2007/01/24

e-CRM最高境界 : 雜貨店式的顧客經營哲學 (下篇)

目前網路經營不單純如初期的Internet Business一樣,只是陳列商品和服務提供就可以,為達成商業上交易或Community,需建立基本的community service和品質優良的商品,以及安全的交易等服務架構(其實最近具功能性的差別化不常存在,只是使用UI和機能的情形就十分普及,還有顧客和使用者的需求對應,建立分析這樣的對應之中所產生的ROI的工具,這樣的趨勢已成普遍化。

在使用者和服務提供者的持續關係中,使用者獲取的部份稱之為滿足的話,社群網站(Café)和Blog等Community Site的營運者所希望則是資訊共享,而商業交易網站的話,則是希望提高網站營運收益,當雙方所追求的目的達到一致性時,就可強化彼此相互之間的關係在多元化的Community Site中,使用者只使用特定網站的理由是對網站所提供的服務形成一種親密感,以及透過該網站的聯接已經獲取了無數的資源,再加上使用者從網站活動行為中獲得的滿足感,更加維繫了彼此的持續關係。

相對而言,在Shopping Mall情形裡,建立顧客對商品價錢和品質上的信賴,以及直到顧客在產品使用後為止的過程中都給予充分的滿足,讓獲得滿足的顧客轉變為增加網站營運的收益的持續性常客,這樣一個轉換對於網站營運者來說扮演著十分重要的角色。



不論是服務提供或是商業上的交易往來,維護網站營運者與顧客之間的持續性關係,以及完成個人、企業、組織透過這樣的關係所欲達成的目標,這都是我們為何要花費如此多的時間精力的最基本理由。在虛擬的網路世界裡,無法與顧客面對面的接觸之下,我們可以建立對於網站產生信賴感和滿足感的友好顧客嗎? 可以的話,我們又該怎麼做呢? 網站與顧客之間持續性且反覆性的關係中,要具備那些要素,使顧客會對網站產生信賴感、滿足感,還有舒適感呢? 每個人在經營Internet Business都會為期待獲得更好的營運成果而苦惱過,為尋求解答獲得分析數據,想必都曾經想過或是試圖過進行網站分析。

在網際網路裡,基本上因為使用者與網站間的距離感以及電腦工具的使用,使顧客會上網尋求自己所需求的服務和資訊服務提供者也是一樣,藉由著網路的遠距離和電腦工具的使用來接觸使用者。為維繫與顧客的持續性關係,達到目標的,是一定需要經由眼、耳的管道取得相關資訊,在大腦中進行分析,由如同解決方法的嘴巴來針對顧客需求做出對應 這樣的流程便是Web analytic所要進行的分析過程。

雖然無法與顧客面對面的接觸是網路的缺點,但網路Data可以記錄每個人的行為活動,並不是就人的感覺及記憶做管理的非典型性Data,而是依據電腦系統的分析進行管理儲存於典型化的Data中,可以說是Internet Business的優點。追蹤個人的行為活動和瀏覽動線,進行儲存分析之後,建立使個人的需求(need)和網站營運目標一致化的標準及策略,為達到一致化的目標做適當的顧客對應,這樣一定會更有效益地幫助目前營運目標的達成。

WAA對於這樣的目標定義了4個重要功能 measurement, collection, analysis, reporting

在多年的經驗及無數次的實例發生為全世界指標的美國所提出的定義不計其數.若能將衡量到的資訊收集於Data裡進行分析,並整理成一目了然地數據,想必一定能為網站目標帶來更好的效益。但我們若只探討著Web Analytic 的目標內容是什麼的話,會把遺漏掉最重要的部分。Web analytics的目的若就其專業領域來說僅具有網站分析功能,且讓使用者輕易地掌握分析結果的話,Web analytics是無法滿足對於網路營運者尋求更高目標時的需求,造成降低營運者對於Web Analytic功能需求的反效果。

