Measuring Success

Key Performance Indicators (KPIs) are used throughout organisations for defining success. They are particularly essential in web analytics due to the plethora of data collected. In fact without KPIs, it is easy to become overwhelmed. So once you have set your overall web site objectives, use KPIs as the metrics to benchmark your progress. By definition, these are a small subset of “key” information points taken from your web analytics reports. A prerequisite for benchmarking is having KPIs that are in context and temporal. So for example, saying “we receive 10,500 visitors” is a piece of underlying data that raises more questions than answers. However saying “our new visitor acquisition was up 10% week on week” is a powerful KPI placing the metric in context (new visitors have increased) and is temporal (over the past 7 days). While most KPIs will be averages, ratios or percentages for this very purpose, it is sometimes more [...]

[This article is part of a series entitled: GA Implementation ABCs] In Part I of this series, I discussed the importance of simply getting the data in. Part II concerned keeping the data clean by using filters. In this third install I discuss defining goals – the building blocks for your Key Performance Indicators (KPI). Remember this is all before tackling the much wider (and also more complex) issues of mapping your stakeholders, building your KPI list or assessing your business needs from your web site. The importance of Goals in web analytics After collecting and cleansing your initial visitor data from your GA reports (Parts I and II of this series), you then establish your benchmarks. Assuming there are no horror stories from viewing your initial traffic volume, consider your web site goals. A goal is quite simply the purpose of your web site, which in theory should be [...]

Some background information… Often web analytics data can be extremely revealing – I have seen conversion rates increase ten fold as a result of web site changes brought about by such data. However as the analyst, you will know that interpreting the data is only half the story. You also need to communicate this story effectively across your organisation in order to get the buy-in required for the wholesale changes you may be proposing. You do this by creating internal “stakeholder” reports. The report is a very abridged version of your web analytics reports, usually summarised in Powerpoint and/or Excel and known as a Key Performance Indicator report (KPI Report). There are literally dozens (if not tens of dozens) of possible KPI values to include in such reports and Eric T. Peterson’s The Big Book of KPIs lists just about all of them. The trick is to only select a [...]