Critical Metrics for Better Customer Intelligence

April 6, 2022 Kara Frazier

Without customers, you have no business. And without understanding your customers, you have no business. 

Companies need multiple metrics to understand their customers. So what should be tracked? There is no single golden metric, but there is a golden method to understanding customers and winning more conversions, and it starts with asking the right questions.

 

Transform Reporting Questions into Business Questions

The questions you’re asking should lead to insights that can help adapt business strategies. Start by turning reporting questions into business questions that get to the core of the customers’ experiences. 

Reporting Questions:

  • How many visitors did we get on campaign X?
  • How many times was our message seen, broken down by channel?
  • How many unqualified visits did we get last week?

Business Questions:

  • Which visitor segment had the most efficient conversion rate on campaign X? How can we improve the success for that segment?
  • Which message and channel combinations produce the highest conversion rates, which combinations have the most efficient ad spend, and how should that influence how we spend our marketing dollars?
  • Which segments had the highest and lowest bounce rates last week? What does that suggest about our messaging? How do our conversion rates compare to bounce rates—does one go down when the other goes up?

Implementing and emphasizing business questions like those above lead companies toward a more complete picture of the audience, the factors that are driving them, and how an organization can take action to drive further sales. 

 

Three Critical Metrics for Business Success

Once equipped with the right questions, reassess the metrics that inform your strategies. We will focus on three metrics that drive customer insights and business success.

 

Metric 1: Sessions

One of the most commonly requested metrics is sessions: the number of times a user visits a specific site.

Knowing how much traffic a site receives is valuable, but more information is needed to make strategic business decisions. Suppose a visitor landed on your homepage by accident or opened the page, but then walked away only to come back and close it later without looking at any content?

To get the full view of how customers arrive at and interact with a site, you need to investigate the behaviors that support sessions. These include:

  • Time Spent
  • Engagement
  • Number of New Sessions

The amount of time users spend can indicate their interest in what’s offered. Understanding how many pages are viewed per session, which pages are viewed the most, and which pages have high exit rates suggest which content models are working well and those that need improvement.

It is also important to watch for the signs of life known as user engagements:

  • Clicks
  • Mouse movement
  • Scrolls
  • Searches
  • Etc.

Considering the number of new sessions in a given time frame is also important. If you have high rates of session time, but few of those users are returning visitors, odds are you have a problem.

Your metrics are only as helpful as they are accurate. See how ObservePoint ensures accurate data that drives growth

 

Metric 2: Click-Through Rate

Marketers have progressed from tracking hits to tracking the click-through rate (CTR). This metric holds marketers more accountable. CTR pushes marketers to create a more focused strategy when it comes to target audience, frequency, and content.

If you have a high CTR, then it’s safe to say people are interested in your product, but that’s not the whole story, especially if you have a high bounce rate.

Bounce Rate

Bounce rate refers to the percentage of visitors who land on a site and leave immediately. These sessions still count as visits to the site, which can warp the perception of success.

If the CTR is accompanied by a high bounce rate, ask the following questions:

  • Why are people not staying on the site?
  • Why did they show the initial click interest only to take off shortly after landing?
  • What does a high bounce rate suggest about your SEO efforts, site design, web traffic targeting?

Combining CTR with the bounce rate can be more revealing of how your campaign and site are actually performing. They can also help you understand customer’s interests and needs, empowering more effective campaigns that have higher CTR and lower bounce rates.

Your metrics are only as helpful as they are accurate. See how ObservePoint ensures accurate data that drives growth

 

Metric 3: Conversions

Conversions are arguably the most sought-after metric in digital marketing. Conversion rate is generally defined as the number of outcomes per visitor during a specified time frame; the number of orders submitted, leads generated, tasks completed, goals achieved, etc. Essentially, conversions = money.

At first glance, measuring conversions seems like an easy way to measure overall success. However, many different campaigns can be running on a site at any given time and with many types of conversions to measure, compiling all of these unique measurements provides only a watery illustration of what is really happening.

Conversion rates should be broken down into specific categories and paired with their crucial counterpart, value and task completion, to tell you the whole customer story. 

Value

Value can be assigned in terms of revenue, however, you could have a high conversion percentage that might be inflated by many lower-value conversions or vice versa. The value placed on each conversion should be disclosed whenever reporting on conversion rates to know exactly what kind of return you are getting on each effort.

Task Completion

A task completion rate should be applied to a conversion rate to analyze why some visitors begin a critical process but fail to complete it.

Any given “task” is going to vary depending on the type of company, business objectives, and site objectives; form fills, purchases, downloads, etc. Use the task completion rate to make sure you’re providing excellent experiences for customers. If users do not have a satisfactory visit to your site, they may not come back.

 

Don’t Forget About Data Quality

Taking the time to analyze and explain those metrics to others can increase your knowledge of customer behaviors and have a huge financial payoff, but not if your data is inaccurate. 

ObservePoint ensures that the “right” data is informing your most important strategies by using automation to audit your site and mobile app and alert your team to data collection errors. With validated data, you can trust the accuracy of customer insights and create strategies that will improve customer experiences and drive growth and ROI. 

 

See how ObservePoint can help you achieve accurate data and drive growth.

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