Metrics and Benchmarking
Every click or word typed online can be tracked down (Fang et al., 2006). Web-centric metrics utilize this concept to quantify the success of web and e-businesses initiatives. There are various web-centric metrics; however, in analyzing the e-businesses, only a small number can be used. Benchmarking, on the other hand, is the process of constant evaluation, measuring system results, and comparing them to the consequences of the benchmarks baseline values a system seeks to attain (Ettorchi, 2012). Just like CNN and Amazon websites use web-centric metrics, Christian organizations can apply web-centric metrics to their businesses, and we can also apply benchmarking to our lives.
Both Amazon and CNN have invested heavily in their online presence as evidenced in their websites. They have made this investment, in particular, to attract more people to their sites, thus generating traffic (Weggins, 2005). To adequately compare their websites, it is crucial to analyze various web-centric metrics. There are six common web-centric metrics; that is, unique visitors, the total number of hits, page exposures, conversion rates, click-through, cost-per-thousand, abandoned registrations, and abandoned shopping carts (Weggins, 2005). Therefore, using these metrics or modified versions of them, one can easily compare between the CNN and Amazon websites.
Amazon and CNN have differences in their performance and number of visitors to their websites. Amazon is ranked 13th globally internally and 5th in the United States in terms of revenue and performance. The company has a geographical audience of 66.6% in the U.S, 3.8% in Japan, 3.0% in China, 2.8% in India, and 1.8% in the UK (Alexa, 2017b). Concerning the number of web visitors, the website has a 29.5% bounce rate, 8.24 % daily hits, and an average of 8.08 minutes per day. Regarding page exposure, 25.5% of Amazon’s visitors are from Google, 3.5% from YouTube, 2.6% from Facebook, 1.9% from eBay, and 1.4% from Yahoo (Alexa, 2017b). CNN, on the other hand, is ranked 102 globally and 27th in the U.S. The ranking is based on popularity. CNN enjoys a broader geographical coverage; in the U.S they have an audience of 68.3%, 3.8% in Canada, 2.3% in Japan, 32.3% in China, and 1.9% in the UK (Alexa, 2017a). Regarding visitor patterns, it has a 52.3% bounce rate, 2.34% daily visitors, and an average of 4.22 minutes spent on the website (Alexa, 2017a). In terms of exposure, 25.9% of the visitors are from Google, 4.8% from Facebook, 3.5% from Reddit, 2.7% from Yahoo, and 2.1% from YouTube (Alexa, 2017a). Therefore, using this data, one can objectively compare these two companies.
The two companies have different target markets. CNN is involved in the dissemination of news, while Amazon is an online retail store. Amazon should, therefore, focus on metrics that measure their ability to make sales-conversion rates, attract customers to the website, and retain them for as long as possible, which tantamount to improving customer loyalty. The company can utilize online established customer patterns to do achieve this goal (Budd, 2011). Additionally, for a better client delivery and better services, the geographical distribution of its customers should be a good place to know where to invest in more. As highlighted by Budd (2011), sites that link customers to their website should be another place to increase their investments. Furthermore, the organization should focus on reducing the bounce rate of its visitors, which as already highlighted, is at 29.5%. On the other hand, CNN is more concerned with attracting visitors to their website and keeping them hooked on the stories and televised services. The organization should focus on the geographical distribution of their audience the most as it is a global news channel. According to Bergin (2000) “Trends towards globalization dictate that companies need to be highly flexible” (p.4). Thus, the company should use web analytics on their website, concentrate on the most searched stories, and what categories are most popular and trending among various demographics. Using the information obtained from these metrics, the managers can find ways to reduce negatively performing ones like the bounce rate and the average time spent on the website. Therefore, based on their web metrics, having different focus regarding the direction of the business means that both companies should focus on different metrics although there are common ones they should consider.
Christian managers have a lot to learn from benchmarking and metrics. They can apply the various concepts to grow their e-business. An average business that is doing well does not evaluate its systems to see where improvements can be made because they are in a plateau of comfort. Christian mangers should put in place a mechanism of critically analyzing their e-business systems although even though their organizations may have a different operational strategy from profit-making companies (Bergin, 2005). This will help identify possible areas in need of improvements, and in turn guide on proper decision making. According to Pye and Warren (2005), Christian managers can work together to implement a good e-business system by thinking innovatively about ways to progress their business, using analytical software to find loopholes in the system, and studying more successful companies that are similar. Moreover, they can focus on analyzing what gives other organizations an edge over their own institutions and implementing change based on both on reflection and empirical research data (Pye & Warren, 2005). Pye and Warren (2005) also suggest that managers could also evaluate the applied changes and see if they meet the industry standards. After benchmarking, the goal is that an organization’s operations are expected to be cost effective. Thus, Christian managers can produce more for less and increase profits all through properly utilizing benchmarking as a business tool.
