3 - Convincing the Boss
The main reason those who manage sites need metrics is entirely mercenary: they have to please the boss (manager, venture capitalist, or board of directors), and use the numbers to convince him that things are going well, or that allocating more resources will help them to be better than they presently are.
Aligning Web Goals with Corporate Goals
Of primary importance is aligning the goals of the Web site with those of the organization. If the suits care about increasing sales or growing the customer base, it means nothing to tell them that the number of Web site hits is increasing and the site is becoming more "sticky."
And it's important to demonstrate that the Web is pertinent to the here-and-now. If the mantra is "cut expenses," you must show that the Web cuts expenses (not "increases product awareness" or even "increases revenue"). Any issue that isn't on the agenda isn't in the budget to address.
What's the ROI of Measuring ROI?
Where possible, you can show the ROI of Web projects by revenue directly earned, costs directly saved. However, this is seldom possible, and you may need to do serious contortions to make Web metrics yield a dollar amount, making their veracity suspect.
A random bit: sometimes the cost of crunching the numbers exceeds the value of having the results. An example is given of a set of metrics that, in the end, cost the company $2 million to generate, which consumed more corporate dollars than the 'improvement' they were monitoring generated.
Nonfinancial Value
Except for online stores and automated business processes, the most pertinent measures of success are largely nonfinancial, and the best place to turn for ammunition is marketing analytics: awareness, brand, customer satisfaction. These calculations do not result in a dollar value, but are at the same time things that most managers regard as being significant.
The Dashboard
Presently, "dashboards" are in fashion, as they provide managers an at-a-glance perspective of the key metrics.
Key decisions:
- What metrics are to be included on the dashboard? A vast array of "dials and gauges" that provides a nebula of information ends up meaning nothing.
- How are they presented? Simply stated, executives like to see green lights.
- How often is this data refreshed? While it's possible to present analytics in real-time, there are very few instances where it's really necessary?
Some of the key questions to ask are:
- What information are you getting now?
- What existing information do you not need?
- What additional information could you be getting?
- Is this new information worth the investment?
EN: I think he's skipped some of the most important questions - the ones that start with 'how' - such as "How are you using these metrics?" and "How would this new metric aid you in decision-making?" In my experience, that cuts through ha lot of the petulant BS and gets down to brass tacks.
Finally, it's worth noting that "snapshot" data is of little importance, and can be misleading. It's more important to look at trends.
The Balanced Scorecard
Another management trend is the "balanced scorecard," a fashionable idea from Harvard that suggests that financial measures alone are not sufficient, and suggest four key questions:
- How do our customers see us?
- What must we excel at?
- Can we continue to improve and create value?
- How do we look to shareholders?
Metrics that address those questions are meaningful to managers who follow this fashion.
Getting Sign-Off
From a management consulting firm, there are three tasks that will help get buy-in for your plans:
- Identify a specific sponsor, at as high a level as possible, and get him to provide air support
- Make sure that your project plan is clearly articulated: there is a clear plan, specific action steps, anticipated results, timetable, investment requirements, and potential benefits
- Draw on external experts to support your ideas whenever possible
The third bit merits a bit more content: executives are herd animals, less motivated by the facts presented by an employee than the opinion of others. If consultants and industry "experts" think it's a good idea, if people in accounting and marketing are on board (not just the Web team), if it's something that the competition seems to be doing, they are more comfortable with making the "decision" to go along with the crowd.