How do you encourge your staff to improve your website?

Pay them to do so of course.

Last year I read an interesting book, Freakonomics where the author makes explicit many of the things regarding human motivation you probably implicitly knew in a very clear and entertaining way. This lead me to thing about the way my salary had been set in the past along with the targets of my colleagues.

One of the problems with asking your staff to improve your website is that just as you have trouble defining what is regarded as KPIs for your organisation, you then have to try and tie these things to individuals salary and targets.

An example of one thing I once saw was that the online sales people were given targets to increase sales and conversion as well as continuing to maintain the site with the regular BAU changes.

Increasing sales could be tough. In this situation, sales were separate to marketing and also to product marketing. All they really had within their immediate power was to change the website. One would think this a good thing, for them to increase sales there would need to be enhancements to the website.

However, two things were noticed by these individuals

• whenever a product was competitively priced in the market place, the online sales and conversion would dramatically increase regardless of changes to the website.
• whenever marketing made a big splash, sales would also increase but usually to the detriment of conversion.

The upshot of this was that they concentrated more on lobbying product marketing to produce "competitive products" as it was simply the easiest way for them to hit their targets than almost anything they could do onsite. If product marketing shifted in their favour, they would easily hit their targets, if they didn't, well they could hope that the general trend for increasing sales online would continue or else blame the "competitive landscape" and hope things would be better next year.

The point I'm getting to is that though their targets were directly tied to a key "KPI" for a retail website - its sales (and even its conversion), nothing about that KPI actually encouraged this team to do anything to improve the company website - nothing spelled it out for them.

Had it been my team, I would have liked to acknowledge that product sales can be price sensitive and also sensitive to marketing however this should not have stopped the team from being encouraged to change their site as much as possible during the year. I would have set lower thresholds for sales and conversion i.e. they must not go below X where X is linked to a combination of previous sales in previous period, offline sales of the same period (to provide indication of market performance) with the empahasis that they must have conducted a series of Y trials during the period as well as BAU changes.

The size of the trials is probably up for debate, obviously a bigger trial (on the homepage or registration form) could have a bigger negative impact on sales than a smaller piece of functionality but I would actually wish to encourage calculated risk taking through a formal test process and so would set an individuals size of trial and sales thresholds dependent on what contribution I believe their area plays on sales.

I would then assess the staff additionally from the perspective of the ease/number of tests
they performed, i.e. are they doing it effectively and efficiently combined with the revealing of any particularly useful insights. (things to consider would be number of tests, size of trials, impact of area changed)

So what I would be doing is encouraging a workplace where new ideas go hand in hand with accountability and individuals feel empowered to make a difference rather than having a lack of focus to update and improve their website.

Seth Godin's Meatball Sundae part 1

Seth Godin is clearly the new wunderkind of online marketing. So much so Omniture has invited him to speak at the upcoming Omniture summit.

I figured it would be interesting to take a look at his book, Meatball Sundae, and see what I can glean from it. Unfortunately I'm not one for buying every book that comes from the next big thing, if I did I'd probably be significantly poorer than I am now so what I propose is to look at Seth's excerpts and see whether it looks like a good buy.

Let me tell you what I hoped the book would be about after hearing the title. I assumed that it was an analogy to show how customers when faced with confusing content, messages or indeed food courses might not produce the desired outcome of a pleasurable eating/online experience. (as a side note, it is exactly this kind of mixing of foods combined with excellent execution that sparked the public interest in Heston Blumenthal with delights such as bacon and egg ice cream and snail porridge however I doubt Seth realised this when considering his title)

I'll also be honest and say that by writing about Seth I am essentially trying to ride his coattails a little but I believe this kind of reviewing is exactly what blogs are ideal for.

Lets begin with a quickie.

"The Most Important thing Understand that you don't get to decide what the market demands. The market does."

In my mind, if you take this as his first point, I think the second that Seth needs to add is that you are in control of how you react to market demands - and thats where marketers add value.

Does this mean marketing is always reactive to market demands? Of course not. Thats what market and product research is all about, giving you as close an view to whats really going on in the market place as possible.

However, what it does mean is that we have to put in place

• checks and balances to ensure we capture when our marketing begins to perform poorly. (measurement for management)
  
• processes that will ensure maximum return when the market does indeed swing our way (cross channel optimisation).
  

Fallout, Pathing & Clickstream over multiple visits

I think I need a bit quicker turnaround on my blog posting.

So here's a quick one.

Clickstream analysis or fallout report is very useful on a specific set of sequential actions but it is overrated in many of its applications in web analytics tools.

When analysing your clickstream data it should be at the visitor level with the option to look at the visit level if need be.

By looking at visit level data, yes you will be able to understand what parts of the process are letting you down but you will struggle to place an accurate value on this fallout because you will likely be ignoring many of your customers future actions.

Retail example

A good example of this is where a customer is asked for some information they don’t know off hand and their session times out before finding it. They then have to go through the complete process again to complete it. That first fallout was not a “true” fallout and it helps to understand this value in comparison to “regular” fallout.

Knowing you have a 50% fallout rate at a given point means different things if you consider two scenarios 1) where 100% of the people come back to complete the process end to end again 2) where only 10% of people come back and complete the process end to end.

In 1) It’s a temporary glitch in the purchasing process and it might make a lot of sense to develop some save and return functionality to make it smoother for a quantifiable portion of your customer base in 2) its indicative of a hurdle people don’t wish to get over and you need to seriously ask yourself why you are putting your customers through this pain.


B2B example

I’m an executive who downloads a PDF 5 times before becoming a lead. The fact I downloaded the PDF many times is in fact irrelevant (I just happen to be forgetful of where I download it to), the act of downloading is the key action that needs to be connected to the lead. This means for me you only see a lead created 1 in every 5 downloads (really poor lift/high fallout – 20%/80%) whereas in my case the connection between download and lead happened 100% of the time. Multiple me by all the other forgetful executives there are and suddenly you’ve lost insight of the power of one your greatest lead generators!

Hope that helps.