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TeleconferenceThe Metrics That Matter To Financial Services Web SitesBrad Strothkamp
Senior Analyst
Forrester Research
March 30, 2007. Call in at 12:55 p.m. Eastern Time
2Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Theme
Few financial services sites have effective measurements to run the eBusiness channel
3Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Why should you care about Web metrics in financial services?
• What are the benchmark metrics you need to measure? What metrics are specific to financial services?
• How to use metrics to drive sales goals
4Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Why should you care about Web metrics in financial services?
• What are the benchmark metrics you need to measure? What metrics are specific to financial services?
• How to use metrics to drive sales goals
5Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Consider these facts
• Gen Yers would choose their computer 2 to 1 over their television if they had to choose just one device to not live without.
• 91% of online households use search engines, up from 71% just four years ago.
• In 2005, 47% of financial service shoppers researched their purchases exclusively online.
6Entire contents © 2007 Forrester Research, Inc. All rights reserved.
“For any financial products you purchased during the past 12 months, please indicate where you conducted your research.”
Base: US consumers who conducted research online or offline for anyfinancial product they purchased during the past 12 months
Source: Forrester’s NACTAS Q4 2006 Finance Online Survey
Online only
Online and offline only
0%
10%
20%
30%
40%
50%
60%
US Gen Yers(18-26)
Gen Xers(27-40)
YoungerBoomers
(41-50)
OlderBoomers
(51-61)
Seniors(62+)
Offline only
Consumers prefer the Internet to research
7Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Tomorrow’s shoppers may ONLY visit your Web site
before buying
8Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Web siteWeb siteusageusage
Web site usage: How users navigate on the site
Referral source: How users get to the site
Referral Referral sourcesource
Purchase channel: How Web site visitors purchase their product
Purchase Purchase channelchannel
Consumers’ path to purchase
Tracking Web shoppers is imperative
9Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Why should you care about Web metrics in financial services?
• What are the benchmark metrics you need to measure? What metrics are specific to financial services?
• How to use metrics to drive sales goals
10Entire contents © 2007 Forrester Research, Inc. All rights reserved.
The Web Analytics Association (WAA) is a non-profit organization that is made up of key Web analytic vendors, clients, and individuals to set standards for analytic measurements. The WAA defines itself as the group that “unites and fosters the interests of industry practitioners, vendors, consultants and educators who use, sell, install, implement, consult, teach or train in the field of web analytics.”
Web Analytics Association (WAA)
11Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Metric basics: the BIG three
• Unique site visitors:
» The number of inferred individual people (filtered for spiders and robots), within a designated reporting timeframe, with activity consisting of one or more visits to a site. Each individual is counted only once in the unique visitor measure for the reporting period.
Source: Web Analytics Association
12Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Metric basics: the BIG three
• Visits/sessions:
» A visit is an interaction, by an individual, with a Web site consisting of one or more requests for an analyst-definable unit of content (i.e., page view). If an individual has not taken another action (typically additional page views) on the site within a specified time period, the visit will terminate.
Source: Web Analytics Association
13Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Metric basics: the BIG three
• Page views:
» The number of times a page (an analyst-definable unit of content) was viewed.
Source: Web Analytics Association
14Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Financial services: basic metrics
• Unique site visitors (by product area)
• Top search terms (by product)
• Tool usage
• Started/completed applications (by product)
» Started application is generally defined as the first page where the consumer enters personally identifiable information, and a completed application is defined as the page where he/she receives a “thank you” or “completion” page.
15Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Financial services: conversion metrics
• Site conversion rates (by product)
» What percentage of unique site visitors to the credit card pages completed an application or lead form?
• Search term conversion rates
» What percentage of site visitors who searched on “blank” term completed an application or lead form?
• Content/tool conversion rates
» What percentage of site visitors who viewed a certain content type (e.g., rate page, comparison chart) or used a certain tool (e.g., payment calculator) completed an application or lead form?
16Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Financial services: application metrics
• Application completion rates
» Completion rates by:
– Segments: new versus existing customers
– Product: checking versus savings
– Functionality: prefill, save/retrieve, etc.
