COMP 7880: E-Business Strategies Creating effective web presence Dickson K. W. Chiu Ph. D, SMIEEE, SMACM, Life MHKCS 1
Strategic Premise Building a Web Site for an Enterprise or Non-Profit is Not an Exercise in Either Technology Or Aesthetics. It is an Exercise in Creating Satisfying Customer Experience in a Way that Leads to Cost-Effective Execution of Marketing Strategy. Dickson Chiu COMP 7880 -web-2
Effective Execution of Marketing Strategy n n n Building Web sites that deliver satisfying customer experience and do so in a way that fits both strategy and budget. Visual attractiveness is a plus, but not a necessity. If technology gets in trouble, it is a negative, not a plus, e. g. , flash intros/demos. Web sites is an important marketing strategy but not the only one - that must be cost-effective. Most Web sites should eventually be expected to produce a reasonable return on investment. Dickson Chiu COMP 7880 -web-3
Web Site Development Process n n Not too different from marketing / communications planning Planning a Web site should be first Foremost a business/marketing planning process Good business sense should take precedence Dickson Chiu COMP 7880 -web-4
Establishing Site Objectives n Enterprise/Unit Marketing Objectives n n cascade with levels The Interactive Nature of the Internet n n n Communications/Branding Objectives Behavioral Objectives Role of Web Site on Overall Marketing/ Marketing Communications Strategy n integration of online and offline strategy for multichannel marketers Dickson Chiu COMP 7880 -web-5
Identify / Describe Target Market n Demographics, Life Styles n Motives for using the site n Tasks they wish to perform n Consider utility and customization n Stepwise scenario development / use case analysis Dickson Chiu COMP 7880 -web-6
Site Content / Navigation Structure n What content do visitors need/expect? n How do they access content? n n Interactions n n More than just a straightforward replication of offline content Marketing research What role should visuals/graphics play? n Simple and Usable n Content and structure more important Dickson Chiu COMP 7880 -web-7
Typical Site Hierarchy n n n Enough second-level pages to clearly categorize content but not create confusion Visitor should never be more than 2 -3 intuitive mouse clicks away Avoid dead ends Dickson Chiu COMP 7880 -web-8
Main Page Design n marketers should specify the goals and requirements to guide the technical people Dickson Chiu COMP 7880 -web-9
Site Design Issues Content n Navigation n Color (especially background) n Font n Minimize Scrolling n Artwork n Animation/Graphics/Rich Media Demo Case: http: //www. cnet. com/ n Dickson Chiu COMP 7880 -web-10
Deployment and Tuning n n Uploading site server / hosting service raises many technical issues Calibrating and fine tuning for best site performance is highly technical Reliability and scalability issues Test at your target customers’ regions and environment! Dickson Chiu COMP 7880 -web-11
Measure / Evaluate / Improve Performance & Effectiveness n n Measuring and Improving site performance is a technical task Measuring and improving the business effectiveness of site is a marketing task Dickson Chiu COMP 7880 -web-12
Measurement Techniques n Concept Tests - basic marketing research techniques n Prototype Tests n Beta (Functional) Tests n Customer Usability/Satisfaction Feedback Dickson Chiu COMP 7880 -web-13
Measuring Web Customer Satisfaction n Employs research methods developed offline Adapted for the online environment Single measures vs multiple measures Dickson Chiu COMP 7880 -web-14
Satisfaction with Content Dickson Chiu COMP 7880 -web-15
Satisfaction with Transactional Experiences Dickson Chiu COMP 7880 -web-16
BIZRATE. com Surveys Customer Experience to Rate Sites At Checkout and After Delivery Dickson Chiu COMP 7880 -web-17
E-Commerce Satisfaction Drivers Dickson Chiu COMP 7880 -web-18
What Should The Marketer Do To Create Good Customer Experience On The Web Site? Dickson Chiu COMP 7880 -web-19
Stages/Elements of Customer Experience Dickson Chiu COMP 7880 -web-20
Continuous Improvement Essential Figure 9. 12 TOP Image Only Goes Here Figure 9. 13 TOP Image Only Goes There Dickson Chiu COMP 7880 -web-21
Elements WSJOnline Offers n n Usable Site Navigation Made Easier By Familiarity With Print Version n Personalization Options n A Trusted Brand Name n E-Mail Notices—Features, Breaking News n Community Through Feedback/Discussions Dickson Chiu COMP 7880 -web-22
