Summary

Web Analytics Tutorial

 

Lesson 5 – Revenue Modeling

IN THIS LESSON
* Introduction
** Values
* Values and Revenue
** Event Based Revenue
** Advertising Potential and Visitor Values
* Values and Costs
** Usage Costs
** External Service Costs
* Lost Revenue
** Exit Page Analysis
** Capitalizing on Qualified Leads

Values and Costs

When you configure Summary to track Values associated with costs of items, you can use the Value column to estimate costs of specific items or to find out your expenses for a given period. You can even use positive values for revenue and negative values for costs to have the Value column represent your profit.

Usage Costs

Figure 4. Overview Report
Figure 4. The Overview Report
includes bandwidth usage details.
In the previous section we talked about assigning values to page views to estimate advertising potential or income potential. You can assign a value to page views as a cost to estimate your bandwidth usage costs. From the Overview Report in Figure 4, you can see that 12,169M bytes were transfered for 14,284 pages. This gives an average of 872 bytes per page. If you know your bandwidth charge you can use the following formula to figure your cost per page (remember to convert usage costs into dollars per byte, not dollars per megabyte or gigabyte):

Bandwidth Charge * Bytes per Page = Average Cost per Page

External Service Costs

The other way that Summary can provide cost analysis is by connecting costs to particular events. Generally, there are external services that you use that charge you fees. If you group the requests for each such service in the Summary configuration and assign a cost to them, then Summary’s reports will total the expenses you have incurred (or at least estimates) for given referrers or search terms, or for particular periods in the time metrics reports.

For example, perhaps you have a credit card order page on your system. You can give this a value of the cost of each credit card transaction (assuming the cost is a flat fee – if it is related to the size of the purchase, then you can use an average charge as an estimate). If you track your own advertisements that are on other sites, you can tell Summary to assign the impression cost to each advertisement to get an estimate of your advertising expenses. There are other services that you may have or may add to your site that you can configure Summary to track as well.



Table of Contents | 1: What is Web Analytics? | 2: Where are My Visitors Coming From? | 3: Search Engines | 4: Advertising | 5: Revenue Modeling | 6: Design Considerations | 7: Determining Visitor Behavior Patterns | 8: Examining Subsets of Traffic  | 9: Incorporating Business Goals | 10: Bandwidth Management | 11: Site and Server Diagnostics | 12: Investigating Troublemakers | Appendix A: Making Reports More Usable | Appendix B: Technical Details of Metric Accuracy

Copyright 2002 by Summary.Net - Updated 16.Apr.2002