite your best efforts there will be cases when your visitors will get the 404 errors so you just have to be prepared. This post will show you how other sites are doing it so that you can decide what will work for you.

    I looked at few of the top converting online retailers and few others random sites to see how they are handling 404 error messages.

    Here is what I found

    1. Schwan.com


      Schwan.com, the site with the best conversion rate, notifies the visitors that the page does not exist and then provides a link back to the home page. It also keeps the top navigation intact on the 404 page so that the visitors can easily navigate to the other pages on the site.
    2. FTD.com


      FTD.com, does a nice job of providing products recommendations to the visitors on the 404 custom error page. It also shows the top and left navigation on the error page for easy navigation.
    3. Proflowers.com


      Proflowers redirects the visitors to the home page of the site. In some cases it displays a message notifying the visitors that the page was not found but in other cases it just redirects the visitors to the home page. Lack of an error message might confuse the visitors who intended to go to a particular page and not the page they were redirected to (home page).
    4. Coca-cola.com


      Coke adds little humor on the 404 error message page. You can�t avoid reading the page.
    5. Microsoft


      Microsoft makes an attempt to understand where the user intended to go. It parses out the �Not found� url and then runs the internal site search to show relevant results. Good attempt by Microsoft on Microsoft.com, however I did not see the similar attempts at Bing or MSN sites.
    6. Google



      The company that tries to understand user intents on it�s search engine makes no attempt to understand what the visitor is trying to do. It could have used something like �Did you mean�..� but it does not.
    7. WebTrends


      Webtrends does a nice job of providing a site map on the 404 error page. Omniture does similar thing on their 404 error page.
    8. Adobe


      Adobe even asks the visitors to send them feedback on the broken link. Like many other site it provides several links back to other content on the site.
    9. RedEnvelope


      RedEnvelope goes one step further and provides an error message, product recommendations and a 10% off coupon for the inconvenience that a missing page might have caused.
      Go ahead and try it and get 10% off on RedEnvelope.com.
    I also checked Roamans, QVC and Coldwater Creek, few of the other sites listed in the top conversion rate list and did not find any custom error pages.

    7 ways of handling 404 error messages

    Let�s recap and look at the various ways you can handle 404 error messages.
    1. Redirect the visitors to the home page. Make sure it is clear to the visitors that the page was not found and so they are being redirected to the home page. (Proflowers.com)
    2. Have a basic custom error page that notifies the visitors that the page was not found and then provides a link back to the home page. Make sure you have your navigational elements on the page. (Schwan.com).
    3. Add humor in your 404 message just like coca-cola.com.
    4. Show the sitemap (links to various sections and pages on the page for easy navigation. (WebTrends)
    5. Make products recommendations. Recommendation could be targeted based on what you know about the visitors (past purchases, current browsing behavior etc.) or simply show the best sellers list. (FTD.com)
    6. Interpret what a visitor might be looking for and show the possible results/links. You can use the internal search similar to what Microsoft does. (You have to be very careful with this solution as there is always a possibility of misinterpretation).
    7. Provide a coupon for instant conversion. (RedEnvelop)

    Do you have any other example to share? Send them to me.

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    Thursday, October 1, 2009

    Web Analytics For 404 Errors

    404 errors are a fact of life on the internet. 404 error is a message returned by a server in response to a request for a page that does not exist on the server (http 404 error code).

    Let me illustrate this with an example:

    A visitor comes to a site, bookmarks a page and then leaves the site.
    Next week the owner of the site decides to launch a new site completely replacing the old pages with the new pages (urls were different).
    Next month the visitor comes back to the site via the bookmark but the page she bookmarked does not exist as it was removed during the site redesign.
    She will get a 404 error message from the server.


