Measuring Web Site Performance Are companies making the leap?

Measuring Web Site Performance

Are companies making the leap?

Background

Web sites are important marketing tools Most sites share the same purpose Big investment to build and maintain site

but….Attempts to measure web site ROI?

Web Site ROI

Definition of return on investment(ROI)

The financial impact of the web site

vs.

initial and ongoing maintenance costs

Web Site ROI

Why Do The Research?: Find out if companies are measuring ROI

If so:How? --systems? tools?Based on what criteria?vs. other site objectives?Expectations?

Web Site ROI

Research Question

Do web enabled businesses develop and apply criteria for measuring return on investment for their company web site?

Web site ROI

Literature Review

Little accountability for web site ROI Sites built with “foggy” expectations Few resources to measure ROI Success measured by opinion, not fact Evaluation methods/tools: yesterday & today

Conclusion:Can’t avoid ROI anymore!

Research Objectives

Web Site ROI

1. Determine criteria for success? Is ROI a factor?

2. What kind of measuring is being done?

3. Specific ROI goals and expectations?

Who Will Care?

Results will be valuable to anyone involved with making decisions about their web site!

Web Site ROI

The Survey

LIMITATIONS No e-commerce sites 50 employees or more 6 months old

SURVEY DESIGN Online

Web Site ROI

TARGET RESPONDENTS Webmaster Marketing Mgr Owners

The Results

SITE PRIORITIES1) Brand Image

2) New customers

3)Feedback

………..

5) Profitability

The Results

CURRENT MEASURMENTS & SYSTEMS Number of daily visits Database for customer information (leads) Web site feedback

Web Site ROI

Results

Web Site ROI

Priority and Importance in Monitoring a Web Site

3.3

4.13.4 3.7

0.0

1.0

2.0

3.0

4.0

5.0

Profitability Feedback Marketing PotentialCustomers

Possible Activities to be Monitored

Pri

ori

ty a

nd

Im

po

rta

nce

Initiatives

Results

Only 10% had ROI goals

yet… 95% chose strongly agree/agree site when asked:

“Is site doing what it is supposed to be doing”

Web Site ROI

Results

Web Site ROI

Web Revenue Sources

3.43.9

4.6

3.3 3.7

0.0

1.0

2.0

3.0

4.0

5.0

New Sales PotentialNew Sls

BrandImage

Promos Advertising

Revenue Generators

Imp

ort

ance

How are site evaluations performed?

METHODS Committee = 64%

or individual Surveys = 18% Software = 18%

Web Site ROI

Validity/Reliability

43 surveys out of 203 Diversity of the respondents Average respondent:

- 4 year old site

- Publicly held

- Web master

Web Site ROI

Review of Findings

Literature Review revealed: 1) a need - ROI 2) the market’s response – ROI Tools

Research revealed: 1) lots of measuring and evaluating: --user hits, feedback, new leads etc. 2) No ROI focus

Conclusions

Companies are measuring web site activity, but…

ROI is not a top concern.

In fact, -- less than 50% had ROI criteria --less than 20% had ROI measurement tools

Web Site ROI

Conclusions/Key Learning

brand image

new leads

site feedback rated above profitability

content

graphics

navigation

Web Site ROI

The Answer!

Companies are NOT developing and applying criteria for measuring ROI.

…but, the subject is not being ignored.

Web Site ROI

Interesting Data Point

Despite this apparent lack of focus, most believe their site is generating a positive ROI.

But “how much” is usually a guess!

Web Site ROI

Follow-up research

WHY NOT ROI? Software too expensive? Too difficult to measure? ROI evaluated with each component?

Web Site ROI

The Future

ROI cannot be ignored.

Maximizing potential for web site success requires ROI as an evaluator.

Opportunity to improve with software

Think of it this way…

“Enterprises are not in the business of increasing page views, they are in the business of making money. Web analytics should support this objective.”

--Business Wire,2001

Web Site ROI

QUESTIONS???