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Web Analytics - Getting it Right
by: WG Moore
Web Analytics
Getting It Right
By WG Moore

Understanding and using web analytics.

In recent years, website marketers were concerned with increasing ¡®hits¡¯ and the ¡®stickiness¡¯ of their sites. They were concerned with increasing page views and the amount of time spent on the site. This is definitely a hold over from the paper based businesses of the past, and has proved to not be of much use in the fast moving internet world.

As a result, hits and views are no longer considered useful metrics for evaluating website success. They simply don¡¯t provide the right kind of information needed by online marketers. Now they look at conversions, drop-out rates, return on investment and revenue per visitor.

Internet marketers of today want to make more money. To do this, they must understand their visitors, their motives, where they came from, what they were looking for, and how they found the site. And most important of all: what made them make the decision to buy or what made them abandon the purchase.

In order to accomplish this, they need a powerful new set of analysis tools; tools that are fast, accurate and easy to use. And most important, these tools must be able to measure performance over time. That is, the marketer needs to be able to set a baseline for any metric and then measure a percentage of increase or decrease at a later time. And the time frame needs to be long enough to show meaningful results ¨C usually 30 days or more.

Here are a few common problems solved by the proper use of web analytics:

Good traffic, but a high Bounce Rate

A ¡®Bounce¡¯ is a visitor who comes to your site and leaves without looking at any other pages. The number of bounces is compared to those who visit more than one page to give a ¡®Bounce Rate¡¯. All websites have a bounce rate. Whether it is high or not is relative to the site. Only numbers taken over a period of time will show an average for any particular site.

There are two main problems that lead to a high bounce rate: Attracting the wrong kind of traffic and not giving the visitor what they were looking for.

To identify the first case, open the New Visitors report. This report should contain a list of unique, first-time visitors. The report should also show the first page visited and where they came from. The origin may be empty, due to a number of reasons outside the control of the analytics package. Select a visitor that came from a search engine. Now ¡®Drill Down¡¯ by clicking on the selected line and opening a detail view of this visitor. The detail page will show the search term used to find your site.

Was the search term relative to the subject matter of the landing page? Were they only looking for something free? Looking at a number of search terms will reveal if the wrong kind of traffic is coming in.

If the search terms are appropriate, then the searches are driving qualified traffic to the site. If this is the case, the high bounce rate is due to the page content not properly addressing the visitor expectations.

High Drop-Out Rate

According to Jupiter Research, 71 percent of sites do not analyze customer drop-out rates, even though 66 percent of consumers reported having abandoned a purchase while on a website.

The drop-out rate will show an increase, or hopefully, a decrease with time. A properly designed buying process will capture personal contact information before continuing with the checkout process. This contact information can be used to contact the lost sale and discuss the reasons.

The Drop-Out report should show the visitor, the product and date and time of sale. Select one line in the report and drill down to view the contact information, if available. Call or email the visitor to learn the reasons for abandoning the sale.

Also, the internet marketer should discuss the buying process with current customers. This is an excellent method of increasing customer loyalty. It also provides an opportunity to gather testimonials. Most buyers will have visited several times before they bought. Ask why they didn¡¯t buy the first time they visited the site. Also, ask why they came back and what motivated them to buy.

Poor Return On Investment

Probably the most difficult challenge faced by internet marketers is controlling costs. Traffic acquisition can be an expensive proposition, so it is important to get the most out of every click.

The best marketing reports reveal where the money comes from, who the money comes from, and what marketers can do to improve revenues. Marketers can use this information to increase advertisements on sites that reach the most interested parties, provide a better selection of products for different types of visitors, or offer better service to their most valuable visitors.

The marketing reports should show sales grouped by campaign or affiliate. At a minimum, they should show units of sales by product and product options, and preferably revenue.

Compare advertising costs with revenues to identify the most profitable campaigns. Often the marketer will find that one campaign may bring in more visitors, but conversion is low, whereas another might bring in fewer, but more qualified visitors who purchase more.

The use of A/B testing to increase pulling power of ads is vital to keeping ad costs down and attracting qualified visitors. Here, the marketer will find it easy to measure changes and evaluate overall performance. Instead of taking months to identify and understand the effect of a change, it will often show in hours or a few days. This agility means that even smaller e-commerce sites can succeed on limited budgets.

Path Analysis / Clickstream Analysis ¨C Understanding visitors

Not really a problem, but vital to keeping a healthy web business running smoothly. The marketer is also able to identify new trends and opportunities by evaluating the visitors¡¯ interest in various content available on the site.

The ideal path through the site should go from the landing page to the products page to the orders page, from there to the checkout and finally to a ¡®Thank You¡¯ page.

Deviations might include paths to tutorials, articles and other information pages, but these should be kept to a minimum and always lead back to the main path.

Again, the marketer can select a particular visitor, buyer or drop-out and then drill down to the detail page to reveal every page visited and path taken, as well as the amount of time spent viewing each page. Knowing how long it takes to actually read the page will reveal the amount of interest in the subject matter. Combining this information with keyword searches will reveal how appropriate the content of each page is to the visitor¡¯s interests.

In Summary

The value of the analysis far exceeds the nominal cost of the web analytics service. Indeed, it may spell the difference between success and failure. Good web analytics packages can be hard to find, but need not be expensive. Increasingly, more and more comprehensive reports are available at better prices.

