Loading ...
Sorry, an error occurred while loading the content.
 

Here's a pretty good write-up on analytics I found in my RSS feeds ...

Expand Messages
  • Eric Peterson
    http://www.boxesandarrows.com/archives/web_traffic_analytics_and_user_experience.php I have not had a chance to read the entire piece but it looks like it s
    Message 1 of 4 , Aug 31, 2004
      http://www.boxesandarrows.com/archives/web_traffic_analytics_and_user_experience.php

      I have not had a chance to read the entire piece but it looks like
      it's going in the right direction so I wanted to pass it along.
      Likely I'll invite Fran to join the fray (which Novo lovingly referred
      to as "no holds barred" on his Web site, thanks Jim!)
      --
      Eric T. Peterson
      Author, Web Analytics Demystified
      www.webanalyticsdemystified.com

      Have you joined the Metrics Discussion Group? Email
      webanalytics-subscribe@yahoogroups.com to join today!
    • Mitko Gerensky-Greene
      Hello all, I wanted to throw in a question which will inevitably lead to a discussion: What is your take on calculating the life-time value of a visitors?
      Message 2 of 4 , Aug 31, 2004
        Hello all,

        I wanted to throw in a question which will inevitably lead to a discussion:

        What is your take on calculating the life-time value of a visitors?

        Thanks in advance,

        Mitko
      • Pat McCarthy
        There is definitely worth in calculating lifetime visitor value. If you aren t taking lifetime value into consideration when determining how much you can
        Message 3 of 4 , Aug 31, 2004
          There is definitely worth in calculating lifetime visitor value. If
          you aren't taking lifetime value into consideration when determining how
          much you can spend to acquire a customer, you could actually probably
          afford to spend more on customer acquisition. Some businesses say
          their average order value is $X amount, so they can afford $Y amount per
          click based on their conversion rate in PPC ads to acquire a customer.
          But if they haven't factored in that customers can make repeat
          purchases, they can probably afford to spend more to acquire a customer.

          However, one should be careful with this. I've noticed that our
          lifetime customer value can vary drastically on where we acquired the
          customer from. For example, a customer who found us through a PPC ad
          has a different average lifetime value than a customer who might come
          from a certain partner link. So, the best thing to do is calculate the
          lifetime value by acquisition source. Then you can truly determine how
          much you can spend on that particular acquisition source to acquire each
          customer.

          --
          Pat McCarthy
          Executive Producer - Palo Alto Software
          http://www.paloalto.com


          Mitko Gerensky-Greene wrote:

          >
          > Hello all,
          >
          > I wanted to throw in a question which will inevitably lead to a
          > discussion:
          >
          > What is your take on calculating the life-time value of a visitors?
          >
          > Thanks in advance,
          >
          > Mitko
          >
        • Jim Novo
          ... I m not sure careful is the right word to use here, though in this context I understand the meaning since many are new to this concept. LifeTime Value is
          Message 4 of 4 , Sep 1, 2004
            > However, one should be careful with this. I've noticed that our
            > lifetime customer value can vary drastically on where we acquired the
            > customer from.

            I'm not sure "careful" is the right word to use here, though in this
            context I understand the meaning since many are new to this concept.
            LifeTime Value is always properly used in conjunction with "source"
            information, since source accurately predicts average LTV. Source has
            several components:

            1. Media bringing them in, as pointed out above.
            2. Message bringing them in - ad content, keyword phrase, offer, etc.
            3. If retail, product of first purchase
            4. If content, first content topic or group consumed

            They are what they eat. How you "create" a new visitor / customer, the
            experience surrounding the new customer event, contributes directly to the
            future value of the visitor / customer. Best practices in this area:

            1. You should feature or put items / content on the home page that create
            multi-buyers / multi-visitors. These items / content are not usually the
            same items / content that have the best "conversion rate", though they can
            be, and items / content with both traits should be a cornerstone feature of
            the business.

            2. You will never get a more significant opportunity to increase the LTV
            of a customer than "first transaction". For example, in retail, the first
            package should have a "welcome kit". Offline, a good welcome kit can
            increase 2nd purchase rate by 20%. In our online lab store, it increased
            2nd purchase rate 30%. This is a ton of money to leave on the table,
            knowing about 40% of 2nd purchase will complete a 3rd, 40% of 3rd will
            complete a 4th, and so on. If a content site or service site, the
            usability of forms, the "thank you" page content, the confirmation e-mails,
            all of these transactional elements serve the same role as a welcome kit.

            The objective here is "surprise and delight", or at least "better than
            expected" on the first transaction. This leads to a higher likelihood of
            continued transactions. No matter what kind of site you have, you will
            benefit from putting some effort into creating a better than expected
            experience on first transaction, even if the objective is not continued
            transactions (some service sites, branding sites), since the brand
            impression is significantly impacted during first transaction.

            Even online, you never get another chance to make a first impression.

            Media / Message / Item / Content combinations that generate visitors /
            customers with low LTV should either be cut back and budget reallocated
            towards higher LTV transactions, or if the revenue generated is
            significant, special follow-up programs should be developed for the
            visitors / customers created in low LTV transactions.

            The second option is usually the most practical unless you work in an
            environment where the LTV concept is well understood by managers.

            Jim
            jim@...
            http://www.jimnovo.com
          Your message has been successfully submitted and would be delivered to recipients shortly.