The Marketing Book 5th Edition

Repeat visitors Q2R Unique visitors Q 2

Target audience Q 1

Internet universe Q 0

Q 2 /Q2R

Active visitors Q3R

Key outcomes Q4R

Active visitors Q 3

Key outcomes Q 4

Q 3 /Q3R

Q 4 /Q4R

Conversion efficiency

Q 4 /Q 3

Engagement efficiency

Attraction efficiency

Awareness efficiency

Q 3 /Q 2

Q 2 /Q 1

Q 1 /Q 0

Audience

measures

Performance drivers

648 The Marketing Book

customers who place an order; £10 000 cost
divided by 100 conversions = £100 cost per
order. Now imagine you can double your
conversion rate, or better still quadruple it to
8 per cent; you then get £25 cost per order.
The leverage impact caused by improved
conversion rates is huge – revenues go up and
percentage of marketing costs go down. Figure
25.5 provides a summary of different aspects
of conversion from Chaffey (2001), which is
adapted from Figure 2 in Berthon et al. (1998).
It also highlights the importance of measuring
return visitors to the site.
 Attrition ratesthrough the on-line buying
process.
 Churn rates – percentage of subscribers
withdrawing or unsubscribing.
 Click-through rates(CTR) from a banner ad or
web link on another site to your own.

E-marketing objectives

Objectives clarify the purpose and direction of
e-marketing. Smith and Chaffey (2001) suggest
there are five broad benefits, reasons or objec-
tives of e-marketing. These can be summarized

as the 5Ss of e-marketing objectives. Marketers

will decide whether all or only some will drive

e-marketing:

 Sell. Grow sales (through wider distribution to

customers you can’t service off-line or perhaps

a wider product range than in local store, or

better prices).

 Serve. Add value (give customers extra benefits

on-line, or product development in response

to on-line dialogue).

 Speak. Get closer to customers by tracking

them, asking them questions, conducting

on-line interviews, creating a dialogue,

monitoring chat rooms, learning about them.

 Save. Save costs – of service, sales transactions

and administration, print and post. Can you

reduce transaction costs and therefore either

make on-line sales more profitable or use cost

savings to enable you to cut prices, which in

turn could enable you to generate greater

market share?

 Sizzle. Extend the brand on-line. Reinforce

brand values in a totally new medium. The web

scores very highly as a medium for creating

brand awareness and recognition.

Figure 25.5 Key metrics indicating the efficiency of web marketing in attracting and converting visitors to
customers