Channel outcomes 4 Channel outcomes

Record customer actions taken as a consequence of a visit to a site.

Conversion rate

Percentage of site visitors who perform a particular action such as making a purchase.

Traditional marketing objectives such as number of sales, number of leads, conversion rates and targets for customer acquisition and retention should be set and then compared to other channels. Dell Computer (www.dell.com) records on-site sales and also orders generated as a result of site visits, but placed by phone. This is achieved by monitoring calls to a specific phone number unique to the site.

Key measure:

Channel contribution (direct and indirect).

Attrition rate

Percentage of site visitors who are lost at each stage in making a purchase.

A widely used method of assessing channel outcomes is to review the conversion rate, which gives an indication of the percentage of site visitors who take a particular outcome. For example:

Conversion rate, visitors to purchase = 2% (10 000 visitors, of which 200 make purchases).

Conversion rate, visitors to registration = 5% (10 000 visitors, of which 500 register).

A related concept is the attrition rate which describes how many visitors are lost at each stage of visiting a site. Figure 9.4 shows that for a set time period, only a proportion of site visitors will make their way to product information, a small proportion will add an item to a basket and a smaller proportion still will actually make the purchase. A key feature of e-commerce sites is that there is a high attrition rate between a customer adding an item to a basket and subsequently making a purchase. It is surmised that this is due to fears about credit card security, and that customers are merely experimenting.

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