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By- Pankaj Kumar Department of Management Studies Pondicherry University

Measuring Internet marketing effectiveness

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Page 1: Measuring Internet marketing effectiveness

By- Pankaj Kumar

Department of Management Studies Pondicherry University

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The maintenance Process Measuring internet marketing effectiveness Measuring the flow effect Responsibilities in web site maintenance

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Web Document Review & Update ProcessWrite

Publish Review

Test Correct


When, w


How, who, what?



How, who, w


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The Maintenance Process

Write – This stage involves writing the marketing copy, designing the layout of copy and associated images

Review – check for errors before document is published

Correct – updating results of stage 2 Publish – putting the corrected copy on a web

page that can be checked further Test – final test is performed for technical issues Publish – published to the main web site

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Updating Material

Within two days of a factual error being identified

A new ‘news’ item is added at least once a month

When product information has been static for two months

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Responsibilities in Web Site Maintenance

The questions to ask are:

Who owns the process? Who owns the content? Who owns the format? Who owns the technology?

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Standard Details Applies to

Site structure Will specify the main areas of the site, e.g. products, customer service, press releases, responsibilities

Content developers

Navigation Main menu on the left, home button must be accessible from everywhere

Web site designer.webmaster usually achieve these through site templates

Copy style General guidelines, product specifications, digestibility on screen

Individual content developers

Testing standards Check site functions for:

•Different browser types and versions

•Plug-ins, individual links

•Speed of download of graphics

•Spellcheck each page

Web site designer/webmaster

Corporate branding & graphic design

Specifies the appearance of company logos and the colors and typefaces used to convey the brand message

Web site designer/webmaster

Process The sequence of events for publishing a new page or updating an existing page


Performance Availability and download speed figures

Web site standards

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Measuring Internet Marketing Effectiveness

Are corporate objectives identified in the Internet marketing strategy being met?

Are marketing objectives defined in the internet marketing strategy and plan achieved?

Are marketing communications objectives identified in the internet marketing plan achieved? How effective are the different promotional techniques used to attract visitors to a site?

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Creating a Measurement Process Highlighting the need for metrics Identifying metrics (SMART)

Specific Measurable Actionable Relevant Timely

Introducing techniques to collect metrics and summarize results

Reviewing the metrics Acting on the results

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Which Measures to Use

Level 1: Business effectiveness measures

Level 2: Marketing effectiveness measures

Level 3: Internet marketing effectiveness

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Level 1: Business Effectiveness Measures

Direct online contribution to revenue

Indirect online contribution to revenue

Profitability of web site

Return on investment (ROI)

Operational cost reductions

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Level 2: Marketing Effectiveness Measures

Customer acquisition or new leads generated by the web site

Sales generated directly and indirectly by the web site Impact on market penetration and demand

Customer satisfaction and retention rates of clients who use the internet, compared with those who do not

Incremental or cross-sales achieved through the Internet Impact of Internet on customer satisfaction, loyalty and


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Level 2 – Internet sales

Internet sales as proportion of all sales made by company compared with sales by all companies operating in the market

Internet sales as a proportion of all internet sales for company

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Level 2 – Marketing costs

Reduction in cost of promotional material

Cost of acquiring a new customer Cost of developing/supporting an existing

customer relationship through time

Also some less tangible elements such as corporate image and brand enhancement

Building long-term client relationships and reducing ‘churn’ of customers

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Level 3: Internet Marketing Effectiveness

Capture – how effective are we in attracting customers to site using online and offline promotion methods

Content – how well are customers supported with information and ease of use through the content and design of the site

Customer orientation – does the content suit its target audience

Community and interactivity – how well are the customers’ needs as an individual met by providing community facilities and establishing an interactive dialogue

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Level 3 - Further Elements

Awareness efficiency – target web-users/all web-users

Locatability/attractability efficiency – number of individual visits/number of seekers

Contact efficiency – number of active visitors/number of visits

Conversion efficiency – number of purchases/number of active visits

Retention efficiency – number of repurchases/number of purchases

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Online Measurement Methods

Online web metric and server log files

Hits and page impressions (views)

Site visits (user sessions)

Web site auditors

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Log File Information

Page impressions for different parts of the site Page impressions broken down by different time

intervals Page impression by domain Page impression by browser type Referring sites Exit pages Document trails Average length of visit

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Tools for Measuring Web Site Performance

WebTrends – www.webtrends.com Analog: a freeware tool –

www.statslab.cam.ac.uk/~sret1/analog Wusage – www.boutell.com/wusage Andromedia – www.andromedia.com I/Pro site audit – www.ipro.com Microsoft site analyst – www.microsoft.com Superstats; a basic web analyzer –

www.superstats.com Hitbox – www.hitbox.com NetOutcome – www.redeye.com

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Measuring Individual Behavior

Registration A suitable incentive – most customers will give

information if they will receive something in return A tacit agreement to enter into a medium to long term

agreement with customer that he or she will enter the site again

Trust on the part of the customer, which will be based on his or her perception of a company’s brand and credibility

Cookies Click-tracking

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Offline Methods of Metric Collection

Measure Measured through

Enquiries or leads Number of online e-mails

Phone calls mentioning web site

Faxed enquiries mentioning web site

Sales Online sales or sales in which customers state they found out about the product on the web site

Conversion rate Can be calculated separately for customers who are registered online and those who are not

Retention rates Is the ‘churn’ of customers using the web site lower?

Customer satisfaction

Focus groups, questionnaires and interviews

Mystery shoppers

Brand enhancement Focus groups, surveys

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Evaluation of Promotional Methods

Unaware Aware Attitude Preference Intention Trial Repeat

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Communication Effects

How well does the page catch the reader’s attention?

How well does the page lead the reader to go further?

How effective is the particular appeal? How well does the page suggest follow

through or call to action?

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Customer Loyalty, Satisfaction and Brand Impact

Online questionnaires Online focus groups

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Thank You