Conference and Forum,

October 18, 2012

Willbrook Platinum Convention Center,
Bucharest, Romania

Metrics And Why They Matter

By Bogdana Butnar

I spend a lot of time talking to people whose clear-cut objective is performance or ROI. This is obviously not a bad thing since we are all here to make money not just spend it trying to make more.  I have, however, found that when probed people have a hard time to pinpoint what ROI means to them other than money.

When you look at a tool like Analytics from Google, with its varied filters and resources, I find it hard to believe that people would not be able to assign value to anything other than a closed sale. That’s is why I really appreciate the concept of micro vs macro conversions.

Conversion is a term used in AdWords meant to signify a closed action on the company website/e-store, which resulted in a tangible advantage for the company. Usually we mean conversion when we see a sale but ideally conversions should be a number of other activities, which eventually result in an action with tangible benefits for the company.

The theory goes that of total conversions possible per business in a website only 4% are macro conversions meaning sales and the rest are micro conversions meaning anything from downloading a brochure, signing up for a newsletter or an update. The ultimate benefits of these actions are not recorded instantly but they can be accurately measured in time if tracked properly.

Metrics are essential when evaluating success and setting metrics is probably the most important activity one can engage in at any stage in the business cycle. And understanding that metrics are both complex and granular makes performance easier to track and decisions easier to make. I hope to speak more about this at Leaders in Marketing this year.

Bogdana Butnar is a well known Romanian planner, online strategist and blogger. She currently is Industry Manager for Google Romania. Bogdana will be one of the guest speakers at the Leaders in Marketing conference on October 18th.

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