What is a good webanalytics metric worth to measure?
What the hell should I measure?
There are a lot of blog posts about what a bad and a good metric or KPI is. Often they miss real examples. During my preparation for a Lean Analytics presentation I decided to summarize a couple of examples. We use some of these metrics in our handmade marketplace product www.guzuu.com. Depending on your business (model) the key metrics vary.
Criteria for a good analytics metric
- A good metric is easy to understand
- A good metric is comparable towards an "industry standard" or "a previous period"
Example 1: Conversion Rate (measure growth)
A classic and good measure is the conversion rate. If your run a webshop a typical metric could be:
- X% of the visitors who search the products ordered a product.
Example 2: Sales growth compared with previous period (measure growth)
- Our turnover grew by 5% since last month.
- Our quarterly turnover grew by 7% since last quarter.
Example 3: Active users since signup (measure stickiness)
- X% of the users who signed up 60 days a go used the product in the last 7 day
- X% of the users who signed up 30 days a go used the product in the last 7 day
- X% of the users who signed up 14 days a go used the product in the last 7 day
Example 4: Average Purchase Value
- Total Sales / Number of sales