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Chapter Eight: Metrics

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Metrics can improve a firm's growth and vitality by: ... to compete with addictinggames.com. What do I want to know about visitors? ... – PowerPoint PPT presentation

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Title: Chapter Eight: Metrics


1
Chapter Eight Metrics
  • Introduction to e-Commerce
  • Emmett Dulaney

2
Metrics
  • Metrics can improve a firms growth and vitality
    by
  • Forcing a better definition of the business model
  • Improving the communication of strategy
  • Taking advantage of instantaneous performance
    tracking

3
Traditional financial metrics
  • Include
  • Cash flow
  • Gross margins
  • Operational income

4
Customer metrics
  • Include
  • Market share
  • Customer satisfaction
  • Profitability

5
Internal business process metrics
  • Include
  • Innovation
  • Operations
  • Postsale service

6
The Balanced Scorecard Model
  • Created by Kaplan and Norton
  • Attempts to reduce the number of metrics managers
    have to constantly look at (and offset their
    focus on short-term financial performance)
  • It looks at four areas Financial, customer,
    internal business process, and learning/growth
  • While a useful tool, it fails to address
    important unique needs of online firms
  • (exhibit 8.1 page 278)

7
In The Performance Dashboard Model
  • The strategy framework drives the necessary
    metrics
  • Resources are featured
  • Partnerships are featured
  • Developing the business strategy is the most
    important step in implementing the performance
    dashboard.
  • In attempting to prepare for the future, a firm
    must identify leading indicators.

8
Key Concepts
  • Metrics used to assess the firms value
    proposition should focus on customer perceptions
  • The consumer reaction to a website is measured
    by customer interface metrics
  • Customer outcome metrics include
  • Average order size
  • Customer acquisition costs (during the customer
    acquisition stage of the companys life, market
    share is the primary strategic concern)
  • Customer profitability

9
Key Concepts (cont)
  • Incentive programs are primarily concerned with
    creating customer loyalty (traditionally, firms
    have focused on the purchase stage of the
    customer process)
  • Firms which provide a consistent customer
    experience in both their online and offline
    channels are said to be seamless. Seamlessness
    metrics includes
  • The ability to open/access online/offline
    accounts
  • Integrated customer databases
  • Seamless order processing/tracking

10
Research
  • The major advantage of using analyst research
    is expertise. Hoovers, for example, is known for
    its financial information
  • User-based research (such as BizRate.com) can
    deliver large input bases, credibility, and
    trust, but lack expertise (fickleness, etc.)

11
I am starting a web site
  • to compete with Amazon.com.
  • What do I want to know about my visitors?

12
I am starting a web site
  • to compete with addictinggames.com.
  • What do I want to know about visitors?

13
How Important are these Metrics?
  • When visitors go to anderson.edu, the
    subdirectories they access in order of most
    popular to least popular are
  • /athletics
  • /humres
  • /academics
  • /welcome
  • /cgi-bin
  • /admissions
  • /campus
  • /falls

14
/falls related information
  • The busiest days of the week are Monday and
    Tuesday
  • The average number of views per day is between
    1700-1850 (peaks are above 2000 and valleys are
    below 1000)
  • The most popular folder beneath /falls is /mba
    with 6.8 of views (/images is over 50)
  • The most popular file is /falls/faculty.html
    (12.99)

15
/falls/faculty
  • Is the entrance page 18.79 of the time
  • Is the exit page 44.44 of the time
  • Has an average view time of 32 minutes, 5 seconds

16
Misc
  • 72 of all visitors to anderson.edu are in the
    same timezone
  • The most common screen resolution is 1024x768
    (65)
  • The most common color depth is 32-bit (78)
  • 84 of all visitors are running IE, 90.54 are
    running Windows

17
  • What, of this, can you use?
  • What doesnt matter at all?
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