Unit 1

2 marks
1). Compare Opensource vs licensed platform

Cost: Open-source platforms are usually free to use, while licensed platforms require a license fee to
use. This can make open-source platforms a more cost-effective option for small businesses or
individuals.

Customizability: Open-source platforms are highly customizable because the source code is publicly
available, allowing developers to modify the software as per their requirements. Licensed platforms
offer limited customization options as the source code is not accessible.

Community Support: Open-source platforms have a large community of developers who contribute
to the development, improvement, and support of the software. This can provide users with a wealth
of resources and support. Licensed platforms usually offer support through their customer service
teams or developer community, which may be more limited in scope.

Security: While both open-source and licensed platforms can be secure, open-source platforms are
more transparent about their security practices because the source code is publicly available. This
means that security vulnerabilities can be identified and resolved more quickly. Licensed platforms
may have proprietary security measures that are not visible to the public.

Features: Licensed platforms may offer more features than open-source platforms, as they are
developed by companies with dedicated teams and resources. However, open-source platforms can
often match or exceed the features of licensed platforms due to their community-driven
development model.
2). Define web analytics.

Web analytics is the process of analyzing the behavior of visitors to a

website. This involves tracking, reviewing and reporting data to measure
web activity, including the use of a website and its components, such as
webpages, images and videos.

Data collected through web analytics may include traffic sources, referring
sites, page views, paths taken and conversion rates. The compiled data
often forms a part of customer relationship management analytics (CRM
analytics) to facilitate and streamline better business decisions.

3). Mention a few current analytics platforms.

1. Microsoft Power BI Desktop.

2. Tableau.
3. SAS Visual Analytics.
4. Qlik Sense.
5. Amazon QuickSight.
6. Alteryx.
7. IBM Netezza Performance Server.
8. ThoughtSpot.
9. RapidMiner
10. KNIME
11. Apache SPARK
12. Microsoft Excel

4). Define web social media

Web social media, also known as social networking sites, are online platforms that enable users to
connect and communicate with other users who share similar interests, hobbies, or backgrounds.
These platforms allow users to create a personal profile, share and consume content, and interact
with other users through various features such as messaging, commenting, and liking.

Some of the most popular social media platforms include Facebook, Twitter, Instagram, LinkedIn, and
TikTok, among others. These platforms have become an integral part of daily life for millions of
people worldwide and are used for a variety of purposes, including socializing with friends and
family, networking with colleagues and professionals, sharing news and information, and promoting
products and services.

Web social media has also transformed the way individuals and organizations communicate and
interact with each other. They have enabled individuals and groups to reach wider audiences and
have given rise to new forms of activism, fundraising, and social movements. Additionally, businesses
use social media as a marketing tool to engage with their customers, build brand awareness, and
drive sales.
16 Marks

1). How to Track social media in Google Analytics

https://blog.hootsuite.com/tracking-social-media-in-google-analytics/

https://sproutsocial.com/insights/google-analytics-social-media/

Tracking social media in Google Analytics can provide valuable insights into the impact of your social
media marketing efforts on website traffic and conversions. Here are the steps to track social media
in Google Analytics:

Set up Google Analytics: If you haven't already, you need to set up Google Analytics for your
website. You can do this by creating an account on the Google Analytics website, adding your
website as a property, and adding the tracking code to your website.

Set up social media tracking: In Google Analytics, go to the Admin section and click on "Goals". From
there, click on "New Goal" and select "Custom". Name the goal something like "Social Media
Referral" and choose "Destination" as the type. Enter the URL of your website's thank-you page or a
unique URL that will only be reached by visitors coming from your social media channels.

Tag your social media links: To track social media traffic in Google Analytics, you need to add
tracking parameters to the URLs you post on social media. You can do this by using Google's
Campaign URL Builder tool. Enter the URL of the page you want to promote, add a campaign source
(e.g., Facebook, Twitter), and any other relevant information (e.g., campaign name, content, etc.).
The tool will generate a tagged URL that you can use in your social media posts.

Monitor your social media traffic: After you've tagged your links, you can monitor your social media
traffic in Google Analytics. Go to the Acquisition section and click on "All Traffic". From there, select
"Source/Medium" to see a breakdown of your traffic by source. Look for traffic from your social
media channels (e.g., Facebook, Twitter) and click on it to see more detailed information, including
the number of sessions, bounce rate, and conversion rate.

Here are some additional tips for tracking social media in Google Analytics:

Use consistent tagging: Make sure to use consistent tagging across all your social media links. This
will ensure that you can easily compare the performance of different social media channels.

Use UTM parameters: UTM parameters are an alternative way to tag your social media links. They
are more flexible than the standard tracking parameters and can provide more detailed insights into
your social media traffic.

