Metrics and Benchmarking
Now adays, 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 of them can be used. On the other hand, benchmarking is a process of constant evaluation and measuring system results, as well as comparing them to the consequences of the benchmarks baseline values that a system seeks to attain (Ettorchi, 2012). Similarly to a way of how CNN and Amazon websites use web-centric metrics with an aim to enhance its b usiness results, Christian organizations can apply the approach to assess and perfect their operations, as well as we can also employ benchmarking to improve our lives.
It would be appropriate to note that both Amazon and CNN have invested heavily in their online presence as evidenced from their websites. They have made these efforts , in particular, to attract more people to their sites, thus, generating more traffic (Weggins, 2005). To adequately compare the websites of the companies, it is crucial to analyze various web-centric metrics including unique visitors, the total number of hits, page exposures, conversion rates, click-through, cost-per-thousand, abandoned registrations, and abandoned shopping carts (Weggins, 2005). All of them indicates a particular trend in the website popularity and attendance. Therefore, using these metrics or modified versions of them, one can easily determine differences between the CNN and Amazon websites.
Amazon and CNN have distinct in their performance and number of visitors to their websites. Amazon is ranked 13th globally and 5th in the United States in terms of revenue and performance. The company has a geographical audience of 66.6% in the US, 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 p age has a 29.5% bounce rate, 8.24 % daily hits, and s essions lasting 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). On the other hand, CNN is ranked 102 globally and 27th in the US The ranking is based on its 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). In terms of visitor patterns, it has a 52.3% bounce rate, 2.34% daily visitors, and an average session of 4.22 minutes spent on the website (Alexa, 2017a). Concerning 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, this data clearly indicates the dif ferences between the websites in terms of the used marketing channels and their appeal to the visitors.
The two companies have different target markets. To be more specific, CNN is involved in the dissemination of news while Amazon is an online retail store. Therefore, Amazon should focus on metrics that measure its 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 achieve this goal (Budd, 2011). Additionally, for a better client delivery and higher quality of services, the geographical distribution of its customers should be a indicator regarding where to invest in more. As highlighted by Budd (2011), sites that link customers to Amazon website should be another place to obtain more investments. Furthermore, the organization should focus on reducing the bounce rate of its visitors, which w 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 and 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 responsible managers can find ways to reduce negatively performing ones , such as the bounce rate and the average time spent on the website. Therefore, based on their web assessment , having different focus regarding the direction of the business means that both companies should concentrate on different metrics although there are common ones they should consider.
Christian managers have to learn a huge amount of information about benchmarking and metrics to achieve the organizational success. They can apply the various concepts to grow their e-business. In turn, a n average business that is doing well does not evaluate its systems to see which 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, even though their organizations may have a different operational strategy from profit-making companies (Bergin, 2005). It will help identify possible areas in need of improvements, and in turn, to guide on proper decision making. According to Pye and Warren (2005), Christian managers can work together to implement an effective e-business system by thinking innovatively about ways to ad vance their business es using analytical software to find loopholes in the system and studying more successful companies that are similar. Moreover, they can focus on determi ning what gives other organizations an edge over their own institutions and implement a change based on both reflection and empirical research data (Pye & Warren, 2005). Also, Pye and Warren (2005) suggest that managers could 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 through proper utilizing benchmarking and e-mar keting software as a business tool.
On the subject of metrics, the manager should focus more on five primary aspects . The first one is the size of the gross margin. It is the total revenue less cost of sold goods divided by the total revenue of sales (Haag & Cummings, 2013). The higher this value is as a percentage, the more money is retained in the business after a sale; hence, an organization would make more profit. 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 coefficient as it is a major determinant of success. In e-business, it is also crucial to take into account the customer loyalty and retention. In turn, 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 a key coefficient. 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. It 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 only in business but also in one’s personal life. From my side, I apply the concept of benchmarking every single day. To be more specific, 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 metrics are applied to all spheres of my life including 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 move. 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 complicated 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 exceedingly high standards when it comes to family. For me, it is unacceptable to 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 see 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 terms of school, my career, in family set-ups, and community set-ups.
As a result of being raised in a Christian family, it is hard for me 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 aspects such as 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, similarly to CNN and Amazon that analyze digital activities to capitalize on 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, and community service to achieve p ersonal, professional, 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 coefficients 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 organization will need to focus less on sales and more on retaining the audiences on their site. On the other hand, Amazon is a sales store; thus, its primary metric is the number of visits that converse to sales. These two different aspects are effectiveness metrics for both companies. Moreover, Christian managers can utilize benchmarking and t he data related to online performance to develop on their e-businesses. They can achieve these goals by using benchmarking to set the standards and metrics to know on what toconcentrate their efforts. Lastly, benchmarking is also applicable in our personal lives: There are many areas where one can apply them in life. From my side, 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 only in business but also in life in general.
References
Bergin, S. (2000). Benchmarking small business performance: Barriers and benefits (pp. 9-10). Victoria: Victoria University .
Budd, B. Q. (2011). Search engine marketing: A preliminary empirical analysis of web search data. Riyadh: Alfaisal University. (pp. 2-3)
Ettorchi-Tardy, A., Levif, M., & Michel, P. (2012). Benchmarking: A method for continuous quality improvement in h ealth. 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, NY: 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. Ann Arbo r, MI: University of Michigan School of Information.