    Reasons for 404 Errors

    404 errors can occur due to numerous reasons:

    1. Misspelled links � A misspelled URL in a hyperlink on the site can causing a broken link and hence a 404 error message.
    2. Bad Site Map � A site map is an xml file containing a list of all the pages on the site. It is usually meant for the search engines to index the pages on a site. A misspelling in a site map can cause the search engines to look for the pages that do exist on the server. Generally theses pages (broken links) won�t be visible to the visitors but they will show up in the search engines indexing report such as the Google webmaster tools. Some sites also show the site maps to the visitors as a form of site navigation; in those cases the visitors will see the 404 errors.
    3. Site Redesign � Site redesigns are a leading cause of the missing pages. Site owners redesign the sites, completely replacing the old pages without thoroughly thinking about the pages that might have been linked all over the web, indexed by the search engines, bookmarked by the visitors etc. Visitors who clicks on old links, bookmark etc. are greeted with the 404 error messages when they click on those links to arrive on the site.
    4. Sever Unavailable � 404 error messages can also occur when the server is unavailable.

    Below is an example of a standard 404 error message


    If standard 404 error page is the first page that a visitor sees when she arrive on a site, what will her reaction? As shown in the picture above, you can�t even tell which site this page belongs to. It is a dead end. Visitors don�t know where to go. What would a visitor do in this situation? She will most likely leave the site. She will go back to where she came from. The site has just failed to engage her.

    Let�s imagine a similar situation in the offline world. Think about how you would feel if you enter a local supermarket looking for a toothbrush and are immediately taken to the location in the store where the toothbrushes aisle is suppose to be. When you arrive at that location, not only that you don�t find the aisle because the supermarket recently rearranged the store and move the aisle but also that the whole supermarket goes dark and all you see is the exit door. You will, for sure, run towards the exit door. That�s what a standard 404 error pages does, the site goes dark and the only thing a visitors sees is the back button or the close button on the browser.

    Custom 404 Error Pages

    Now imagine that instead of the store going dark, the customer sees a friendly associate who politely says �Sorry, we recently rearranged our store and the aisle you are looking for have been moved. May I show you the new location of the aisle� (or some flavor of it). Friendly associate on the web in this situation is called �Custom 404 error page (message)�, which will say �Sorry the page you are looking for does not exists anymore or has been moved, here are few links that might help you� (or some flavor of it).
    A custom 404 error page allows the site to provide a message other than a generic server error message (Figure 1). A custom 404 is an opportunity for the sites to engage the visitors whom they might have lost otherwise.

    How do you create a custom 404 error page?

    Create a page with a message that you want your visitors to see when they encounter 404 error messages and save it as 404.html (you can use other names and the page extensions as well). Web servers have a setting which allows you to set the page that you want the visitors to see when they encounter the 404 errors. In this case you might set it to 404.html. (Contact your IT department or hosting companies to get further details).


    Here is an example of a custom 404 error page

    There are several ways to customize your 404 error page. Be creative when designing the 404 page, this is your last chance to reengage a visitors. (I will show you some examples in future post)

    Web Analytics and 404 error page

    Another benefit of creating a custom 404 page is that you can put your web analytics tag on the page to report and analyze the 404 pages. Web Analytics reports can show you the pages (links) that are causing 404 error messages on your site. You can also find out which pages have the bad links, what keywords, external links etc. are driving users to those non-existent pages.

    Tracking 404 pages in Web Analytics

    Here is an example of Google Analytics Code to track the 404 pages


    This code appends �404:� in front of the page name that triggers the 404 error so that it is easy for me to filter the Google Analytics reports for the 404 error pages.

    The same concept can be used in the other web analytics tools such as Omniture, Webtrends, Unica, Coremetrics etc.

    There are two reports that I frequently use to analyze the 404 pages
    1. Top Content


      Since I prefixed my 404 pages with �404:�, I can easily filter out the 404 pages in this report. This report gives me all the pages that are triggering 404 error messages. This report also shows me how big the problem is and if I am losing visitors on these pages or not.
      If your custom 404 page is unable to engage the visitors (high exit rate or bounce rate) then you should consider changing the content/design etc. of the page. (I am looking into how you can conduct A/B testing on a 404 page).

