A single data point has no value other than to serve as a starting point. If you can compare that data point to others then it becomes more relevant and meaningful. This is the case for all that data and Google Analytics information we gather and, for some, obsess over. Many have tried to sift through and determine the Key Performance Indicators for their business and web stats. That is a good start. Comparing how you perform against yourself is important. However, comparing yourself against your own industry average benchmarks can help you determine how you are performing against your industry segment.
Google attempted to provide benchmarking when it rolled out Google Analytics Benchmarking Reports. The reports allow you to segment real-time data by geography and website size for example. Some insiders found the data valuable, but felt that it still lacked some hard data insights.
WolfgangDigital.com wanted KPI data that went beyond user behavior so they embarked on their own study. They attempted to determine average conversation rates and average transaction values along with bounce rate, time on the site, etc. They went the next step to determine which metrics correlated with conversion rate to help narrow the focus on what will truly impact the bottom line. This gave way to their E-commerce KPI Report found here.
The study analyzed 56 million visits and approximately $252 million in revenue that flowed through 30 participating retail and travel sector websites from Aug. 1, 2013 to Jul. 30, 2014. It included both online-only businesses and those with a physical store as well as an e-commerce site.
- Average Bounce Rate = 35%
- Average Session Duration = 3:49
- Conversion Rate (measured as a sale) = 1.4%
- Mobile and tablet users together account for 43% of traffic yet they contributed just 26% of revenue. Mobile alone was 25% of traffic and 10% of revenue suggesting mobile is the favored device for browsing and research, but users still prefer the desktop when they go to buy in these specific industry groups.
- Conversion rate followed suite lead by desktop CR of 1.8%, tablet CR of 1.37% and mobile at .61%.
- Time on the site and pages viewed both had positive correlations with conversion rate. Improving these metrics should improve conversion rate.
- There was a negative correlation between bounce and conversion rates.
You can stay up with the current changes being made to search engines and other studies like this through the Colorado SEO blog.
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