Table of Contents
1. Executive Summary 4
2. Introduction: Companies, their Online Presence and the Evolution of Marketing 6
2.1 Broad Categorisation of Websites 8
2.2 Generic Objectives of Companies’ Online Presence 9
2.3 Web Analytics 10
2.3.1 Process of Web Analytics 11
2.3.2 Introduction to Google Analytics 12
2.3.3 Functions of Google Analytics 12
2.3.4 Dimensions and Metrics in Google Analytics 13
2.3.4.1 Acquisition Metrics 14
2.3.4.2 Behaviour Metrics 16
2.3.4.3 Conversion Metrics 18
3. Case studies of Selected Top 20 Websites 20
3.1 ECommerce: Groupon 21
3.1.1 Objectives of Groupon 22
3.1.2 Revenue Models of Groupon 24
3.1.3 Measurable Goals, Dimensions and Metrics of Groupon 25
3.1.4 Limitations of Google Analytics Metrics for Groupon 31
3.1.5 Comparisons to other Web Analytics Tools for Groupon 32
3.2 EService: Overseas Chinese Banking Corporation (OCBC) 33
3.2.1 Objectives of OCBC 34
3.2.2. Revenue Models of OCBC 35
3.2.3 Measurable Goals, Dimensions and Metrics for OCBC 36
3.2.4 Limitations of Google Analytics Metrics for OCBC 39
3.2.5 Comparison to other Web Analytics Tools for OCBC 40
3.3 Classifieds: sgCarMart 41
3.3.1 Objectives of sgCarMart 42
2
3.3.2 Revenue Models of sgCarMart 43
3.3.3 Measurable Goals, Dimensions and Metrics for sgCarMart 44
3.3.4 Limitations of Google Analytics Metrics for sgCarMart 47
3.3.5 Comparison to other Web Analytics Tools for sgCarMart 48
3.4 News Website: The Straits Times 49
3.4.1 Objectives of The Straits Times 50
3.4.2 Revenue Models of The Straits Times 52
3.4.3 Measurable Goals, Dimensions and Metrics for The Straits Times 53
3.4.4 Limitations of Google Analytics Metrics for The Straits Times 58
3.4.5 Comparison to other Web Analytics tools for The Straits Times 59
3.5. Information: Nanyang Technological University (NTU) 60
3.5.1 Objectives of NTU 61
3.5.2 Revenue Models of NTU 63
3.5.3 Measurable Goals, Dimensions and Metrics for NTU 64
3.5.4 Limitations of Google Analytics Metrics for NTU 67
3.5.5 Comparison to other Web Analytics tools for NTU 67
4. Comparisons of Web Analytics Tools 68
5. Concluding Thoughts 73
5.1 The Future of Web Analytics 74
5.1.1 Privacy and Web Analytics 74
5.1.2 Direction of Web Analytics 75
Appendices
76
References 7782
3
1. Executive Summary
This report seeks to examine the use of web analytic tools in generating data for actionable
improvements on a selected five of the “Top 20” most popular sites in Singapore , with 1
regard for the company’s explicit and implicit objectives.
For the purpose of this report’s discussion, websites have were classified into several
functional categories: ECommerce, EService, Classifieds, News Websites, and Information.
In view that web analytics is a branch of marketing, we further examined the benefits web
analytics could provide for particular websites, under their constituent functions. By
extension, web analytics will offer some benefits for websites in the similar functional
categories:
a. ECommerce
For online transactions, web analytics serves as a powerful tool for pureplays and
clicksandmortar retailers to gain an increased awareness of how their products are
performing based on conversion rates, and the effectiveness of their marketing efforts
through acquisitionbased metrics. In addition, the reporting of their consumers’
interests and assigning attributes to their users will particularly benefit them in
assessing the market demand. These efforts, when combined, will go a long way in
helping ecommercecentric entities boost their online sales revenue.
b. EService
Using Web analytics can help Eservice firms to provide more convenient and
efficient services that customers can benefit from. The most important factor of an
Eservice firm is to provide a reliable and userfriendly online platform for its
customers since most of its businesses would occur there. Web analytics can help
firms to achieve this by identifying areas that could boost the performance of the
website. Having an online platform that works well, loads fast and is easy to use will
definitely maintain clientele satisfaction.
c. Classifieds
Classified websites have both Ecommerce and Eservice aspects and as such, we find
that the benefits of Google Analytics to those types of websites are applicable here as
well. A classifieds website has to integrate their services and enhance the experience
for both the user and the buyer. Google Analytics can help to plug the gap of missing
information as it can help the identify what the customers want and better integrate it
with the providers of that want, satisfying both ends of their user base and hence
remaining relevant.
1
(Choo, B. 2013)
4
d. News Websites
News websites are generally focused on increasing the viewership of their articles
posted online and increasing the revenue gained through subscription fees and online
advertisements. Web analytics will allow the news website to collect user data and
translate the data gathered into information that will allow the news companies to
review their current business strategies and formulate new business strategies in order
to cater to the needs of the readers and advertisers. By using the information gathered,
the news company can make the articles more accessible to the online readers and
post more articles according to the readers’ interests in order to entice more readers to
subscribe to their online news services. A high web traffic inflow to the website will
in turn increase digital revenue when advertisers choose to advertise their products on
the news websites.
e. Information
Information websites are largely concerned with ensuring that the information they
wish to get out to its readers is able to be viewed in an effective manner, increase their
viewership, and build their brand name. There are other companyspecific objectives,
such as getting more conversions in the form of registrations (in the case of NTU)
which may be considered. Web analytics tools can provide information for companies
to track how effective the response to their marketing effects were, as well as deduce
how readers are interacting with their website as a measure of how effective their
methods are.
Subsequently, the limitations of Google Analytics were identified to comprise of, but is not
limited to, the enduser’s (1) inability to generate predictive analytics for future decision
making, (2) constraints to the number of events per session that can be tracked, (3) difficulties
in tracking information accurately, (4) lack of extensive customisation. These were elaborated
in greater detail.
It was discussed in greater detail that these limitations can be minimised or overcome by the
use of alternative web analytic tools available in the industry, such as Adobe Analytics,
Piwik, Open Web Analytics etc. Specific examples were provided to counter the limitations
raised in each case.