• Dropoff rates per page
• Errors per applicant (i.e., incorrect information)
17Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Agenda
• Why should you care about Web metrics in financial services?
• What are the benchmark metrics you need to measure? What metrics are specific to financial services?
• How to use metrics to drive sales goals
19Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Measurement helps focus marketing dollars
Mortgage applicants by search category
“What type of search terms resulted in converting search users into serious prospects?”
General
Rate and fee
Product
Tool
Top mortgage search categories
20%
15%
7%
59%
37%
16%
9%
38%
Base: Compete survey respondents who recently applied for a mortgage loan
20Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Top mortgage search term: 8th in conversion
5th highest mortgage search term: 1st in conversion
22Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Justify site content and functionality decisions
21%
8%
8%
5%
2%
1%
13%
9%
7%
2%
1%
20%
ProspectsApplicants
Rent versus buy
Amortization
Should I refinance?
Affordability calculator
Product selection tool
Payment calculator
Base: Compete panelists who accessed mortgage pages at a target Web site
23Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Quicken Loans uses metrics to drive site development
24Entire contents © 2007 Forrester Research, Inc. All rights reserved.
E*TRADE uses metrics to target “engaged” site visitors
26Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Application metrics can solve completion issues
Case study: A large multinational bank tracked the dropoffs by page and errors that consumers had during the application process and was able to determine:
»A large percentage of applicants dropped off on the first page of the application for no discernable reason. In fact, most of these dropouts never completed any application information.
27Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Early dropouts had no intention of applying
Source: A large multinational bank survey of consumers who dropped out of application*Denotes coded open-ended responses
“When you began the online application,did you intend to complete it today?”
Base: 622 respondents
Yes70%
No30%
Wanted to see what informationwas asked for in the online app
Was looking for more informationabout the product
Clicked into the applicationby mistake
Changed mind about applying
Not ready to apply*
Don’t know
Other
42%
35%
5%
4%
4%
2%
6%
28Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Application metrics can solve completion issues
Case study: A large multinational bank tracked the dropoffs by page and errors that consumers had during the application process and was able to determine:
» A large percentage of applicants dropped off on the first page of the application for no discernable reason. In fact, most of these dropouts never completed any application information.
» Significant dropouts past the first page were a good indicator of a problem with the application itself or information asked.
29Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Source: A large multinational bank survey of consumers who dropped out of application*Denotes coded open-ended responses
Base: 622 respondents
No30%
Yes70%
Required info not on hand
Technical problem
Not eligible/not qualified
Prefer to apply another way
App loaded too slow
App timed out
Didn’t understand what info was required
Didn’t like product info (rates/fees)*
App was too long
Confused; made error; in wrong app*
Didn’t want to send to bank
Didn’t want to answer
Required minimum deposit too much*
Other
14%
11%
10%
10%
8%
5%
4%
4%
3%
3%
3%
17%
22%
14%
“When you began the online application,did you intend to complete it today?”
Didn’t want to send info online 3%
Mid-application dropoffs lack required info
30Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Application metrics can solve completion issues
Case study: A large multinational bank tracked the dropoffs by page and errors that consumers had during the application process and was able to determine:
» A large percentage of applicants dropped off on the first page of the application for no discernable reason. In fact, most of these dropouts never completed any application information.
» Significant dropouts past the first page were a good indicator of a problem with the application itself or information asked.
» Sophisticated page-level reporting revealed problems with the application (e.g., front-end logic problems).
31Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Summary
• The Internet provides a unique opportunity to track prospects and customers like never before.
• Firms should sweat metric basics. All subsequent metrics will be built off these metrics.
• Strong metrics can help inform marketing, site development, and online application decisions.
• Metric understanding is key to successful use of new technologies like online chat.
• Few financial services sites have “cracked the nut” on metrics, so don’t feel that you are too far behind.
32Entire contents © 2007 Forrester Research, Inc. All rights reserved.
Thank you
Brad Strothkamp
+1 650/581-3838
www.forrester.com