Set up goals for social media campaigns: In addition to tracking social media referrals, you can also
set up goals for specific social media campaigns. This will allow you to see how different campaigns
are performing and identify areas for improvement.
Analyze social media engagement: In addition to tracking traffic and conversions, you can also use
Google Analytics to analyze social media engagement. This includes metrics like time on site, pages
per session, and bounce rate. By analyzing these metrics, you can get a better understanding of how
engaged your social media visitors are and identify ways to improve engagement.

In summary, tracking social media in Google Analytics involves setting up social media tracking,
tagging your social media links, and monitoring your social media traffic in the "All Traffic" section of
Google Analytics. By doing this, you can gain valuable insights into how your social media efforts are
impacting your website traffic and conversions.

2). Compare and contrast OpenSource and licensed platforms for web social
analytics, and provide recommendations for choosing the appropriate
platform.

1. Open source Software: Open source software is computer software whose source code is available
openly on the internet and programmers can modify it to add new features and capabilities without
any cost. Here the software is developed and tested through open collaboration. This software is
managed by an open-source community of developers. It provides community support, as well as
commercial support, which is available for maintenance. We can get it for free of cost. This software
also sometimes comes with a license and sometimes does not. This license provides some rights to
users.

The software can be used for any purpose

Allows to study how the software works
Freedom to modify and improve the program
No restrictions on redistribution
Some examples of Open source software include Android, Ubuntu, Firefox, Open Office, etc.

2. Proprietary Software: Proprietary software is computer software where the source codes are
publicly not available only the company that has created them can modify it. Here the software is
developed and tested by the individual or organization by which it is owned not by the public. This
software is managed by a closed team of individuals or groups that developed it. We have to pay to
get this software and its commercial support is available for maintenance. The company gives a valid
and authenticated license to the users to use this software. But this license puts some restrictions on
users also like.

Number of installations of this software into computers

Restrictions on sharing of software illegally
Time period up to which software will operate
Number of features allowed to use
Some examples of Proprietary software include Windows, macOS, Internet Explorer, Google Earth,
Microsoft Office, etc.
Difference between Open-source Software and Proprietary Software:
Open-source and licensed platforms for web social analytics have distinct characteristics that
businesses should consider when selecting a platform. Here are some comparisons and contrasts to
help in the decision-making process:

Cost: Open-source platforms are free, while licensed platforms require payment. However, some
licensed platforms offer a free trial or a limited version of the platform.

Customizability: Open-source platforms are highly customizable, as the source code is available for
modification. In contrast, licensed platforms have limited customization options.

Features: Licensed platforms typically offer more advanced features and capabilities than open-
source platforms. However, open-source platforms often provide sufficient functionality for most
business needs.

Community Support: Open-source platforms typically have a large community of developers who
contribute to the platform's development and provide support. In contrast, licensed platforms
usually offer customer support, but the community may be smaller.

Security: Licensed platforms typically have stronger security measures in place than open-source
platforms, which can be a critical factor for businesses that handle sensitive data.

Based on these factors, businesses can make the following recommendations for selecting the
appropriate platform:

Consider the cost and budget: If the budget is limited, open-source platforms may be a better
option. However, if the business requires advanced features, a licensed platform may be necessary.

Determine the customization needs: If the business requires a high degree of customization, an
open-source platform may be a better option. If customization is not a significant concern, a licensed
platform may be more appropriate.

Evaluate the required features and capabilities: If the business needs advanced features and
capabilities, a licensed platform may be necessary. If the business needs only basic features, an open-
source platform may be sufficient.

Assess the community and customer support: If the business requires extensive support, a licensed
platform may be more appropriate. If the business prefers community-driven support, an open-
source platform may be a better option.

Consider security: If the business handles sensitive data, a licensed platform with strong security
measures may be necessary.

In summary, selecting the appropriate platform for web social analytics depends on various factors
such as cost, customizability, features, community support, and security. Businesses should evaluate
these factors carefully to make an informed decision.
3). Illustrate the IBM social media analytics
https://www.slideshare.net/IanBalina/sma-slides

Social media analytics is the ability to gather and find meaning in data gathered from
social channels to support business decisions — and measure the performance of
actions based on those decisions through social media.

Social media analytics is broader than metrics such as likes, follows, retweets, previews,
clicks, and impressions gathered from individual channels. It also differs from reporting
offered by services that support marketing campaigns such as LinkedIn or Google
Analytics.

Social media analytics uses specifically designed software platforms that work similarly
to web search tools. Data about keywords or topics is retrieved through search queries
or web ‘crawlers’ that span channels. Fragments of text are returned, loaded into a
database, categorized and analyzed to derive meaningful insights.

Social media analytics includes the concept of social listening. Listening is monitoring
social channels for problems and opportunities. Social media analytics tools typically
incorporate listening into more comprehensive reporting that involves listening and
performance analysis.
Why is social media analytics important?

IBM points out that with the prevalence of social media: “News of a great product can
spread like wildfire. And news about a bad product — or a bad experience with a
customer service rep — can spread just as quickly. Consumers are now holding
organizations to account for their brand promises and sharing their experiences with
friends, co-workers and the public at large.”

