Choosing Metrics That Matter
A Strategic Guide to Digital Analytics – How to focus on the numbers that directly relate to your business objectives and your customers' journey
"What are the most important metrics to track?" It's a question I often hear when consulting on digital analytics projects. And while "It depends…" might not be the most satisfying answer, it's the honest truth. The metrics that matter most depend on your business model, your ideal customer, and how you want them to interact with your content.
In today's data-driven world, we have access to more information than ever before. But without a clear strategy, all that data can become overwhelming. To help you navigate this landscape, let's break this down into two parts: first, creating your strategy; and second, defining your metrics.
Why Generic Analytics Solutions Aren't Enough
Standard analytics platforms offer a wealth of information, but not all of it is relevant to your specific needs. Tracking generic metrics without a focused approach can lead to information overload, making it harder to extract actionable insights. The key is to focus on metrics that directly relate to your business objectives and your customers' journey.
Think of metrics as measurable indicators—like sales numbers, customer satisfaction scores, or project timelines—that help track how well each department is supporting overall objectives.
Table of Contents
Part 1: Creating Your Strategy
Define Your Unique Business Goals
First, consider what success looks like for your business. What actions do you want your users to take? Maybe it's making a purchase, signing up for a newsletter, or engaging with your content. Identifying these goals is the crucial first step in shaping your analytics strategy.
Understand Your Ideal Customer
Get clear on who your ideal customer is. What are their needs, preferences, and pain points? How do they typically interact with digital content? Understanding your audience helps you select metrics that provide meaningful insights into their behaviour.
Map Out the Customer Journey
Visualize how your ideal customer interacts with your digital platforms. Where do they start? What paths do they take? Where might they encounter friction? Mapping out this journey highlights where specific metrics can offer valuable insights.
Collaborate with Your Team
Engage with colleagues across different departments—marketing, sales, customer service—to ensure that the metrics you choose resonate with everyone involved. This collaborative approach ensures your analytics strategy supports all aspects of your business.
Part 2: Defining Your Metrics
Select the Right KPIs for You
With your goals and customer journey in mind, choose Key Performance Indicators (KPIs) that directly impact your business objectives. KPIs are the essential targets that guide you toward achieving strategic business goals. They align with your strategy and keep teams focused on the most impactful priorities. Prioritize them based on their relevance and potential impact.
KPI Examples Based on Business Models
Since the most important metrics depend on your specific situation, let's explore some examples based on different business models.
Content-Based Businesses
If you run a blog, online magazine, or digital knowledge base, your primary goal is likely to engage and retain readers.
Metrics to Consider:
Traffic Sources: Understand how readers find your content.
Most Viewed Content: Identify which topics resonate most.
Time on Page: Measure how deeply readers engage with your articles.
Scroll Depth: See how much of your content readers consume.
Email Sign-Ups: Track how content converts casual readers into subscribers.
Additional Recommendations:
Implement UTM parameters to track the effectiveness of marketing campaigns.
Use analytics tools to set up events for content shares and downloads.
Monitor SEO performance to enhance visibility and attract organic traffic.
Service-Based Businesses
For professionals like consultants, lawyers, or agencies, the goal is to generate quality leads and build trust.
Metrics to Consider:
Contact Form Submissions: Monitor inquiries for your services.
Phone Calls Clicked: Track direct contact from potential clients.
Service Page Views: See which services attract the most interest.
Content Downloads: Measure engagement with case studies or whitepapers.
Additional Recommendations:
Set up tracking for key engagement actions on your site.
Use lead scoring to assess the quality and potential value of inquiries.
Ensure compliance with GDPR and CCPA when collecting user data.
Product-Based Businesses
If you're in e-commerce or offer digital products, your focus is on driving sales and customer loyalty.
Metrics to Consider:
Conversion Rate: Calculate the percentage of visitors who make a purchase.
Average Order Value: Understand how much customers spend per transaction.
Cart Abandonment Rate: Identify and address obstacles to purchase.
Customer Lifetime Value: Measure the long-term value of your customers.
Product Return Rate: Monitor product satisfaction and quality.
Additional Recommendations:
Utilize enhanced e-commerce tracking in your analytics platform.
Conduct A/B testing to optimize product pages and checkout processes.
Create custom dashboards for quick access to key sales metrics.
Prioritize and Document Your Metrics
Once you've identified potential metrics, it's important to prioritize them:
High-Priority Metrics: These directly influence your main business goals and should be your primary focus.
Secondary Metrics: While still valuable, these support your high-priority metrics and provide additional context.
Using a spreadsheet or tracking tool, rank your metrics based on their importance and ease of implementation. Include a description that outlines why this metric is important for your business to track.
Sample Metric Prioritization Table
Final Thoughts and Additional Considerations
Keep Privacy and Compliance in Mind
While tracking user behaviour is essential, respecting privacy is non-negotiable:
Compliance: Adhere to regulations like GDPR and CCPA to avoid legal issues.
Transparency: Be clear with users about what data you're collecting and why.
Security: Protect user data to maintain trust and credibility.
Regularly Review and Adapt
Your analytics strategy isn't set in stone. Schedule regular reviews to:
Assess Performance: Look at how your chosen metrics are performing over time.
Refine Your Approach: Adjust your tactics based on data insights.
Stay Current: Keep up with industry trends and benchmarks to ensure you're not missing out on new opportunities.
Collaborate With Other Teams and Departments: When every department has insights that show them how their work contributes to the larger mission, they’re empowered to drive more value across the organization (learn more here).
Bringing It All Together
Remember, the most important metrics for your business truly depend on your specific goals, audience, and how you want users to interact with your content. By tailoring your analytics strategy to these factors, you'll gain insights that can significantly impact your success.
Let's Navigate the Metrics Maze Together
If you're looking to dive deeper into digital analytics and strategy, subscribe to my blog here on Substack or connect with me on LinkedIn to stay ahead of industry trends and gain practical insights that you can apply to your own digital projects.