Topic for week4 SMART GOALS

This week I would like to continue to discuss how to set goals for web analytics. Most of businesses fell on web research because they don’t know how to set goals for web analytics. Everybody knows we need goals, but not all of them know what goals exactly mean to their businesses and measurement.

To make it clear, firstly, we need to understand what are goals? Goals are specific strategies to accomplish our business objectives. Business objectives can be quite strategic and high level such as improving company’s performance, increasing company’s profit or reputations. But goals are more specific than objective, for example, selling more goods, creating more happy customers, increasing return customers.

Basically, goals should be smart:

–        Specific: not general as objectives, should be specific and have more details.

–        Measureable: could be measured and can use data to identify.

–        Achievable: should be achieved, not a “dream” goal.

–        Realistic / relevant: should be real, related to real business, could be performed.

–        Time bound: have time limited, not a goal last forever.

Anther concept need to know is metrics. A metric is a number. That is the simplest way to think about it. Technically a metric can be a Count (a total) or a Ratio (a division of one number by another). Here are some examples of metrics: Hit, Page view, Visit / Session, Bounce Rate, Average Page View Duration, Active Time / Engagement Time, Conversion rate, Frequency / Session per Unique, etc. Web analytics goals need to be gauged by metrics because metrics can change goals to some specific numbers so that people can understand whether the goals have been achieved or not. (To know more about goals and metrics go here.)

However, just understanding the things have been talked above is not enough. Goals have a very important and basic factor should be known, which is that,  goals must be related to business and reflected what business need. For example, we set “creating more happy customers” as our goal and measure it by certain metrics. But we need to know that first, why we need more happy customers? What does happy customers means? What do happy customers contribute to our business?  The video below shows you how to creat business goals step by step:

To sum up, before setting SMART goals, the companies have to decide what kind of goals they need and why they need those goals as their goals.

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