Notwithstanding the above, the future of web analytics was also considered. There are issues
like privacy and ethics which need to be considered data collection may be a
compromisation of privacy, and ethics comes into play when decisions are made concerning
big data. It can be observed that web analytics is heading towards stitching together the
multidevice world and the integration of Business Intelligence to further enhance web
analytics.
5
2. Introduction: Companies, their Online Presence and the Evolution of Marketing
With the rapid development of information technology in the recent years, we have noted that
the number of websites have grown exponentially to a sizeable sum of 1 billion since the 2
internet’s inception in 1969 . 3
Figure 21: Number of Websites by Year 4
With an increase of internet penetration rate around the world and following the general trend
exhibited in Figure 22 , it is evident that a larger proportion of people are now on the
internet. This trend is expected to increase exponentially in the following years, given the
multiple initiatives by industry bigplayers (e.g. Google) in connecting more people to the
internet and an increased reliance and emphasis on electronic communications in society.
Figure 22: Internet Penetration Rates from 20092016 5
2
(Internetlivestats.com, 2016)
3
(Leiner, B. et al. n.d.)
4
Retrieved on 13 October 2016 from http://www.internetlivestats.com/totalnumberofwebsites/#trend
5
Retrieved on 13 October 2016 from
https://www.statista.com/statistics/265156/internetpenetrationrateinasia/
6
Given our observations on the increase in the number of users on the internet as well as
websites, we deduce that companies have begun to recognise the importance of maintaining
an online presence through having a website in increased efforts to reach out to the various
groups of their target audience. Some examples include, but are not limited to the following
listed below:
● Retailers like Walmart, HMV and others have begun to embrace clickandmortar
models of online businesses.
● The industry has given rise to very successful inceptions of pureplay B2C etailers
such as Amazon
● Websites offering information have heightened their online presence to bring their
content online such that they would be able to stay relevant and continue to extend
their reach and cater to readers with different preferences. Popular news journals like
The Straits Times, Wall Street Journal offer online content, as with classifieds moving
online as well.
Considering the abovementioned, it is clear that traditional forms of marketing efforts are
required to evolve in order to extend its influence and effectiveness in online mediums.
Primary form of research to ascertain the effectiveness of an entity’s marketing efforts were
the main source of information, and they continue to be a viable source of information in
gathering information on issues of concern to entities, such as their consumers’ interest,
where they were referred from, amongst others.
The development of technology has automated the process of conducting primary research
through surveys and the process is expedited through the development of web analytics.
These tools, when calibrated accurately, can gather data to the answer questions posed to
consumers through surveys in a more realtime and effective manner. We will discuss web
analytics further in Section 2.3 .
7
2.1 Broad Categorisation of Websites
This discussion of the applicability of web analytics on websites will focus on the Top 20
most popular websites in Singapore as listed on TheSmartLocal.Com, a popular Singapore
lifestyle website. These websites have varied functionalities and are from a diverse range of
industries. The list of Top 20 websites are in enclosed in Appendix 1 .
Our analysis will be centred around the identification of the websites’ functional category,
which is deduced from the purpose the website serves and its probable objective in operation.
The main forms of functional categories are summarised, with descriptions and examples, in
Table 21 .
Functional
Category
Description Examples
ECommerce ECommerce is the buying and selling of goods
and services, or the transmitting of funds or data
over an electronic networks. The origin of
ecommerce stems from the point businesses began
using Electronic Data Interchanges (EDI) to share
documents . 6
Groupon,
DEAL.com.sg
EService EServices are websites that have emerged with the
purpose and/or function of complementing or
replacing what would otherwise be physical
overthecounter transactions, or through machines.
These sites have given rise to the convenience of
performing services from their homes.
SingPass, UOB, DBS,
OCBC
Classifieds Classifieds websites are online advertisement
portals; they are an avenue for people to reach out
to more people in a quicker and more efficient way
compared to traditional methods of advertising
(Provided they apply the right SEO/SEM tactics)
sgCarMart, ST
Classifieds,
Jobstreet,
PropertyGuru
News Websites Online sources of news often quicker than print
media as they can be updated by the second.
Certain websites also allow users to customise the
order of preference in which they receive their
news.
AsiaOne, Stomp,
The Real Singapore,
The Straits Times
Information Websites in these category can be of many forms.
For this discussion, we will consider any website
which main purpose is to provide users with
information in this category.
NTU, Insing,
Streetdirectory.com
Table 21: Categories of Websites
6
(Code, B. n.d.)
8
2.2 Generic Objectives of a Company’s Online Presence
Due to the varied nature of operational business that individual companies undertake, it is
therefore difficult to deduce objectives for every company’s online presence as
understandably, there are different objectives for different functional categories of websites.
Websites embracing an online presence is an extension of their marketing efforts to extend
their reach to a wider audience and increasing their company’s goods and service
accessibility. Notwithstanding the above, it is possible to broadly comment on the generic
objectives of a company’s online presence, and summarise them into one or more of the
following categories : 7
a. Increased Profits
A website allows consumers access to a business product or service anytime and
anyday, even after the normal operating hours. For businesses that generate most of
their revenue through sales, having an online presence allows sale transactions to take
place at any time of the day. Instead of restricting sales to the operating hours of a
company, having a website allows sales to go on continuously, increasing both sales
volume and revenue.
b. Marketing
Having an online presence allows companies and businesses to market their products
or services more easily and on a wider scale. There are many online marketing
strategies that appeal to the masses. One common example is the use of social media
to target the younger generation.
c. Cost Effectiveness
It is easy to determine the cost of building a website to generate an online presence.
However, for a physical store, the cost of having one is often difficult to determine as
it is vulnerable to external threats such as theft, fires and natural disasters, which will
drastically increase the cost. Having a substantial online presence will reduce such
risk and keep cost to a minimal.
d. Credibility
A website helps companies to establish credibility, as it will provide the company
with an online presence. With such a presence, it would give people an impression
that the company is doing well and is successful.
All of the above will undoubtedly shape the way entities seeks to improve their online
presence, in conjunction with the individual objectives of the website.
7
(Dogulin Digital, n.d.)
