How to measure Web site effectiveness at the micro level 1

Imagine yourself in a conference room surrounded by senior management and board members when someone asks you this terrifying question...

"We spent $22,000 and 400 hours on our Web site last quarter. How has it helped our business?"

What would you say? Could you justify the expense and prove ROI?

If not, pay close attention. Learn how to measure your Web site's effectiveness and answer that question with precision. Follow this methodology to analyze user behavior, identify strengths vs. weaknesses, and evaluate the impact of your Web site.

1. Establish Web site success criteria
   
   • Review your business and marketing objectives
   • Determine specific log file data and other metrics that support each objective
   • Sample Log file data can be:

    Total Web site visitors, visitors per day, individual page impressions, incomplete downloads and file requests, repeat visits, most popular pages, site entry pages, search engine phrases, Web site errors, etc.

   • Other metrics can be:

      

     Number of Web site inquiries or leads, conversion rates, total sales volume, total sales initiated on Web, purchase amount per customer, most/least popular purchase items, opt-in/opt-out rates, repeat purchases, number of times a feature was used, Web site leakage points, number of calls to help desks/tech support/customer service, sales cycle time, cost of sales, etc.

2. Determine necessary tracking devices
   
   
   • Determine all tools and mechanisms needed for tracking, calculating and measuring your Web site success criteria determined in step one
   • Sample tacking devices can be:

      

     Databases, spreadsheets, Web site lead lists, opt-in/opt-out lists, customer lists, most valuable customer lists, surveys, downloadable files/samples/reports, log-in mechanisms, security features, cookies and other tracking devices

3. Build, set up, or purchase tracking devices
   
   
   • (For example, this Web site uses an Access database to track and segment newsletter subscriptions, referral program inquiries, service inquiries and many other measurable business objectives. We use MS Excel to track conversion rates and Web site effectiveness.)
   
   
4. Set benchmarks
   
   
   • Record and analyze all necessary data (over a set time period)
   • Perform calculations (conversion rates and other business metrics)
   • Document benchmarks

Edit from http://www.websiteprofitdoctor.com/MC_BP_articles.asp?article=08_08_02_02.txt , thanks.