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anonymous

I Got No Ecommerce. How Do I Measure Success? - Occam's Razor by Avinash Kaushik - 0 views

  • My recommendation: Measure the four metrics that are under the "Visitor Loyalty" button in Google Analytics (or in your favorite web analytics application). Loyalty, Recency, Length of Visit, Depth of Visit.
  • The goal is to use web analytics data to interpret success of a visit to your website.
  • There is one singular reason I loved 'em: they showed distribution and not simply averages for each of the metric!
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  • Visitor Loyalty: During the reporting time period how often do "people" ("visitors") visit my website?
  • The number you are used to seeing is "average visits per visitor". That is usually one point something. It hides the truth.
  • For example you update your website ten times each month. If you have 100% loyal visitor base then they should be visiting your website ten times each month. Are they? What's your number? Is it going up over time?
  • Action: 1) Identify a goal for your non-ecommerce website for the # of visits you expect from the traffic to your website in a given time period (say week, month etc). 2) Measure reality using above report. 3) Compare your performance over time to ensure you are making progress, or potentially not as in my case…
  • Recency: How long has it been since a visitor last visited your website? Sounds confusing? Don't worry it is cool (it even has a psychedelic border! :)……
  • As would be the case for a jobs site. Or craigslist. Or any website that wants lots lots of repeat visits. Using this simple report you can now see how you are doing when it comes to the distribution of visitors in terms of their propensity to visit your site.
  • Length of Visit: During the reporting period what is the quality of visit as represented by length of a visitor session in seconds.
  • But it has always been frustrating to me how hard it is to get away from the average and measure the distribution of the visits to check if the average time on site is 50 seconds because one person visited for one second and the other person for 100 seconds. The average hides so much. Here's a better alternative……
  • Ain't that better? I think so. So many things jump out at me, but notice that either I lose 'em right away or if some how I can suck them in for one minute then they tend to stay for a long time. Hurray! I have a better idea of how to interact with my visitors.
  • 1) Identify what the distribution is for your website for length of visits. 2) Think of creative ways to engage traffic – what can I do to keep you for sixty seconds because after that you are mine! 3) Should I start charging more for ads on my site – if I have 'em – after 60 seconds? 4) If you are a support website then should you be embarrassed if 20% of your audience was on the site for more than ten minutes!
  • Depth of Visit: During a given time period what is the distribution of number of pages in each visit to the website.
  • You are used to seeing average page views per visitors, above is something that is a lot more helpful. I was also able to get this exact metric from my indextools implementation…..
  • Action: There has been so much said about this already so I'll spare your the pain. You can easily imagine how wonderful and fantastic this data is as you go about analyzing experience of your customers (and so much more powerful, a million times more, than average page views per visitor!).
  • Recommendations for all of the above metrics:
  • Socialize them to your key stake holders and decision makers to make the realize what is really happening on your website.
  • Absolutely positively work with your leadership to create goals and then measure against goals over time
  • Segment the data! For Visitor Loyalty or Length of Visit what are the most important acquisition sources? What are the keywords that drive valuable segments of traffic to the website?
  • Segmentation is key to insights that will drive action.
  •  
    "A vast majority of discourse in the web analytics world is about orders and conversions and revenue. There is not enough of it about non-ecommerce websites, metrics and KPI's."  - Occam's Razor by Avinash Kaushik
anonymous

"Engagement" Is Not A Metric, It's An Excuse - Occam's Razor by Avinash Kaushik - 0 views