      You can also drill down into each of the page and do further navigational analysis to see the pages that the visitors saw before they got the 404 error page.




      This leads you to the pages that have old/misspelled links. To track down the external links and sources, that have bad links to your site, you will need to look at the top landing pages report.
    2. Top Landing Pages



      A filter on �404:� in this report will show you the landing pages that result in the 404 errors. Use this report to drill down to the external sources of errors e.g. the external links, keywords etc. Below is an example of a report that shows that most of the 404 for a page on this site occurred from links in the emails.



      Further analysis of the emails led me to the malfunction links.
    Do you have 404 error messages stories, examples to share? Send them to me.

    Questions? Comments?

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    Sunday, September 20, 2009

    Are You Wasting Your Advertising?

    I hope you have heard the famous words of John Wanamaker "I know half of my advertising is wasted, I just don't know which half."

    Today the phrase should be something like �Half my Advertising is wasted because I do not advertise responsibly� or �Half of my advertising is wasted; I can stop that but I fail to use the data�.

    Yes that is correct. We have an abundance of data today to help us save the wastage. There is no shortage of tools that will collect all sorts of data. Yet many marketers fail to act responsibly and use this data to stop advertising waste and also save customers from unwanted ads.

    Here are some examples that will show you what I mean

    • Newsletter � Nordstrom - In my blog post on email and relevance, I showed an example of an email from Nordstrom that had irrelevant offers. As result of this, not only did Nordstrom waste time, effort and money but also lost a subscriber. Advertising was wasted.
    • Newsletter � Drugstors.com � Same as Nordstrom. Not only did Drugstore lose a subscriber, but a high profile marketing guru �Seth Godin� wrote about this on his blog. Adverting was wasted and resulted in negative publicity.
    • Paid Search � I searched for �iPhone Charger� on Google and saw an ad from �Walmart� titled �iPhone�.



      I could take one of the following two actions
      1. Ignore this ad as it does not have relevant copy, which results in lower CTR on the ad and hence higher CPC that Walmart will end up paying in future. (Google punishes you if you don�t have high performing ads).
      2. I click on it and Walmart pays for the click.
      I chose to click on the ad and landed on a page that showed me results for �ipod� instead of �iPhone chargers�. Wow!!! What a mismatch. Net result: My time was wasted with irrelevant results, Walmart wasted its money by paying for click that did not generate any value. Advertising was wasted.


      Here is another example: Search Pay Per Click Tip : A Simple Way to Increase Profit.
    • Offline Advertising � Netflix recently sent me two snail mail pieces on the same day.
      1. Offer to join Netflix and get first month free � Great, I like it, I think I should join Netflix. Wait�I am already a member and receive my movies from them all the time. So should I cancel my subscription and join again to avail this offer? Netflix is known for movie recommendations it makes to its customer based on their past history. Can�t they tie their database to see who is already a member so that they don�t send junk mail to that subscriber? Advertising was wasted.
      2. Offer to recommend Netflix to my friends � They have done it several times now. I have never referred any of my friends as most of them are already subscriber plus who has time to save a print coupon and give it to a friend. The web is full of coupons and they can get it from there. Netflix should have looked at my referral history, I have never referred anybody. Stop sending junk mail and avoid wastage.
    • Display Advertising � We all know the web is full of irrelevant ads. An example is an ad from Air Linus of NYTimes.com for flights from New York to Ireland. I think this works for those who are in New York, but not for me. I live in Seattle. Just because I am browsing NYTimes.com does not mean I live in New York or interested in going to Ireland. Advertising waste could have been avoided by just checking my Geo location. Money Wasted. Advertising was wasted.





    Are you advertising responsibly? Are you using data to make sure you are not wasting your adverting?


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