9
2.3 Web Analytics
Web analytics is the process of measuring, collecting and analysing the actions and behaviour
of the website’s target audience in their interaction with the website. Its purpose is primarily
centred about enabling entities to do any of the following , where applicable: 8
1. Attract more visitors,
2. Retain or attract new customers for goods or services, or
3. Increase the dollar volume each customer spends
The usability of web analytics is not confined to just measuring web traffic, but it can also be
engaged to conduct market research, and assess and improve the effectiveness of websites. It
also acts as a supplement to a primary form of research (surveys, as discussed in Section 2 ) in
measuring the effectiveness of traditional forms of advertising. Some methods include
tracking the clickthrough and drilldown behaviour of customers within the website, 9 10
deducing the source of their online audiences, and utilising browsergenerated information to
track and analyse online behaviour . 11
This report will evaluate the benefits that Google Analytics (free version), an industry
benchmark for web analytic tools, can provide to websites of different functionalities. A
comparison will also be made to alternate web analytic tools to address the limitations of
Google Analytics.
In summary, web analytics assists entities in generating data for actionable insights. Section 3
will further elaborate on the significance of web analytics with regards to five chosen
websites of varied functional categories as discussed in Section 2.1 .
8
(Allen, D. and McQuown, J., n.d.)
9
Clickthrough, often used in web advertising, is used to refer to an isolated click of a user in an adspace.
10
Drilldown refers to “focusing” on a particular area, and is used in relation to information technology.
11
(Allen, D. and McQuown, J., n.d.)
10
2.3.1 Process of Web Analytics
Web Analytics is the process of measuring, collecting, analysing and reporting of key
consumer data which are of interest to companies in order for them to better tailor their online
business models.
The Web Analytics process can actually be simplified into four different steps, as shown in
Figure 23 . This is further elaborated below.
Figure 23: Steps of the Web Analytics Process 12
Step 1: Collection of Data
During this stage, companies can make use of tracking files and codes that are stored on the
web host’s server to record web data automatically. Examples of the data collected include
the number of visits to the website and the amount of time spent on each webpage.
Step 2: Processing of Data
The web data collected is processed into information such as ratios or metrics to be used as a
standard of measurement.
Step 3: Developing KPIs
Companies will use the information derived in step 2 to develop Key Performance
Indicators(KPIs). At this stage, companies will focus on using the ratios and infusing them
with their business strategies.
Step 4: Formulating Online Strategy
The company will focus on formulating their online strategies. This stage is concerned with
the online goals and objectives of the company. Since the main objective of a company would
be profit maximisation, companies will make use of the information gathered in step 1 to step
3 to modify their current online strategies and to implement strategies in order to attract more
people to their websites.)
12
(Long, S. Y. et. al. 2016)
11
2.3.2 Introduction to Google Analytics
Google Analytics is a tool that helps businesses and companies to improve their online
presence. It contains many effective functions that will help any business or website to
achieve its full potential like traffic tracking, determining bounce rates or the tastes and
preferences of your audience . Google Analytics collects data from every aspect of a website 13
and helps to organise these data into a simpler and more understandable format for the
owners of the websites. It can also help to identify any weaknesses in the websites so that the
owners can remedy any problems without wasting much time.
2.3.3 Functions of Google Analytics
In summary, Google Analytics confers, broadly, the following benefits to its user:
a. Building Audiences with Valuable Insights.
Google Analytics helps you analyze visitor traffic and paint a complete picture of
your audience and their needs. You can track the routes people take to reach you and
the devices they use to get there with reporting tools like Traffic Sources. You can
also learn what people are looking for and what they like with InPage Analytics,
which then allows you to tailor your marketing and site content for maximum impact.
b. Getting More Conversions and Better Performance
Google Analytics has the latest in fullcredit measurement. Sophisticated tools like
MultiChannel Funnels and Attribution show how all the campaign elements work
together so you can give the most credit to those that work the best. Remarketing
can help you reach your most engaged viewers and see the impact of your message at
the moment it’s delivered. Site Speed, Alerts, and InPage Analytics let you reach
peak capacity by helping you avoid slow page loads, poorly placed content, and site
crashes due to high visitor volume.
c. Testing and Adapting for Success
Google Analytics helps you answer which digital marketing strategies perform best.
Make changes, remeasure, and test some more to meet your performance goals. Have
more than one group weighing in? Share valuable insights and dashboards with your
colleagues and generate reports tailored to the needs of different teams. If there is a
dip in traffic patterns, Custom Alerts let you know so you can act immediately
13
(Google Analytics, n.d. a.)
12
2.3.4 Dimensions and Metrics in Google Analytics
Google Analytics makes a distinction between a dimension and a metric and in our analysis,
it useful for entities to understand the differences between the two terms used in Google 14
Analytics in order to appreciate what information they will deliver. There are differences in
the way they are configured, collected, processed, reported and queries, and they cannot be
used for one another.
a. Dimensions
A dimension is the attribute (text) of visitors to your website, e.g. gender, age, city,
browser etc. In essence, it provides context to a metric; a standalone metric is
meaningless to analyse and report. This will be applicable to all Google analytics
reports. For example, information on visitor’s “country” (dimension) is used to put
meaning to the “sessions”. (metric)
b. Metric
A metric is a number (integer) which is used to measure one of the characteristics of a
dimension, for example sessions, new users, bounce rate etc.
This discussion will further focus on what metrics Google Analytics presents to entities who
use it. Some examples of metrics available on Google Analytics are summarised in Table 15
22 .
Acquisition Behaviour Conversions
Active Users
Number of Sessions
(and Percentage)
New of Users
(and Percentage)
Average Session Duration
Bounce Rate
Pages per Sessions
Percentage of Search Exits
Percentage of Search
Refinement
Search Items
Search Refinement
Time After Search
Active Pages
BaskettoDetail Rate
BuytoDetail Rate
Conversions
Conversion Value
ECommerce Conversion
Rate
Transactions
Product Revenue
Transactions
Unique Purchases
Table 22: Summary of Metrics Available on Google Analytics
This list is not exhaustive, and is meant to briefly provide a glossary and briefly explain the
metrics that are mentioned throughout our discussion. Sections 2.3.4.13 goes further to
explain three of the most commonly presented features within each category, to give a
generic overview of how these categories of metrics function.
14
(OptimizeSMART, n.d.)
15
(Google Analytics, n.d. b.)
