The new metrics that really matter in e-commerce

eCommerce is a fundamentally data-driven channel, and the boom in online sales has resulted in terabytes of data covering all aspects of online customer behavior. But without a context for determining what these clicks mean, most online marketers are still no closer to truly understanding their customers than they were back in the days of server log parsing. The result is that most online marketing decisions are ultimately still based on incomplete information and speculation, instead of on a real grasp of customer needs and goals.

Don’t get me wrong. There are reams of useful data out there, being pumped out by web analytics vendors, ad servers, or online audience measurement firms. But all of these approaches conceal fundamental flaws: they do not account for real feedback from actual visitors in self-initiated situations. Page views, time on site, hard conversion rates—all of these are useful metrics in an e-commerce environment, but they fall painfully short of exposing the hearts and minds of real visitors.

So, is there a better way forward than dry, impersonal metrics? Happily, there is. Surveying real visitors to understand primary intent and to measure task completion is a great place to start. Not all visitors are onsite for the same reason; segment them by purpose to find out how well your site is catering to each distinct visitor need, and use verbatim pain points to help you fix critical problems standing in the way of successful visits and higher revenue.

Remember, however, that not all useful site outcomes, even in an e-commerce channel, can be measured in terms of dollars and cents. Although the current financial crisis has put added emphasis on engendering ROI in the here and now, shepherding visitors to the completion of their tasks can have a valuable impact on your long-term brand proposition.

In a recent iPerceptions study of more than 10,000 real online customers, visitors who completed their primary purposes were twice as likely to make a repeat visit, while 67% of visitors who completed their primary purposes reported enhanced brand opinion (vs. only 18% for those who did not). Additionally, 60% reported a higher future likelihood to purchase either online or offline (vs. only 14% for those who did not).

In today’s recessionary climate, businesses on the hunt for more revenue from their e-commerce channel can’t afford to pass up these critical insights on their customers. Visitor intent, task completion, and open-ended insights can be wonderful allies in the battle to understand your visitors.

This article appeared in the 2008 DMNews Essential Guide to E-Commerce

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