Measuring Internet Marketing Effectiveness

1
Measuring Internet Marketing Effectiveness

• Week 12

2
Objectives

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

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Web Document Review Update Process
Write
How, who, what?
When, who?
Publish
Review
How, who, what?
Test
Correct
How?
Publish
How?
4
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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Web site standards
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 all
Performance Availability and download speed figures
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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 brand

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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 companys
  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 readers
  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