Saturday, April 20, 2013

Plan of Action: Measuring Success

Key Performance Indicators (KPI's) for TOMS: 

1. Cost Per Transaction (CPT) is a measurement that reflects the amount of money that is spent on ad campaigns, Adwords, e-mails, and then divides that by the number of transactions over a given period. TOMS will need this to decide on an advertising budget and which types of promotional efforts are most effective in driving the most traffic to the TOMS website. This can potentially increase site visits and sales transactions.

2. Click Through Rate (CTR) keeps track of the number of clicks on an advertisement divided by the number of times an advertisement is shown. Using CTR, it can represent the effectiveness of TOMS email campaigns, ad placement, and other advertisement decisions.

3. Average Transaction Value (ATV) represents the average in which customers are spending at the time.  It measures the overall effectiveness of the website which include promotions that are currently running, availability of items that the customer is looking for, ease of navigation through the site, and further more. Using ATV can also help TOMS to easily indicate and manage areas that are lacking and need improvement.

4. Average Items In Basket (AIB) represents how many units are being purchased at a time per transaction. This is an important tool as it helps to indicate whether or not the TOMS site is suggesting items that go along with the item purchased or showing the items that other customers bought at the same time.

5. Checkout Abandonment Rate (CAR) is the percentage measured of people that start to checkout and then, for some reason, abandon their cart and leave the site. Therefore, with this tool, TOMS can track down which step of the process customers are leaving and figure out a solution to prevent it.




Citations:
Zotos, Dimitris. "20 KPIs You Should Monitor in Google Analytics." Web SEO Analytics. Web SEO, n.d. Web. 23 Apr. 2013. <http://www.webseoanalytics.com/blog/20-kpis-you-should-monitor-in-google-analytics/>.
Kaushik, Avinash. "Best Web Metrics / KPIs for a Small, Medium or Large Sized Business."Occams Razor by Avinash Kaushik. Avinash Kaushik, n.d. Web. 23 Apr. 2013. <http://www.kaushik.net/avinash/best-web-metrics-kpis-small-medium-large-business/>.

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