KPI or Key Performance Indicator metrics translate complex measurements into simple indicators, which allow decision makers to assess the situation quickly and efficiently and find an answer. For them to work smoothly in your business, you need to keep one singularly key point in mind: all KPIs need to be actionable. Which means they need to report on the metrics that are important to their organization. While the decision maker may have the final say in deciding which KPIs to select (and which to reject), all department heads should be involved in suggesting strategic metrics that work best for their department.

To understand what kind of KPIs would work best for you, you first need to define the site you have. Keep in mind that if your business has a multifunctional website, it may be more difficult to identify measures of success for the site. Similarly, if your business has more than one website, each website should be treated as a separate entity. It’s also important to remember that KPI metrics need to cover a broad spectrum of financial and non-financial goals.

The following are some of the most popular types of business websites that we find today:

commercial sites

In this type of environment, the goal is to get customers to buy goods and services directly online. An example would be amazon.com or expedia.com

The KPIs for this site are fairly simple to identify, as they align with the ultimate goal of the site: to generate revenue. They must include the following:

  • conversion measures – While there are several ways to measure conversion rates, the most common are order conversion rate, which is the ratio of visitors to orders, and checkout conversion rates, which is the ratio of visitors who initiate the process. order payment process.

  • average order value – This is the ratio of site revenue to orders, and it has a direct impact on the site’s profit margin, so it’s an important metric to look at.

  • customer loyalty – The ratio of new customers to older ones. Use this to track how many new customers you attract and how many loyal customers keep coming back.

  • search engine referrals – Search engines like Google, Yahoo and Bing will send customers to your site. Do you know how many come from there and which search engines send more visitors?

content sites

Content sites generally rely on online advertising to generate revenue. Alternatively, they can be built to promote a business offline. Either way, their purpose is to attract the largest possible audience and keep them coming back. News sites like Cnn.com and ABCNews.com and sites like WebMd.com are examples of content sites.

Usually, the goal of the site is to attract more visitors, thus increasing the advertising revenue of the site. If this is the case, the KPIs should include:

  • Unique visitors and repeat visitors – This will give you a quantifiable idea of ​​how many visitors your site attracts, as well as measure the effectiveness of bringing back visitors. It forms a large part of your customer loyalty strategy.

  • New percentage of visitors – The ratio of new visitors to returning visitors and how you focus your energy can largely depend on who your site is targeting.

  • Depth of visit – The ratio of page views to visits. If your visitors appreciate your content, they spend time on your page, and in the long run, it increases your ad revenue.

  • Visit duration – How long a visitor stays on the site will also determine how your brand is perceived and, in turn, marketed. The longer the stay, the more it speaks to the effectiveness of your brand.

Lead Generation Sites

Usually sales sites fall into this category. The idea is to get visitors to submit as much information (not too much, as that would discourage them from signing up in the first place), so that sales reps can follow up with them.

The KPIs here may overlap with those described for an eCommerce site, however there are other indicators. These include:

  • Sales Conversion Rates – It refers to the number of leads that become sales and also takes into account the sales campaigns that can be carried out. How does the conversion rate differ now? Another indicator could be the calls made by sales reps each day. How does that turn into leads? Is it worth the salary paid?

  • cost per lead – What is the cost of marketing and advertising that your company has incurred and how does it compare to the sales generated?

  • single access relationship – Do your visitors go from the entry page to the purchase page? If not, this could be another important indicator that your landing page needs to be stronger.

website support

The goal of the support site is to provide answers to its users. Forums work in a similar way, and a good example is the Sears community page. The site can also be the online customer service presence for a business or service. Some of the KPIs for such a site include:

  • Customer satisfaction metrics – This is information collected through online surveys and response forms. Is the customer satisfied with your products and services? Would I keep using them? Recommend them?

  • Time spent on site – This is, of course, a great indicator of how much the customer enjoys your site, uses it, and returns to it. The goal is to make it as quick and easy to use as possible.

  • Returns and claims – Does the site receive a lot of complaints, comments and negative feedback, a request to return goods? By measuring them, you’ll get a good idea of ​​how your customers feel about your products and services.

While there are many free and paid tools available, take some time to see how you can better identify, implement, and track KPIs for your own business.

© 2011 Usha Krishnan Sliva