My particular task today is to chose a company and discuss
what their critical metrics, macro conversions, and micro conversions are. For
this task I will choose Amazon (http://www.amazon.com)
as my company.
What are their critical metrics?
I believe the critical metrics for Amazon are: Bounce Rate,
Conversion Rate, and Engagement (degree and kind). The bounce rate is critical
because it highlights the percentage of people who visited their site without
opting to provide additional clicks. The Conversion Rate is critical because it
is a representation of the number of order generated divided by the number of
visits or unique visitors. The Engagement metric allows Amazon to see just how
engaged their customers are with their website, regardless if the degree and
kind is positive or negative. Amazon can learn from how many pages their
visitors see. If a customer sees a lot of pages, but does not make a purchase
then Amazon knows it has something to work on. If customers are viewing
multiple pages and making purchases, then Amazon knows their customers are
positively engaged and their website is moving in the right direction.
What are the Macro Conversions?
The Macro Conversion for Amazon is completed orders.
Granted, the number of visitors to their site is valuable information, but the
bottom line is whether not a sale was made. If there are tons of visits but a
minimal amount of purchases then Amazon has some work to do with their webpage
and business strategy. If visits translate into order then everyone at Amazon
is happy.
What are their Micro Conversions?
The Micro Conversions for Amazon are: Accounts created,
Applications for “Amazon.com Store Card”, and Product reviews. Customers
creating accounts signifies that they are making a purchase and are likely to
make future purchases. The same could be said for the “Amazon.com Store Card.”
Since this credit card is only accepted at Amazon.com, customers most likely
will conduct their shopping where they can finance their purchases. Chances are
they would not sign up for a credit card, for a particular place, if they did
not plan on making future purchases. Product of reviews is a good way for
Amazon to learn what products people like or dislike. Product reviews can also
serve as free advertising that can influence the purchases of new or returning
customers.
James,
ReplyDeleteExcellent, well thought out post!
I think AMZ is a great company to choose for this post because they have several metrics which one could analyze, so narrowing them down to the CF presents a genuine application of the concept.
I would think AMZ is obsessed with things like BR, CV Rate, etc -- as you mention. I would also imagine they have various goals set for those metics, as well as "floors" that indicate if something goes below a standard.
Again, excellent work.
Nice job :)
ReplyDeleteI’d be interested in seeing all the analytics going on at a company like Amazon. Conducting nearly all your business online must accumulate an amazing amount to sift through. Because of this identifying the critical few metrics is incredibly important but perhaps difficult. I agree that completed orders are significant and important for Amazon to focus on. I’d also monitor total traffic and see where most people who buy and just browse spend most their time. I suspect a lot of people use Amazon for price checking and product reviews but ultimately buy elsewhere.
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