Web Analytics 101  WEB METRICS

Understanding basic web metrics and best practices.

Basic Web MetricsExamples and definitions.

Measures: created by direct measurement of activity.

Pageviews (count)

Visitors (count unique)

Calculated Metrics: created by dividing one measure by another measure.

Pageviews/User or PV/Session

Sessions/User

Derived Metrics: created by taking a metric and dimension (usually time), and creating a new derived metric.

Sessions (count)

Frequency; Days of Use

Indices: created by normalizing a group of metric observations (usually to 100) and calculating an observation’s value relative to the top normalized value.

Measures, Metrics, IndicesEverything an analyst can look at.

The number of possible Web Metrics is large and increasing. Multiply by the number of Dimensions, and there is nearly an infinite number of things an analyst can look at!

How to CopeManaging infinite web metric options.

PrioritizeMake sure your business leaders have designated their top metrics (commonly called KPIs – Key Performance Indicators)

Build a Metrics TreeShow how all of your metrics interrelate. Connect them to revenue and profit. Focus on drivers and leading indicators.

Revenue is a lagging indicator.

Customer satisfaction is a leading indicator.

New customers is a driver.

De-AverageUtilize the de-averages technique to create new metrics.

BenefitsDe-Average

There really is no “average” Internet user.

Small numbers of users can drive a lot of traffic.

Break down your important metrics into deciles to gain new levels of insight.

Threshold metrics add a “mix” focus to business goals, which can have major impact on growth.

The Law of De-AveragesBe suspicious of averages – taking them at face value can sometimes lead to wrong conclusions.

Keep in Mind

Keep in MindAlways understand how a metric will be used, and whether an

average (mean, median, or mode) is the best way to present the

metric.

Keep in MindAlways understand how a metric will be used, and whether an

average (mean, median, or mode) is the best way to present the

metric.

Always make an attempt to understand the shape of the distribution

behind the metric’s average, and if that distribution is changing over

time.

Keep in MindAlways understand how a metric will be used, and whether an

average (mean, median, or mode) is the best way to present the

metric.

Always make an attempt to understand the shape of the distribution

behind the metric’s average, and if that distribution is changing over

time.

Where possible, break a metric out into quintiles or deciles, based on

frequency of observations or users. Map the deciles to usage to

create a customized version of the “80/20” rule for that metric.

Keep in MindAlways understand how a metric will be used, and whether an

average (mean, median, or mode) is the best way to present the

metric.

Always make an attempt to understand the shape of the distribution

behind the metric’s average, and if that distribution is changing over

time.

Where possible, break a metric out into quintiles or deciles, based on

frequency of observations or users. Map the deciles to usage to

create a customized version of the “80/20” rule for that metric.

If the story of the de-average is significantly different than the story

of the average, ensure business owners and other action drivers are

sufficiently educated.

Keep in MindAlways understand how a metric will be used, and whether an

average (mean, median, or mode) is the best way to present the

metric.

Always make an attempt to understand the shape of the distribution

behind the metric’s average, and if that distribution is changing over

time.

Where possible, break a metric out into quintiles or deciles, based on

frequency of observations or users. Map the deciles to usage to

create a customized version of the “80/20” rule for that metric.

If the story of the de-average is significantly different than the story

of the average, ensure business owners and other action drivers are

sufficiently educated.

Where needed, set primary or secondary business goals on threshold

metrics and specific segments, to further drive desired performance

improvements.

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