13
2.3.4.1 Acquisition Metrics
Acquisition metrics in Google Analytics provide information on how online visitors arrive at
the website . These metrics can show how active the users are in engaging with the website 16
and its content. Listed below is the list of acquisition metrics that are commonly used by
companies to evaluate their current business objectives.
a. Number of Sessions
This metric measures the number total number of sessions that occurs on the
webpage. It is the period of time that a user is actively engaged with the website. It is
usually combined with another metric to give context to the number, for example,
Pages (Pages/session), which gives the average number of pages viewed per session.
An example of how the number of sessions is displayed, with reference to the Google
Analytics demonstration account is shown in Figure 24 .
.
Figure 24: Acquisition Metrics Displayed in Google Analytics
16
(Watkins, R. 2014)
14
b. Percentage of New Sessions
This metric provides an estimate of the percentage of first time visits to the website. It
is usually combined with another metric to give content to the number, for example,
the number of new vs returning visitors, which shows the effectiveness of the website
in attracting visitors by measuring the percentage of new visits with respect to the
total number of visits.
An example of how the percentage of new sessions is displayed, with reference to the
Google Analytics demonstration account is also shown above in Figure 24 .
c. New Users
This metric provides the number of firsttime users during a selected date range. It can
also be combined with the same metric used above. For example, the number of new
vs returning visitors in order to determine the success of the website in retaining its
current visitors and to differentiate it with the effectiveness of the website in attracting
new visitors.
An example of how the new users is displayed, with reference to the Google
Analytics demonstration account is also shown above in Figure 24 . This is the
rightmost column of the screenshot ahead.
15
2.3.4.2 Behaviour Metrics
Behaviour Metrics in Google Analytics demonstrate to entities how others interact with their
website. It also provide reports on the performance of the websites and identifies areas in the
website that requires improvements and optimisation. Listed below are the list of behaviour
metrics that are commonly used by companies to evaluate their current business objectives.
a. Average Session Duration
This shows the amount of time a visitor spends viewing a particular page in the
website. A longer duration on a particular page would mean that a visitor is more
likely to be interested in that page and vice versa.
An example of how the average session duration is displayed, with reference to the
Google Analytics demonstration account is shown in Figure 25 , in the rightmost
column featured of the screenshot.
Figure 25: Behaviour Metrics Displayed in Google Analytics
16
b. Bounce Rate
It refers to the percentage of visitors who enter the website and then leave the website
without clicking or viewing other pages or links in the website. This usually happens
when visitors did not find what they are looking for on the website.
An example of how the bounce rate is displayed, with reference to the Google
Analytics demonstration account is also shown above in Figure 25 , in the leftmost
column.
c. Pages per Sessions
This metric shows the number of different pages that a visitor enters in one sessions.
Generally, a higher number will mean that a visitor is more likely to be interested in
the content and thus, visits the various links or pages related to the website.
An example of how the pages per sessions is displayed, with reference to the Google
Analytics demonstration account is also shown above in Figure 25 , in the middle
column.
17
2.3.4.3 Conversion Metrics
Conversion metrics help users to know what happens after a visitor or customer clicks on the
links on the web page or enter a website. It allows the user to know the actions of the visitor,
for instance, whether they purchase the product, signed up or register or even visiting the
website just to obtain information.
a. Ecommerce Conversion Rate
This metric is extremely useful for ecommerce sites. It measures the percentage of
site visitors who convert into paying customers.
An example of how the ecommerce conversion rate is displayed, with reference to
the Google Analytics demonstration account is shown in Figure 26 .
Figure 26 Conversion metrics displayed in Google Analytics
18
b. Transactions
The transaction metric simply shows how many transactions take place in one session.
Users can opt to view the number of transactions in one day or a month depending on
their preference.
An example of how the transactions is displayed, with reference to the Google
Analytics demonstration account is also shown above in Figure 26 .
c. Revenue
This particular metric allows the user to track how much revenue is generated from
their website. Similarly, the time period in which users want to track their revenue can
be adjusted according to their own preference.
An example of how the revenue is displayed, with reference to the Google Analytics
demonstration account is also shown above in Figure 26 .
19
3. Case Studies of Selected Top 20 Websites
This report will focus on five websites of different categories from the list of Top 20 Websites
in Appendix 1 . These will be discussed in Section 3.1 to Section 3.5 :
● ECommerce : Groupon ( Section 3.1 )
● EService : Overseas Chinese Banking Corporation (OCBC) ( Section 3.2 )
● Classifieds : sgCarMart ( Section 3.3 )
● News Website : The Straits Times ( Section 3.4 )
● Information : Nanyang Technological University (NTU) ( Section 3.5 )
The subsequent sections will build on the premises established in Section 2 on the
categorisation of websites by function and the benefits that web analytics offers to the
abovementioned websites.
In addition, our discussion will take into account each entity’s Revenue Model and
Measurable Goals as defined below:
a. Revenue Model : How business will earn income, produce profits and strive to
generate a higher than average return on investment . 17
b. Measureable Goals : An objective that can has a clear marker of achievement; entities
can identify when the objective has been achieved through quantifiable outcomes . 18
In our discussion, we have identified that the chosen five companies from the list of twenty
belong to different functional categories of websites, as discussed in Section 2.1 .
17
(Business Dictionary, n.d.)
18
(YourCoach, n.d.)
20
3.1 ECommerce: Groupon
Groupon Singapore was launched in May 2010, and features daily promotions in a bid to
connect local commerce with the increasing purchasing power of consumers, and in the
process driving more business to local merchants through price and discovery . Groupon’s 19
business model has evolved throughout the years : 20
a. When Groupon first launched, one deal (known as a “Groupon”) per day was
released. This served as an assurance contract: the deal would only be honoured if the
minimum consumer threshold was fulfilled. Under this model, half of the money paid
by customers was kept by Groupon.
b. This model presented several issues, in particular, to small businesses who suffered 21
heavily when they were swamped with orders as a result of an oversubscription to the
Groupon. As a result, Groupon made caps in advance to ensure that businesses can
perform their services effectively . They continued to encourage consumers to try 22
local businesses.
c. Later, Groupon launched several notable initiatives Groupon Goods which focused
on discounted merchandise and Groupon Getaways which offers travel and vacation
deals . This is forms a bulk of Groupon’s current core business at present. 23
d. Besides the abovementioned, Groupon has also diversified with other geospecific
ventures, such as GrouponLive , which allows consumers to find discounts on 24
ticketed events and Groupon To Go , a food delivery spinoff. 25
In addition to being recognised as the eleventh most popular website in Singapore , it also 26
qualifies as the second biggest ecommerce website in ASEAN with a turnover of S$145
million, followed by the iBuyGroup which controls Beecrazy, Deal.Com.sg, and LivingSocial
. 27
19
(Groupon., n.d.)