Social media analytics helps companies address these experiences and use them to:

• Spot trends related to offerings and brands

• Understand conversations — what is being said and how it is being received
• Derive customer sentiment towards products and services
• Gauge response to social media and other communications
• Identify high-value features for a product or service
• Uncover what competitors are saying and its effectiveness
• Map how third-party partners and channels may affect performance

These insights can be used to not only make tactical adjustments, like addressing an
angry tweet, they can help drive strategic decisions. In fact, IBM finds social media
analytics is now “being brought into the core discussions about how businesses develop
their strategies.”

These strategies affect a range of business activity:

 • Product development - Analyzing an aggregate of Facebook posts, tweets and
Amazon product reviews can deliver a clearer picture of customer pain points,
shifting needs and desired features. Trends can be identified and tracked to
shape the management of existing product lines as well as guide new product
development.
• Customer experience - An IBM study discovered “organizations are evolving
from product-led to experience-led businesses.” Behavioral analysis can be
applied across social channels to capitalize on micro-moments to delight
customers and increase loyalty and lifetime value.
Branding - Social media may be the world’s largest focus group. Natural language
processing and sentiment analysis can continually monitor positive or negative
expectations to maintain brand health, refine positioning and develop new brand
attributes.
• Competitive Analysis - Understanding what competitors are doing and how
customers are responding is always critical. For example, a competitor may
indicate that they are foregoing a niche market, creating an opportunity. Or a
spike in positive mentions for a new product can alert organizations to market
disruptors.
• Operational efficiency – Deep analysis of social media can help organizations
improve how they gauge demand. Retailers and others can use that information
to manage inventory and suppliers, reduce costs and optimize resources.
Key capabilities of effective social media analytics

The first step for effective social media analytics is developing a goal. Goals can range
from increasing revenue to pinpointing service issues. From there, topics or keywords
can be selected and parameters such as date range can be set. Sources also need to be
specified — responses to YouTube videos, Facebook conversations, Twitter arguments,
Amazon product reviews, comments from news sites. It is important to select sources
pertinent to a given product, service or brand.

Typically, a data set will be established to support the goals, topics, parameters and
sources. Data is retrieved, analyzed and reported through visualizations that make it
easier to understand and manipulate.

These steps are typical of a general social media analytics approach that can be made
more effective by capabilities found in social media analytics platforms.

• Natural language processing and machine learning technologies identify

entities and relationships in unstructured data — information not pre-formatted
to work with data analytics. Virtually all social media content is unstructured.
These technologies are critical to deriving meaningful insights.
• Segmentation is a fundamental need in social media analytics. It categorizes
social media participants by geography, age, gender, marital status, parental
status and other demographics. It can help identify influencers in those
categories. Messages, initiatives and responses can be better tuned and targeted
by understanding who is interacting on key topics.
• Behavior analysis is used to understand the concerns of social media
participants by assigning behavioral types such as user, recommender,
 prospective user and detractor. Understanding these roles helps develop
targeted messages and responses to meet, change or deflect their perceptions.
• Sentiment analysis measures the tone and intent of social media comments. It
typically involves natural language processing technologies to help understand
entities and relationships to reveal positive, negative, neutral or ambivalent
attributes.
• Share of voice analyzes prevalence and intensity in conversations regarding
brand, products, services, reputation and more. It helps determine key issues
and important topics. It also helps classify discussions as positive, negative,
neutral or ambivalent.
• Clustering analysis can uncover hidden conversations and unexpected insights.
It makes associations between keywords or phrases that appear together
frequently and derives new topics, issues and opportunities. The people that
make baking soda, for example, discovered new uses and opportunities using
clustering analysis.
• Dashboards and visualization charts, graphs, tables and other presentation
tools summarize and share social media analytics findings — a critical capability
for communicating and acting on what has been learned. They also enable users
to grasp meaning and insights more quickly and look deeper into specific
findings without advanced technical skills.

IBM Social Media Analytics is a platform that enables businesses to monitor, analyze, and
make decisions based on social media data. The platform uses natural language processing,
machine learning, and sentiment analysis to provide businesses with insights into customer
behavior and sentiment.
Here is an example of how IBM Social Media Analytics can be used in practice:
A company that manufactures personal care products wants to understand how customers
are talking about their brand on social media. They use IBM Social Media Analytics to monitor
and analyze social media conversations about their brand.
First, they set up a dashboard to track mentions of their brand on social media platforms like
Twitter and Facebook. They can filter the results by location, date range, and sentiment to get
a better understanding of how their brand is being perceived.
Next, they use sentiment analysis to categorize mentions of their brand as positive, negative,
or neutral. This helps them identify areas where they can improve their products or customer
service.
Finally, they use natural language processing to analyze the language customers are using
when they talk about their brand. This enables them to identify common themes and trends,
such as what products customers are talking about, what they like or dislike, and what issues
they may be experiencing.
Based on these insights, the company can make data-driven decisions to improve their
products, customer service, and marketing efforts. For example, they may decide to launch a
new product line based on customer demand or improve their customer service by addressing
common issues that customers are experiencing.
In summary, IBM Social Media Analytics is a powerful platform that enables businesses to
monitor, analyze, and make decisions based on social media data. By leveraging advanced
technologies like natural language processing and sentiment analysis, businesses can gain
valuable insights into customer behavior and sentiment, and make data-driven decisions to
improve their products, customer service, and marketing efforts.

