INMA_A01.QXD

Assessing the current contribution of the Internet to the organisation

To assess the contribution and the effectiveness of Internet marketing involves the com-

pany in reviewing how well its online presence is meeting its goals. So this activity

overlaps with that on strategic goal setting discussed in the next section. Assessing effec-

tiveness also requires a performance measurement or web analytics system to collect and

report on data effectiveness. We cover this topic in more detail in Chapter 9. At this point,

note that these different levels of measures can be usefully used to assess effectiveness:

1 Business effectiveness

This will include the contribution of the site directly or indirectly to sales and how well

it is supporting business objectives. The relative costs of producing, updating and pro-

moting the site will also be reviewed as part of a cost–benefit analysis.

2 Marketing effectiveness

These measures may include:

 leads (qualified enquiries);

 sales;

 customer retention and loyalty;

 online market (or audience share);

 brand enhancement;

 customer service.

For large organisations, these measures can be assessed for each of the different mar-

kets a company operates in or for product lines produced on the web site. The way in

which the elements of the marketing mix are utilised will also be reviewed.

3 Internet effectiveness

These are specific measures that are used to assess the way in which the web site is used,

and the characteristics of the audience. They are described in more detail in Chapter 9.

According to Smith and Chaffey (2005) key performance indicators (KPIs) include:

 unique visitors– the number of separate, individual visitors who visit the site;

 total numbers of sessionsor visitsto a web site;

 repeat visits– average number of visits per individual;

 duration– average length of time visitors spend on a site;

 subscription ratessuch as the number of visitors subscribing for services such as an opt-

in e-mail and newsletters;

 conversion rates– the percentage of visitors converting to subscribers (or becoming

customers);

 attrition ratesthrough the online buying process;

 churn rates– percentage of subscribers withdrawing or unsubscribing;

 click-through rates (CTR)from third-party sites to your own.

Resource analysis

The internal audit will also include a resource analysis. This involves assessing the capabil-

ities of the organisation to deliver its online services. Aspects that can be reviewed include:

 Financial resources– the cost components of running an online presence, including

site development, promotion and maintenance. Mismatch between current spend

and required spend to achieve visibility within the online marketplace should be

reviewed using tools such as Hitwise and Netratings which can be used to assess

online market share.

SITUATION REVIEW

Resource analysis
Review of the
technological, financial
and human resources
of an organisation and
how they are utilised in
business processes.