20
(Wikipedia, n.d.)
21
These were the ones that Groupon started out to assist in gaining more ground; local companies.
22
(Weiss, B. 2010)
23
(BusinessWire. 2011)
24
(BusinessWire, 2012)
25
(Perez, S. 2015)
26
(Choo, B. 2013)
27
(Isa, T. 2014)
21
3.1.1 Objectives of Groupon
Groupon’s overall objectives can be summarised from its values and foreword statement in 28
its recent financial statements . This information should be viewed in consideration of the 29
revenue and business model of Groupon. The relevant information for this discussion is as
follows:
a. Building for the Long Term
Groupon appears to tend towards sustainable growth in the long run with regards to
increasing its scope, number of deals and net deal size. Its mission statement makes a
commitment that they will not “do something for shortterm gains” that “will hurt
[Groupon] in the long run.” In this scope, it communicates a willingness on their part
to make investments that might not pay off initially, develop new technologies or
acquire a new startup, all with an eye toward the future. (Mission Statement)
b. Daily Habit in Local Commerce
Groupon acts as a platform to promote businesses to a wider audience of people. In
doing so, they seek to make Groupon a daily habit in local commerce by making
strides in local and mobile commerce, which is their primary consideration. Groupon
wants to strive towards expanding their reach and making Groupon more accessible to
their target audience.
c. Bringing Local Commerce into the Online World
Qualifying Groupon’s goal as a platform, they aim to stay true to building itself as a
site concerned with bridging the gap between small businesses and a large amount of
consumers. Groupon believes that there is a multitrilliondollar global economic
potential in this market, and hopes to revitalise one of the last spaces to reap the
benefit from the development of information technology. This reality can be partially
attributed to local businesses not being marketers by nature and their lack of their time
and resources. For them to do this effectively, they will look towards geotargeted
measurable goals.
28
(Groupon, n.d.)
29
(Groupon, 2015)
22
d. Improving Customer Experience
They seek to have a lower friction between the buying and redemption experience.
This means reducing the difficulties encountered by customers between these two
processes. Groupon would want to explore options to mitigate the challenges posed in
the current system. Expirations still frustrate customers and pose a mental barrier to
new purchases. It is important for them to catch up to their customer’s expectations.
e. Capitalising on Mobile Platforms
Some of the concerns Groupon is looking at is improving the mobile utility, given that
60% of their global transactions are on mobile devices. Groupon seeks to cement its
position as a clear leader on mobile devices around the world, as the mobile market
penetration increases over time.
This information will set the precedence for further discussion on what web analytics can do
to assist Groupon in achieving their objectives.
23
3.1.2 Revenue Models of Groupon
Groupon, like its direct competitors in LivingSocial and other Daily Deal websites, are
effectively advertising agencies in that they promote products and/or services to a wider
audience on behalf of companies . 30
Groupon’s revenue sources are dependent on two variable factors which are interlinked with 31
their business model, as discussed in Section 3.1 :
a. Number of Deals
The number of deals can depend on the number of regions Groupon serves, as well as
the volume of deals that are achieved through its main deals, side deals which have a
long list of merchants waiting to be featured and Groupon stores (e.g. Groupon
Goods).
b. Net Deal Size
This component will vary with the share to Groupon and discounted deal price. The
discounted deal price can be influenced by the proportion of discount to customers
and the gross price based on the function of category. The general trend has been to
push into travel and hotels, given how general affluence has resulted in an increased
demand for travel.
It is conclusive for us to deduce that Groupon main source of operational revenue is from the
commissions received from the promotion of other companies’ goods and services on their
website. Subsequent efforts in a bid to grow the company’s market capitalisation will be
about increasing the number of deals and net deal size.
30
(Haralampou, J. 2016)
31
(Dahlen, C. 2012)
24
3.1.3 Measurable Goals, Dimensions and Metrics for Groupon
Groupon will look towards its objectives, in consideration of its revenue model, to determine
what the relevant measurable goals are relevant to be considered. Subsequently, they should
consider how the dimensions and metrics presented by Google Analytics will be relevant in
assessing their achievement of their measurable goals.
Goal 1: Building for the Long Term
a. Measurable Goal
It is clear that Groupon will not do something for shortterm gains; its aims to build
for the long term. Following this line of thought, it can be deduced that they will look
at improving all categories of products offered on Groupon instead of just focusing on
categories of products that are performing well. They will assess which category of
products are less prominent on their platform in relativity to the market composition
of products sold, and decide which category of products it should strive towards
securing on Groupon’s website. Doing so would ensure that the products on
Groupon’s platform are welldiversified and hence build towards sustainable and
longterm growth.
To further cement their sustainability efforts, they have to take into account the
changing interests of the consumers and ensure that their product composition
corresponds with the trends of the consumers’ tastes and preferences this will ensure
Groupon’s continued relevance as a platform for their consumers. The quantifiable
goal would then be to judge the ability of Groupon to offer a proportionate products
that suit the interests of consumers.
b. Dimensions and Metrics
Given that the key discussion about longterm growth is centred about responding to
consumers’ interest, it would then be appropriate for us to consider looking the
aforementioned as a dimension. The metrics that are relevant would be the “sessions”
and “bounce rate”. (Audience > Interests > Affinity Categories)
The number of “sessions”, analysed with respect to the interests of the users that visit
it would be representative of the majority of the user’s interest, and can be said to be
the interest of the consumer base. This reflects where Groupon should consider
modeling its production composition after. This information will be useful in telling
Groupon how it should respond and stay relevant to the interests of its users.
The next category to look at would be the “bounce rate”. Every interest category
should be examined with regards to this. In interpreting the information, Groupon
may consider looking at the interest categories with a high bounce rate as this could
mean that there were little things on the front page that were of interest to these
consumers as they left without interacting with the page. This is a negative sign, and
sieving out which categories of consumers’ interest have a high bounce rate (anything
above the average bounce rate) will help determine which category of consumers
25
Groupon should work towards engaging more and arousing their interest. By
extension, this means that Groupon can consider increasing the products available in
these categories to ensure that consumers with different interests will see a reason to
visit Groupon.
