Profit-Ability: Using Key Performance Indicators to Measure ROI
If you’re new to the world of e-Commerce and online marketing, you may need to rethink what key performance indicators (KPI’s) you will use to measure the effectiveness of your website and online marketing campaigns. Many business owners who run online businesses or online extensions of their brick-and-mortar businesses have made the mistake of analyzing their website’s effectiveness by the same KPI’s they would use for a brick-and-mortar business. And few are aware of the wealth of consumer data they can extract from their websites, to include:
- How many times a page of your website was printed
- How many pages of your website your customers viewed before purchasing
- How many times your prospective and repeat customers visit your website per year
Web analytics can track all of these things, and more! But are they good KPI’s? Find out by downloading this free, informational white paper on the best KPI’s for online businesses.
Is Site Traffic a Good KPI?
Overall site traffic, while a popular KPI for many e-Commerce beginners, is not a particularly effective KPI. A large number of traffic or “hits” on your website or online ad does not always indicate more customers. In reality, you can be getting hit by spam generators or other web-crawler software, especially if you are running a pay-per-click campaign. If you have 1000 clicks and only one actually purchases something, are the other 999 important? Have you really accomplished anything by attracting 1,000 people, 99.9% of which did not want what you had to offer? What if you had to pay $1.50 per click? Then you would spend $1,498.50 for absolutely no ROI! Wouldn't it be of far more value to have 100 visits and 3 conversions?
What About Keyword Hits and SEO?
While choosing effective keywords and optimizing your website so it can easily be found by search engines are both great ways to drive traffic to your website, tracking which keywords are leading the most visitors to your site is not always a good KPI. However, there are some highly effective KPIs that do utilize keyword tracking to measure success. Find out which ones in this free white paper.
What Would Make a Good KPI?
A good KPI will have the following characteristics:
- It will be specific
- It will be measurable
- It will have a target goal against which it can be compared
Visitor Engagement: A New Way of Looking at KPI’s
As long as your prospective customers are continually interacting with your website, you are in good shape for eventually converting them into customers. Learn the seven KPI’s you can use to measure your site’s visitor engagement in this free, informational white paper.
Assessing your KPIs and the profit-ability of your website isn’t the only component of your online marketing efforts we can help you with; it’s just one component of what we like to call The Ability Factor™. The Ability Factor™ is our secret sauce for turning prospects into customers via online marketing using a combination of:
- Design considerations (design-ability)
- Relating your message to your customers’ needs (use-ability)
- Getting your message out via SEO, social media, and more (vis-ability)
- And gathering analytics data so you can see your return on investment (ROI) grow for yourself (profit-ability) < back to top of page