從實際層面來看,深入分析使用網站的造訪者(及客戶)的行為將網站績效極大化,要比網站營運者利用網站Usage的分析提高網站績效更具意義。換句話說這4個功能的核心定義皆是以使用者和顧客為中心目標,著重於網站使佣者的分析而非網站功能之分析。但是在網路分析公司或是顧問公司的立場來說,簡單明瞭使用方便的網路分析工具和網站營運策略才是他們的首要目標,因此近來兩方對於網站分析理論的爭議逐漸明顯。若從本質上重新思考對於網站分析的理論爭議,會認為深入地了解客戶的需求建立解決方案,比建立網站營運者使用網站分析計畫更具重要性。

從上述觀點出發並融入下面的內容對於網站分析做出的定義,會獲得比網站分析結果更具意義的價值。

"Measurement, collection, analysis, reporting and response action for the purpose of the understnding and optimizing of the needs for relationship between user and web service provider"


過去負責過無數次網站分析內容的討論及策劃,一直到幾年前,聽到一位客戶的談話讓我到目前為止還秉持著追求最高目標的精神。

Me: "為了深入了解顧客改善服務品質,網站分析是不可或缺的工具。"
Client: "現在網站分析報表已經很多,不需要對網路分析結果再做討論,請提供我們可以立即提高網站效益的方法。"

現在還是認為顧客在什麼都不了解的情況之下就要下定計畫是相當具有風險的事情,這樣的想法並不正確。但是實際上在商業領域中大家所關心的是要發展更有效率的網站而不是知道網站的分析報表內容。目前網路服務業者實際上都希望能提高網站營運收益以及網站交易量的增加,但除了提供服務外,為了達到營運目標必須立即瞭解網站的服務內容以及網站與使用者之間的關係,並以這種態度為出發點。除此之外,以網站分析為依據建立最適切的對應方法,並將網站分析結果再重新分析,建立更具效率的營運策略,循環構造的作業之下,更能達到商業網站的營運目標,使網站分析所扮演的角色變得更加重要。

Grocery Store e-CRM Philosophy (Part 2)

Online management of today is not like the early stages of Internet business in which listing products and services is sufficient. To achieve transaction or community in business, basic community service and high-quality products must be provided along with secure transaction framework. (In reality, business capabilities are becoming homogenous, epitomized by the common usage of UI and various functions.) Moreover, responding to customer needs and creating tools analyzing the ROI of this response are fast-growing trends.

In the continuous relationship between user and service provider, if the goal of acquiring users is met, web administrators of community sites and blogs aim to share information, while business sites hope to increase revenue. When both sides achieve their objectives, they can strengthen their relationship. In the multi-faceted community site, users utilizing one specific website have developed a connection with its services and obtained numerous resources through it. In addition, the satisfaction from the website's events helps maintain the relationship.

In the case of shopping mall, building customer trust in product price and quality and maintaining satisfaction throughout product usage help convert consumers into loyal regular customers. This conversion plays a crucial role in website operations.



Whether providing services or business transaction, the relationship between web administrator and customer as well as reaching a personal or enterprise goal through this relationship are areas that require time and attention. In this virtual online world where face-to-face interaction with customers is unavailable, can we establish customer trust and loyalty? If we can, what approach do we take? Everyone operating an Internet business has brainstormed about how to improve results and obtain data via web analytics.

Visiting a website via a computer and the distance this creates are part of the relationship between customer and service provider. Customer relationship maintenance begins with information collection by the eyes and ears, analysis by the brain, and response to customer needs with the mouth. This process is what web analytics examines and evaluates.

Even though the inability of face-to-face interaction is a disadvantage, online data can record every visitor behavior. This method does not involve nonstandard data management by intuition and memory, but rather standard data management based on computer system analysis, a decided advantage of Internet business. Tracking online behavior and navigation for analysis helps establish a standard and strategy for personal needs and website operating goals.

For this method, WAA identifies four important functions: measurement, collection, analysis, and reporting.

As the world's standard bearer, the United States boasts years of experience and countless cases and follows this definition. If data can be analyzed, organized, and presented clearly, it will be beneficial toward achieving website goals. However, if we only research what web analytics' objective is, we will overlook the most significant parts. From a professional standpoint, if web analytics' objective is simply analyzing websites and enabling users to easily grasp results, it will fail to satisfy the aims of web administrators and cause negative effects.

From a realistic standpoint, analyzing the behavior of visitors and customers to maximize website performance is more meaningful than web administrators utilizing usage analysis to maximize website performance. In other words, the four functions are aimed at users and customers rather than the website's capabilities. However, from the standpoint of a web analytics enterprise or consultancy company, finding a simple, easy-to-use web analytics tool and operating strategy is the top priority. Thus, the theoretical debate in web analytics arises. By reevaluating the theoretical debate in web analytics, creating a solution by understanding customer needs is more important than creating a web analytics strategy for web administrators.

Starting from the viewpoint above and combining the definition of web analytics below brings more value than analysis results.

"Measurement, collection, analysis, reporting and response action for the purpose of the understanding and optimizing of the needs for relationship between user and web service provider"

A few years ago, after supervising countless web analytics discussions and strategies, I came across a conversation that remains a powerful driving force.

Me: "To understand customers and improve service quality, web analytics is a must-have tool."
Client: "Right now, there is an abundance of analysis reports. Further discussion about analysis results is unnecessary. Please provide us with a method to quickly enhance our website performance."

To formulate strategies without deep knowledge is very risky and an ill-advised approach. In the actual business domain, however, everyone is concerned about developing a more efficient website and not analysis report content. Current online service providers all want to enhance website revenue and increase transactions, but aside from offering services, they must understand the service content and the relationship between website and users in order to reach their goals.
In addition, response based on web analytics establishes sound and efficient operating strategy. Repeated analysis under a cyclical structure helps e-business websites achieve their goals, making the role of web analytics extremely vital.

2007/01/08

E-Commerce Web Administrator's Ultimate Goal: Customer Conversion Rate

Courtesy of CCMedia Global Marketing

Website Traffic Isn't Everything

There seems to be a common misconception among e-commerce web administrators that an EC website's ability to generate traffic (cause) is equivalent to profitability (effect). They strongly believe that the ability to generate traffic (cause) guarantees total orders (effect), and thus, invest all their efforts in creating more traffic. In fact, visiting traffic does grow, but total orders might not increase accordingly, which might be the beginning of another dilemma.

It's time for EC web administrators dedicated to website traffic to change their thinking. There is a more important measure of website operations to be considered. The predicament faced by Amazon.com a few years ago serves to illustrate this point.

Amazon.com Past Predicament

With $113 per share and a reputation as the world's most successful B2C (Business to Customer) enterprise just five years after its launch in 1994, mega-large online bookseller Amazon.com has always operated under a standard profit model. Nevertheless, it held a pessimistic outlook on the future.

Amazon.com has maintained its amazing visitor count, averaging 15,000 visitors per month as early as April 2000. However, the website faced a financial deficit of over $1 billion. Even worse was the popular notion that attracting more visitors ensures sales increase. Amazon.com tried to enhance traffic, but website revenue only faltered further. At this point, it's apparent that website traffic isn't everything. Amazon.com must rely on a more worthy measure of website operations.

Emphasis on EC profit model makes customer conversion rate the new focus.

What Is Customer Conversion Rate?

Customer conversion rate refers to the percentage of website visitors that are converted to product purchasers.

Customer conversion rate = Number of purchasers / Number of visitors

According to 1999 Forrest Report, 70% of EC websites fail to reach a 2% customer conversion rate. In other words, only two out of 100 visitors actually complete the purchasing process.

Why Is Customer Conversion Rate Important?

The cost of website operations is limited. Thus, creating the greatest revenue with limited cost is the primary objective of web administrators. A comparison between EC websites aiming for high traffic and EC websites striving for high customer conversion rate reveals noticeable discrepancies. For example, the former likely spends enormous marketing costs, but attracts a large quantity of visitors with little interest in the website's product. The latter gathers valuable resources to attract high quality visitors who match the website's target audience and are more likely to complete transactions.

Quality over Quantity

Aside from guiding web administrators to an ideal investment strategy, a focus on high customer conversion rate also instills a "quality over quantity" philosophy when it comes to visitor or member management. Even though increasing traffic through e-mail marketing, online advertising, and other methods also plays a crucial role, the process of understanding visiting habits and browsing behavior, providing the most suitable and satisfying contents and services, and generating purchasing actions is the more difficult challenge.