Taking a keen interest in these two metrics would determine how Groupon should rebase its
marketing and outreach strategies to engage and respond to different interest groups and
ensure that they stay relevant to the industry and grow sustainably.
Goal 2: Daily Habit in Local Commerce
a. Measurable Goal
Groupon is ambitious in saying that it wants their promotional platform to be the first
consideration of consumers, in other words a “daily habit in local commerce”. The
way of measuring this would be to examine the conversion rates with a dimension of
unique users by geographical region (Audience > Geo > Location) and
crossreference that with a census of the number of people in that region. Equation 1
shows how this can possibly be done.
(1) of People on Groupon % = Sessions
No. of P eople in the Region (Census)
In order for it to become a habit, there should be a stepup of awareness efforts. It is
useful for Groupon to then determine what are the the dimensions and metrics it wants
to extract from the web analytics tool to decide what efforts to continue doing, and
what markets it should target to provide more demand for.
b. Dimension and Metrics
It is important for Groupon to know what are the most effective ways of achieving
conversions. This is such that they know which channels are successful in making
people complete their purchases and thus boosting a component of their revenue
model, the net deal size. The focus will be on the conversions (metric) and conversion
value (metric) as an additional value, and the dimensions that can be set will be “MCF
Channel Grouping Path”. (Conversions > ECommerce > MultiChannel Funnels >
Top Conversion) The qualitative information generated is shown in Figure 31 .
Figure 31: Information Generated about MultiChannel Funnel Top Conversions
With this information, they would be able to know what channels they should focus
on, and what multichannel pathways are most effective in bringing about
conversions.
26
The more interested the consumers are in a particular market, the more likely they are
to continue to see Groupon as a choice for this, generating demand and gradually
achieving this objective, thus it is important to know what markets their consumers
are looking at. Groupon can then make use of the number of sessions (metric) and
conversions (metric), qualified by the affinity category of the users (dimension)
(Audience > Interests > Affinity Categories).
The generated data will return the affinity categories which pose the most sessions.
The most number of sessions represents the number of people with a particular
interest visiting the site, and hence that would be a good indicator of interest. It is also
important to see which one generates the most conversions, and which is the best
selling category. In this sense, focusing on both would help to increase Groupon’s
appeal to customers of that interest category, and cement their interest gradually.
Goal 3: Bringing Local Commerce into the Online World
a. Measureable Goal
In attempting to bridge the gap between the local businesses and the large pool of
consumers that visit Groupon’s website, it is important for Groupon to monitor the
performance of the local commerce websites that register to promote their goods
and/or service on its platform.
To be successful in its cause, it must be able to convince local businesses that
promoting on Groupon’s platform is worth the setup time and efforts. The goal would
then be to try to maximise the increase in potential revenue and/or the profit margin of
the local business which contracted to advertise. This would involve getting input data
from the firm which may be complicated as this is sensitive information.
Thus, what Groupon can measure on its end would be to monitor the processes and
gauge the effectiveness of their marketing efforts by ensuring that the take up rate for
the product is performing well as compared to other similar products, and maximising
the revenue from it. If it does it effectively, it would benefit the two revenue models
of number of deals and net deal size.
b. Dimension and Metrics
There are additional metrics available for ECommerce on Google Analytics for
measuring the extent of success Groupon’s platform serves for the businesses that
advertise on it. The metrics to be considered are those under sales performance
“product revenue”, “unique purchases”, and those under shopping behaviour
“baskettodetail rate ” and “buytodetail rate ”. The dimension for this will be the 32 33
individual products, gauged by the product performance. (ECommerce > Shopping
Analysis > Product Performance)
32
Product addstobasket divided by product views.
33
Unique purchases divided by views of productdetail pages.
27
As discussed earlier, it would be useful for them to know how users interacted with
the page advertising the product. At times, users may be more compelled to purchase
the product due to good marketing efforts, and this is reflected in the “baskettodetail
rate” and “buytodetail rate”. The “baskettodetail” rate will show the intent of the
users to buy, and it would good to know how many of them were convinced, or
contemplated buying the item as these could be the potential conversions. It can also
be viewed with the “buytodetail” rate, which will show the number of actual
conversions that happened.
For the metrics under sales performance, Groupon can exact the data from new
products and benchmark it against the same metric data from other products, or
previously advertised products which fall under the same category and see how the
product is doing in relatively. With that, a judgement can be made on the
performance, and any remedies or enhancements to be made can be further discussed.
All of the information and observation can also be compiled and reported to the
businesses to provide assurance and convince that Groupon is a good platform for
them to get word about their goods or services out, and positive performance will
boost Groupon’s reputation as a good platform to advertise businesses, and naturally
more deals will be struck over time.
Goal 4: Improving Customer Experience
a. Measurable Goals
The key idea reiterated by Groupon in its aim is to strive towards reducing friction in
both the redemption and buying experience.
For redemption, improving this would be to evaluate the process beyond the scope of
their website, refining their ontheground processes and improving their information
systems to trigger reminders to prevent unintended expiry of coupons.
We are inclined to believe that the buying process can be analysed through making
inference from data generated through the application of web analytics. The
measurable goal is to see that the average time taken to complete transactions will
decrease, as an indicator that the buying process is easier.
b. Dimension and Metrics
There are two methods to go about doing this. It is possible to view the aggregate data
and make general observations, and also take a sample of individual cases using
realtime data to make improvements to consumer’s buying experience.
In the first approach of making inferences from aggregate data, the metric that
provides some relevance is the “average session duration”, “transactions” and the
“ecommerce conversion rate”. It may be useful to split the users up by behaviour
new against returning users (dimension) (Audience > Behaviour > New vs Returning)
28
as it is generally accepted that returning users would generally be more familiar with
Groupon’s interface and model, and would thus produce different results.
With the information deduced from the metrics, it is then possible to deduce an
average time needed to complete transactions, as a measure of how quickly they are
able to complete their transactions. This would be a broad indicator for the ease of
completing a transaction on Groupon’s interface. Equation 2 sets out how this can be
done.
