Re: [webanalytics] Tripwire Metrics.
> Sales per visit is a good one for the same reason. I once used that toFor retail, along same lines as above and reaching into BI / customer land:
> show that an email campaign to attract repeat visitors should be used
> because SPV was higher in the returning visitor segment as was average
> order value.
> any others?
Current Value KPI:
Average spend per 6 month active customer - what were sales this week or
month divided by number of customers who have purchased in the last 6
months (or 12 months, if your purchase cycle is slower) - this tells you if
the active customer base is maintaining momentum. Falling numbers can be
caused by lack of product variety / freshness, changes in customer service
policies, poor communications (too frequent, irrelevant, etc.)
Future Value KPI:
3 month and 6 month average Recency - what % of customers have bought in
the last 3 months, what % in the last 6 months? - this tells you how likely
the customer base in the aggregate is to continue purchasing in the future.
Falling numbers here beg a customer retention effort of some kind and also
a hard look at the quality of new customers you are generating, see next.
Campaign Quality KPI
Average 3 month and 6 month spend of New Customers - For customers who
became new customers 3 months ago, what is their spend to date? For
customers who became customers 6 months ago, what is their spend to date?
Falling numbers mean your acquisition campaigns are attracting lower
quality customers and you should be prepared in the future for weak sales
from these customers. Optimize or drop campaigns generating new customers
with low value / high % 1x buyers; reallocate budget to campaigns
generating high value customers.
Of course if you have the horsepower, you can run the campaign KPI's more
frequently and make adjustments more frequently to campaigns, product
selection, merchandising on site, etc.
The right cycle depends on customer behavior, a good rule of thumb is take
a look at how long (on average) it takes someone to make a second purchase
(exclude 1x buyers) and add a month.
All of these of course can be run on specific segments for more insight.
Your analytics provider may or may not be able to produce these stats; if
not, you have to go to the customer database. If you have enough data,
adjust for seasonality with year over year compares.
- On 12/02/2005 04:40 PM, Jim Novo wrote:
>>I wonder if anyone (Jim Novo maybe?) have developed an array of flag[snip]
> I've never used "unique visitors" in any KPI's because I believe everyWhat a coincidence! In your UBC WAA course lecture, you mentioned that
> visit is an opportunity and it doesn't make sense to me in a data
> environment as "fuzzy" as the web to intentionally reduce the "base" and
> make the metric more "volatile". I have always felt this way, even before
> all the "cookie monster" stuff.
it may make sense to use Unique Visitors for Take Rates. And I agree: If
your conversion point is some sort of a newsletter for example, you can
convert an individual visitor only once. Because after, he already knows
what is behind the click, and you no longer can measure the
effectiveness of this call-to-action instance.
Best from France,
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