  • There was so much we could measure and so little. As Marketers we have been frustrated with the near constant 2% conversion rates for our websites. We would like to have another metric that justifies our existence, and of course that of our website.
  • The fervor for measuring engagement is even higher for non-ecommerce websites because there is little in terms of Outcomes to measure there.
  • Engagement, that phrase / name, is not a metric that anyone understands and even when used it rarely drives the action / improvement on the website.
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  • Because it is not really a metric, it is an excuse.
  • Even as creating engaging experiences on the web is mandatory, the metric called Engagement is simply an excuse for an unwillingness to sit down and identify why a site exists.
  • An excuse for a unwillingness to identify real metrics that measure if your web presence is productive. An excuse for taking a short cut with clickstream data rather than apply a true Web Analytics 2.0 approach to measure success.
  • let's try to understand why in the context of web analytics so many efforts at measuring "engagement" have yielded almost no results:
  • Each business is unique and each website is trying to accomplish something unique.
  • It is nearly impossible to define engagement in a standard way that can be applied across the board.
  • At the heart of it engagement tries to measure something deeply qualitative.
  • One of my personal golden rules is that a metric should be instantly useful. This one is not.
  • Most of all engagement is a proxy for measuring an outcome from a website.
  • Conversion is not enough, as mentioned above, so we try something else. The problem that we'll define engagement as a measure of some kind of outcome but we won't give it the sexy name of engagement.
  • In Summary: The reason engagement has not caught on like wild fire (except in white papers and analyst reports and pundit posts) is that it is a "heart" metric we are trying to measure with "head" data, and engagement is such a utterly unique feeling for each website that it will almost always have a unique definition for each and every website.
  • "So what you are saying is that we should not measure engagement." I am saying you should very very carefully consider the above points, then not take a short cut (or as the American's say, a cop out) and actually define the metric as a Outcome metric (see element three of the trinity ).
  • Here is a process you can follow:
  • Step One: Define why your website exists. What is its purpose? Not a five hundred word essay, rather in fifteen words or less. If it helps complete this statement: "When the crap hits the fan the only purpose of my website is to ……….".
  • Step Two: If you did a great job with it then the above statement contains the critical few metrics (three or less) that will identify exactly how you can measure if your website is successful at delivering against its purpose.
  • Step Three: If you have a ecommerce website then revenue or conversion is probably one of your critical few. But one of the critical few is what your senior management might call engagement. Work hard to define exactly what that metric is (see below for ideas).
  • Step Four: Don't call that metric engagement. Call it by its real name. Don't hide behind a pretty moniker.
  • To stimulate your thought process here are some metrics you can use to measure "customer engagement" (that visitors are engaging with your website):
  • "Are you engaged with us?"
  • Likelihood to recommend website
  • Use primary market research
  • Customer retention over time
  • # of Visits per Unique Visits, Recency of Unique Visitors
  • In Summary : When most people measure "engagement" they have not done due diligence to identify what success means for their online presence. In absence of that hard work they fall into measuring engagement, and then measure something that is hard to action or something that will rarely improve the bottomline. Avoid this at all costs. Think very carefully about what you are measuring if you do measure engagement. If engagement to you is repeat visitors by visitors then call it Visit Frequency, don't call it engagement. Don't sexify, simplify! :) If you want to measure "engagement" then think of new and more interesting ways to measure that (see list above). Engagement at its core a qualitative feeling. It really hard to measure via pure clickstream (web analytics data). Think different.
  •  
    "Measuring "engagement" seems to be an even longer quest for Marketers and Analysts. There was so much we could measure and so little. As Marketers we have been frustrated with the near constant 2% conversion rates for our websites. We would like to have another metric that justifies our existence, and of course that of our website."
anonymous

Eight Silly Data Things Marketing People Believe That Get Them Fired. - 1 views

  • It turns out that Marketers, especially Digital Marketers, make really silly mistakes when it comes to data. Big data. Small data. Any data.
  • two common themes
  • 1. Some absolutely did not use data to do their digital jobs.
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  • 2. Many used some data, but they unfortunately used silly data strategies/metrics.
  • Silly not in their eyes, silly in my eyes.
  • A silly metric, I better define it :), is one that distracts you for focusing on business investments that lead to bottom-line impact.
    • anonymous
       
      Within the context of my current project, the bottom-line impact would be increased engagement (in the form of donations, clinical study participation, and blood/fluid donation to scientific research).
  • Eight data things that marketing people believe that get them fired…. 1. Real-time data is life changing. 2. All you need to do is fix the bounce rate. 3. Number of Likes represents social awesomeness. 4. # 1 Search Results Ranking = SEO Success. 5. REDUCE MY CPC! REDUCE MY CPC NOW!! 6. Page views. Give me more page views, more and more and more! 7. Impressions. Go, get me some impressions stat! 8. Demographics and psychographics. That is all I need! Don't care for intent!
  • 1. Real-time data is life changing.
  • A lot of people get fired for this. Sadly not right away, because it takes time to realize how spectacular of a waste of money getting to real-time data was.
    • anonymous
       
      This is some REALLY FUNNY SHIT to me. But I'm a nerd.
  • I want you to say: "I don't want real-time data, I want right-time data. Let's understand the speed of decision making in our company. If we make real-time decisions, let's get real time data. If we make decisions over two days, let's go with that data cycle. If it take ten days to make a decision to change bids on our PPC campaigns, let's go with that data cycle." Right-time.
  • Real-time data is very expensive.
  • It is also very expensive from a decision-making perspective
  • even in the best case scenario of the proverbial pigs flying, they'll obsess about tactical things.
    • anonymous
       