IBM Social Media Analytics is a comprehensive platform designed to help businesses monitor, analyze,
and manage their social media presence. The platform is built on advanced technologies like natural
language processing, machine learning, and sentiment analysis, which allow businesses to extract
valuable insights from social media data.

Here are some of the key features of IBM Social Media Analytics:

Monitoring: The platform allows businesses to monitor social media conversations in real-time, across
various platforms like Twitter, Facebook, and LinkedIn. This enables businesses to keep track of
customer sentiment, mentions, and trends related to their brand.

Sentiment analysis: IBM Social Media Analytics uses natural language processing and machine learning
algorithms to analyze the sentiment of social media conversations related to a brand. This helps
businesses understand how customers feel about their brand and products.

Competitive analysis: The platform allows businesses to compare their social media presence with
their competitors. This provides valuable insights into the strengths and weaknesses of the
competition and helps businesses identify areas where they can improve.

Influencer identification: IBM Social Media Analytics identifies social media influencers and thought
leaders who are talking about a brand. This helps businesses target their marketing efforts to these
influencers and build relationships with them.

Trend analysis: The platform analyzes social media conversations to identify emerging trends related
to a brand or industry. This enables businesses to stay ahead of the curve and adjust their strategies
accordingly.

Reporting and analytics: IBM Social Media Analytics provides detailed reports and analytics that help
businesses understand their social media performance. This includes metrics like engagement rate,
reach, and sentiment analysis.

Integration: The platform integrates with other IBM tools and third-party applications like Hootsuite
and Salesforce, allowing businesses to streamline their social media management.

In summary, IBM Social Media Analytics is a powerful platform that provides businesses with valuable
insights into their social media presence. By leveraging advanced technologies like natural language
processing and sentiment analysis, businesses can understand customer sentiment, identify trends,
and make data-driven decisions to improve their products, customer service, and marketing efforts.
Unit 2
2 marks

1). List out the social media tools.

I. Hootsuite
II. Buffer
III. Sprout Social
IV. HubSpot
V. CoSchedule
VI. MeetEdgar
VII. Agorapulse
VIII. Canva
IX. BuzzSumo
X. Google Analytics

2). What are influencers?

Influencers are individuals who have a large following on social media and are able to impact the
opinions and behaviors of their audience. They are typically seen as experts or authorities in a
particular niche or industry, and are able to promote products or services to their followers.

Influencers can be found on a variety of social media platforms, including Instagram, YouTube, TikTok,
and Twitter. They may specialize in a particular category such as beauty, fashion, fitness, travel, or
food, or they may have a broader range of interests and content.

Influencer marketing has become a popular strategy for businesses to reach their target audience
and increase brand awareness. By partnering with an influencer, a brand can tap into their audience
and promote their products or services through sponsored posts or collaborations.

3). List out the social media.

1. Instagram
2. YouTube
3. Facebook
4. Twitter
5. TikTok
6. Pinterest
7. Snapchat
8. LinkedIn
4). What is API data extraction?

API data extraction refers to the process of extracting data from an Application Programming Interface
(API) using software programs or tools. An API is a set of protocols and routines that enable
communication between software applications, allowing them to exchange data and information.

API data extraction involves sending requests to an API endpoint and receiving a response containing
the requested data in a structured format, such as JSON or XML. The extracted data can then be
processed, analyzed, and integrated with other applications or systems.

API data extraction is commonly used in a variety of applications, such as web scraping, business
intelligence, data analytics, and marketing research. It allows businesses to collect large amounts of
data in real-time from various sources, such as social media platforms, e-commerce websites, and IoT
devices.

There are many tools and libraries available for API data extraction, including programming languages
like Python, Java, and Ruby, as well as commercial data extraction platforms like Octoparse, Import.io,
and ParseHub. However, it's important to ensure that any data extraction complies with the API's terms
of service and any applicable laws and regulations.

16 MARKS

1). Write about choosing focused data sources and social networks

A focused data source and social network refer to specific sets of data or particular social media
platforms that are relevant to a particular research question or analysis.

A focused data source is a specific set of data that is relevant to a particular topic or research question.
In the context of social media analytics, a focused data source might refer to a particular social media
platform, a specific user group, or a particular topic or hashtag.

For example, if you were conducting social media analytics for a company that sells sports equipment,
you might focus your data sources on social media platforms that are popular among sports
enthusiasts, such as Twitter, Instagram, or Reddit. You might also focus on user groups that are
specifically interested in sports-related content, such as athletes, coaches, or sports bloggers.

