Posts Tagged ‘e-commerce’

Measuring & Valuing Your Website: It’s As Simple As “Pie”

Wednesday, February 18th, 2009

google-analytics-pie-chartAre you like many mid-size or small business owners I know? Have you spent a ton of money on your website but have a hard time understanding the ROI? Let me guess, you are on your second, third or even fourth version of your website. You have spent countless hours listening to your graphic design company about color combinations and the newest flash animation that is going to engage your customers. You continue to dump cash into your web presence because you know the value is there, but value is similar to radio, print or television advertising. You know that marketing and advertising is a “must do” for your business and that is why you have an annual budget for marketing and advertising investments. But, everything is as vague as it ever was and you are as frustrated as you have always been because just like television advertising, radio advertising or print advertising – your internet investments are tough to truly measure. You think the radio, tv and newspaper ad worked, but you can’t say for sure.

The web is inherently different. Everything is measurable. I know what you are thinking, “Yah, yah … I’ve seen those big reports that get emailed to me every quarter from my web development company that basically show big numbers in an effort to cut them bigger checks.” I understand and appreciate that mentality. Why? Because you are busy selling cars, shoes, clothes, fishing trips, lodging, real estate properties, stuffed animals, bicycles, engineering services, construction services, IT services, software, tutoring services, dog food, etc… You are too busy doing what you do best and it’s easier to do what you do with other advertising and marketing channels – just put a budget aside every year, pay someone to manage it and hope for the best. After all, you don’t have time to understand the difference between hits, visits, page views, keywords, referrer, and all that stuff.

Trust me, you can understand this stuff and as a business owner you need to understand this stuff. Do you need to understand it to the degree that I do? Maybe, maybe not. That’s up to you. But, just like your bank accounts, credit lines or retirement investments – you need to and can easily understand the fundamental measurements. Imagine not knowing your current interest rates on lines of credit, how many employees you have, the current status of your 401k, or how this years sales numbers compared to last years. You can’t imagine that, because you need to and want to understand those things – at least to the degree that you can make wise, well informed, and business critical decisions. Do you have to understand the infinite complexities of the stock market and understand the stock market to the degree that your financial advisor does? No. That is why you pay him/her. Do you want to and need to know how much you are investing, where you are investing it, and your return on investments. Absolutely.

So, let me show you a very base level and simple measurement that you can and need to understand. The goal of this demonstration is to make you say to yourself, “I get it. I wonder what my website ‘pie’ looks like?” If this blog gives you the inertia to want to find the answer to that question and the answer to that question becomes the incentive for you to want to better understand how to value your web assets, then the goal has been achieved. So, ready for how simple this pie chart is to understand? Here it goes:

There are only 3 possible ways people can get to your website. Yup, that’s it.

1. Search Engines: Traffic that comes to your website as a result of a search engine user typing your brand name or key words or phrases that relate to your business products and services into a search engine. This pie chart clearly shows that search engines are the most valuable traffic driver to the xyz.com website. 60.86% (10,616 visits) of the total traffic (17,443 visits) within a 1 month time frame comes to xyz.com from search engines. The name of the actual website has been excluded for anonymity purposes.

2. Direct Traffic: Traffic that comes to your website as a result of users typing your domain name directly into their web browser. This pie chart clearly shows that direct traffic is the second most valuable traffic driver to the xyz.com website. 22.23% (3,877 visits) of the total traffic (17,443 visits) within a 1 month time frame comes to xyz.com from direct traffic. The name of the actual website has been excluded for anonymity purposes.

3. Referring Sites: Traffic that comes to your website via a link from any other website. This is traffic that comes to xyz.com from blogs, forums, or websites where advertising dollars are spent to promote xyz.com.  It is important to note that it is very easy to measure the exact amount of visits that each referrer sent to xyz.com. This pie chart clearly shows that referral traffic is the third most valuable traffic driver to the xyz.com website. 16.91% (2,950 visits) of the total traffic (17,443 visits) within a 1 month time frame comes to xyz.com from referral traffic. The name of the actual website has been excluded for anonymity purposes.

Social Media Optimization: It’s All About “WE”

Tuesday, February 17th, 2009

1. Social Media seems to be the big buzz right now and it’s no wonder why.

2. Some of the technology and applications that have and continue to be developed are humbling, exciting, and awe inspiring. It seems that the web has changed forever, right before our eyes (wouldn’t be the first time and won’t be the last). Let’s face it – facebook.com and similar social media is what people want and we want it everywhere all of the time! We want it as our home page on our laptops and desktop, as email notifications, integrated into the blogs and websites we visit, on our cell phones etc.

