In analyzing the performance of a business website , we have more information and more metrics than most of us can possibly use and possibly understand the significance of. But we can break down those metrics into certain key performance indicators that form a core to help us understand the performance of any single website depending on the size, goals, and operation of that site.
Before we jump into the discussion, let me first say that if you are not tracking your website performance, you are missing the boat. Free tools such as Google Analytics give us the data we need to evaluate how a site is performing and make specific recommendations for improvements.
In this blog post, we will look at 3 key performance indicators that every small business owner should learn about if they want to make more money using the internet.
Best metrics/key performance indicators for a small business website
Cost of Acquisition
The most important metric to manage under acquisitions is the cost per app acquisition. The cost per acquisition is something where you should spend the time effort to understand when you manage a small business website. You likely have little money to spend, and you have to get the most that you possibly can out of each and every dollar spent.
You should determine an optimum cost per acquisition. You should kill items that do not reach that optimum cost per acquisition. You should invest more money in those that do. Also, remember it is not just cost but profit that is important.
You likely will find the cost per acquisition numbers in an Excel spreadsheet that you have developed. You won't find this in your Google analytics report or in a report similar to Google analytics. You simply extract the number of conversions, import data into XL, add a column for costs, do the math, and then dance with joy or tear your hair out.
Bounce rate helps you identify campaigns where you might be targeting the wrong people with the wrong message at the wrong time and is one of the core metrics for internet marketing success. You might be sending relevant traffic irrelevant landing pages. Bounce rate helps you find campaigns and landing pages that need to be killed or removed. You need to work constantly to improve your bounce rate, and you need constantly to compare your bounce rate within the options available to you.
So you may compare one landing page to another. You may even compare one shopping cart to another. Wherever you can compare two separate items that you suspect may be affecting your bounce rate you should do so, and you should work hard to reach your optimum bounce rate.
Standard metric tools will give you the information you need to know about your bounce rate.
Remember you’re a small business. It pays you to focus on understanding what your conversion rate is and look at strategies to improve it. Look at where traffic is coming from to reach your site; seek out the conversion rate metrics; punish sources that don't produce well for you; reward sources that do produce; develop a marketing strategy that has each of those elements optimize, or you are not going to win the conversion rate game in the long run.
By analyzing effectively just a handful of key metrics, you can increase your online sales significantly.