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Why all “Clicks” are not created Equal…

 

Though we all say and by now have accepted the fact that all men are created equal in god’s eye, but sadly all clicks are not equal in from business’ eye. Though we all are very keen on knowing metrics like CPC(Cost per Click), CTR(Click through Rate),  Clicks on Youtube videos, Clicks on our download catalog buttons and clicks on even the facebook Like button!

But the fact is all these clicks are different!

If you have heard of the 80:20 rule of Operations i.e 80% of the business comes from 20% of the products and the rest 20% comes from the remaining 80% of the products, this same principle applies to Clicks as well!! Quite a similarity between two such poles-apart domains of Web Analytics and Operations!

I have segmented these clicks into 3 subgroups:

  • Serious Clicks: These are your most important clicks, clicks which ultimately lead to sales either directly or indirectly. I believe these types of clicks represent not more 20% of the total clicks. A general characteristic of these clicks or rather visitors is that they show higher levels of engagement. For e.g suppose you have a FB Page and post a photo declaring 20% sale and get around 100 LIKEs  and 20 comments on it, this obviously does not mean all these 100 people are going to buy something from the sale. Out of the 100 fans who have liked the photo, you can expect the 20 people who actually took the effort of commenting on the pic and thereby showed higher levels of engagement to actually go to your website and buy something. And you will notice that out of the total no. of buyers, these visitors will account for almost 80% of them.
Italiano: versione ombreggiata e ingrandita de...

 (Photo credit: Wikipedia)

 

  • Just-Browsing Clicks: These form the bulk of the clicks, i.e around 60% of the clicks, these are from your average joe  who is just there on the internet browsing through stuff and clicks on things which catch his eye. He is not there to buy something but just spending a lazy afternoon on the net. These clicks show low levels of engagement and low time-on-site. There is a huge opportunity here, with more attractive schemes and promotions it is possible to tap into this huge mass and actually get some converts!

 

  • Accidental Clicks: These are clicks which are like teenage pregnancy, simply an accident. You can identify these clicks with the really low-time-on-site attribute which they are mostly bound to show. These are basically a waste and account for almost 20% of the total clicks.

 

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Why Conversion Rate should be your numero uno KPI?

English: Window shopping in Cowbridge These la...

English: Window shopping in Cowbridge These ladies are making use of the umbrella on a damp March afternoon in Cowbridge. (Photo credit: Wikipedia)

Conversion rate is defined as the goals converted per unique visitor. I use unique visitor and not unique visits because i do not believe in the fact that every time someone visits your website that he/she is there to buy.

Most visits are just for browsing like window shopping. People come, check out the stuff and move on. But yes, what really matters is the fact that how many goals are getting converted and how many people are involved. The total no. of cumulative goals matter not the no. of people.

For e.g your website has 100 unique visitors, and every visitor can do two things i.e two goals; 1: subscribe to emails and 2: buy something. Lets assume out of the 100, over the period of 1 month 25 did nothing, 50 just subscribed to emails, 15 bought one item and 10 bought more than one item and out of the 25 who bought something 15 also subscribed to the emails. There total no. of unique visitors who did something was 75(50+15+10) but total no. of goals converted was 90, therefore your conversion rate will be 0.9(50+15+10+15) and not .75!

Though it might be a little confusing because only 75% of the people did something the figure is showing a higher number, but then what really matters is the goal conversion and not visitor conversion because there might be people who might have landed on your website randomly!

It is always better to follow the marketing theory rather than the sales theory…its more about understanding the consumer, his/her requirements and higher levels of engagement(goal conversions) rather than simply pushing every person to buy!!

See the figure below for easier understanding:

No. of Unique Visitors Did Nothing Subscribed to emails Bought only 1 item Bought more than 1 item Bought items+ subscribed to email Conversion Rate
100 25 50 15 10 15 0.9

Bounce Rate VS Exit Rate (Web Analytics)

This is my first post on the topic of WEB ANALYSIS. It mostly involves getting insights into clickstream data. Because data by itself is just a collection of numbers, what is required is to give meaning to it. Else it is all a waste. Thus we need to understand how to analyse this data collected from our website using various analysis softwares like google analytics, omniture, etc.

BOUNCE RATE- The basic definition means the % of sessions with only one page view. But if you think a little seriously about it, bounce rate shows the % of visitors who found nothing interesting on the page in simpler terms “useless”!! A grave concern for any website specially e-commerce.

I believe that the bounce rate gives the most perfect picture of your “website health”, if the bounce rate is high then your website is seriously “sick”! Literally sick! And if it is low then your website is in “good health”…Because when someone comes on to your site, the least you want out of them is to “engage” with you by atleast clicking on some god-damn-shit on your page! Else whats the use of putting all those things on your page!

Typical bounce rates hover around 50% for a decent website

BEWARE! BOUNCE RATE IS DIFFERENT FROM EXIT RATE!!

EXIT RATE- It shows you the % of visitors who “exited” your website from that page. Because people will come, look around and eventually they will move on. The will exit no matter what from some or the other page on your site! Unless your FB, which i assume most people never exit not even when they are sleeping 😛

Typical exit rate is around 20%.

In simpler terms if your exit rate is high on say a certain page but your bounce rate is low, then its ok.. people engage and leave! what more would you want! But if both are high then that is the death knell ringing!! You better check that page out and modify something, use A/B Testing, Multivariate or plain common sense! But you have to do something about that page! Unless its the page which says “BYE-BYE, THANK YOU FOR VISITING XYZ.COM”!! :p

You can check out this matrix, I have made for a better understanding of the different scenarios between bounce rate and exit rate. Hope this blog was useful to you in getting a better understanding of WEBSITE DATA ANALYSIS img1

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