      I get this completely. We get hung up on the tactical and lose sight of the strategic.
  • So shoot for right-time data.
  • That is a cheaper systems/platform/data strategy.
  • (And remember even the most idiotic system in the world now gives you data that is a couple hours old with zero extra investment from you. So when you say real time you are really saying "Nope, two hours is not enough for me!").
    • anonymous
       
      THIS is probably the best argument for our using Google Analytics and Google Search to collect data instead of paying large costs to firms that will offer questionable results.
  • That is also a way to get people to sync the data analysis (not data puking, sorry I meant data reporting) with the speed at which the company actually makes decisions (data > analyst > manager > director > VP > question back to manager > yells at the analyst > back to director> VP = 6 days).
  • The phrase "real-time data analysis" is an oxymoron.
  • 2. All you need to do is fix the bounce rate.
  • The difference between a KPI and a metric is that the former has a direct line of sight to your bottom-line, while the latter is helpful in diagnosing tactical challenges.
  • Bounce rate is really useful for finding things you suck at.
  • Along the way you also learn how not to stink. Bounce rate goes from 70% to a manageable 30%. Takes three months.
  • Stop obsessing about bounce rate.
  • From the time people land on your site it might take another 12 – 25 pages for them to buy or submit a lead. Focus on all that stuff. The tough stuff. Then you'll make money.
  • Focus on the actual game. Focus on incredible behavior metrics like Pages/Visit, focus on the Visitor Flow report, obsess about Checkout Abandonment Rate, make love to Average Order Size.
  • 3. Number of Likes represents social awesomeness.
  • it does not take a very long time for your Senior Management to figure out how lame the Likes metric is and that it drives 1. Zero value on Facebook and 2. Zero squared economic value or cost savings to the business.
  • many spectacular reasons
  • Here's one… We are looking at two consumer product brands, the tiny company Innocent Drinks and the Goliath called Tide Detergent.
  • Even with 10x the number of Likes on Facebook the giant called Tide has 4x fewer people talking about their brand when compared to the David called Innocent.
  • As no less than three comments mention below, Innocent is 90% owned by Coca Cola. Fooled me!
  • In a massively large company they've carved out an identity uniquely their own. They refuse to be corrupted by Coca Cola's own Facebook strategy of constant self-pimping and product ads masquerading as "updates." As a result pound for pound Innocent's fan engagement on its page is multiple time better than Coca Cola's - even if the latter has many more likes.
  • 4. # 1 Search Results Ranking = SEO Success.
  • Not going to happen.
  • as all decent SEOs will tell you, is that search results are no longer standardized. Rather they are personalized. I might even say, hyper-personalized. Regardless of if you are logged in or not.
  • When I search for "avinash" on Google I might rank #1 in the search results because I'm logged into my Google account, the engine has my search history, my computer IP address, it also has searches by others in my vicinity, local stories right now, and so many other signals. But when you search for "avinash" your first search result might be a unicorn. Because the search engine has determined that the perfect search result for you for the keyword avinash is a unicorn.
    • anonymous
       
      This is crucial to understand. I will be sharing this, at length, with my boss. :)
  • Universal search for example means that personalized results will not only look for information from web pages, they also look for YouTube/Vimoe videos, social listings, images of course, and so on and so forth.
  • Then let's not forget that proportionaly there are very few head searches, your long tail searches will be huge.
  • Oh and remember that no one types a word or two, people use long phrases.
  • There are a ton more reasons obsessing about the rank of a handful of words on the search engine results page (SERP) is a very poor decision.
  • So check your keyword ranking if it pleases you.
  • But don't make it your KPI.
  • For purely SEO, you can use Crawl Rate/Depth, Inbound Links (just good ones) and growth (or lack there of) in your target key phrases as decent starting points.
  • You can graduate to looking at search traffic by site content or types of content you have (it's a great signal your SEO is working).
  • Measuring Visits and Conversions in aggregate first and segmented by keywords (or even key word clusters) will get you on the path to showing real impact.
  • That gives you short term acquisition quality, you can then move to long term quality by focusing on metrics like lifetime value.
  • 5. REDUCE MY CPC! REDUCE MY CPC NOW!!
  • You should judge the success of that showing up by measure if you made money! Did you earn any profit?
  • Friends don't let friends use CPC as a KPI. Unless said friends want the friend fired.
  • 6. Page views. Give me more page views, more and more and more!
  • Content consumption is a horrible metric. It incentivises sub optimal behavior in your employees/agencies.
  • If you are a news site, you can get millions of page views
  • And it will probably get you transient traffic.
  • And what about business impact from all these one night stands ?
  • If you are in the content only business (say my beloved New York Times) a better metric to focus on is Visitor Loyalty
  • If your are in the lead generation business and do the "OMG let's publish a infographic on dancing monkey tricks which will get us a billion page views, even though we have nothing to do with dancing or monkeys or tricks" thing, measure success on the number of leads received and not how "viral" the infographic went and how many reshares it got on Twitter.
    • anonymous
       