(2)vg Time A = No. of Transactions
(Avg Session Duration)(No. of Sessions)(E Commerce Conversion Rate)−
(Limitation is that you don’t know what amount of their time is attributed to actually
completing the buying process and not just window shopping)
Another avenue to consider looking at is to take a sample size of the active users and
deduce on a casetocase basis what are the qualitative problems they are
experiencing. Groupon can take look at individual remedies to assist users in making
their transaction completion time shorter. They would have to make use of the
information provided for “active users” on “active pages” (metrics) based on the
“content” (dimension) classification. (Real Time > Content). 34
Under this reporting, it would be shown what the active pages are. It would then be
possible filter the active pages, and see if there is any bottleneck that currently exists
at any point of the transaction by making a comparison of the active users at fixed
time intervals. If for any reason any page (which is part of the transaction process)
seems to consistently have a lot of users with little reason, it would then be
appropriate for Groupon to consider looking at the individual page to see if there is
indeed any issue with the webpage and see if there’s a need to improve it to make the
buying process easier
Goal 5: Capitalising on Mobile Platforms
a. Measurable Goals
It is possible for Groupon to make a direct measurement of the number of users there
are on its platform. For the purpose of clarity in assessing this goal of utilising mobile
platforms, Groupon should monitor the nominal number of mobile users there are
using its platforms. In addition, they may also want to compare the statistics that give
a comparison of the percentage growth of users on mobile platforms as compared to
the total number of users.
b. Dimensions and Metrics
The relevant metrics that can be considered are those under the acquisition categories:
sessions, % new sessions and new users (Audience > Mobile > Overview). The
dimensions that are relevant to quantifying this goal are the device categories.
34
Google Analytics has recently announced a beta trial for real time analytics in May 2016, more information
can be found here: https://developers.google.com/analytics/devguides/reporting/realtime/v3/ .
29
Whenever there are generic promotional efforts that are made to promote the viability
of using mobile platforms, it is possible to access the metric sessions, with the
primary dimension being the device category to make a statistical comparison of how
the general effectiveness has been. Equation 3 defines how the growth can be
calculated.
(3)rowth of Mobile Sessions G = V aluet=0
V alue V aluet=1− t 0 −
This formula can be applied in a passive situation as well, to determine what is the
growth of mobile sessions in regular times. A comparison can also be made to
sessions from other device categories desktops and tablets, to see how the relative
growth is.
To counter the uncontrolled factor posed in the situation above, it is then possible for
Groupon release specific promotional codes to stimulate activity on mobile portals.
This is a more effective way of measuring the achievement of this objective as it
would directly trace the effort to the results that it generates.
Building on the configuration as suggested earlier (Audience > Mobile > Overview),
some more qualifications can be made. The following can be applied:
1. Dimension Secondary Dimension: Internal Promotion ID
2. Metric Comparison Sessions vs Conversions: Goal 1: Purchase Completed
This would provide Groupon with a itemtoitem analysis on which promotional
codes, which are most likely unique to the respective advertising campaigns. These
amendments will provide the extent of how Groupon’s campaigns have been
successful individually, and aggregate data to show how much the goal has been
achieved.
30
3.1.4 Limitations in Google Analytics Metrics for Groupon
Although Google Analytics is rather useful in helping analysts make decisions and propose
recommendations for Groupon to adopt in order to improving its marketing strategies and
generate more revenue.
a. Tracking of Customers’ Behaviour
To improve the customer experience, Groupon can consider determining what
problems customers face when interacting with their website. With the metrics
provided by Google Analytics, the current solution is to look at where people appear
to be stuck over a period of time to see what needs to be improved. There is no
certainty as to where they are stuck. Although with the information provided by
Google Analytics, certain decisions can be made, but there is a limit in how accurately
the priorities are assigned to improving specific pages.
b. Determining Retention of Customers
Google Analytics provides the metrics qualified by individual dimensions, but
requires some inference of the data to make a judgement call for action. It would be
better if more clearcut information was available to entities applying the web
analytics so that they would be able to make their decisions more quickly and the
breakdown of analysis is available in other web analytics solutions.
Alternatives to Google Analytics that can be used to reduce the limitations posed are
suggested in Section 3.1.5 .
31
3.1.5 Comparison to Other Web Analytics Tools for Groupon
The limitations in Google Analytics will inhibit Groupon from being more efficient with
analysing their data and making decisions relevant to their operations. It would then be useful
for us to make reference to the other web analytics tools in a bid to mitigate the limitations
that are posed in the application of Google Analytics.
There are several tools that can possibility improve the efficiency of processes that Groupon
undertakes to measure the extent they have achieved their measurable goals. This will be
discussed below:
a. KISSmetrics
The custom reports that KISSmetrics can generate allows entities viewing the data to
perform customer behaviour tracking, and reporting is based on personcentric data.
Being able to receive this information would help them fulfill their goal of improving
consumers’ experience.
The main feature that will appeal to Groupon in this case is a generation of a list of
people that didn’t take the next step. In addition, there will also be information on
which customers’ behaviours have changed over time . This is opposed to Google 35
Analytics, which only displays the metrics in an aggregate form, and requires the
analyst to make an inference and deduce where are the points where there are
bottlenecks for customers. Judgement would involve some inaccuracies, and the risk
of inaccuracies is mitigated with the precise data that KISSmetrics displays.
b. Woopra
This web analytics tool will give entities detailed data analytics that allow them to
identify them as “conversion killers” on the websites . There is a followup point that 36
they feature WebHooks, which automates actions in response to what the entity’s
customers are doing as they are doing it, with instant notifications for the relevant
webmasters. They also offer funnel reports to pinpoint where customers remain
stagnant for a period of them, and subsequently track the effect of the changes made
in response. There are retention reports which are useful in telling Groupon how
effective their long term efforts are. It appears that Google Analytics is focused more
the metrics, and reports like these which pinpoint users with such accuracy is not the
same.
