Setting targets for metrics
I am often asked questions like “What targets should we set for our website metrics?” or “How do our results compare to industry figures?”
I enjoy these sorts of questions as they lead to serious web analytics discussions. The key in answering them is understanding the circumstances and building a stable foundation. Setting targets for metrics is not a simple process. Without knowing the specifics of the site or anything about the business itself, one cannot propose a target figure for any metric. Even when you do know, it may be still tricky and unrealistic because various aspects of the website and the marketing strategy may prevent the business from reaching the potential target. The website and associated marketing activities should be studied and aligned first before instilling predictability to the metrics and achieving the potential target.
Confused? Let me use an example to discuss the process. We have a NGO (not-for-profit organisation) which is having issues with its online donation process. The online marketing manager from this fictitious NGO approaches me to ask what the optimal target for their online donations should be. She adds that they are currently getting 300 or so online donations a month, but she has no idea if they are doing well and if this is within the industry norms.
Of course, I cannot give a definitive answer. I say, “It depends,” and then ask:
- What is the online share of the donations?
- How else can donations be made?
- What is the average donation value by method of donation?
- What brings existing and prospective donors to the website?
- Is there regular online communication with donors?
- What is the average monthly visitor number?
- How many people visit the donation page?
These questions help me understand the relevant circumstances and start forming my views. They give me an idea on whether 300 is a good or bad number, and the potential target. I could even compare it to published benchmarks, and against our experiences from other client work. This is a check-point or qualification stage, which precedes discussion about how to maximise online donations.
The process from here is hands-on. The user experience should be studied with a web analytics tool, preferably one that is capable of segmentation and page level analysis (i.e. traffic overlay on actual pages), answering questions such as:
- Is the website able to guide visitors to donations?
- Which sections are? Which aren’t?
- What are some of the options to drive more visitors to this section?
- What do the visitors do in the donations section?
- How effective is the donation form?
- Is form tracking needed to measure things like view only, form attempts and abandonment, successful form completions?
At the end of this exercise, a host of new ideas and possible changes to the site functionality, design, copy, and marketing and communications initiatives would surface so the NGO can guide more people to the donation area and convert more to donors. As they tinker more with the website, the level of predictability will increase as a result. Once all the major issues are resolved in combination with a solid online communications plan - they can then confidently start talking about the real targets.
The NGO example is one of hundreds. But it certainly illustrates that setting realistic targets for metrics is a process involving studying the circumstances and establishing a stable foundation for the website.