      In other words, use that odd-one-off to redirect attention to the source of that one-off. I'll have to ponder that given our different KPI needs (nonprofit, we don't sell anything).
  • Don't obsess about page views.
  • Then measure the metric closest to that. Hopefully some ideas above will help get you promoted.
  • 7. Impressions. Go, get me some impressions stat!
  • My hypothesis is that TV/Radio/Magazines have created this bad habit. We can measure so little, almost next to nothing, that we've brought our immensely shaky GRP metric from TV to digital. Here it's called impressions. Don't buy impressions.
  • Buy engagement. Define what it means first of course .
  • If you are willing to go to clicks, do one better and measure Visits. At least they showed up on your mobile/desktop site.
  • Now if you are a newbie, measure bounce rate. If you have a tiny amount of experience measure Visit Duration. If you are a pro, measure Revenue. If you are an Analysis Ninja, measure Profit.
  • Impressions suck. Profit rocks.
  • If the simple A/B (test/control) experiment demonstrates that delivering display banner ad impressions to the test group delivers increased revenue, buy impressions to your heart's content. I'll only recommend that you repeat the experiment once a quarter.
  • You can buy impressions if you can prove via a simple controlled experiment that when we show impressions we got more engagement/sales and when we don't show impressions we did not get more engagement/sales.
  • But if you won't do the experiment and you use the # of impressions as a measure of success
  • 8. Demographics and psychographics. That is all I need! Don't care for intent!
  • This is not a metric, this is more of a what data you'll use to target your advertising issue.
  • Our primary method of buying advertising and marketing is: "I would like to reach 90 year old grandmas that love knitting, what tv channel should I advertise on." Or they might say: "I would like to reach 18 to 24 year olds with college education who supported Barack Obama for president." And example of demographic and psychographic segments.
  • We use that on very thin ice data, we bought advertising. That was our lot in life.
  • Did you know 50% of of TV viewership is on networks that each have <1% share? Per industry.bnet.com. I dare you to imagine how difficult it is to measure who they are, and how to target them to pimp your shampoo, car, cement.
  • Intent beats demographics and psychographics. Always.
  • if you have advertising money to spend, first spend it all on advertising that provides you intent data.
  • Search has a ton of strong intent. It does not matter if you are a grandma or a 18 year old. If you are on Baidu and you search for the HTC One, you are expressing strong intent. Second, content consumption has intent built in. If I'm reading lots of articles about how to get pregnant, you could show me an ad related to that
  • The first intent is strong, the second one is weaker.
  • There is a lot of intent data on the web. That is our key strength.
  •  
    This is a really great read by Avinash Kaushik at Occam's Razor. Volunmuous highlights follow.
anonymous

The Seen, the Unseen, War, and Peace - 0 views

  • If people judged war purely on the basis of its obvious, immediate consequences, then, pacifism would be almost universal.
  • To sell war, you've got to convince people that its non-obvious, distant consequences are positively fantastic.
    • anonymous
       
      This is where the fuzzy-promises of war fit into things. There may very well be a geopolitical rationale behind it (good or bad, right or wrong), but that is not how it is sold to the public. As irritating as that makes me, I believe that this citizenry lacks the analytical thinking - especially regarding economics and geopolitics - required to evaluate it on its merits. And then, as I think further, that sort of person is lible to decline engagement if it looks like a minor loss of "empire" could avoid those horrible examples of war's effect.
  • My best explanation is that Bastiat's seen/unseen fallacy is not a general psychological tendency.  Instead, it's an expression of anti-market bias: Since people dislike markets, they're quick to dismiss claims about their hidden benefits. 
    • anonymous
       
      As of this writing, I don't quite understand this.
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  • When it comes to the unseen benefits of war, there's actually a perfect storm of irrationality.
  • Not only do people like government, the institution responsible for running the war.  Support for war also neatly coheres with the public's anti-foreign bias.
    • anonymous
       
      But this "Us Vs. Them" mentality continues to erode in the slow moving churning of years. To half remember a TED lecture I watched - We've come a long way from thinking the people in the next village aren't human - but there's still so very much to go.
  •  
    By Bryan Caplan at EconLog (Library of Economics and Liberty) on June 21, 2010. Thanks to David Gottlieb for the find: http://www.google.com/buzz/dmgottlieb/PBNvVHN9CDr/The-Seen-the-Unseen-War-and-Peace-EconLog-Library
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