One of the most appealing aspects of conversion testing and analytics in general is its measurability. With a little digging, you can actually quantify what works and what doesn’t!
Analytic metrics can be divided into two camps: there are “indicator metrics,” and “diagnostic metrics.” The difference between the two is important for decision making.
In today’s video, we’ll go through a sample list of metrics in these two camps and reveal how you may be able to use them to make significant improvements on your site.
Indicator metrics show the performance level for various areas of a site and are the metrics you should review closer than other metrics when making decisions on your site. They include:
A. Conversion Rate – This is the best example of an indicator metric and arguably your most important metric. Conversion rate indicates the overall effectiveness of your site, but does not explain how or why your conversion rate is what it is.
B. Number of Visitors – This metric indicates the popularity of a site and the growth or decline of your shopper base. But again this metric does not explain how or why your site got its popularity or lack thereof.
C. Time Spent on the Site – Is yet another “indicator metric” that indicates how compelling visitors find the site, and again, this metric alone doesn’t help us determine why visitors are behaving in a certain way.
Lets continue with Diagnostic Metrics on the next slide.
So Diagnostic metrics, on the other hand, allow the analytics person to understand why things are happening the way they are and help provide clues on how to change things in a positive way or improve results.
A. Bounce Rate – This metric tells us that visitors and content are somehow misaligned if it is high. That is: visitors for one reason or another didn’t see what they wanted to see, perhaps in content, imagery or professionalism and left the site because of what they saw. If you are tracking bounce rate on all of your pages you can usually narrow down the suspects.
B. Form Completion Rates – If a form has a low number of completions compared to viewership, this metric shows that the form and the offer are not in balance. Either the form asked for too much information (or the wrong sort of information), or the offer itself isn’t compelling enough to folks.
C. Add-to-Cart Click Rates – This metric tells us which of your products are the most popular, which are trending, and which products are losing demand or not in demand.
So as you can see, both metrics play a very important role. Indicator Metrics put up red flags that indicate a problem, and Diagnostic Metrics explain and help you find the reasons that explain the indicator metrics.
So there you have it. Now you know about decision metrics. The next time you’re looking at your web analytics or making decisions on your site, remember Diagnostic and Indicator Metrics. Now that you’re aware of this analyzation technique. Is there any assistance you might want for you website? Are you overwhelmed, and want to delegate the analyzation and testing of your site to come up with some major strategies and changes for your site? If so, please consider utilizing our testing program.