Web Analytics Key Performance Indicators and Metrics 3

Question 1

What is a 'KPI' in the context of web analytics?

Accepted Answer

A key performance indicator that measures progress toward business goals

Answer

A KPI (Key Performance Indicator) is a measurable value that demonstrates how effectively an organization is achieving its key business objectives.

Question 2

What does 'goal completion rate' measure in web analytics?

Accepted Answer

The percentage of sessions in which a defined goal action is completed

Answer

Goal completion rate is the percentage of sessions where users completed a specific predefined action, such as a form submission, purchase, or sign-up.

Question 3

What does 'cost per acquisition' (CPA) measure in marketing analytics?

Accepted Answer

The average cost of acquiring one converting customer or completed lead

Answer

CPA measures the average cost to acquire one conversion (customer or lead), calculated by dividing total marketing cost by the number of conversions achieved.

Question 4

What is 'customer lifetime value' (CLV or LTV)?

Accepted Answer

The total net revenue expected from a single customer over their relationship

Answer

Customer lifetime value is the total net revenue a business can expect to earn from a single customer throughout the entire duration of their relationship.

Question 5

What does 'funnel visualization' help analysts understand?

Accepted Answer

The steps users take toward a conversion goal and where they drop off

Answer

Funnel visualization maps the sequential steps users take toward a goal conversion and reveals at which specific stages users are abandoning the process.

Web Analytics Practice Test

Web Analytics Practice Test

Web Analytics Key Performance Indicators and Metrics 3