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Vanity Metrics versus Micro Conversion

Why are you tracking a metric if you can’t take any action?

Have you ever asked yourself this, while looking at the number of visitors on your website?

An increase of visitors has no meaning without a context.

Maybe a blogger just wrote a review regarding one of your products on your ecommerce website, maybe someone is talking about your website on the radio, or maybe just the word of mouth (sometimes a bad one) is making people curious about your brand and they come to visit.

The questions here are: “Are these valuable visitors?”, “Do they have the potential to make my business grow?”, “What can I do to gain more revenue with them? “.

These are the kind of questions you should be able to answer looking at your online metrics.

Basically, there is no interest in having growing new visitors and new likes, if you don’t generate any additional return on action/ad spent. Keep your ego reports for yourself!

 But then… what can you do to make your online activities more tangible and auditable?

First of all define a good metric!

Regarding the great Eric Ries’ Book “ The Lean Startup”  a good metric is a triple “A” metric. Meaning that it should be:

       Actionable: Let’s think about an A/B testing.  If your goal is to drive more revenue and you detect that one of the test pages is driving a 20% higher revenue you should definitely start using this one all the time. That’s actionable.

       Accessible: Data should be accessible for everyone working in your team, but mostly it should be 100% clear for everybody. You’re tracking an eMail-opening rate? What does it means?  The amount of unique viewers who opened an email or the amount of time that someone opened an email? Because someone can open an email more than 1 time right? Unclear?! This means you have to fix it!

       Auditable: Any member of your team should be able to find the source data and reproduce your report instantly.

So, you now know what a good metric is, let’s go back to the context.

If you think that your visitors, who really want to purchase, will do so in a whim and in just one visit… Guess again, because… you’re (probably) wrong! You know that right? So why don’t you pay any interest in your visitors buying cycle? What do they need from you to convert? What is the buying cycle in your industry?

It’s really important to be able to define those 2 elements in order for you to be able to map them into a framework. Then this framework will help you define the right metrics to track, but most of all, track the right metrics in the right context.

Avinash – a Google Analytics Guru – has set up the model that helps you organize your online activities in order to track their performances properly.

In order to explain you the model, let’s imagine we sell shoes online and we want to map the buying cycle in the Avinash model.

This model basically splits your audience into 4 sub-audiences:

       See: represented by people who wear shoes (and have money to buy new ones…)

       Think: represented by people who think they might need to buy new shoes

       Do: represented by prospects who want to buy new shoes right now

       Care: represented by customers who buy regularly shoes at your online store

Based on where your prospects are in the buying cycle (S-T-D-C), you will not activate the same traffic source, neither track the same metric.

If you want to raise awareness, you’ll better go for a social media campaign, or display.

If you want to help your prospect convert you will prefer a SEM campaign or a retargeting campaign right?

And because the “See” audience is totally different than the “Do” audience you won’t define the same KPI for all of them either.

So this is good news! A like matters, an increase of brand notoriety index of course matters, but only in the right context. If you want to get more likes just to say that, call in Indiathey have likes for a good price, especially for you my friend.

Based on this approach, here is an example of a dashboard we have built for our clients:

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As you can see each step of the buying cycle is included and has  an impact on the buying process of your visitor. So now it’s easy to understand exactly what is going wrong when you detect a decrease in sales.

Is your brand notoriety decreasing? Check your dashboard and take action! Run a new bannering campaign (f.e).

Is your amount of new visitors decreasing? Check your dashboard and take action! Run a new acquisition campaign (f.e).

Since we always want to push off expertise further at blue2purple, we have built our own framework mixing the buying cycle in the industries and the conversion funnel on your website. Feel free to contact us for more info and if you don’t… Please promise us not the(=to) track a(=“”) data, without the story behind it, anymore 😉

See you soon.

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By |2018-10-26T08:39:10+00:00March 25th, 2015|