Friday, 13 February 2015

Hudek, Raj's BUS455 Week 3 Journal Post - Marketing Metrics and Their Evolution


A widely accepted practice in organizations is that what gets measured gets done. Critically reflect on the metrics learned this week to measure the effectiveness of internet marketing programs. Were those metrics really capturing the performance results that marketers essentially need for achieving tactical and strategic business goals?

This has been an interesting week in my internet marketing class.  We learned about Search Engine Marketing and Metrics.  This journal post will critically reflect over the latter. 

In our text that is written by Roberts and Zahay, we learned that the best way to evaluate a website’s effectiveness is to see it first from the customer’s perspective which is the usability factor.  If the site doesn’t work properly and all the links, tabs and buttons don’t lead where they are supposed, this can stop the game before it’s even started because if a visitor to the website can’t use it effectively they will most likely leave pretty quickly.  Usability is determined by either the marketer or some other tester using the site before it is published publicly on the web.  It is a very important step because without visitors willing to stay and explore your website you can’t collect the data that internet marketers term metrics.

Metrics can be collected from three different categories which are traffic, audience and campaign measurement.  The metrics collected from these three categories can be through hit counters which are usually added into the site program language (usually HTML).  The other way to collect metrics is purchasing services that can let the market review server request logs which is detailed user activity on individual pages of the website and tagged web pages which allow the marketer to collect more detail metrics about how the user navigates the site from start to finish. 

The last type of metrics is collected on site performance.  This can be done directly by implementing software and/or code onto your website or purchasing services that allow the marketer to review the server error logs.  Error logs let the market collect metrics on coding error that is causing the site to not work properly.

Some of the most useful metrics are collect from the audience category.  In this category you can collect behavior of visitors to your site.  This includes:

·       Number of page views
·       Session time
·       Path through the site
·       Shopping cart abandonment
·       Entry page (Roberts et al, 2013, p 390)

These metrics can tell a very clear story about how visitors interact with our site.  Most importantly it can let us know if our site is effective because we can cross reference this metrics with conversion and sales and see how they correlate.  For example, let’s say we record the average session time as 12 minutes and a bounce rate of 39% for a particular page.  Let’s say we sell cell phone accessories and this particular page on the website is about a new iPhone cover.  Now let’s compare that with all the other pages and find that the average session time for the other pages is 4 minutes and a bounce rate of 67%.  Lastly, the webpage with the iPhone cover leads to a sale of the cover 72% of the time, whereas on all other pages a sale results only 12% of the time.  We can now deduce from all these metrics that either the iPhone cell cover page is set up in a way that gets customers to buy, or that that is a popular item right now or a combination of both.  Conversely we can deduce that on all other webpages our cell phone accessories are either not popular, the pages don’t do a good enough job of selling, there are usability and navigation issues or a combination of all the above.  Why? Because a bounce rate of 67% means that 67% of visitors to the other pages leave without wanting to navigate to any other part of the website and they only spend 4 minutes in total as opposed 12 minute session times with the iPhone cover visitors! 

The point here is that metrics, as we can start to see, can really tell us a lot about our website and how visitors interact with it.  We can figure out where we need to make changes to encourage visitors to stay longer and possibly purchase something and also where to stick with what we’ve done because it is converting or increasing sales on our website!

Do you see the need for developing new sets of metrics that will be more relevant with this evolving marketing channel? Explain your reasoning.

There is a definite need for a new set of metrics with our evolving market channel.  The market is now moving towards mobile devices and tablets and computers that are generally more portable in nature.  The reason this is significant is because the way that websites are formatted on Android and iOS devices is totally different.  The programming language is different, basically everything is different and therefore you cannot apply the tools to collect metrics from these devices that you use with regular websites.  Why this even relevant?

Well, the data shows that as earlier as 2012, shopping on mobile devices increased by 81% (Musil, 2013, np).  That is huge.  That means that a website such as Amazon that was formerly receiving most of its conversions from the traditional internet are now receiving a large majority from mobile devices.  Fortunately, Amazon had the foresight to create a mobile version of their website as well as a tablet version etc.  And it is probably safe to assume that they’ve already starting collecting what metrics they can from these sites as well.  Though for many companies that do business online, this is not the case.

Many companies are still lagging behind in analytics for mobile devices.  If they have even created a mobile version of their website (many have not), they still might not be collecting the proper metrics.  It has only been in the last couple of years that companies that offer analytic services for websites even had a way to collect mobile metrics.  In 2013 Inman said that Experian finally started collecting basic mobile metrics (2013, np).  Obviously since then more services have popped up such as KISSmetrics and others that offer metrics on mobile visitors, visitor behavior, app usage etc. 

With this trend it is important that metrics for mobile devices need to become super streamlined because surfing the internet on a mobile device is usually a different experience for most users.  If they don’t create a good mobile version of their website and/or accompanying app, then they won’t even keep users around long enough to collect any meaningful metrics! Plus mobile internet users usually are more focused about why there are visiting a site because surfing a web page on a phone can sometimes be a little more difficult and therefore a visitor needs to have a reason to want to stay on a webpage or app.  Proper mobile metrics can get the necessary data to ensure that marketers build the most effective and user friendly mobile sites/apps possible.
Well that is my two cents and would love to hear your feedback on it!

References

Inman. (2013). website visits from mobile devices New metrics show. Retrieved February 13,
            2015 from http://www.inman.com/2013/03/04/new-metrics-show-website-visits-mobile-
            devices/
Musil, S. (2013). Shopping via mobile devices increased 81 percent in 2012. Retrieved February
           
            13, 2015 from http://www.cnet.com/news/shopping-via-mobile-devices-increased-81-
            percent-in-2012/
Robert, M. & Zahay, D. (2013). Internet Marekting: Integrating Online & Offline Strategies.
            Mason, OH: Cengage Learning Ltd.



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