Web Site Costs n 2 to 3 times as much to maintain a site as it costs to develop it initially! Dickson Chiu COMP 7880 -web-23
More on website evaluation COMP 7880 -W 2 -24
The Power of Clickstream to Produce Internet Metrics n n Tremendous amount of data produced on the Internet. One of the main challenges for the Internet marketer is to control this data to improve existing marketing programs and to gain insights into additional marketing efforts that have a high probability of being productive Dickson Chiu COMP 7880 -web-25
Purpose of Usability Testing n n n • • Visitors expect smooth navigation suiting their need To be pleased and not frustrated The fundamental basis of Web site usability is user task performance. Visitors come to the Web site motivated to accomplish some goal, to perform some task. Usability testing is designed to ensure that task performance is not only possible, but hopefully efficient and entirely satisfactory. Dickson Chiu COMP 7880 -web-26
Types/Stages of Usability Testing n n n Concept Testing - testing site design concepts to see if they make sense. This is primarily site structure, not design approaches. Prototype Testing - testing prototypes to see if they fit the manner in which users expect the site to be organized and laid out in order for them to complete tasks in an orderly fashion. Full Usability Testing - Testing the full usability of the site when it is functionally complete and most if not all of the content is there. Dickson Chiu COMP 7880 -web-27
Pareto Curve for Usability Testing n Over 75% of the problems can be identified with 5 user tests; only 15 are need to find 100% Dickson Chiu COMP 7880 -web-28
No Website can Ignore the Need for Usability Testing n n n Usability testing is critically important. A careful marketer can learn to do it, especially one who has had focus group training or experience. It can be outsourced to interactive marketing agency or a specialized marketing services firm. Dickson Chiu COMP 7880 -web-29
Site Performance Metrics Dickson Chiu COMP 7880 -web-30
Traffics & Audience Metrics n Site Administered n n Hit Counters Purchased Services n Server Request Log Data n Coded Web Pages n Customer Panel Data Dickson Chiu COMP 7880 -web-31
Hit Counters are Often Free They Provide Simple But Useful Reports Dickson Chiu COMP 7880 -web-32
What is a Server Log? n n n Server logs record every hit (every file requested) and most pages have many files. This is a necessary lead-in to understanding that the IT people use server log data to run the site and marketers use it (after much processing) to understand the performance of their marketing programs. Includes, e. g. IP address, date and time of request Dickson Chiu COMP 7880 -web-33
Basic Metrics – Site Traffic n Hits n n n Impressions. n n n recorded each time a file is requested little value in measuring site effectiveness. Typical advertising usage applies here. Each time a visitor has an opportunity to view an item, an impression is recorded. Page views (page impressions). n recorded each time a page is requested. Dickson Chiu COMP 7880 -web-34
Basic Metrics – Site Audience n n n Visitors - simple count of the number of people who visit a site Unique visitors - the number of different people Identified visitors - the next step up; now we know who they are Unduplicated audience - the number of unique visits/exposures in a specified time frame. Traffic and audience measures are obviously related. n n Traffic simply measures the activity on the site. Audience measures are of more interest to marketers who need information about the composition of that traffic. Dickson Chiu COMP 7880 -web-35
BASIC METRICS ALMOST INFINITE NUMBER OF SPECIFIC VARIABLES Dickson Chiu COMP 7880 -web-36
Sample ROI Report Dickson Chiu COMP 7880 -web-37
Sample Traffic Report Dickson Chiu COMP 7880 -web-38
Sample Path Report Dickson Chiu COMP 7880 -web-39
Sample Site Effectiveness Reports Dickson Chiu COMP 7880 -web-40
Almost Infinite Number of Variables/ Reports n n n By Single Variable By Multiple Variables By Day By Time Marketing Objective By Specific Page Should Guide the Choice Etc. , etc. Dickson Chiu COMP 7880 -web-41
Need for Ratings n n n Management to assess performance Investors to assess potential & returns Advertisers for traffic numbers Must be accurate & verifiable External audit is the preferred option Dickson Chiu COMP 7880 -web-42
