Monday, January 26, 2015

Referrers: Where did you come from?



As important as it is to measure the number of people that come to a Web site, it’s also important to analyze how people get to a Web site.  Customers may use a direct URL to get to the site, search based on product or service keywords, or click an ad or link in the company’s marketing materials.  All of these channels are called Referrers.  When looking at Web metrics, a Referrer is a term used to describe the source of traffic to a visit or page (Reed College of Media, 2015).

According to Kaushik (2010) analyzing Referrers can show which Web sites are contributing to site traffic, which marketing initiatives are the most successful, and which keywords most reflect the content on the site.  Kaushik (2010b) also gives insight into several other types of Referrers.

Internal Referrer: The internal referrer is a page URL that is internal to the website or a web-property within the website as defined by the user.

External Referrer: The external referrer is a page URL where the traffic is external or outside of the website or a web-property defined by the user.

Search Referrer: The search referrer is an internal or external referrer for which the URL has been generated by a search function.

Visit Referrer: The visit referrer is the first referrer in a session, whether internal, external or null.

Original Referrer: The original referrer is the first referrer in a visitor's first session, whether internal, external or null.”

Blue Martini & Debenhams

Debenhams, a British Department Store, was looking to improve the e-commerce experience on their site.  They wanted to increase the number of registered customers, increase daily transactions, and increase the average basket size on a yearly basis.  They launched a new web site powered by Blue Martini Software in 2001. 


The improvement process for the Debenhams site included evaluating which cost-per-click (CPC) relationships were the most beneficial.  Looking at referral percentages and referral purchase amounts, Debenhams was able to quickly asses how to capitalize on each relationship.  Learning that one portal provided a small percentage of visits, but a higher conversion rate than any other site, Debenhams was able to better understand where to spend their advertising dollars.

In addition to looking at which CPC relationships were the most valuable; Debenhams analyzed a detailed list of keywords that drove traffic to their site.  This assisted in the strategy development of paid ads based on keywords (Blue Martini Software, 2002).

As mentioned in the Debenhams example, Referrers can help Web site managers better understand which portals and relationships are the most beneficial for a company’s Web site.  As with all Web metrics, it’s important that Referrers isn’t regarded as the sole metric that signifies success.  A company must outline their goals for what they want a customer to do when they get to the site.  For example, a Referrer can drive a lot of traffic to the site, but if Conversion Rates and Time Spent on Page are low, or the Bounce Rate is high, that Referrer might not be very valuable.  The advertising dollars spent on that Referrer might be better spent elsewhere.


References:

Blue Martini Software, (2002) Blue Martini Business Intelligence delivers unparalleled insight into user behavior at the Debenhams Web site. Retrieved January 19, 2015 from http://ai.stanford.edu/~ronnyk/debenhams_Study.pdf

Kaushik, A. (2010). Web analytics 2.0: The art of online accountability & science of customer centricity. Indianapolis, IN: Wiley Publishing. ISBN# 978-0470529393

Kaushik, A. (2010b, April 19). Web analytics 101: Definitions: Goals, metrics, KPIs, dimensions, targets. Occam’s Razor Blog. Retrieved on March 25, 2012 from http://www.kaushik.net/avinash/web-analytics-101-definitions-goals-metrics-kpis-dimensions-targets/.

Reed College of Media, WVU. (2015). Lesson 2: Basic Web Analytics. [login required]. Retrieved from: https://ecampus.wvu.edu/