Choosing the right KPIs(Key performance indicators) is most important to measure the performance of a website accurately. While there are tools like Google Analytics, Yahoo Web Analytics that can be used to measure the performance of a website and give reports, it is a common mistake to choose the wrong KPIs in the first place. These tools may generate reports for the KPIs chosen, even if they are wrong. Taking the wrong reports into consideration, many businessmen often fall under the impression that their business website is performing well. But, the truth is otherwise.
Hence, what you need to do is, understand your business and what are its goals. A key performance indicator (KPI) is a business metric used to evaluate factors that are crucial to the success of an organisation. KPIs are parameters that measure the performance of each goal. Based on your goals, choose the right set of KPIs for your website.
Seven extremely valuable KPIs that can be used to measure the performance of a website are listed below.
It is the percentage of visitors to your website who navigate away from the site after viewing only one page. A rising bounce rate is a sure sign that your home page or landing page is boring and putting off visitors. On the other hand, it might also mean that the viewer found what he was looking for on the landing page and wasn’t interested in going further through the website.
Conversion rate per medium
It shows the conversion rate of each medium. The conversion rate is the ratio of number of visitors who perform the desired action on your website. For example, it can be clicking on any one of the call-to-action buttons. Conversion rate per medium is useful to monitor the social media channels linked to your website and distinguish your top selling channels.
ROI of outreach
It is used to evaluate your return on investment. Whatever income you receive from SEO may be the fees for your SEO. It should not be confused with what your client earns through your SEO efforts .You should make sure that you always get your return on investment irrespective of what outreach links you are building. The primary aim will be to reduce the costs for outreach.
New vs Returning visitors
This KPI is used to monitor and measure the number of new visitors who are visiting your website. By this, you can get an idea of how attractive your website is, such that it is drawing in more first- time visitors. It can also be used to track the number of returning visitors to check their loyalty. By analysing the various customer behaviours, you can also improve your website.
Cost per transaction
While this is quite similar to ROI, this KPI is used to allocate the advertising budget. It measures the costs incurred per transaction for promoting a specific campaign such as AdWords and banners. It measures how much money you have to spend on each campaign in order to generate one transaction.
Traffic generated by specified keywords
Traffic generated by specific words can be tracked and reported as maximum traffic building keywords. They may be phrases of two or a few words called long tailed keywords. By analysing the most searched words from the phrases, you can have a list of traffic generating keywords to know if you are doing SEO right.
Task completion rate
It is the percentage of people who feel that their task has been completed after coming to your website. This gives a measure of customer satisfaction. The purpose of your website is to serve the aid your audience in whatever the have searched for. If there are more people who say their job is done after coming to your website, it is a good indication of your website being efficient and useful.
There are no hard and fast rules that these seven KPIs should only be used to measure the performance a website. Along with these KPIs, you can use other indicators that suit your specific goals. Let us know what are the KPIs you use to measure the performance of your website!