Television Ratings n n n Create-once-sell-many medium Production costs don’t change with number of audience Producers cannot directly count their audience Independent panel-based measurement companies are preferred, e. g. ACNielsen Survey a representative sample of viewers and the TV channels to which they tuned Set-top box is used to record the viewing behavior Dickson Chiu COMP 7880 -web-43
Magazine Ratings n n n Create-many-sell-many medium They can count how many copies printed & sold No way to count magazines actually opened and read Independent companies verify circulation numbers based on audits of financial documents, mailing lists, postal receipts, and printing bills Survey is much harder than TV as the number of magazines is much higher than TV channels No mechanism similar to set-top box Dickson Chiu COMP 7880 -web-44
Web Ratings n n n n Create-once-sell-many medium Supply side resembles magazines but demand side resembles TV Can count using server logs how many pages were “printed” Can install set-top box like software to record viewing behavior Millions of web sites with billions of web pages require prohibitively large samples Representative samples are impractical to put together in addition to difficulty of installing measurement software Don’t guess but count! Dickson Chiu COMP 7880 -web-45
Something You Can Know n n The referral links let you know how much traffic is coming from where? Also captured are the search terms visitors typed into portals like Yahoo! Can discover the most-used entry and exit pages How long did they stay on each page? Dickson Chiu COMP 7880 -web-46
Dickson Chiu COMP 7880 -web-47
IAB Online Measurement Study
Background & Objectives n Online Advertising Measurement Study n n n n Interactive Advertising Bureau (IAB) Media Rating Council (MRC) Advertising Research Foundation (ARF) Conducted by Pricewaterhouse. Coppers (Pw. C) Review measurement criteria & practices for online advertising and audience measurement reporting Document and report the comparability of existing metrics used by the industry Propose a common set of industry definitions and guidelines for data analysis and reporting Dickson Chiu COMP 7880 -web-49
Scope n 11 participating companies selected by IAB n n n Participating companies represented 2/3 of total industry revenue Interviews n n portals (e. g. , AOL, MSN, Yahoo!) destination sites (e. g. , CNET, Forbes. com) third party ad networks / servers (e. g. , Avenue A, Double. Click) what types of audience and advertising data are measured how the data is measured and how it is reported Verified collection methods & definitions using scripted testing Identified discrepancies between definitions, editing procedures, and reporting Dickson Chiu COMP 7880 -web-50
The Fundamental Standard Metric Definitions + Well-Controlled Process = Reliable Ad Campaign Measurement Reporting Dickson Chiu COMP 7880 -web-51
The Top Five Metrics n n n n Ad Impressions Clicks Unique Visitors Total Visits Page Impressions Time Spent on Page Number of Completed User Registrations Conversions Dickson Chiu COMP 7880 -web-52
Top ≠ Currency Metrics n Ad Impressions n n Clicks n n n Contracts based on the Cost-per-Action pricing model Page Impressions n n Metric upon which revenue-generating contracts are based Content or page sponsorship Email Subscribers Email Messages Delivered Email Messages Opened Conversion Referrals Dickson Chiu COMP 7880 -web-53
Ad Impression n A measurement of responses from an ad delivery system to an ad request from the user browser filtered from robotic activity recorded at a point as close as possible to the actual viewing of the creative material by the user browser. Dickson Chiu COMP 7880 -web-54
Page Impressions n A measurement of responses from a web server to a page request from the user browser, which is filtered from robotic activity and error codes, and is recorded at a point as close as possible to the actual viewing of the page by the user browser. Dickson Chiu COMP 7880 -web-55
Ad Impression Measurement n Server Initiated Measurement n n prior to serving a web page to a user agent request the page is built with links to an ad resource ad impression transaction is recorded in a log Client Initiated Measurement n n direct connection between a user agent and the ad server via advanced HTML tags recorded via an independent request to a special ad transaction logging server Dickson Chiu # Participants 7 6 5 4 3 2 1 0 Server Client COMP 7880 -web-56
