Measuring and understanding your Web site's success is a critical process that is sometimes overlooked. Many times, marketing efforts stop at getting traffic to site.Traffic alone, however, does not make a site successful. By "connecting dots" between your marketing programs and end results, you can improve performance. Ultimately, site success depends on how well your site performs with respect to your goals. Measuring actual results against those goals tells you how well your site is succeeding.
Have a Plan
Whatever your Web site goals, a marketing plan helps you better meet them. By including two or three general strategies to meet each goal as well as *specific* programs under each strategy, you are better able to evaluate and improve upon performance.
For example, let's say you make high quality, custom-made scarves and wish to sell them regionally:
* A Web site goal could be to begin selling scarves online and achieve "x" amount of sales in first six months online.
* One general strategy for meeting that goal could be to get site known locally by fashion conscious ladies in your community.
* A specific program to support this strategy could be to hold a contest on your site, with prize being a free, customized scarf. To promote contest, you could issue a press release, which you send to fashion editors, etc.
By taking this funnelled approach - planning down from broad goal to specific program - you are better able to evaluate how well each program supports (or fails to support) your goals.
From start - when you are developing your plan and deciding upon site structure - think about how to measure performance. Measures will differ, depending upon situation, but should be both quantitative and meaningful with respect to helping you improve site performance. Choose a set of measurements that tell you not only how your marketing programs are working but also how well they support Web site goals.
Evaluate Marketing Programs
In order to evaluate a marketing program's success, first decide your objectives. Then, most importantly, "connect dots" between those objectives and your site goals. Later, when analyzing program results, evaluate not only whether program succeeded in meeting objectives, but also how well it moved your business toward its Web site goals.
It is possible to meet a project objective while failing with respect to site goals. A frequent example is traffic generation programs. I often read stories of a business participating in "hit" programs with disappointing results. They reach "hit" objectives, but move closer to site goals.
Consider Return on Investment (ROI)
One way to evaluate marketing project results is through a Return on Investment (ROI) analysis. The ROI is a computation that tells you how much you got back compared to what you put into a project. You can express ROI in terms of a dollar amount or as a ratio. Either way, formula itself is simple.
The dollar amount formula tells how much you increased profit in total dollars as a result of project:
(Cost savings and earnings as a result of project) minus (Dollars invested)
The ratio formula tells how much you got back, in dollars, for each dollar you invested in a project: