Web analytics at quality alloys inc case summary

Page 2 Questions

How many people visit the website? How do they come to the website?

During the period observed, there were 69431 visits to the website. During the initial period, there were an average 1055 visits per day. During the pre-promo period, the average was 563. During the promotional period the average was 1814. During the post-promotional period the average was 857. Prior to the promotion, QA used direct mail, advertising in trade magazines, and paid listings on two industrial product web portals. During the promotional period, QA used brochures to reach their target audience.

Is the website generating interest, and how does this interest yield actual sales?

During the website's launch, it generated sales, but sales & profits have been on a downward trend throughout the year. There was a spike during promotial period but the decline continued after the initial peak. The number of visits to the website does not seem to affect sales.

Do traditional promotions drive web traffic and in turn drive incremental sales?

Traditional promotions drive traffic but do not have positive long-term impacts on sales.

How can visits to the website be modeled?

Histograms break down the visits into even periods which makes the data easier to interpret

Where and how should QA advertise?

QA should expand into more industrial product web portals.

Columbia CaseWorks

Web Analytics at Quality Alloys, Inc.

Author: Rob Weitz and David Rosenthal

Columbia CaseWorks ID: 110203

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Weekly Visits

Quality Alloys

Weekly Web Analytics Initial "Shakedown" Period Pre and Post Promotion Periods

May 25, 2008 - August 29, 2009 Promotion Period are unshaded.

Week (2008-2009) Visits Unique Visits Pageviews Pages/Visit Avg. Time on Site (secs.) Bounce Rate % New Visits

May 25 - May 31 1,632 1,509 3,328 2.04 71 72.67% 88.54%

Jun 1 - Jun 7 1,580 1,450 3,097 1.96 56 75.51% 87.34% Question 2 Initial

Jun 8 - Jun 14 1,441 1,306 3,202 2.22 79 73.98% 84.32% Visits Unique Visits Revenue Profit Lbs. Sold

Jun 15 - Jun 21 1,452 1,301 3,170 2.18 81 73.62% 84.37% mean 1055.214 957.9286 608250.1 200233.4 18736.73

Jun 22 - Jun 28 1,339 1,255 2,366 1.77 50 76.40% 89.25% median 899 845.5 586169.7 208193 17269.7

Jun 29 - Jul 5 892 841 1,865 2.09 71 73.65% 87.56% std. dev 355.0333 319.5972 155930.4 60691.55 5427.393

Jul 6 - Jul 12 797 731 1,885 2.37 80 61.48% 85.70% miniminum 626 594 274567.6 62580.4 8633.059

Jul 13 - Jul 19 744 706 1,916 2.58 96 59.27% 88.84% maximum 1632 1509 890076.7 275218.1 28052.92

Jul 20 - Jul 26 1,044 976 2,670 2.56 82 60.34% 86.69%

Jul 27 - Aug 2 906 850 2,189 2.42 78 63.36% 87.42% Pre-Promotion

Aug 3 - Aug 9 849 791 1,947 2.29 91 64.43% 87.04% Visits Unique Visits Revenue Profit Lbs. Sold

Aug 10 - Aug 16 737 685 1,746 2.37 98 62.82% 87.25% mean 563 517 534313.52 159932.03 18440.77

Aug 17 - Aug 23 734 668 1,946 2.65 100 62.40% 84.33% median 558 510 534541.68 152476.40 17215.12

Aug 24 - Aug 30 626 594 1,540 2.46 91 61.98% 86.58% std. dev 80.871179162 70.9391422613 150502.82 42682.68 5965.63

Aug 31 - Sep 6 577 537 1,489 2.58 83 62.05% 86.66% miniminum 383 366 315647.10 100388.40 8992.42

Sep 7 - Sep 13 562 508 1,428 2.54 82 58.90% 81.32% maximum 795 734 951216.20 273174.70 31968.98

Sep 14 - Sep 20 563 495 1,547 2.75 112 58.61% 78.51%

Sep 21 - Sep 27 652 585 1,792 2.75 101 56.13% 80.98% Promotion

Sep 28 - Oct 4 611 549 1,928 3.16 109 53.52% 81.18% Visits Unique Visits Revenue Profit Lbs. Sold

Oct 5 - Oct 11 561 500 1,784 3.18 113 53.65% 79.86% mean 1814.35 1738.82 456398.8 131929.9 17112.92

Oct 12 - Oct 18 558 525 1,455 2.61 97 61.29% 86.02% median 1663 1585 413937.1 114328.4 17299.12

Oct 19 - Oct 25 570 520 1,562 2.74 95 57.37% 84.91% std. dev 758.1017 743.0253 161741.1 47776.85 6519.071

Oct 26 - Nov 1 551 511 1,560 2.83 109 56.62% 83.85% miniminum 1000 930 268159.5 81841.4 7814.05

Nov 2 - Nov 8 537 507 1,450 2.7 93 56.98% 87.15% maximum 3726 3617 897163.7 266476.7 31496.26

Nov 9 - Nov 15 543 500 1,527 2.81 109 58.38% 83.61%

Nov 16 - Nov 22 558 511 1,495 2.68 96 57.71% 81.18% Post-Promotion

Nov 23 - Nov 29 536 510 1,515 2.83 102 57.65% 87.31% Visits Unique Visits Revenue Profit Lbs. Sold

Nov 30 - Dec 6 549 498 1,367 2.49 87 61.20% 81.79% mean 856.5714 800.789 371728 111045.8 14577.79

Dec 7 - Dec 13 545 499 1,464 2.69 106 59.08% 82.39% median 847.5 800 348397.1 104530.5 13646.89

Dec 14 - Dec 20 591 535 1,469 2.49 91 62.44% 82.74% std. dev 70.889 72.356 145728.3 49065.27 5941.556

Dec 21 - Dec 27 383 366 793 2.07 76 68.93% 90.08% miniminum 772 709 133966.9 32825.3 3825.748

Dec 28 - Jan 3 402 385 827 2.06 62 70.15% 89.30% maximum 963 912 615950.2 206441.2 23761.61

Jan 4 - Jan 10 547 495 1,659 3.03 120 54.66% 81.90%

Jan 11 - Jan 17 631 583 1,745 2.77 103 56.58% 85.42% Question 3 Means

Jan 18 - Jan 24 795 734 1,824 2.29 67 65.79% 85.28% Visits Unique Visits Revenue Profit Lbs. Sold

Jan 25 - Jan 31 1,000 930 2,259 2.26 66 65.80% 86.50% Initial 1055.214 957.9286 608250.1 200233.4 18736.73

Feb 1 - Feb 7 1,207 1,136 2,376 1.97 68 73.07% 88.15% Pre-Promo 563 517 534313.52 159932.03 18440.77

Feb 8 - Feb 14 2,317 2,229 3,814 1.65 38 82.26% 93.09% Promotion 1814.35 1738.82 456398.8 131929.9 17112.92

Feb 15 - Feb 21 2,013 1,946 3,303 1.64 42 81.27% 93.14% Post Promotion 856.5714 800.789 371728 111045.8 14577.79

Feb 22 - Feb 28 2,324 2,228 3,836 1.65 40 80.72% 92.13%

Mar 1 - Mar 7 3,726 3,617 5,291 1.42 28 85.78% 94.79%

Mar 8 - Mar 14 2,563 2,482 3,729 1.45 31 84.78% 93.76% Question 4 Our findings so far have shown that revenue as well as the quantity sold throughout the year have been declining continuously. This had a negative impact on the profits which have also been declining steadily throughout the year. The promotion created a momentary spike in the quantity of unique visits to the website, which even carried into the the post-promotilonal period, but was not able to reverse the long term trend of the other financial metrics.

Mar 15 - Mar 21 3,006 2,896 4,510 1.5 35 84.30% 93.11%

Mar 22 - Mar 28 1,663 1,585 3,037 1.83 52 76.55% 90.92%

Mar 29 - Apr 4 1,779 1,689 2,881 1.62 37 78.86% 91.29%

Apr 5 - Apr 11 1,086 1,030 2,313 2.13 63 69.34% 88.49%

Apr 12 - Apr 18 1,231 1,166 2,714 2.2 69 70.59% 89.20%

Apr 19 - Apr 25 1,248 1,178 2,414 1.93 59 73.16% 89.50%

Apr 26 - May 2 1,674 1,613 2,959 1.77 49 78.55% 92.77%

May 3 - May 9 1,514 1,452 2,676 1.77 48 77.61% 90.55%

May 10 - May 16 1,302 1,246 2,219 1.7 45 77.57% 90.63%

May 17 - May 23 1,191 1,137 2,400 2.02 59 73.47% 89.76%

May 24 - May 30 957 912 1,904 1.99 54 70.85% 89.45%

May 31 - Jun 6 963 909 2,156 2.24 76 68.33% 86.92%

Jun 7 - Jun 13 882 848 1,827 2.07 50 69.95% 88.89%

Jun 14 - Jun 20 942 896 2,068 2.2 73 68.58% 88.43%

Jun 21 - Jun 27 835 789 1,739 2.08 77 66.35% 87.66%

Jun 28 - Jul 4 802 762 1,764 2.2 73 65.71% 89.65%

Jul 5 - Jul 11 806 750 1,741 2.16 81 65.26% 84.62%

Jul 12 - Jul 18 900 828 2,074 2.3 65 64.56% 85.56%

Jul 19 - Jul 25 860 811 1,922 2.23 75 64.65% 86.86%

Jul 26 - Aug 1 924 828 2,131 2.31 78 64.18% 81.93%

Aug 2 - Aug 8 792 737 1,615 2.04 67 68.18% 85.48%

Aug 9 - Aug 15 781 718 1,598 2.05 69 66.33% 83.99%

Aug 16 - Aug 22 776 714 1,849 2.38 70 63.79% 84.15%

Aug 23 - Aug 29 772 709 1,767 2.29 72 61.92% 85.23%

Financials

Quality Alloys

Weekly Financial Data Initial "Shakedown" Period Pre and Post Promotion Periods

May 25, 2008 - August 29, 2009 Promotion Period are unshaded.

Question 1

Week (2008-2009) Revenue Profit Lbs. Sold Inquiries

May 25 - May 31 $480,728 $118,684 16,585 13

Jun 1 - Jun 7 $641,155 $269,605 18,906 7

Jun 8 - Jun 14 $890,077 $275,218 28,053 5

Jun 15 - Jun 21 $552,674 $204,153 19,382 3

Jun 22 - Jun 28 $750,777 $256,091 24,274 3

Jun 29 - Jul 5 $553,055 $178,135 15,309 5

Jul 6 - Jul 12 $274,568 $62,580 8,633 16

Jul 13 - Jul 19 $619,285 $248,458 17,216 7

Jul 20 - Jul 26 $674,485 $238,498 17,309 6

Jul 27 - Aug 2 $762,559 $230,238 24,571 6

Aug 3 - Aug 9 $479,084 $156,660 14,390 4

Aug 10 - Aug 16 $528,271 $186,776 17,231 9

Aug 17 - Aug 23 $540,676 $164,499 13,802 10

Aug 24 - Aug 30 $768,109 $213,673 26,653 8

Aug 31 - Sep 6 $403,820 $135,191 12,403 8

Sep 7 - Sep 13 $388,745 $148,951 11,695 11

Sep 14 - Sep 20 $622,367 $153,422 26,362 9

Sep 21 - Sep 27 $456,012 $158,316 15,772 6

Sep 28 - Oct 4 $951,216 $273,175 31,969 8

Oct 5 - Oct 11 $534,542 $167,637 15,531 10

Oct 12 - Oct 18 $537,652 $134,115 19,734 1

Oct 19 - Oct 25 $623,710 $228,045 17,193 5

Oct 26 - Nov 1 $764,839 $202,703 22,591 9

Nov 2 - Nov 8 $315,647 $119,860 8,992 8

Nov 9 - Nov 15 $610,985 $170,026 19,104 6

Nov 16 - Nov 22 $563,525 $189,705 21,455 6

Nov 23 - Nov 29 $555,497 $123,129 18,784 4

Nov 30 - Dec 6 $432,657 $121,400 14,298 9

Dec 7 - Dec 13 $488,986 $152,476 17,215 4

Dec 14 - Dec 20 $689,428 $215,421 27,257 7

Dec 21 - Dec 27 $343,105 $100,388 11,292 3

Dec 28 - Jan 3 $605,155 $119,903 20,148 1

Jan 4 - Jan 10 $407,277 $134,854 16,454 8 Question 5 Correlation Coefficient (r): 0.8689297129 Question 6 Correlation Coefficient: -0.0593918305

Jan 11 - Jan 17 $405,484 $129,974 12,703 7

Jan 18 - Jan 24 $519,934 $179,884 26,303 6

Jan 25 - Jan 31 $614,455 $113,249 22,199 4

Feb 1 - Feb 7 $516,270 $193,465 16,535 5

Feb 8 - Feb 14 $297,813 $89,803 7,814 7

Feb 15 - Feb 21 $692,677 $184,368 28,041 7

Feb 22 - Feb 28 $897,164 $266,477 31,496 11

Mar 1 - Mar 7 $417,727 $111,835 10,181 9

Mar 8 - Mar 14 $326,969 $122,687 9,727 4

Mar 15 - Mar 21 $326,482 $114,328 18,323 8

Mar 22 - Mar 28 $508,027 $159,945 17,299 6

Mar 29 - Apr 4 $413,937 $143,254 13,862 7

Apr 5 - Apr 11 $422,488 $81,841 19,007 5

Apr 12 - Apr 18 $376,751 $137,256 23,284 9

Apr 19 - Apr 25 $410,241 $90,175 17,374 3

Apr 26 - May 2 $549,750 $138,599 18,195 5

May 3 - May 9 $268,160 $98,680 9,176 5 Question 7

May 10 - May 16 $322,730 $84,806 12,881 7 The negative correlation between revenue and number of visits implies that QA receives the majority of its orders from a small group of people. Looking at the graph of unique visits and the graphs of profit and revenue, it appears that a small number of customers (possibly "regulars") buy the product cyclically with spikes in purchases occuring every 2-3 months. While there is a spike in profit & revenue during the promotional period, the spike matches the previous two spikes in revenue & profit, and occurrs at roughly the same distance apart from the previous spikes. This implies that the spike during the promotional period may not have been caused by the promotion, and rather that a core group of customers purchases increased number of products roughly every 2-3 months. Additionally, it appears that QAs customer base is steadily declining. Unique visits were declining prior to the promotional period. After the temporary spike, it appears that visits are again on the decline. This decline is mirrored in the revenue, profit, and pounds sold data.