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Measuring Internet Marketing

Effectiveness

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Objectives

• The maintenance Process

• Measuring internet marketing effectiveness
• Measuring the flow effect

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Web Document Review & Update

Process

Write
Publish Review
Test Correct
Publish
W
hen
, w
ho_?
How, w
ho, what?
How_?
How_?
How,
who

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The Maintenance Process

• Write – This stage involves writing the marketing
copy, designing the layout of copy and associated

images

• Review – check for errors before document is
published

• Correct – updating results of stage 2

• Publish – putting the corrected copy on a web page
that can be checked further

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Updating Material

• Within two days of a factual error being
identified

• A new ‘news’ item is added at least once a
month

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Responsibilities in Web Site

Maintenance

• The questions to ask are:
• Who owns the process?
• Who owns the content?
• Who owns the format?

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<i>Standard</i> <i>Details</i> <i>Applies to</i>

Site structure Will specify the main areas of the site, e.g.
products, customer service, press releases,

responsibilities

Content developers

Navigation Main menu on the left, home button must be

accessible from everywhere Web site designer.webmaster
usually achieve these
through site templates
Copy style General guidelines, product specifications,

digestibility on screen Individual content developers
Testing standards Check site functions for:

•Different browser types and versions
•Plug-ins, individual links

•Speed of download of graphics
•Spellcheck each page

Web site

designer/webmaster

Corporate branding &

graphic design Specifies the appearance of company logos and the colors and typefaces used to convey the
brand message

Web site

designer/webmaster

Process The sequence of events for publishing a new

page or updating an existing page all
Performance Availability and download speed figures

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Measuring Internet Marketing

Effectiveness

• Are corporate objectives identified in the Internet
marketing strategy being met?

• Are marketing objectives defined in the internet
marketing strategy and plan achieved?

• Are marketing communications objectives

identified in the internet marketing plan achieved?
How effective are the different promotional

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Creating a Measurement Process

• Highlighting the need for metrics
• Identifying metrics (SMART)

– Specific
– Measurable
– Actionable

– Relevant
– Timely

• Introducing techniques to collect metrics and summarize
results

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Which Measures to Use

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Level 1: Business Effectiveness

Measures

• Direct online contribution to revenue
• Indirect online contribution to revenue
• Profitability of web site

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Level 2: Marketing Effectiveness

Measures

• Customer acquisition or new leads generated by the
web site

• Sales generated directly and indirectly by the web site
• Impact on market penetration and demand

• Customer satisfaction and retention rates of clients
who use the internet, compared with those who do not
• Incremental or cross-sales achieved through the

Internet

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Level 2 – internet sales

• Internet sales as proportion of all sales

made by company compared with sales by
all companies operating in the market

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Level 2 – Marketing costs

• Reduction in cost of promotional material
• Cost of acquiring a new customer

• Cost of developing/supporting an existing
customer relationship through time

• Also some less tangible elements such as
corporate image and brand enhancement

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Level 3: Internet Marketing

Effectiveness

• Capture – how effective are we in attracting customers to
site using online and offline promotion methods

• Content – how well are customers supported with
information and ease of use through the content and
design of the site

• Customer orientation – does the content suit its target
audience

• Community and interactivity – how well are the

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Level 3 - Further Elements

• Awareness efficiency – target users/all
web-users

• Locatability/attractability efficiency – number of
individual visits/number of seekers

• Contact efficiency – number of active
visitors/number of visits

• Conversion efficiency – number of purchases/number
of active visits

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Online Measurement Methods

• Online web metric and server log files
• Hits and page impressions (views)

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Log File Information

• Page impressions for different parts of the site
• Page impressions broken down by different time

intervals

• Page impression by domain

• Page impression by browser type
• Referring sites

• Exit pages

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Tools for Measuring Web Site

Performance

• WebTrends – www.webtrends.com
• Analog: a freeware tool –

www.statslab.cam.ac.uk/~sret1/analog
• Wusage – www.boutell.com/wusage
• Andromedia – www.andromedia.com
• I/Pro site audit – www.ipro.com

• Microsoft site analyst – www.microsoft.com

• Superstats; a basic web analyzer – www.superstats.com
• Hitbox – www.hitbox.com

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Measuring Individual Behavior

• Registration

– A suitable incentive – most customers will give
information if they will receive something in return
– A tacit agreement to enter into a medium to long term

agreement with customer that he or she will enter the site
again

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Offline Methods of Metric Collection

Measure Measured through

Enquiries or leads Number of online e-mails

Phone calls mentioning web site
Faxed enquiries mentioning web site

Sales Online sales or sales in which customers state they found
out about the product on the web site

Conversion rate Can be calculated separately for customers who are
registered online and those who are not

Retention rates Is the ‘churn’ of customers using the web site lower?

Customer

satisfaction Focus groups, questionnaires and interviews_{Mystery shoppers}

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Evaluation of Promotional

Methods

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Communication Effects

• How well does the page catch the reader’s

attention?

• How well does the page lead the reader to
go further?

• How effective is the particular appeal?
• How well does the page suggest follow

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Customer Loyalty, Satisfaction

and Brand Impact

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