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Mary E. Shacklett

Best Web Metrics Demand Premium IT Effort

11/23/2009 14 comments
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For over a decade, companies have gathered statistical Website information -- number of unique visitors, number of page views, consumer conversion rate (if you are an e-tailer), and bounce rate, to name just a few examples. These statistics are useful and convenient to include in monthly IT or marketing reports -- but forward-thinking companies now seek even more insightful information on their Websites’ performances.

This is sparking IT-driven moves to more integrated methodologies for Website measurement.

According to Peter Kirwan, VP of business development for Web metrics consultancy NeuStar Inc. (NYSE: NSR), companies that regularly use Web metrics often do not know what to do with all of the data they are collecting -- or they don’t know how to fully interpret their data so they can make meaningful Website changes.

“Let’s say, for example, that your marketing department decides to run a promotional campaign,” says Kirwan. “They run the campaign, but they are unaware of the fact that your Website is experiencing technical performance problems that potentially can affect consumer orders. How can they assess if their campaign from a marketing standpoint is truly effective?”

The answer rests in the ability of corporate IT to effectively integrate both IT performance measurements and Web metrics into a composite picture of Website performance.

This alliance of effort between IT and Web metrics users within the lines of business can best be undertaken if a few key factors are kept top of mind:

ROI. Will a one-half-second improvement in transaction response time affect revenue, and by how much? To answer this, IT and marketing (or another segment of the business) must work together to understand the average revenue in dollars per transaction. Then, this figure can be used to project the increase in number of transactions into a dollar amount that could or could not justify additional investment in IT infrastructure.

In each scenario, IT must take a hard look at end-to-end transaction processing -- from the time spent on the Website to handoffs to middleware, Web services, and databases. The goal is to pinpoint infrastructure areas that have to be upgraded to gain the additional performance.

Website traffic gains. Was additional Website traffic sparked by a flurry of company mentions on Twitter, or was it generated via Google searches or through word of mouth? Unless companies regularly survey customers, they may never really know. Departments must collaborate with IT to conduct more effective surveys and get the best answers.

Customer satisfaction. Satisfied customers bring repeat business, but if customers are not satisfied, what corrective actions do you take to improve the customer experience? For e-tailers, the roots of customer dissatisfaction are usually planted in the supply chain ecosystem. Using a combination of Web metrics that reveal the customer Website experience while measuring end-to-end electronic transactions on the supply side, IT can pinpoint breakdowns that lead to botched shipments, botched returns, and problems with consumer credits for returns.

Web metrics transparency. Corporate IT is increasingly working with the IT departments of company suppliers to bring about total transparency of Website transaction behavior and the backend performance of the supply chain. This inter-organizational visibility, taboo in the past, is now a necessary ingredient for understanding and solving Website performance issues.

Cloud provisioning. When do revenue projections (e.g., for the holiday season) warrant expansion of IT infrastructure -- and should that infrastructure expansion be done permanently or on-demand? Working with marketing, IT can assess this situation, and can make the recommendation for either a permanent infrastructure investment or a temporary cloud computing ramp-up that will handle an anticipated period of peak demand.

These factors may demand a maximum effort from IT, but the results will be worth it in terms of knowledge gained to directly boost business success.

— Mary E. Shacklett, President, Transworld Data

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Mr. Roques
Researcher
Monday December 21, 2009 8:51:06 AM
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Thanks, yeah, sorry for not being clear but you covered it with your post. Thanks again.

smkinoshita
IQ Crew
Tuesday December 8, 2009 3:49:22 PM
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I'm not quite sure what you mean. 

If you're talking about a customer who posts about the same issue without a negative comment, or otherwise reacts to a negative customer with the same problem, then yes, same rules apply.

If you're talking about a customer who contacted you directly regarding the same issue a customer who posted a negative comment, then treat the follow-up the same.  However, you may wish to consider including an additional post of "How to Handle This Issue" or "If anyone else has this issue, please let me know so we can fix it".

Encourage the customer to let anyone else with this issue to take the same steps.  If the issue is a customer-side problem, then be sure to post a solution as part of an FAQ and make it a "sticky note" in your social media and company site.

If it's an issue on your side, take steps to resolve it, and when it is resolved post to everyone saying "OK everyone, thanks for letting us know about X, we solved it now!"

Depending on how much perceived damage the issue did, you might even want to throw in a complimentary goodie to those who reported it, or all customers in general.  It could go a long way to making sure that issue is good n' resolved.

Mr. Roques
Researcher
Tuesday December 8, 2009 3:40:22 PM
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Thank you for those tips. Spot on, one question I have is with resolving an issue, should those be any different than with a user that didn't post a negative comment - but still had the same issue?

Mr. Roques
Researcher
Tuesday December 8, 2009 3:39:56 PM
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Thank you for those tips. Spot on, one question I have is with resolving an issue, should those be any different than with a user that didn't post a negative comment?

Mary E. Shacklett
Thinkernetter
Sunday December 6, 2009 8:54:43 PM
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Good point.

 

Many of us  are already surveyed to death, so alternate means of  tracking are good.

 

Mary 

Phavanhna
Researcher
Sunday December 6, 2009 5:32:06 PM
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Website traffic gains dont have to be done via Survey. Many users will be turned away from a survey if it takes too much time or it has no of their interest. with IT, link tracking can be implemented. this way, we know if visitors clicked the link from Twitter, or from other sources.

Mary E. Shacklett
Thinkernetter
Tuesday November 24, 2009 1:29:35 PM
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I know exactly where you're at!

I can't think of a more "fun" and creatively challenging job than the IT/marketing combo that is embodied in the market research analyst.

 

The frustration is that marketing is usually very "right brained," and does not like to hear about analytics. They also are not particularly adept at goal-setting, as their comfort zone is to function more intuitively.

 

Marketing depts. in technology companies (because of the corporate culture) ARE more analytic and appreciative of what market research can offer.

 

Mary 

smkinoshita
IQ Crew
Tuesday November 24, 2009 9:25:57 AM
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Here's a couple of ways to measure customer satisfaction:

1.  Scan social media for talkative customers.  Yes, if most people are reasonably satisfied they don't say anything -- but unhappy and exceptionally happy customers may be talking.  Scans that turn up nothing tend to indicate satisfactory performance -- nobody's complaining.  (And people loooooooooove to chew out customer satisfaction "fails" through social media)

2.  When you do screw up, do follow-up.  If the follow-up (and there's many ways to do it) shows the customer is happy again, you're doing something right.  If they're not -- and they're being reasonable -- something needs to change.

Mr. Roques
Researcher
Tuesday November 24, 2009 8:01:04 AM
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How can we measure customer satisfaction? Is it something we can measure? I'm thinking that most people that report back to the company is because they had issues; if it worked fine, you normally don't go back and say 'good job'.

smkinoshita
IQ Crew
Monday November 23, 2009 3:49:23 PM
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As one of my roles IS the market research guy with an I.T. background, I know you aren't kidding when it comes to marketers not liking analytics.

Sometimes I get a reasonable request to do a Coles Notes version of my research.  I appreciate this in that it needs to be concise, and usually I try to sum it up if I can.

At other times, I'm dealing with people who simply cannot interpret data.  I'd be able to inerpret the data for them if I had a goal.  My challenge is doubled; I don't think the people I'm immediately dealing with understand how important the goals are and the clients they are dealing with don't know how to come up with a goal.

Since people are afraid of failure, they're afraid of setting goals.  I've known a few talented people like that -- they go nowhere because they're afraid to fail.  It applies to companies too.

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