Monday, July 1, 2013

Goals, Filters, & Funnels

“Every successful web metrics story starts with a very simple question: “Why do you exist? ... This question is asking why your business (or non-profit organization) exists. In a world where we are blessed with more data than God herself wanted us to have, it is often easy to skip past that question and just jump into reporting metrics. After all, metrics are so easy to find.” (Kaushik, 2010).

Kaushik, with his years of experience, has learned that for a business to be successful in its data collection and interpretation efforts it is important to “focus on a critical few metrics” in order to shape data interpretation and subsequently the conversation of the metrics with bosses and team members. Kaushik warns that “you shouldn’t have more than three of four critical metrics” (2012). If you have more, he says, then you are not doing your job well.

It is important to keep the above information in mind when beginning to look at goals towards conversion on a given site. This post will focus on creating Goals in Google Analytics. It will also look briefly at Funnels and Filters.

Goals


I explored the Goal functionality of Google Analytics this past week and discovered some of the key functionality. When setting up Goals on Google Analytics, there are 4 different of types of Goals a user can create: Destination, Duration, Pages/Screens per visit, and Events. In this post I will discuss the two I tested on my site: Destination Goals & Duration Goals. 


 1. URL Destination Goals


This function allows you to set goals around a specific page with a unique URI that you want your visitors to visit. For example, on my page, I wanted to test how many people I could direct to my latest post—a post I made about the use of “filter bubbles” by companies like Google and Facebook.  To do this, I set up a Destination type Goal and set “/2013/07/what-google-and-facebook-are-hiding.html,” as the URI of my post as the destination.  


By setting this up as a goal, I can now see how many people who visit the site go to that specific page. Here is the result after driving some traffic to the site through social media posts:


As you can see, the total number of completions for this goal was 9. That created a conversion rate of 18.75%.

Since the benefit of this for my blog is not that obvious, let us look at an example of where a Destination Goal would be considered a key metric:

Let me pretend that my site sold cat toys and related products. For the month of May, I have an overstock of 5 items that I want to increase sales of. To do this, I create a special page called “May Specials—35% off!” As a website owner, I can create a goal to drive at least 30% of the website visitors to at least visit this page. Each week, I test a different visual strategy to draw attention to the tab: In the first week, I use arrows to point to the tab. In the second week, I use highlighted colors. In the third week, I use a colorful banner. In the fourth week, I use a pop up.

By analyzing the goal completion rate, I can see which approach worked best to drive traffic to the May Specials URI. I can also look at the Traffic Flow to see the path visitors took to reach the May Specials tab in order to better understand Drop Off. By constantly comparing different approaches to the goal rates, I can refine optimization strategies and better understand visitor behavior.

2. Duration

A Duration Goal allows you to set a certain time limit that you want visitors to spend on your site or a page on your site. For example, on my site this week, I set a goal to have viewers spend 30 seconds or more on my site. One of the problems I noticed in the beginning of my installation of GA is that the engagement on my site was extremely low. Since the site is informational in nature, I wanted to understand what percentage of visitors were actually logging on and reading the content. Here are my results after some promotional efforts on social media sites:


As you can see, I had a total of 5 visitors stay on for 30 seconds of more. That results is a conversion rate of 10.42%. I can also see what specific posts were generating the goals. In this instance, the “What Google and Facebook are Hiding” post drove the highest number of goal completions.

The benefits of this metric are a little more obvious, even for an informational site like mine. In general, we want visitors to stay longer and engage with the site at a deeper level. By setting specific duration goals, we can see what percentage of visitors are sticking around for a desirable amount of time.

Funnels

A funnel represents the path you expect visitors to take on their way to converting to the goal.” (P.I. Reed School of Journalism, 2013).

Funnels help data managers understand how often visitors abandon goals and the paths they take to arrive at the goal or the path they took after they left the goal. Specifically for e-commerce websites, understanding funnels can be of great importance. For example, they inform continued optimization to check-out processes to increase final purchase and conversion rates.

Filters

“…filters can be set up to exclude visits from particular IP addresses, to report only on a subdomain or directory, or to take dynamic page URLs and convert them into readable text strings. (P.I. Reed School of Journalism, 2013).

A filter allows for inclusion or exclusion of certain sources of traffic. For example, a filter can improve the accuracy of a reporting by excluding certain IP address. To give an example, a filter can be set up to exclude information about a website tester, as he or she would be creating lots of traffic to a site that would affect conversion rates and statistics if counted as a regular visitor.


Conclusion:

 Goals, funnels, and filters help create data that can be understood on a mico-level. By isolating certain metrics that have been defined as key metrics for your website, analyzing them can inform effective and efficient optimization. In short, goals, filters, and funnels allow for targeted analysis, which can be used to understand conversion successes or failures. 


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