Ad vs Web Server Logging n Ad Server Logging n n n after receiving a request from the web server prior to rendering the content Web Server Logging n n after the ad server responds to the request prior to rendering the content Dickson Chiu COMP 7880 -web-57
Ad vs Counting Server Logging n Ad Server Logging n n n after receiving a request from the client prior to rendering the content Counting Server Logging n n after the ad server responds to the client a separate redirect call to the ad counting server Dickson Chiu COMP 7880 -web-58
Cache Busting for All n n Cached ads result in undercounting impressions Cache busting technology n n reduce an ad request to be cached in either a web browser or a proxy server append a random number to the end of an ad request append a time stamp to the end of an ad request All 11 participants support cache busting technology Dickson Chiu COMP 7880 -web-59
Clicks n n n A measurement of the user-initiated action of clicking on an ad element, causing a re-direct to another web location. Tracked and reported as a 302 redirect at the ad server. This measurement is filtered for robotic activity and is recorded at a point as close as possible to the actual viewing of the destination web location by the user browser. Dickson Chiu COMP 7880 -web-60
Uniform Use of 302 Redirects n n All 11 participants track clicks & share a common definition A click is a user-initiated action of clicking on an ad element causing a redirect to another web location A click does not include information on whether or not the user completed the redirect transaction All base click metric on 302 redirects (or transfers) successfully processed by the ad server Dickson Chiu COMP 7880 -web-61
Unique Visitor n n After resolving the two issues related to the visitor definition, consider the additional issues for defining unique visitors, including the use of sampling and estimates, and the treatment include or exclude visitors that do not accept cookies) of new cookies for cookie-based calculations. Dickson Chiu COMP 7880 -web-62
Unique Visitors n n 10 out of 11 participants track unique visitors Cookie Based n n n 8 use cookies with 2 using also IP address recurring vs new cookies Registration Based n 2 use registered users or user login counts Dickson Chiu COMP 7880 -web-63
Cookie Based Unique Visitors n n n Should new cookie be counted? Count all new cookies Exclude all new cookies n n a unique cookie must visit the site at least twice to be considered a new visitor Exclude some new cookies based on historical data n n using known user data estimate of new cookies representing repeat visitors that do not accept cookie Dickson Chiu COMP 7880 -web-64
Total Visits n n n Resolve whether the approaches to determining visitor counts can be addressed in one definition (I. e. cookies, user registration) require disclosure of the definition Resolve whether session time limits should also be included in the definitions. Dickson Chiu COMP 7880 -web-65
Total Visitors n n 10 participants calculate total visitors Definitions vary among participants Actual Sampling n n sample user activity (e. g. several days over a period) Statistical Analysis n to perform statistical analysis to estimate total visitors Dickson Chiu COMP 7880 -web-66
Web vs Ad Server Tracking n n 8 participants track page impressions 6 use standard web server logs n n n 2 use web beacon technology (see Yahoo) n n with successful HTML status codes filter from robotic activity A Web beacon is an object that is embedded and invisible but allows checking that a user has viewed the page or e-mail. no third party entity does the tracking Dickson Chiu COMP 7880 -web-67
Robotic Activity Filtering n n All participants perform some such filtering Basic n n n List of Known Robots n n n prevent robots from scanning the ad server exclude transactions from empty agents or “bot” agents based on User Agent Strings or IP address varied from 10 to 700 Behavioral Filtering n define business rules to identify robotic behaviors Dickson Chiu COMP 7880 -web-68
Internal IP Address Filtering n n n Eliminate any activity generated by internal monitoring tools Demographic of company users may not be representative Eliminate any activity generated by internal testing Dickson Chiu COMP 7880 -web-69
Independent Verification Dickson Chiu COMP 7880 -web-70
Resources n n Web Metrics: Proven Methods for Measuring Web Site Success, Jim Sterne John Wiley & Sons, Inc. , 2002 IAB Online Ad Measurement Study Pricewaterhouse. Coppers, 2001 Dickson Chiu COMP 7880 -web-71
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