Right now the Queensland Government is just opened up Round 4 of its Small Business Digital Grant...
Building a Better Online Business
Creating and managing your online business requires you to follow the same basic principals of any business - relying on sound Business Strategies. There are however, a few practices that differ or that just are unique to an online business. Here we share our views and experience with you to help you develop a more effective and profitable online business.
Understanding your websites purpose and objectives are fundamental to any business website should be the starting point of your website design.
This is simply not enough. You want to realise true success. If you don't know how well you are achieving your objectives and how can you satisfy yourself that you have achieved success?
“If you don't know where you're going-any road will take you there”
George Harrison 1988.
So how can you measure success in your website? Most people will respond by saying that they get sales reports stop the better educated will tell you how they have Google analytics. The biggest problem people have is that they haven't really planned what they need to measure.
The practice of setting KPIs your business equally relevant to measuring success your website stop the beauty of this is how well it fits in with Google analytics and even more so Google tag manager stop
So where do you start? Obviously, at the beginning with your websites purpose being clearly define. From there you will need to look at the objectives that you have set for your website.
Your objective should be statements of what it is that you want to achieve with your website. Some examples might be:
- to increase the average dollar value of each sales order.
- To increase the number of pages viewed in each user session.
- To increase monthly revenue.
If we look at these objectives, we see that they have no measures and this is fine stop in fact, we don't want measures at this point that is where your goals come into play. Your goals need to be specific and measurable. The other thing to note is that any single objective might have more than one goal stop let us look at our first objective "to increase the average dollar value of each sales order".
We might set the following goals in relation to this objective:
- to achieve 7% increase in the average value of orders within two months.
- To increase prices of by 5% without a decrease no end of line in monthly sales.
- To immediately offer of free shipping on orders over $200.
Okay now we have specific, measurable and achievable goals. How do we measure that? This is where your KPIs come into play and they could include:
- monthly sales value.
- Average order value.
- Monthly cost of shipping.
- Number of orders placed etc
Where you measure these KPIs will vary, but generally speaking you set up your Google analytics and tag manager with appropriate conversion and goals. Much of what you need can be obtained directly from Google analytics reports.
The secret with KPIs is not to swamp itself with too many stop ideally, choose the half dozen KPIs will give you the total picture. Lastly, remember that financial KPIs alone often overlook the true picture as these are generally historical and only take a narrow view of your business performance. Measuring customer complaints for example, might be a very powerful API in your business.
The other thing to bear in mind that KPIs is to pay attention to trends rather than actual numbers and try to interpolate future trends.
Published by: Top Left Designs on