Marketing Metrics Lexicon
According to Laudon and Guercio-Traver (2010), in order to understand the process of attracting prospects to your web property by way of marketing communications and converting them into customers, you will need to become familiar with Web marketing terminology.
The first nine metrics focus primarily on the success of a Web site achieving audience or market share by “driving” shoppers” to the site.
Number of times an advertisement is served.
The percentage of times an advertisement is clicked.
Number of HTTP requests. (Caveat: Hits can be misleading as a measure of Web site activity because a “hit” does not equal a page. A single page may account for several hits if the page contains multiple images or graphics. A single Web site visitor can generate hundreds of hits. For this reason, hits are not an accurate representation of Web traffic or visits, even though they are generally easy to measure; the sheer volume of hits can be huge – and sound impressive – but not be a true measure of activity.)
Number of pages viewed.
Average length of stay at a Web site.
Number of unique visitors in a period.
Measured variously as the number of page views, frequency of single-user visits to the Web site, or percentage of customers who return to the site in a year to make additional purchases.
Percentage of Web site visitors who are potential buyers; or or percentage of total market buyers who buy at the site.
Time elapsed since the last action taken by a buyer; such as Web site visit or purchase.
Percentage of visitors who indicate an interest in the Web site’s product by registering or visiting product’s pages.
Percentage of visitors who become customers.
Browse to Buy Ratio
Ratio of items purchased to products viewed.
View to Cart Ratio
Ratio of “Add to Cart” clicks to product views.
Cart Conversion Rate
Ratio of actual orders to “Add to Cart” clicks.
Checkout Conversion Rate
Ratio of actual orders to checkouts started.
Percentage of shoppers who begin a shopping cart purchase, but then leave the Web site without completing a purchase (similar to Checkout Conversion Rate).
Percentage of existing customers who continue to buy on a regular basis (similar to Loyalty).
Percentage of customers who do not return during the next year after making an initial purchase.
Percentage of email recipients who open the email and are exposed to the message.
Percentage of email recipients who received the email.
Click-through Rate (Email)
Percentage of email recipients who clicked through to offers.
Percentage of emails that could not be delivered.
Percentage of recipients who click unsubscribe.
Conversion Rate (Email)
Percentage of recipients who actually buy.
Please do keep in mind, these terminologies and definitions represent only a short list of common marketing e-metrics. I highly recommend that you continue your research and keep a sharp and dynamic eye peeled on the ever-changing – ever-evolving Internet landscape.
Be smart and be encouraged,
Laudon, K. C. & Guercio-Traver, C. (2010). E-commerce. Business. Technology. Society. New York, NY: Prentice Hall