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Title:
Web Metrics: Proven Methods For Measuring Website Success
Review:
As e-commerce moves into a more mature stage of development, web
managers are becoming aware of the need for purposeful web strategies
that focus on building relationships around understanding of the
behaviour and needs of customers. At the heart of any successful web
strategy will be clearly defined measures for success that can feed
back into the lifecycle development of the website. All websites
generate vast amounts of data. Understanding the data in context and
developing knowledge that can be applied to key business processes is
the key.
This text by Jim Sterne is a detailed attempt to provide a guide to
developing business-focused web metrics that will clearly integrate
with key online business goals. At 430 pages this text is the most
comprehensive and detailed I have seen on the subject. Sterne's
background is Internet marketing and draws on experience from working
with Eastman Kodak, Ericsson and IBM. The perspective, although
marketing focused, is based on sound technological understanding and
explanation.
The book reflects the concept that measurement processes must be
repeatable and should relate to the overall strategy process model.
Focus of the book is clearly set out at the start as being about
"measuring your success with customers"; it is not a book about
technology. Therefore it does not contain much detail about
configuring web servers or using the many web statistics software
packages or services, such as WebTrends .
In terms of a structured approach we are guided through stages in
understanding and developing a coherent 'measurement of success'
strategy. Working through measurement steps in a logical way, Sterne
first develops definitions and an understanding of measurement, then
presents ways to win over senior managers to the cause - investing in
web measurement, related to ROI. The text then builds up a
portfolio of measurement techniques, starting with the method of log
analysis -- 'sawing logs' as Sterne calls it! However, log analysis
is only the start of the measurement process.
Sterne does a valuable job in relating measurement to issues such as
improving navigation and usability and how customer relationship
management strategies should be integrated and/or informed. In the key
chapter "How good are you at buying noise", Sterne develops a clear
approach to measuring how much is paid to get people to turn up, and
the value of each visit. This is then developed into strategies
related to customer conversion and maximising customer information via
personalisation.
The supporting material includes many explanatory diagrams and
screenshots from server logs, visitor analysis software and current
websites. In the penultimate chapter, Sterne uses a 'field study'
based on acknowledged leader in this field, Compaq, to show how these
concepts have been translated into value driven action.
Slightly disappointing for Free Pint readers will be the lack of
coverage of intranets and extranets, often left out in this type of
text. Although some of the principles can clearly be applied to
intranet/extranet scenarios, it would be highly valuable to develop
some web metric case studies on this area. Looking at metrics issues
related to community of practice management on intranets, for example.
On a practical note, the book lacks a bibliography or key reference
list at the end of each chapter; the many websites that are listed
throughout the text are drawn out into a list as a quick reference
tool on the companion website. The website contains little else and
would seem to represent a missed opportunity to bring some of the
issues alive using interactivity. In terms of a learning approach,
pedagogical structure is lacking (review questions, chapter summaries)
but, as Sterne states, the target audience is executives, web and
marketing managers, rather than students. This can't be highlighted as
a major drawback.
Overall, I would recommend the book. It is certainly a leader in a
field that is developing into an important but increasingly complex
topic. Sterne's knowledge of the topic is evident throughout, based on
real business scenarios with customer relationships at the heart. The
principles in the book can be applied to any scenario - an SME using
free analysis tools to multinationals spending millions on CRM
strategies. However, it may be that the marketing style in which
Sterne writes is not for everyone, and sometimes it is hard to see
through some of jargon-heavy discussions. It is a text that will need
to be read alongside the many white papers on the topic that vendors
produce and general texts on performance management, such as 'The
Balanced Scorecard' by Robert Kaplan.
Free Pint Reviewer:
Steve Wood is a Lecturer in Information Management at the School of
Business Information, Liverpool John Moores University
<http://www.livjm.ac.uk>.
Steve lectures on undergraduate and postgraduate programmes on web
development and management, knowledge management, network management
and information policy. Research interests include knowledge
management and freedom of information legislation. Before moving into
academia Steve worked for HM Treasury as Intranet and extranet
manager.
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