A social network, on the other hand, is a specific platform or community where users can connect and
share content. Examples of social networks include Facebook, Twitter, Instagram, LinkedIn, and TikTok.

When conducting social media analytics, it's important to choose focused data sources and social
networks that are most relevant to your research question or analysis. By focusing on a specific data
source or social network, you can ensure that your analysis is more targeted and relevant, allowing
you to uncover insights and trends that might be missed if you were analyzing a broader set of data.
However, it's important to be aware of any biases or limitations that may be associated with your
chosen data source or social network. Additionally, it's important to evaluate the quality and reliability
of your data source to ensure that your analysis is accurate and trustworthy.

When it comes to social media analytics, choosing the right data sources and social networks to
focus on can greatly impact the success of your analysis. Here are some tips for choosing focused
data sources and social networks:

1. Identify your objectives: Before you start analyzing social media data, it's important to
identify your objectives and what you hope to achieve through your analysis. This will help
you determine which data sources and social networks are most relevant to your goals.
2. Know your audience: Understanding your target audience is crucial when choosing which
social networks to focus on. For example, if your target audience is primarily professionals
in a B2B context, LinkedIn might be the most relevant social network to analyze.
3. Consider your industry: Different industries may have different social networks that are
most relevant to their audiences. For example, the fashion industry may find Instagram to
be a valuable source of social media data, while the tech industry may prioritize Twitter.
4. Evaluate data availability: Not all social networks provide the same level of data access and
APIs. Before you choose a social network to analyze, evaluate the data availability and make
sure that the data you need is accessible.
5. Prioritize quality over quantity: It's tempting to focus on as many social networks as
possible, but it's better to focus on a smaller number of high-quality data sources. This will
allow you to analyze data more effectively and ensure that the data is accurate and reliable.
6. Keep up with trends: Social media trends are constantly changing, and it's important to
keep up with these changes to ensure that you're analyzing the most relevant data sources.
Follow industry blogs and news sources to stay up-to-date on social media trends and
changes.
7. Look beyond the big social networks: While big social networks like Facebook and Twitter
may be popular choices for social media analytics, don't overlook smaller or niche social
networks that may be more relevant to your specific industry or audience.
8. Consider international audiences: If you're analyzing social media data for an international
audience, consider which social networks are most popular in the countries you're
targeting. For example, while Facebook is the most popular social network in the United
States, it's less popular in countries like China and Russia.
9. Evaluate data privacy: When analyzing social media data, it's important to consider data
privacy regulations like GDPR and CCPA. Make sure that any data sources you use comply
with these regulations to ensure that your analysis is legal and ethical.
10. Evaluate data quality: Not all social media data is created equal, and it's important to
evaluate the quality of the data you're analyzing. Look for data sources that provide
accurate, reliable data that's free from spam, bots, and other noise.

By taking these factors into consideration when choosing focused data sources and social networks
for social media analytics, you can ensure that your analysis is effective, relevant, and impactful.
Ultimately, choosing focused data sources and social networks is about understanding your
objectives, audience, industry, and the availability and quality of data. By carefully evaluating these
factors, you can make informed decisions about which social networks to focus on and Consider
the type of content: Different social networks are known for different types of content. For example,
Instagram is known for visual content like photos and videos, while Twitter is known for short text-
based updates. When choosing which social networks to focus on, consider which types of content
are most relevant to your analysis.
2). Describe the benefits of site-level surveys and write a note on critical web metrics

Site-level surveys are a form of feedback collection that involves surveying website visitors directly to
gain insights into their preferences, opinions, and behaviors. By collecting feedback through site-level
surveys, businesses can improve their website design, content, and functionality to provide a better
user experience and drive more conversions.

There are a variety of types of site-level surveys that businesses can use, including:

Pop-up surveys: These surveys appear on the website as a pop-up window, asking visitors for their
feedback. Pop-up surveys are often timed to appear after a visitor has spent a certain amount of time
on the website or has viewed a certain number of pages.

In-page surveys: These surveys appear directly on the webpage, typically as a small pop-up or slide-
out panel. In-page surveys are less intrusive than pop-up surveys and can be a good option for
collecting quick feedback.

Feedback widgets: These are small icons that appear on the website and invite visitors to click on
them to provide feedback. Feedback widgets are a more subtle approach to collecting feedback and
can be customized to match the website's design.

Exit surveys: These surveys appear when a visitor is about to leave the website and ask for feedback
on their experience. Exit surveys are useful for understanding why visitors are leaving and identifying
areas for improvement.

When designing site-level surveys, it's important to keep the following best practices in mind:

Keep surveys short and focused: Visitors are more likely to complete surveys that are short and to
the point, rather than lengthy or overly complicated.

Be clear and concise: Ensure that questions are easy to understand and answer, with clear and
concise wording.

Use a mix of question types: Include a mix of multiple-choice, open-ended, and rating scale
questions to collect a variety of feedback.