On the subject of metrics, the manager should focus more on five primary metrics. The first one is the size of the gross margin. Gross margin is the total revenue less cost of sold goods divided by the total revenue of sales (Haag & Cummings, 2013). The bigger this value is as a percentage, the more money is retained in the business after a sale, and hence the more profit an organization makes. The second metric is the cost of client acquisition. Either online or offline, this metric deals with the cost of acquiring new customers in the business. Managers should keep track of this metric as it is a major determinant of success. In e-business, it is also crucial to take into account the customer loyalty and retention. A manager can observe this metric by enquiring for feedback on a purchase and watching the rate at which loyal customers are being lost. Besides, sales revenues should also be tracked as key metrics. They result directly from purchases made by the customers online. The data obtained from this metric should be used to influence marketing strategies, price changes, and competitive actions (Haag & Cummings, 2013). Lastly, managers should keep track of the operating productivity. This is in relation to the infrastructure of the e-business. If a Christian manager utilizes all these metrics, their e-business should prosper given that they directly influence service delivery and customer satisfaction, which are critical components for any business.
Benchmarking is a powerful tool not just in business, but also in one’s personal life. In my life, I apply the concept of benchmarking every single day. I start by analyzing my life from the perspective of different situations that surround me at the time. I have various benchmarks set that determine the course of my decisions. These benchmarks apply in all spheres of my life, that are school, career, family, and community service. In school, I am expected to attain top grades in every class. Moreover, I should be proficient in the different subjects I take as well as show growth at the end of every semester. Having such benchmarks in my academic life makes me work harder on my studies. It also acts as a compass in school, showing me where I need to be. In turn, my academic benchmarks directly influence my career ones. However, I have separate career goals for the long term that help me keep my eye on the prize as it is difficult to focus in school, especially with distractions from friends and the difficulty associated with different courses. Moreover, as in the case of my school and career aspirations, coming from a conservative traditional family, I have very high standards when it comes to family. For me, I cannot compromise these values as they help me mature into a responsible family oriented person my parents raised. As a benchmark, I would like to raise my kids with the same standards. When it comes to family, I do not set all the benchmarks; rather, my parents have certain expectations of me which I must live up to and become even better than they ever were. Lastly, I believe in giving back to the community. Therefore, no matter how busy I get, I always find the time and a way to serve the community. I always remember that the community I serve in and have always looked up to has remained my hope and light. The challenges that the society face are a reflection of humanity and should always remind us where we have come from and avoid letting the pride of success guide us. Indeed, the interactions of various benchmarks help mold me into the person I am today while helping achieve my dreams in the future in school, my career, in family set-ups, and community set-ups.
As a result of being raised in a Christian family, it is hard not to have religious benchmarks. For me, religious benchmarks serve as a guide to spiritual nourishment, growth, and fulfillment. Some of these benchmarks come from the church community, others from the preacher, and the rest from my own experiences. They include simple things like reading the Bible, being kind to others, attending Church service, and praying before a meal. Additionally, other metrics come from divine intervention and grace. As I strive every day to achieve these benchmarks, I live a rewarded spiritual life.
To sum up, like CNN and Amazon who analyze digital activities to give data used in web-centric metrics, Christian business managers can use benchmarking and metrics to improve their e-commerce websites; I can also apply the same in my school, career, family, community service, and spiritual growth. The metrics are essential for evaluating e-businesses. Benchmarking entails system evaluation and possible improvement. Both CNN and Amazon are major players on the internet scene; thus they need to utilize web-centric metrics to monitor their online presence. As the metrics involved are so diverse depending on and determined by a variety of factors, the two organizations have to focus on different areas. The choice of what metrics to focus on is based on the main scope of the organization in question. For example, CNN is a news company; therefore, the company will need to focus less on sales and more on retaining the audiences on their site. Amazon, on the other hand, is a sales store; its primary metric is, therefore, the number of visits that translate to sales. These two different metrics are effectiveness metrics for both companies. They have shared metrics they can both focus on as well. Moreover, Christian managers can utilize benchmarking and metrics to develop on their e-businesses. They can achieve this by using benchmarking to set the standards and metrics to know where to concentrate their efforts. Lastly, benchmarking is also applicable in our personal lives: There are many areas where one can apply it in life. In my life, it serves me in academics, career development, maintaining of family values, and serving the community. Benchmarking also plays a crucial part in my spiritual development. Therefore, metrics and benchmarking accordingly play an integral role not just in business but also life in general.
References
Alexa (2017a). Cnn.com traffic statistics. Retrieved from
http://www.alexa.com/siteinfo/cnn.com
Alexa (2017b). Amazon.com traffic statistics. Retrieved from
http://www.alexa.com/siteinfo/amazon.com
Bergin, S. (2000). Benchmarking small business performance: Barriers and benefits (pp. 9-10). Victoria University: Small Business Research Unit.
Budd, B. Q. (2011). Search engine marketing: A preliminary empirical analysis of web search data. Alfaisal University. (pp. 2-3)
Ettorchi-Tardy, A., Levif, M., & Michel, P. (2012). Benchmarking: A Method for Continuous Quality Improvement in Health. Healthcare Policy, 7(4), e101–e119.
Fang, X., Chau, M., Hu, J.P., Yang, Z., & Sheng, L. R. (2006). Web mining-based objective metrics for measuring website navigability: Design science track. Twenty-Seventh International Conference on Information Systems, 195-208.
Haag, S. & Cummings, M. (2013). Management information systems for the information age (9th ed.). New York: McGraw-Hill/Irwin.
Pye, G. & Warren, M.J (2005). Benchmarking e-business security: A model and frame work. Geelong, Victoria: Deakin University. (pp. 1-2)
Wiggins, A. (2005). Data driven design: Using web analytics to improve information architecture. University of Michigan School of Information, Michigan.
