While Google Analytics provides small businesses with a wide range of metrics and tools with which to analyze the effectiveness of their website and Internet presence, the importance of these metrics and what they mean for business success change over time. While early on in Internet marketing, the priority was tracking number of site visitors, today it has become more important to analyze the effectiveness of various marketing channels. From Surefire Social, here are some of the most important website metrics that small businesses need to keep an eye on in the coming year.
Average Lag Time: In Internet marketing, “lag time” refers to the amount of time that elapses between when a person clicks on an ad and when they actually purchase something. By calculating the amount of time from ad click to sales conversion, you will have a better idea of your campaign’s effectiveness and be able to more accurately predict your business’s sales revenue stream.
Cross Channel Conversions: In the world of e-commerce, oftentimes customers are able to find your products through more than one channel, which might encourage them to make that purchase. When conducting website research and analysis, it’s important that you incorporate both of these channels into your data to better understand how customers are accessing your site and what ultimately is driving the sale.
Lifetime Value of Customers: Whether your Internet marketing campaign is locally based or extends nationwide, the goal is to convert first-time customers into lifelong clients. By tracking customers who make regular purchases on your e-commerce site, you will be able to determine whether your marketing efforts are paying off. The general formula for calculating a customer’s lifetime value involves dividing your company’s revenue over time by the number of unique visitors to your website.
Overall Revenue Impact: In the end, you want your website analytical efforts to give you a clearer picture of your bottom line. You want to ensure that the resources you are pouring into your advertising campaigns are helping you to attract and retain customers, and convert those customer visits into sales. Regular analysis of website metrics can help you ascertain your current e-commerce performance and make the adjustments necessary to make sure that your efforts are paying off.
El-Tayef, Abdul. “Key Website Metrics to Watch in 2014.” Surefire Social. 2/5/14.