Web Analytics video

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Key Performance Indicators for Small Business with Eric Peterson (6:25) Dr. Ralph F. Wilson Web Marketing Today - Jul 7, 2009

In this video interview web analytics expert Eric Peterson discusses Key Performance Indicators (KPIs) that can be useful for small businesses. KPIs are a way to distill a huge amount of analytics data into information relevant to your business.

Analytics programs generate a huge amount of data, of rather low value to the business person. But KPIs provide information with a lot higher value. They (1) talk about your business, (2) they are specific, (3) valuable, and (4) ideally actionable. The challenge is to find the 3 to 5 KPIs that are right for your business.

An e-commerce business will typically look at conversion rate, average order value, time to conversion, and percentage and revenue of repeat sales. Retailers should look at these KPIs every day. The Google Analytics dashboard can give you a lot of this information quickly, though you may need to pay a Google Anhalytics Authorized Consultant (GAAC Partner) to set up the average order value to coordinate with your order system.

Businesses in the marketing and PR sectors should be looking at lead generation rates and some measurement of engagement, such as depth of visit or frequency or recency of return.