Offer an incentive: To encourage visitors to complete the survey, consider offering a small incentive,
such as a discount code or entry into a prize draw.

By collecting feedback through site-level surveys, businesses can gain valuable insights into their
website's performance and make data-driven decisions to improve user experience and drive more
conversions.
Critical Web Metrics

Critical web metrics are the key performance indicators (KPIs) that businesses use to measure the
success of their website. These metrics provide insight into how visitors are interacting with the
website, how effective marketing campaigns are, and how well the website is converting visitors into
customers. Some of the web metrics are as follows:

Visitors / Visits
These are the most commonly focused on web metrics, although they are often mistakenly used
interchangeably. It may help if you think of visitors as being a count of people and visits as being
a count of the number of times those people visited your website. Since some will visit your
website more than one time, the number of visits will always be larger than the number of
visitors. Both of these numbers are important to watch, especially looking at changes over
time. These numbers are numbers that you want to see go up.

Time on Page / Time on Site

Time on page is simply the average amount of time that people visiting your site spent
on your page. Time on site is the average of the amount of time they spent looking
around on your entire website. When people look at these numbers they frequently
wonder – “Is this a good amount of time?” The answer isn’t cut and dried. What is
important here is to watch what happens over time, especially when you make changes
on your website. Don’t view these times in a vacuum – they are best used as secondary
indicators to give you a sense of the impact of changes on your website.

Bounce Rate
The bounce rate is a measure of the percentage of people who came and landed on a
page of your website and then turned around and left immediately without visiting any
other pages on your website. While this may be perfectly acceptable for a subscriber to
your blog who is just coming to read your latest post and leave, this kind of behavior is
not usually desirable. Watch this carefully, especially for your landing pages. Try
making a change on your landing pages with the highest bounce rate. If the bounce rate
goes down – great; if not – try again until it does.

Conversion Rate
You can think of conversion rate as being the opposite of bounce rate. Your website’s
conversion rate is the percentage of people who come to your website and then go on to
make a purchase, fill out a form, or whatever the desired action is for your website. It is
worth investing time in improving this number. Things like navigation choices and
labels, headlines, and using the language and word choices of your target audience will
have a huge impact on your site’s conversion rate.

Exit Rate
The exit rate is frequently confused with the bounce rate. Everyone who visits your
website has to leave eventually. Those that leave after visiting only one page are
reflected in your bounce rate (they hit your site and bounced off). The exit rate is a page
level statistic that shows you the percentage of people who leave your website from any
given page. Since everyone must leave from somewhere, one of the main things you
want to do with this metric is identify the pages on your site with the highest exit rates
and then take a look at those pages to see why people are leaving from those
pages. Some pages should have high exit rates – like the thank you page after a
purchase; however, when you look at your highest exit rate pages, you’ll spot some that
shouldn’t be on that list. Make changes to those pages and then check the exit rate again
to see if you improved the situation.

Engagement
Website engagement is a way of seeing how well your website is engaging and
interacting with your audience. This helps you see how well you are really connecting
with the people who visit your website. Increasing the engagement level of your
website will improve your other numbers too. For example when you increase the
engagement on your site, you typically see a lot more repeat visits, a decrease in bounce
rates, an increase in conversions, and an increase in time on site.

3). Explain in detail about KPIs and its types.

Key performance indicators (KPIs) refer to a set of quantifiable measurements used to gauge
a company’s overall long-term performance. KPIs specifically help determine a company’s
strategic, financial, and operational achievements, especially compared to those of other
businesses within the same sector.

KEY TAKEAWAYS

• Key performance indicators (KPIs) measure a company’s success vs. a set of targets,
objectives, or industry peers.
• KPIs can be financial, including net profit (or the bottom line, gross profit margin),
revenues minus certain expenses, or the current ratio (liquidity and cash availability).
• Customer-focused KPIs generally center on per-customer efficiency, customer
satisfaction, and customer retention.
• Process-focused KPIs aim to measure and monitor operational performance across the
organization.
• Businesses generally measure and track KPIs through analytics software and reporting
tools.

Understanding Key Performance Indicators (KPIs)

Also referred to as key success indicators (KSIs), KPIs vary between companies and
between industries, depending on performance criteria. For example, a software company
striving to attain the fastest growth in its industry may consider year-over-year
(YOY) revenue growth as its chief performance indicator. Conversely, a retail chain might
place more value on same-store sales as the best KPI metric for gauging growth.

At the heart of KPIs lie data collection, storage, cleaning, and synthesizing. The information
may be financial or nonfinancial and may relate to any department across the company.
The goal of KPIs is to communicate results succinctly to allow management to make more
informed strategic decisions.

Types of KPIs

Most KPIs fall into four different categories, with each category having its own characteristics, time
frame, and users.

