Web Analytics India Blog » Back_to_basics

Creation of KPI Web Analytics back to basic series

Anil — Sat, 23 Feb 2008 19:30:22 +0000

Although it took me long to continue the series but here’s the next in the Web Analytics Back to basic series.

Here’s what was covered in series before

Web Analytics Back to Basic Series – An Intro to the series
Web Analytics Terminology – An Intro to important Terms and metrics involved in Web Analytics
Web Analytics Technologies – A Overview of Web Analytics Technologies Used.

Key Performance Indicators – KPI

Definition:A KPI is a measure of an essential outcome of a particular activity.

The most important aspect of any performance indicator is relationship between the current and previous measurement. This ratio is what makes them key because then we know when to act upon them. All true KPIs drive action

Without Key Performance Indicators it can be an overwhelming task to share relevant and actionable data with various stakeholders within an organization.

Importance of Key Performance Indicators:

Key Performance Indicators (KPI) are financial and non-financial metrics used to help an organization define and measure progress toward organizational goals. KPIs are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. The act of monitoring KPIs in real-time is known as business activity monitoring. KPIs are frequently used to “value” difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organization’s strategy

What is a good Key Performance Indicators & Steps in Determining Key Performance Indicators

Remember KPI’s are Metrics, but not all metrics are KPI’s. There are no set number for having KPI’s but anything between 5 to 8 should help you summarize (in all aspects) your Business Goals. However there’s no thumb rule and you can have as many.

Thanks to Dennis Mortensen who recently spoke about how a metrics qualifies as KPI, he discusses some of the characterstics for KPI. Here are the 7 of them.

A KPI should echo Organizational Goal
KPI is decided by the Management
KPI Provides Context
KPI Creates meaning on all organizational levels
KPI is based on legitimate data
KPI is easily understood
KPI leads to action

In Addition, creating KPI’s using Top-Down approach always help

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Web Analytics Technologies – Back to Basic Series

Anil — Tue, 15 Jan 2008 06:45:05 +0000

The Second in the Web Analytics Back to basic series, is all about web analytics technologies. Do not forget to refer the first in the series which is about Web Analytics Terminology

Web analytics technologies

There are two main technological approaches to collecting web analytics data. The first method, logfile analysis, reads the logfiles in which the web server records all its transactions. The second method, page tagging, uses JavaScript on each page to notify a third-party server when a page is rendered by a web browser.

Web server logfile analysis: Web servers have always recorded all their transactions in a logfile.
*A server log is a file (or several files) automatically created and maintained by a server of activity performed by it.

Page Tagging (Web beacon technology): Code on each tracked page references a javascript file. The javascript file sends data about the page and the user’s machine back to host servers, along with an image request. Host servers send back an invisible 1×1 pixel image, and record the data sent by the javascript file.
The web analytics service also manages the process of assigning a cookie to the user, which can uniquely identify them during their visit and in subsequent visits.

With the increasingly popularity of Ajax-based solutions, an alternative to the use of an invisible image, is to implement a call back to the server from the rendered page. In this case, when the page is rendered on the web browser, a piece of Ajax code would call back to the server and pass information about the client that can then be aggregated by a web analytics company.

Logfile analysis vs page tagging

Both logfile analysis programs and page tagging solutions are readily available to companies that wish to perform web analytics. In many cases, the same web analytics company will offer both approaches. The question then arises of which method a company should choose. There are advantages and disadvantages to each approach.

Advantages of logfile analysis

The main advantages of logfile analysis over page tagging are as follows.

The web server normally already produces logfiles, so the raw data is already available. To collect data via page tagging requires changes to the website.
The web server reliably records every transaction it makes. Page tagging relies on the visitors’ browsers co-operating, which a certain proportion may not do (for example, if JavaScript is disabled).
The data is on the company’s own servers, and is in a standard, rather than a proprietary, format. This makes it easy for a company to switch programs later, use several different programs, and analyze historical data with a new program. Page tagging solutions involve vendor lock-in.
Logfiles contain information on visits from search engine spiders. Although these should not be reported as part of the human activity, it is important data for performing search engine optimization.
Logfiles contain information on failed requests; page tagging only records an event if the page is successfully viewed.

Advantages of page tagging

The main advantages of page tagging over logfile analysis are as follows.
The JavaScript is automatically run every time the page is loaded. Thus there are fewer worries about caching.
It is easier to add additional information to the JavaScript, which can then be collected by the remote server. For example, information about the visitors’ screen sizes, or the price of the goods they purchased, can be added in this way. With logfile analysis, information not normally collected by the web server can only be recorded by modifying the URL.
Page tagging can report on events which do not involve a request to the web server, such as interactions within Flash movies.
The page tagging service manages the process of assigning cookies to visitors; with logfile analysis, the server has to be configured to do this.
Page tagging is available to companies who do not run their own web servers

Economic factors

Logfile analysis is almost always performed in-house. Page tagging can be performed in-house, but it is more often provided as a third-party service. The economic difference between these two models can also be a consideration for a company deciding which to purchase.

Logfile analysis typically involves a one-off software purchase; however, some vendors are introducing maximum annual page views with additional costs to process additional information.
Page tagging most often involves a monthly fee, although some vendors offer installable page tagging solutions with no additional page view costs.

Next in the back to basic series – Web Analytics – Creation of KPI

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Web Analytics Terminology – Back to Basic Series

Anil — Tue, 15 Jan 2008 06:28:47 +0000

The first in the Back to basic series is all about Web Analytics terminology. The common terms used on a day to day basis is the foundation of any web analyst. Web analytics terms can be sometimes tricky, understanding this will help you measure the right aspect of your site.