To be effective, the marketer must understand what to look for and how to apply the knowledge revealed by the analysis. The learning curve is not steep, and the rewards can be significant.

-0-

About the author

WG Moore is a web analytics specialist with over 20 years of hardware, software and web development experience. Visit http://www.webstatsgold.com for more articles and information on web analytics. You may contact him at will@webstatsgold.com

Copyright 2005 by WG Moore

Permission is granted for this article to forward, reprint, distribute, use for in ezines, newsletters, websites, to offer as free bonus or part of a product for sale as long as no changes are made and the byline, copyright, and the resource box below is included.




About the author:
WG Moore is a web analytics specialist with over 20 years of hardware, software and web development experience. Visit http://www.webstatsgold.comfor more articles and information on web analytics. You may contact him at will@webstatsgold.com




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Tips to Build Your Email Address Database

WHY BUILD YOUR EMAIL ADDRESS DATABASE?

Gaining your customers' email addresses will:

  • Provide an additional channel for reaching your customers
  • Increase the ROI of your marketing investments
  • Significantly reduce your customer acquisition and marketing costs
  • Allow you to easily measure the impact of your marketing campaigns
  • Increase your customer participation and retention rates

With ongoing postal and telemarketing pressures impacting marketing budgets for many organizations this year, email marketing could become the "silver lining " for many marketers.   But how do you create a successful email marketing campaign if you do not have a substantial email database?  That question may be one of the largest Internet related challenges facing companies this year.

Research shows that the majority of organizations have email addresses for less than 10% of their postal files.  So how do you level the playing field and start to add quality permission - based email addresses to your database?

Here are some tips that you can use to cost effectively build your email address database and increase your customer participation and retention rates: 


START TO ASK FOR IT!  

Every communication or touch point with a customer should start or end with a request for an email address.   By utilizing the four points below, you should be able to add email addresses for 5% to 10% of your postal file over the course of one year.

1.  Direct Mail Collection

Think about how much time and money you spent for copy and design on your last new direct mail piece.  Most companies have started to ask their customers for their email address information within these mailings.  This is a great step forward. However, companies need to look at one major improvement if they want to increase their email address collection rates. 

To date, most requests for email address information have been pushed, shoved or jammed into whatever white space remains.  It should be no surprise that the success rate has been less than stellar.

To improve on these efforts, you need to provide your members with a reason to release their email addresses to you.  E-newsletters, purchase confirmations, petitions, and special discounts and offers are but a few of the benefits that will encourage your members to come on board.

2.  Web Page Collection

Many companies have an email address collection function in place via the web.  To improve your sign-up rates, add text below the email request box that informs your visitors of the special email benefits that they will receive (i.e. e-newsletters, purchase confirmations, delivery updates, etc.) upon registering.  You can also utilize a pop-up link to inform users of these special benefits.

Finally, your email address request function should be available on your home page. Don't make your users go and look for it.  Every click away from your home page reduces the chances of your users taking an action and providing you with their email address information.

3.  Existing Email Database Collection

Don't forget to ask the members of your existing customer base for email addresses of their friends, family and associates.  Viral marketing is a powerful tool to use and is extremely cost effective!  You could ask them either to provide you with additional addresses or simply to pass on your newsletter, email specific offers, or other information to others they feel have similar interests.

4.  Telemarketing Collection

Don't assume that your telemarketing agents are asking for email addresses from potential customers.  Ensure that your agents have an updated script, which outlines the previously described benefits to potential customers of providing their email addresses.

The suggestions above are a great start!  Yet they really should be viewed as a secondary plan for building your email database.  To exponentially and expeditiously grow your email database, please read on!


EMAIL APPENDING  

Utilizing an email appending service enables you to add email addresses for up to 25% of your postal file, all within 3-4 weeks.

Email Appending - is the process of adding an individual's email address to that individual's postal record in side your existing database.  This is accomplished by matching the postal database against a third party, permission based database of postal and email address information.

Best Practices - Email Appending is not a prospecting tool. The DMA (Direct Marketing Association) and its interactive arm AIM (Association of Interactive Marketing) have guidelines in place that dictate that email appending only be used to append email addresses to your existing opt-in postal record house file.

The Process - Your opt-in postal file is securely transferred to an email appending provider, who will do an initial gross email address match of your file against its opt-in database of postal and email address records.  Your appending provider will then send these matches a permission-based message prepared by you.  All bounces and opt-out requests will be removed from the list.  At that point a valid permission-based email address file of your customers will be delivered back to you. 

Cost - Less than the price of a postal stamp!


IN SUMMARY

The first step of any successful email marketing effort is to build a permission-based email address list of your customers.  The simplest, quickest and most cost-effective way to do this is through email appending, which will enable you to add email addresses for up to 25% of your postal file.  Secondary efforts of email address collection via focused direct mail, web, viral and telemarketing practices are also important and will enable you to add email addresses for an additional 5% to 10% of your base on an annual basis.

Best of luck in building your email address database.  As many companies have already learned, the ROI and cost savings to be achieved will far exceed your expectations.

Bill Kaplan
CEO
FreshAddress, Inc.

FreshAddress, Inc., The Email Address ExpertsTM, provides a comprehensive suite of industry leading database and email deliverability services to help companies increase their e-commerce revenues.  For more information on how we can help "Build and Update" your email list, visit http://freshaddress.com/biz or email biz@freshaddress.com.



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