Strategic KPIs are usually the most high-level. These types of KPIs may indicate how a company
is doing, although it doesn’t provide much information beyond a very high-level snapshot. Executives
are most likely to use strategic KPIs, and examples of strategic KPIs include return on
investment, profit margin, and total company revenue.
Operational KPIs are focused on a much tighter time frame. These KPIs measure how a
company is doing month over month (or even day over day) by analyzing different processes,
segments, or geographical locations. These operational KPIs are often used by managing staff and to
analyze questions that are derived from analyzing strategic KPIs. For example, if an executive notices
that company-wide revenue has decreased, they may investigate which product lines are struggling.

Functional KPIs hone in on specific departments or functions within a company. For example,
the finance department may keep track of how many new vendors they register within their
accounting information system each month, while the marketing department measures how many
clicks each email distribution received. These types of KPIs may be strategic or operational but
provide the greatest value to one specific set of users.

Leading/lagging KPIs describe the nature of the data being analyzed and whether it is
signaling something to come or something that has already occurred. Consider two different KPIs:
the number of overtime hours worked and the profit margin for a flagship product. The number of
overtime hours worked may be a leading KPI should the company begin to notice
poorer manufacturing quality. Alternatively, profit margins are a result of operations and are
considered a lagging indicator.

Examples of KPIs

I. Financial Metrics and KPIs

Key performance indicators tied to the financials typically focus on revenue and profit
margins. Net profit, the most tried and true of profit-based measurements, represents the
amount of revenue that remains, as profit for a given period, after accounting for all of the
company’s expenses, taxes, and interest payments for the same period.

Financial metrics may be drawn from a company’s financial statements. However, internal
management may find it more useful to analyze different numbers that are more specific to
analyzing the problems or aspects of the company that management wants to analyze. For
example, a company may leverage variable costing to recalculate certain account balances
for internal analysis only.

Examples of financial KPIs include:

 • Liquidity ratios (i.e., current ratios, which divide current assets by current liabilities):
These types of KPIs measure how well a company will manage short-term debt
obligations based on the short-term assets it has on hand.
• Profitability ratios (i.e., net profit margin): These types of KPIs measure how well a
company is performing in generating sales while keeping expenses low.
• Solvency ratios (i.e., total-debt-to-total-assets ratio): These types of KPIs measure
the long-term financial health of a company by evaluating how well a company will be
able to pay long-term debt.
• Turnover ratios (i.e., inventory turnover): These types of KPIs measure how quickly
a company can perform a certain task. For example, inventory turnover measures
how quickly a company can convert an item from inventory to a sale. Companies strive
to increase turnover to generate faster churn of spending cash to later recover that
cash through revenue.

II. Customer Experience Metrics and KPI

Customer-focused KPIs generally center on per-customer efficiency, customer satisfaction,

and customer retention. These metrics are used by customer service teams to better
understand the service that customers have been receiving.

Examples of customer-centric metrics include:

• Number of new ticket requests: This KPI counts customer service requests and
measures how many new and open issues customers are having.
• Number of resolved tickets: This KPI counts the number of requests that have been
successfully taken care of. By comparing the number of requests to the number of
resolutions, a company can assess its success rate in getting through customer
requests.
• Average resolution time: This KPI is the average amount of time needed to help a
customer with an issue. Companies may choose to segment average resolution time
across different requests (i.e., technical issue requests vs. new account requests).
• Average response time: This KPI is the average amount of time needed for a
customer service agent to first connect with a customer after the customer has
submitted a request. Though the initial agent may not have the knowledge or expertise
to provide a solution, a company may value decreasing the time that a customer is
waiting for any help.
• Top customer service agent: This KPI is a combination of any metric above cross-
referenced by customer service representatives. For example, in addition to analyzing
company-wide average response time, a company can determine the three fastest
and slowest responders.
• Type of request: This KPI is a count of the different types of requests. This KPI can
help a company better understand the problems a customer may have (i.e., the
company’s website gave incorrect or inaccurate directions) that need to be resolved
by the company.
• Customer satisfaction rating: This KPI is a vague measurement, though companies
may perform surveys or post-interaction questionnaires to gather additional
information on the customer’s experience.

III. Process Performance Metrics and KPI

Process metrics aim to measure and monitor operational performance across the
organization. These KPIs analyze how tasks are performed and whether there are process,
quality, or performance issues. These types of metrics are most useful for companies with
repetitive processes, such as manufacturing firms or companies in cyclical industries.

Examples of process performance metrics include:

• Production efficiency: This KPI is often measured as the production time for each
stage divided by the total processing time. A company may strive to spend only 2% of
its time soliciting raw materials; if it discovers it takes 5% of the total process, then the
company may strive for solicitation improvements.
• Total cycle time: This KPI is the total amount of time needed to complete a process
from start to finish. This may be converted to average cycle time if management
wishes to analyze a process over a period of time.
• Throughput: This KPI is the number of units produced divided by the production time
per unit, measuring how fast the manufacturing process is.
• Error rate: This KPI is the total number of errors divided by the total number of units
produced. A company striving to reduce waste can better understand the number of
items that are failing quality control testing.
• Quality rate: This KPI focuses on the positive items produced instead of the negative.
By dividing the successful units completed by the total number of units produced, this
percentage informs management of its success rate in meeting quality standards.

