As I'm out talking with clients, I'm always pitching the importance of metrics and measurement. But, as in any measuring, using the right yardstick is important. The key is to figure out which metrics are truly important for a particular business objective and then regularly track changes in them. A strategic metric:
- Is directly related to your business objectives.
- Is key to understanding what's happening, not just data that's available and easy to retrieve. Unless you limit the amount of data you try to understand to the essentials, you're likely to become overwhelmed and stop monitoring at all.
- Promotes action, that is, gets you or others in your business to improve what you're doing as a result of what you're seeing.
Here are a few examples of appropriate metrics for specific business objectives:
| Business Objective |
Appropriate Metric |
| Sell product |
- Conversion rate (ratio of purchasers to the total number of people who view sales or landing pages).
- Average Time on Page for sales or landing pages. The longer the time on page, the more sales.
- Bounce rate for sales or landing pages.
- Average order value.
- Revenue per visitor.
- Cart conversion rate.
|
| Sell website advertising |
- Page views per day.
- Page views per visit.
- Home page bailout or bounce rate.
|
| Increase subscriptions to free newsletter |
- Subscriptions per 1000 new visitors.
- Home page bailout rate.
- Net subscription rate (ratio of subscriptions to unsubscriptions and dropped addresses).
|
As you review your site you'll be able to identify the metrics that are critical for you to monitor. Monthly monitoring is probably sufficient for most businesses, however, if your environment changes rapidly, you may want to look at weekly monitoring. Graphic reporting is usually best—that way you can spot trends and take action in time to seize an opportunity or dodge a catastrophe.
If you use Google Analytics, you'll have access to many built in metrics—visits, pageviews, pages per visit, bounce rate, average time on site, percentage new visits, traffic sources, etc. You can also establish your own goals, and track those using Google's tools. To move beyond Google's built-in metrics plug key numbers into a spreadsheet and employ formulas to calculate the specialized measurements that are most meaningful to your particular business.