Sometimes a low customer conversion rate does not necessarily mean the EC website is providing inadequate products or attracting the wrong visitor segments. Instead, the problem lies in the inability of the transaction process or navigation path to allow visitors to complete transaction, causing them to exit the website. This situation often results in heavy visitor losses, rising operating costs, and diminishing website revenue. Even tremendous website traffic is helpless against this problem.

Solving Low Customer Conversion Rate

Web administrators can utilize a variety of advanced web analytics tools to find the cause of the problem. By analyzing the browsing behavior of visitors, these tools can help web administrators evaluate and enhance operating efficiency and modify website design to fit the preferences of key visitor segments. For example, analysis results can reveal how many visitors complete checkout in the purchasing process. The completion percentage can serve as the basis for monitoring operating performance. Web administrators can determine whether purchase pages are too complicated or online transaction security is insufficient. Changes can be made to dramatically improve customer conversion rate.

Summary

Customer conversion rate arose out of the emphasis on EC profit model, becoming the most important measure of website operations. It breaks away from the traditional idea of simply increasing website traffic to raise profit. Moreover, the concept of customer conversion rate can guide web administrators in creating better customer interaction. Conversely, if web administrators are clueless about customer conversion rate or how to provide the most suitable services, website operations might be facing imminent crisis.

2007/01/04

電子商務網站經營者的終極標靶 – 顧客轉換率

撰文 : CCMedia行銷顧問群

網站流量不代表一切

許多電子商務網站的經營者都會誤信一件事 --- 把EC網站的流量創造能力(因)與獲利能力(果)劃上等號,相信只要有能力為網站創造更多人潮(因),就一定能為創造更多的訂單數(果),基於對這種因果關係堅信不移,因此將全部的心力投注在創造流量上,結果來訪的人潮是增加了,但訂單數卻不見得跟著成長……其實,請恕筆者這麼說,很可能這是另一種災難的開始。

一直以追求「網站流量」為終極目標的電子商務網站經營者,真的需要重新改變想法囉! 因為,還有更重要的一項網站經營績效指標值得被當作終極標靶來挑戰。究竟是什麼指標這麼重要? 這樣好了,在此先舉一個Amazon.com幾年前遇到的困境為例,來證明筆者所言不假!

Amazon.com過去遇到的困境

於1994年成立不過5年,就有每股113美元、被認定為世界最成功的B2C ( Business to Customer)企業—國際最大網路書店Amazon.com,從成立至今,一直以標準的獲利模式(Profit Model)經營線上書籍的銷售,過去曾經一度對未來抱持著悲觀的看法。

其實Amazon.com的知名度以及造訪者人數一直保持著驚人的水準,以早期2000年4月來說,平均每個月網站造訪人數就已達到1萬五千名。不過,該網站的財務指標卻面臨著現實的考驗,所累積的赤字超過10億美金。更嚴重的是,當時大家對於”網站只要吸引到更多的造訪者,網站銷售規模就會增加”深信不疑,所以Amazon.com就設法提升網站的訪客流量,但網站營運收益卻背道而馳,出現網站財務赤字的危機……。看到這裡,相信您應該明白網站流量不代表一切了。那麼,什麼才是Amazon.com值得追求的網站經營績效指標呢?

隨著對於e-Commerce網站獲利模式(Profit Model)的注重,「顧客轉換率」成為最新注目的焦點。

什麼是顧客轉換率?

所謂「顧客轉換率」,即指將網站造訪者 (Visitor) 轉換成實際購買商品的顧客 (Purchaser)所呈現的比率。
顧客轉換率 = 購買商品的顧客數量 / 造訪總數或訪客總數

根據1999年Forrest報告書的內容,有70% e-Commerce網站的顧客轉換率無法達到2% 的情形出現。也就表示一百名網站造訪者中實際有完成購買程序成為網站的購買顧客不超過二名。

為何要注重顧客轉換率?