This might not be the “entire” list but i have tried to list in the important terms which might be handy. Listed below are also related terms which is encountered in web analyst profession.

While most of these terms/definitions come from Omniture Site Catalyst and Google Analytics. I would like to emphasize that it’s always a good practice to look into glossary of terms provided by the analytical solution one uses.

Feel free to leave your feedback/comment in case there’s something i missed out!

TRAFFIC RELATED

Page Views:A page view occurs when a visitor accesses a page on your web site.
Visits:A visit occurs when a visitor comes to and navigates around your web site. A visit may consist of multiple page views. The visit persists until 30 minutes
Visitors:A visitor is a person that comes to your web site. Does not require a persistent cookie.
Daily Unique Visitors: Unique visitor that accesses your site for a single day. Multiple visits in one day count for a one daily unique visitor.
Weekly Unique Visitors: Unique visitor that accesses your site for a single week. Multiple visits in one week count for a one weekly unique visitor.
Monthly Unique visitors: Unique visitor that accesses your site for a single month. Multiple visits in one month count for a one monthly unique visitor.
Instances:The number of times a specific value is captured.
Single Access:The number of times a page or value is captured as the only value; i.e. page A is the only page visited, and then the visitor left your site.
Entries: The number of times a page is captured as the first page of a visit.
Exits: The number of times a page is captured as the last page of a visit.
Avg Page depth: Calculation of page views divided by visits. Shows how far or “deep” an average person navigates into the site.
Avg Time spent/Visit Length: The amount of time (in minutes) that a visitor spends on a page. Also can show the amount of time a visitor spent on a site; also called visit length.
Reloads:Counted when the same pageName is loaded twice; i.e., page is refreshed.
Pathviews: Not an entire visit length; usually a collection of paths, each of which is usually 3-4 pages long. Shows the frequency of visits on that particular path.
Referrer: A domain or URL used outside of your defined domain to access your site.The Referring Domains Report and the Referrers Report break referrer data into domains and URLs so that you can view the instances that visitors access your site from a particular domain or URL. For example, if a visitor clicks a link from Site A and arrives at your site, Site A is the referrer if it is not defined as part of your domain
Referring Domain: The domain your visitors came from before they were on your site.
Return Frequency:The number of days between repeat visits from your visitors.
Return Visits/Recency: Shows how many individuals have visited more than once.These visits are not for a specified time, but are all those that have viewed your site once and have then returned.
Segmentation: The process of dividing data and putting it into categories for easy analysis.

COMMERCE RELATED:

e-Business: e-business is a term used to describe businesses running on the Internet, or utilizing Internet technologies to improve the productivity or profitability of a business.
Conversions: The successful completion of any specified event, as determined by the end user.
Conversion Rate: The successful completion of specific activities by visitors to your web site
that somehow contributes positively to your online business.
Campaign: A marketing effort used to bring visitors to a specific web site.
Banner Ad: A web advertisement that is used to drive visitors from one location on the web to another in order to promote conversion.
Revenue: Revenue is captured on the purchase event, and is defined as the total dollar amount for the sum of the order and each product.
Order: Order is the number of times the purchase event is set.

CPA Cost per Acquisition: The cost for acquiring a new customer.
CPC Cost per Click :An advertising model in which the advertiser (sponsor) pays the publisher a certain amount each time the sponsor’s ad is clicked. Also sometimes referred to as PPC (pay-per-click).
CPL Cost per Lead :The cost for gaining a lead to a new customer.
CPM Cost per thousand :Pertains to instances in which the code on the client’s web page generates a server call.

CPMM Cost per million Pertains to instances in which the code on the client’s web page generates a server call.

Other Important Terminology:

Cookie: A cookie is a text file that uniquely identifies and is stored in the user’s browser. Cookies are most commonly used to identify individuals and remember general user preferences.

Cache: A temporary storage area that a web browser or service provider uses to store common pages and graphics that have been recently opened. The cache enables the browser to quickly reload pages and images that were recently viewed.

Bread Crumb: In a web page, a link-based navigation tool that displays your location in the
content hierarchy of a site.

Search Engine: A program that searches documents for specified keywords and returns a list of the documents where the keywords were found, ranked according to relevance (or at least that’s the intent).

Search Engine Marketing: The process of driving highly targeted visitors to your web site.Search Engine Optimization The process of analyzing your web site and modifying it to enable search engines to read it, understand it, and index (or catalog) it correctly.

Spiders: An automated program that “crawls” the web, generally for the purpose of indexing web pages for use by search engines. Since most web pages contain links to other pages, a spider can start almost anywhere. Large search engines have many spiders working at the same time.

Next in the back to basic series – Web Analytics Technologies

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Web Analytics Back to Basic Series

Anil — Tue, 15 Jan 2008 06:16:22 +0000

Web Analytics basics forms the foundation for any Web Analyst, In the midst of mega/giga bytes of data trying to make sense and to derive insights which help you take data driven decisions one has to have a strong web analytics foundation.

I’ve also posted earlier (originally from Web Analytics Pulse), on Web Analytics Industry experts view on What makes a good Web Analyst. So here’s kicking off the Back to Basic Series a unique Web Analytics Tutorial which will help you get started and ensure you build your Web Analytics Career on a strong foundation. So here’s the Topics to be covered under the Web Analytics Back to Basic Series

1) Web Analytics Terminology
2) Methods of tracking
3) Creation of KPIs
4) Web Analytics Tool Implementation
5) Conversion analysis
6) Referrer Analysis
7) Path Analysis / Drop off/Fall out Analysis
Multivariate Testing
9) A/B Tests
10) Communicating Results

Other related topics
1) Usability Testing
2) Familiarity with Analytics tools

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