35
(TechnologyAdvice, 2016 a)
36
(TechnologyAdvice, 2016 b)
32
3.2 EService: Overseas Chinese Banking Corporation (OCBC)
OCBC Bank is Singapore’s oldest and most established bank that was formed in 1932. OCBC
has bought over many other nonbanking businesses and expanded its own range of services,
to provide the following to the community . Some of the bank’s core businesses are: 37
a. Banking Services
OCBC has formulated many services to cater to different groups of people and these
include the normal customer, businesses and investors. OCBC also provides
transaction banking to Small and Medium Enterprises (SMEs) as well as government
organisation. OCBC also engages in global treasury activities such as foreign
exchange, money markets and treasury products in order to cater to the investment
and hedging needs of their customers.
b. Private Banking
These are services that cater to individuals and families with a high net worth, as well
as to private businesses. Such services are provided mainly by Bank of Singapore,
which is a subsidiary of OCBC Bank, and a global private bank.
c. Insurance
Great Eastern Holdings, an insurance business and a subsidiary of OCBC Bank,
provides insurance services for customers of OCBC. Being the largest insurance
group in Singapore and Malaysia, acquiring Great Eastern is OCBCs way of
increasing its revenue by branching out from commercial banking services.
d. Stockbroking
The main service provided by OCBC for stockbroking is known as OCBC Securities.
OCBC Securities makes use of an online platform for access into stock markets and
execution. It provides a wide range of brokerage services for international securities,
futures and foreign exchange.
OCBC maintains an online presence which helps them disseminate information about their
key products and services. In addition to this, they also offer ebanking services to
consumers, which effectively is a viable substitute to what would otherwise have been
transactions made over the counter at its branches, or at its Automated Teller Machines
(ATM).
37
(Overseas Chinese Banking Corporation, n.d. a)
33
3.2.1 Objectives of OCBC
The current relevant objectives of OCBC with respect to its marketing endeavours are
summarised below, with reference to their 2015 Annual Report : 38
a. Interaction With the Public
The main objective of OCBC is to maintain a consistent connection with the people
and community. OCBC seeks to ensure that their services are suited and specially
catered to people with different needs and preferences. This can be achieved with
constant interaction with the public and the community, to find out what they need
and prefer.
b. Improve Online Presence
OCBC seeks to further improve its online presence in order to reach out to people
from all age groups and to create brand recognition. Frequent connection and
interaction requires OCBC to have a substantial online presence, given today’s
increasing reliance on online technologies such as smartphones and social media.
c. Accessibility of Online Services
OCBC strives to make their online banking services more user friendly and accessible
to all smartphones users so as to increase convenience for their customers. Currently,
only iOS users can access OneTouch, an online service that allows customers to view
their bank transactions and bank details from their mobile phones. This limits the
number of users who can make use of this online service as users of android and other
operating systems are unable to use OneTouch. The convenience and benefits of this
service is currently only provided to a certain group of people and this is an issue
OCBC is looking to remedy in the near future.
d. Increase Revenue
As a profit driven firm, one of their key objectives is to increase revenue. With more
revenue, OCBC will have more resources for investments to further improve its
service quality to customers. An increase in revenue will also reflect well on the their
prospects and improve investor confidence towards the firm.
e. A Relevant Workforce
OCBC looks to enhance the capabilities of their workforce by enhancing their
skillsets through constant retraining and skills upgrading. Having a relevant
workforce with uptodate skills and expertise will ensure that customers are served
properly with care and dedication. A workforce that understands the needs of the
people and society is extremely important to a company such as OCBC due to the fact
that the core businesses of OCBC are heavily customer centric and therefore, ensuring
their customers are satisfied is crucial for their success and survival as a business.
38
(Overseas Chinese Banking Corporation, 2015)
34
3.2.2 Revenue Models of OCBC
OCBC generates revenue through the provision of a variety of services and have diversified
beyond the scope of purely commercial banking services. As mentioned in Section 3.2.1 ,
besides commercial banking, OCBC also has expertise and knowledge in areas such as
investments, insurance and private banking. OCBC has modified some of their services to
provide even more diversification. An example would be FRANK by OCBC, which is geared
towards the youth and young working adults of Singapore. By diversifying into areas besides
its commercial banking services, OCBC can ensure sustained and greater profits in the long
run.
OCBC also sells insurance plans under their subsidiary Great Eastern Holdings. Providing
insurance coverage is a core business of OCBC, therefore a significant portion of total
revenue will come from the selling of insurance plans. OCBC has a variety of insurance plans
available which provide for many aspects of life such as travel, car, mortgage and
endowment. The various insurance plans available give customers the freedom and flexibility
to choose and it has been one of the main revenue models for OCBC.
OCBC has a substantial online presence to provide convenience to customers. An example of
such an online presence on OCBC’s part is the new digital service know as ‘OneTouch’,
introduced in 2015 to allow customers to access their bank account details, transaction and
the various banking services using their own smartphones. All these implementations are
aimed at providing customers with more efficient and convenient banking services. Such
efficiency and convenience allowed OCBC to be more advanced in terms of technological
use as compared to its competitors and enabled it to attract more customers and hence
increase revenue.
35
3.2.3 Measurable Goals, Dimensions and Metrics for OCBC
At the core of OCBC runs three main lines of businesses. They are retail and commercial
banking, wealth management, and insurance. One of OCBCs main area of expertise is in its
investment in technology and integrating it seamlessly into its core businesses. This in turn
allows OCBC to generate even greater revenue and increase their presence in Asia and
Southeast Asia . Improving the technology aspect helps OCBC to achieve its objective of 39
reaching out to the general public.
An easy and effective way to monitor the effectiveness of OCBC’s online ability to generate
income is to make use of web analytics. Web analytics can be employed to identify areas in
OCBC’s online strategies that need improvement. This helps OCBC to identify less effective
areas or strategies and remedy these problems without wasting too much time. Web analytics
can be used to track customer interaction and how it can be further improved in order to
follow its business model of investing in people and technology.
Goal 1: Interaction With the Public
a. Measurable Goals
To ensure a constant connection with the public, the content produced must be
relevant and interesting to the general public. In order to ensure successful interaction,
OCBC needs to find out which of their existing content is most visited by the general
public. Identifying the most visited content categories can help OCBC to produce
more relevant information to attract people and viewers.
b. Dimension and Metrics
As part of their efforts to ensure constant interaction with the general public, OCBC
has its own website dedicated to providing financial information and the type of
services that it offers to readers. OCBC can make use of the “Interests” metric in
Google Analytics (Audience > Interests > Overview > Affinity Categories) to find out
which of the content is most appealing and most visited to readers by tracking the
number of visits to that particular content. The report will then show several interests
groups in OCBC’s website and also shows the most visited content page. OCBC can
then produce more of such content from the same genre to attract more readers and to
ensure that its content is appealing to readers. This will make constant interaction with
the general public much easier.
39
(Overseas Chinese Banking Corporation, n.d. b)
36