3. At a macro level, the web has always been a social mechanism. Let’s look at a very simplified example. A user interacts with Google and types what they want into the search bar. Your stuff and everyone else’s stuff appear as the results. The user chooses if and how long he/she wants to interact with you. Make sense? If not, let me use the next couple bullet points to demonstrate further.

4. Let’s go back in time to the days of AOL (America Online). Highly interactive social media such as Instant Messaging was popular back in 1997 and still is today. Still don’t get it? Ok, this next one will do the trick.

5. Email is social media. You use email. You certainly don’t email yourself all the time. Of course not, you initiate emails to and respond to emails from your friends or business relationships and all sorts of people that matter to you. Sometimes, the communication is between just you and 1 other person. Other times, 1 email thread is between you and several other people.

6. Ok, I am on a roll here. One more really simple example to drive the point home. You have a cell phone, right? Sure, the features, buttons, ringtones, and all of the “bells and whistles” are valuable to you and your phone is almost as important as your wallet or purse. Does the average user really care about all of the amazing technology that makes cellular telephony possible? Probably not. The core value to us is the ability for us to communicate. Would you buy a cell phone and pay the monthly service fee if your cell phone provider said, “You are not going to be able to talk with or text anyone anymore but we are releasing some new exciting games and calendar features?” No, you wouldn’t. Because, ultimately, using your cell phone as a social technology tool is the only value.

7. Like ‘everyone’ else, I constantly get caught up in the technology value of everything. How could we not? The newest facebook.com features, HD, cell phone integration features, digital camera features, smart phones, coding/development (API) possibilities, touch screen technology, etc.. I love it all! Its fun and part of the ‘buzz’ to use and get caught up in all of the newest interactive gadgets and social media hype, and be part of the digital revolution! But, make no doubt, interactive social media is not just a big party, all “fun and games,” and a lot of “hype.”

8. So, should you as a CEO, CIO, E-Marketing/E-Com Director, Brand Manager, etc., do Social Media? You already are and always have been “doing” social media. Eliminate the “social” elements of any business and it is bound to fail. Imagine a business without email, the web, or cell phones. Imagine a business with sales reps that don’t interact with your customers, call centers that never answer the phone, retail stores without clerks, restaurants without hosts and waiters, e-commerce without a telephone number, SEO, live chat, reviews, etc. Wouldn’t be much of a business, would it?

9. So, how do you do social media in the case of facebook.com, youtube.com, google.com and niche social media sites that relate to your business/products. First, recognize that this is where your customers are and this is where your customers like to spend their time. These environments are not yours and you do not own them, but if your business relies on customers (show me a business that doesn’t) … This is where your customer is. Look at it like this. Home Depot does not put a store in a location where there are no people. Home Depot embeds a store into a meaningful (not necessarily massive) community. Home Depot owns its store, everything in the store and that store’s real estate property. Home depot does not own the street, town, city or state. So, it is universally agreed upon that Home Depot can do whatever it wants (within the context of the law) in its store or on its property. Home Depot can not spray paint its name on town buildings, tear up roads, divert street traffic to its store, or go to the community park and set up product demonstration booths. But, it is a fact that the Home Depot store needs that community and the community needs Home Depot.

10. The web is no different than the Home Depot analogy. You own your .com(s) and can do whatever you want on your property. You ‘own‘ your SPACE on the major social media platforms such as youtube.com and facebook.com. You also might decide to ‘own‘ space on popular niche social media environments. Niche social media environments/communities can be a very powerful means of reaching and socializing with your core customers. Depending on the quantity and quality of total unique visits, number of registered members, diversity, authenticity, member loyalty, and the relevance of the community to your products and services.