IV. Marketing KPIs

Marketing KPIs attempt to gain a better understanding of how effective marketing and
promotional campaigns have been. These metrics often measure conversation rates on how
often prospective customers perform certain actions in response to a given marketing
medium. Examples of marketing KPIs include:

• Website traffic: This KPI tracks the number of people who visit certain pages of a
company’s website. Management can use this KPI to better understand whether
online traffic is being pushed down potential sales channels and if customers are not
being funneled appropriately.
• Social media traffic: This KPI tracks the views, follows, likes, retweets, shares,
engagement, and other measurable interactions between customers and the
company’s social media profiles.
• Conversion rate on call-to-action content: This KPI centers around focused
promotional programs that ask customers to perform certain actions. For example, a
specific campaign may encourage customers to act before a certain sale date ends.
A company can divide the number of successful engagements by the total number of
content distributions to understand what percent of customers answered the call to
action.
• Blog articles published per month: This KPI simply counts the number of blog posts
a company publishes in a given month.
• Click-through rates: This KPI measures the number of specific clicks that are
performed on email distributions. For example, certain programs may track how many
customers opened an email distribution, clicked on a link, and followed through with
a sale.

KPI Levels

Companies can use KPIs across three broad levels:

First, company-wide KPIs focus on the overall business health and performance. These
types of KPIs are useful for informing management of how things are going. However, they
are often not granular enough to make decisions. Company-wide KPIs often kick off
conversations on why certain departments are performing well or poorly.

At this point, companies often begin digging into department-level KPIs. These are more
specific than company-wide KPIs. Department-level KPIs are often more informative as to
why specific outcomes are occurring. Many of the examples mentioned above are
department-level KPIs, as they focus on a very niche aspect of a company.

If a company chooses to dig even deeper, it may engage with project-level or

subdepartment-level KPIs. These KPIs are often specifically requested by management as
they may require very specific data sets that may not be readily available. For example,
management may want to ask very specific questions to a control group about a potential
product rollout.

How to Develop KPIs

With so much data, it can be tempting to measure everything—or at least things that are easiest to
measure. However, you need to be sure you’re measuring only the key performance indicators that
will help you reach your business goals. The strategic focus is one of the most important aspects of the
KPI definition. Here are some best practices for developing the right KPIs.

Define how KPIs will be used: Talk to people who will be using the KPI report to find out what they
want to achieve and how they’ll use them. This will help you define KPIs that are relevant and valuable
to business users.

Tie them to strategic goals: If your KPIs don’t relate to what you’re trying to achieve in your business,
you’re wasting time. While they may be related to a specific business function like HR or marketing,
every key performance indicator should tie directly back to your overall business goals.

Write SMART KPIs: The most effective KPIs follow the proven SMART formula. Make sure they’re
Specific, Measurable, Attainable, Realistic and Time-Bound. Some examples include “Grow sales by 5%
per quarter” or “Increase Net Promoter Score 25% over the next three years.”

Keep them clear-cut: Everyone in the organization should understand your KPIs so they can act on
them. This is why data literacy is so important. When people understand how to work with data, they
can make decisions that will move the needle in the right direction.

Plan to iterate: As your business and customers change, you may need to revise your key performance
indicators. Perhaps certain ones are no longer relevant, or you need to adjust based on performance.
Be sure you have a plan in place to evaluate and make changes to key performance indicators when
necessary.

Avoid KPI overload: Business intelligence has given organizations access to mounds of data
and interactive data visualization, making it easy to measure anything and everything. Keep in mind
that the key performance indicator definition refers to the most important targets. Steer clear of KPI
overload by focusing on the most impactful measures.

Advantages of KPIs
A company may wish to analyze KPIs for several reasons. KPIs help inform management of
specific problems; the data-driven approach provides quantifiable information useful
in strategic planning and ensuring operational excellence.

KPIs help hold employees accountable. Instead of relying on feelings or emotions, KPIs are
statistically supported and cannot discriminate across employees. When used appropriately,
KPIs may help encourage employees as they realize their numbers are being closely
monitored.

KPIs are also the bridge that connects actual business operations and goals. A company may
set targets, but without the ability to track progress toward those goals, there is little to no
purpose in those plans. Instead, KPIs allow companies to set objectives, then monitor
progress toward those objectives.

Pros
• Informs management of how a company is performing in countless ways
• Helps hold employees accountable for their actions (or lack of)
• Can motivate employees who feel positively challenged to meet targets
• Allows a company to set goals and measure progress toward those objectives

Cons
• Results in potential time commitment to consistently gather data over long periods of
time
• Requires ongoing monitoring for accuracy and reasonableness in data
• May encourage managers to focus on KPIs instead of broader strategies
• May discourage employees if KPI targets are unreasonable

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