Analytics
Tough times call for tough measures
The American automotive industry is at a turning point; its likelihood to succeed in a changing economic landscape is dependent on its ability to pragmatically develop and implement revolutionary business strategies. But how does an industry that changed how business was conducted in the 20th Century decide which strategies will be most innovative and effective in today’s environment? By embracing 21st Century solutions.
Even though automakers are prohibited by dealer franchise laws from selling new vehicles online to consumers, the U.S. brand sites of high-volume manufacturers attract hundreds of thousands, if not millions, of unique visitors each month. These sites arm potential customers with information on vehicle model options, features and specifications that help them narrow down their consideration set. By recognizing and acting on this, an organization can provide itself with powerful insights that can positively impact the decision-making process. Web analytics is a tool that enables organizations to do just that.
The importance of aligning digital objectives with business goals
There are countless web analytics practices that result in useful and actionable insights, but some are more applicable to the automotive space. Before we look at four web analytics best practices for this industry, it is worth mentioning the importance of digital goals. Frequently, business owners do not align digital initiative objectives with business goals. When this happens, those responsible for ensuring the initiative’s success can become frustrated, rendering the digital initiative less effective.
In web analytics, it is integral to ensure that every digital initiative has logical and prioritized goals. For example, take a microsite that is expected to serve dual, conflicting purposes – the web property’s producers are tasked with both engaging visitors with compelling content as well as referring those same visitors to a brand site as expediently as possible. Successfully delivering on the first goal, which will be measured in part by pages visited and time spent on the site, effectively negates the latter one. (Not only is this frustrating for the site producers, but it can also create “Should I stay or should I go?” moments for users.) If a high number of sales referrals trumps site engagement as the preferred success metric, the business owner must clearly communicate this and realign the organization to better deliver on this goal. In turn, the web analyst will have a better idea of what needs to be measured and how to communicate progress made back to the business.
Four web analytics best practices for the automotive space
1. Developing and tracking Key Performance Indicators (KPIs).
KPIs are calculations that determine the success of a site based on predetermined goals. These calculations incorporate numerous applicable web metrics into a single equation. Good KPIs are a necessary cornerstone of any web analytics plan. Because new vehicles cannot be purchased online, it is helpful to track the progress of less tangible successes to determine the effectiveness of digital content.
In most cases, KPIs are the most effective way to accomplish this. For instance, tracking the percentage of site visitors who request a price quote may indicate the site’s effectiveness at influencing a visitor’s intent to purchase. Additionally, associating a well thought out value to a site activity, such as viewing vehicle specifications, will allow for the determination of a return on investment. An effective ROI model for digital initiatives can be the ultimate indicator of success levels – especially if a shopper’s online actions can eventually be tied to available offline data, such as a new-vehicle purchase.
2. Trend telling data and document potentially relevant digital influencers.
Traffic reports without context can be potentially misleading. Imagine that your website had a half million unique visitors this month and two million uniques the previous month. Without any additional information, this dramatic drop would be cause for concern. However, if last month’s numbers were precipitated by a huge short-term spike in media spending, a subsequent decline would have been anticipated.
Easy access to historical data for comparisons and a record of relevant influencers help provide answers to questions generated by web analytics. With the lifecycle of digital properties for automotive products often measured in years, this tactic can be particularly valuable.
3. Every web analytics analyst should consider the implications of leveraging cookie-based metrics.
For those who are unfamiliar with cookies, they are packets of text relayed between a site viewer’s browser and the server that delivers the site’s content. Cookies, of which there are numerous technical implications to consider, are the dominant means for tracking components of digital initiatives. If a web analyst is unfamiliar with the intricacies of cookies, he or she could easily misinterpret the meaning of cookie-dependant data. This is particularly important for automotive organizations, whose digital presences are often complicated, far-reaching, and well trafficked.
4. Web analytics platforms should be as consolidated and standardized as possible.
Because automotive manufacturers are complex institutions comprised of various business units (i.e. production, financing and marketing), their web analytics have the potential to be so overwhelmingly complicated that it can diminish the usefulness of the tool. A holistic and consistent web analytics setup means that a web analyst spends less time pulling, reconciling and deciphering data and more time analyzing it. The latter is undoubtedly the preferable way for an analyst to be spending his or her time – for their own sanity and their organization’s betterment. Web analytics for all business units should be under as few roofs as possible. Consolidated data is more valuable data.
Gaining acceptance for data-driven insights
With a wide range of web analytics practices available, keeping a few in mind helps maintain one’s focus and, invariably, improves results. Keep in mind that an analyst can only do so much to promote the usefulness of his or her work. A compelling web analytics evangelist, someone with organizational rank and influence, is often required to promote the usage of web analytics as an effective tool.
All large organizations, regardless of industry, that do not maximize their usage of web analytics to inform key decisions are missing out on an opportunity that has proven to be incredibly beneficial. Those responsible for the success of the automotive industry have everything to gain from utilizing web analytics properly and nothing to lose.
Image credits:
Headlightblog.com analytics dashboard screenshot appears courtesy of Google Analytics; 2007 Jaguar XK speedometer index page image appears courtesy of Wieck Media.