Bottom Line: Social media marketing on the web is not really tough to understand. The key word is SOCIAL. Conduct yourself and ensure that all of your employees represent themselves and your business in the same way they would in the off-line world. It is important to actively engage with various online communities for the same reasons that it’s important for your business to be an active and trusted member of various off-line communities. And, the right way to do social media is really nothing more than common sense. Conduct yourself as you would at any off-line party or social gathering that involved you, your business, and the people within the community of which you conduct business. You wouldn’t show up to a social gathering and start handing out business cards, yelling “look at me and my business” with a bull horn or spray paint your business logo on the walls. You wouldn’t sit in a corner and be anti-social. You would engage in the type of conversations that people enjoy. You would listen and talk. You would not pull out a shoe box of photos and show each and every person every single photo. You certainly wouldn’t make fun of someone else’s business or strive to be the loudest, most obnoxious person in the room. First, you would want to know the rules of the party. It would be important to know if it was a free party you were attending with an open bar, or an invite only party with a cover charge at the door and a pay-per-drink bar. Then, even if you were attending the party for business networking purposes, you would act in a casual manner. You would introduce yourself and engage in mutually meaningful conversation. You wouldn’t walk right up to someone, invade their personal space, and start unloading every sales pitch for every product that you sell. Of course you wouldn’t. You would try to make friends and build new relationships. In fact, what you do for work and the products and services you sell, might be considered politically incorrect and socially unacceptable within the early stages of the conversation. You would socialize, mingle, laugh, share stories, listen to stories, ask people questions, and sincerely try to relate to people and find common threads of understanding.  Then, if and when the time was right, you would introduce “work.” And, as is often the case in the off-line world … a new acquantaince or friend could also become a quality life-long customer. You would conduct yourself in a very diplomatic way, not drawing too much attention to yourself but at the same time not being a wall flower. As the old saying goes, “in order to have good friends, you have to be a good friend.” In the case of social media technology and marketing, it’s not all about you, it’s not all about me … it is all about “We.”

Website/e-Commerce Measurement: The Value Of “0″

Friday, February 13th, 2009

Having installed and continuing to install Google Analytics and other statistical/measurement tools on all sorts of domains in all sort of industries, I am constantly amazed by the power of measurement. I have helped many small business customers go from not being able to measure anything, to being able to measure everything.

“Measuring everything” is nothing new to global enterprises and Fortune 500 Companies, they have been tracking referral data, competitor data, conversion data and all sorts of complex customer/visitor scenerios since the dawn of internet days.  I learned the power of data, usability and measurement when working as a Digital Product analyst for my cousin Anthony Bradley at META Group (now Gartner Group.)

I was on the phone last night with another cousin of mine, Brendan Kelly, who is the business development manager for Hitwise. We were doing what we always do and passionately discussing the amazing advances in competitor tracking technologies and the competitive advantage that results from intelligently and strategically using measurement and stastics wisely. Then, like most conversations these days with clients, co-workers and industry peers, the conversation moved to the topic of the economy. And, for the most part, all of my best clients, friends and peers are saying the same thing,  ”We are focusing on providing ultimate value to our customers, doing whatever it takes and re-positioning our products and services to help our customers weather this economic storm.”

As an entrepreneur and small business owner myself I can completely relate to the spirit of this strategy, as it is exactly what I must do to keep The Simple Solutions ship afloat and my amazingly talented and loyal staff employed. Infact, I had been talking with a valuable client and passionate and entrepreneuer, Scott Farber, about implementing this very same strategic vision.

So, how does this relate to “Measurement and The Value 0?” Here is how. For the last several years, sales and conversions were at record levels. My small-mid size customers were buying and leveraging all sorts of software to measure their successes and stay one step ahead of their competition. Everyone was and still is swimming in a sea of infinate data. When times were good and sales were up and conversions were high, it made sense to only focus on the top perfoming statistics. Why focus any effort at all on things that are not converting or selling when we could be spending time focusing all of our efforts on the things that sell the most and convert the most?

Made sense then, still makes sense now to some degree … but there is a very meaningful statistic that is analageous to the 100 pound gorilla in the room. What about all of the search terms, and products and marketing initiatives that failed? What about all of those visists that came from XYZ search terms but didn’t convert? We know those 10’s of thousands or 100’s of thousands or even 10’s of millions of visitors came to your domain via XYZ search term and 100’s of thousands of others, why didn’t they convert? Did they not like your products? Did they not like your brand? Were and are you still targeting terms and traffic that didn’t really align with your products and services? Why was that 1 product such a dud and what could be done to bring that conversion rate from “0″ to 2% or 3% or 9%?

Now that “everything” is having a harder time converting it makes sense to look at the big traffic generators of the past and present that you ignored for so many years and continue to ignore. Perhaps, its time to measure and realize “The Value Of “0.” Now, I have to go finish reading an article that my other cousin, Ryan Kelly (Brendan’s brother), recommended as a good read.