In today's post we are going to look closely at the key metrics of Web Analytics, what they are and what they measure. Key metrics are like physical parameters of your body: temperature, blood pressure, etc. If something is wrong with them, your state of health worsens...the same is with key metrics, if some indications worsen you shop's overall condition may regress.
Your online store effectiveness depends mostly on your customers, these metrics shows their interest in your resource. Thus making every effort you can interest them, your store's metrics will get improved.
I hope this post will help you analyze more effectively reports of analytical tools and perform diagnostics of your store's/websites productivity. What's more at the end of the article there are featured several must-read articles and blog posts about key metrics and their optimization. Let's rove!
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Key metrics are a rating system, which help any online store identify strategic and tactical goals. Use of key performance indicators enables each ecommerce resource assess their condition and assist in evaluating the implementation of strategy. Key metrics allow take control over all the activities of the company.
Each website is unique; each and every has its own mission, its goals and targets. Therefore, every company must take into consideration their unique metrics to measure productivity. These metrics are called key performance indicators.
Key performance indicator is a metric that helps assess effectiveness of achieving the goals.
In addition to unique metrics for each company there are universal metrics that will be relevant to any ecommerce store.
These metrics include:
Visits and visitors - this is the fundamental metrics used to determine all other metrics.
This metric includes two parameters: visits (sessions) and unique visitors.
Visits (this metric is called the session) - shows the number of visits during the selected time.
This parameter is calculated really simply. When the new visitor comes to the website analytical tool with a cookie file, opens a new session. The session is closed when user leaves the site or was not active (does not click) on the site more than a certain time (usually 29 minutes). User can make several visits a day.
Unique visitors - this metrics shows the number of people who visited your website during certain period of time.
This metric is calculated as follows. Each new visitor is assigned unique ID that is stored in the cookie file. The next time you visit this user ID is not case sensitive.
For example, the same user can visit website several times. For example,user came to the home page of the company that promotes websites, he visited homepage, then about us page, and all of a sudden his phone rang, than he walked away for 31 minute. Later he returned and continued browsing the website, he entered the page of a specific service, checked out the price, and then left.
This is what analytical tool stores:
Visits - 3
Unique Visitors - 1
Time spent on a website - this metrics shows the amount of time visitors spend on a separate page on the site during a session.
This metrics includes following parameters:
Time spent on a page (T (p));
Time spent on a website (T (s));
Assume this, visitor came to your website at 9.00AM, at 9.01AM he entered the About Us page scanned the info and in 9.05AM entered the Contact Us page, this is what we'll get as a result:
T(p1) = 9.00 - 9.01 = 1 minute
T(p2) = 9.01 - 9.05 = 4 minutes
T(p3) = 9.05 - N/A = 0 minutes
T(s) = 1 + 4 + 0 = 5 minutes
That's why, if the user visited only one page in the report we overall time on the website 0 minutes.
Bounce - metrics that shows the percentage of sessions visit the web site, in which only one page was viewed.
Assume the rate is somewhere near 70%. it means that 70 people out of 100, for some reason are not interested in your website, that's why they have not made even a single click.
Conversion rate - metrics that shows the number of targets, divided by the number of unique visitors.
This metric should be treated wisely. Each website has its own goals, and the percentage of their achievement is the most important indicator of success.
If you want to be sure that you shop runs fine you need to keep an eye on your metrics and make sure that you’ve done everything according to the following plan.
First, segment your data:
Metrics to look after:
Ask the right questions, metrics are meaningless without actionable insight.
Now it's time to get deeper into this subject, here we've selected some interesting resources on this very topic, feel free to check them out!
Quickly track, chart, and share any metric. From application to business metrics, create dashboards to better understand your business.
Actionable Metrics in eCommerce
I hope that I've been able to introduce you basic metrics of web analytics. In addition to these standard performance indicators, there are lots of other interesting ones that we are going to run over in the following publications. Stay tuned.
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