網站營運的成本是有限的,所以在有限的成本之下要創造出最佳的收益,是網站經營者的核心目標。若是把追求「高網站流量」的電子商務網站、與追求「高顧客轉換率」的電子商務網站一起拿來做比較,就會發現二者在策略做法上明顯產生差異。例如在行銷預算的花費上,前者可能花了龐大的行銷費用、卻吸引到大量對網站商品內容不感興趣的游離訪客,反倒不如後者集中有限資源去設法吸引到素質較佳、屬於網站目標客群、較有機會產生交易的訪客。

「質」比「量」更重要

當然,追求「高顧客轉換率」所帶來的意義除了能促進網站經營者,朝往優勢的戰略方向及決定資源投資方式外,也間接影響電子商務網站經營者在訪客或會員的經營理念上,認為「質」比「量」更重要。雖然提高網站訪客的流量,如透過電子郵件行銷、線上廣告行銷方式等等,吸引大量的造訪者進入網站瀏覽,也是非常重要的任務,但如何藉由了解訪客的造訪習性、瀏覽網站的行為等這些相關資訊,提供訪客最適切及最佳的內容及服務,以滿足其對於網站的需求,進而產生消費行為,這一連串的從訪客轉換成顧客的過程才是難度更高的挑戰。

有時候「顧客轉換率」偏低不代表電子商務網站所提供的商品不佳、或是吸引到的訪客族群不對,反而問題是出在交易流程或瀏覽動線上,無法讓訪客在有效時間內獲得滿足及完成交易,引起他們的諸多不滿而離站。遇到這樣的情況往往會大量流失顧客,也使得網站經營者將面臨網站營運成本不斷的提高,而網站收益卻逐漸下滑的困境,即使是吸引再大量的造訪者,也無法改善問題。

找出「顧客轉換率」偏低的真正問題

針對這類型的問題,電子商務網站經營者可以藉由使用一些「高階網路訪客行為分析工具」找出問題發生原因,也就是透過對訪客瀏覽行為的分析,不僅可以提供網站經營者評估與提升網站經營效能,更能協助改善網站設計,掌握關鍵客群的偏好與行為模式。像是可以從分析的結果得知在整體網站購買流程中,客戶有多少人完成結帳手續,藉由最後完成該流程的比率做為網站經營績效的檢視基礎…,提供網站經營者進一步思考是否是網頁購買程序太過複雜或線上交易安全機制不能給予顧客信服等原因,並加以檢討改善,以期大幅提升網站的顧客轉換率。

結論

顧客轉換率在隨著e-Commerce網站獲利模式 (Profit Model) 的出現,成為網站經營策略中極為重要的指標之外,也擺脫了過去單純只是增加網站造訪者的流量、就可以提高網站營運收益的看法。不僅如此,顧客轉換率的概念還可引導網站營運者提升網站與顧客互動的效果,及有效率地運用網站成本達到網站營運的最佳收益。综合上述說明,可以了解到一點就是,當網站經營者對於顧客轉換率的認知毫無概念,或是對於顧客無法提供最適切服務的話,那麼就會即將面臨網站經營危機的可能。

e-CRM最高境界 : 雜貨店式的顧客經營哲學 (上篇)

我現在所居住的巷口裡,有一家經營很久的雜貨店,在那家雜貨店裡只有賣食品、飲料、香菸等簡單的東西。一個禮拜偶爾兩次,才會到雜貨店買包香煙和幾罐飲料,遇到雜貨店老闆的次數並不是很頻繁,也不曾與老闆閒話家常。

久而久之,老闆已熟悉我慣用的香菸品牌,每次去買香菸時,我還沒開口,老闆就會主動拿我要的香煙給我。另外,老闆知道我已經結婚及有兩個兒子,也知道我居住的地方。每次我太太或我孩子需要買米或水果時,不需要特別說一聲,老闆都會外送到我家裡。

像是剛剛那種情形,在我讀大學時,與大學夥伴常去的燒酒店老闆娘也會如此,或是在公司附近常去的啤酒屋,也會發生相同的經驗。老闆與熟客的關係並不僅止於認識對方而已,為了提升彼此的信賴感與熟悉度,必須讓顧客的需求獲得滿足並再次光顧,以提高老闆的實際收益。我想每位經營網路事業的人都曾經思考過,該如何將現實環境發生的情況,適用在虛擬的網路世界裡.深入地了解顧客,提供個別化的服務及資訊,進而增加營運收益。

像是eBay等Open Market經營方式,眾多小規模的商店於競爭惡劣的環境下,藉由差異化的服務來滿足顧客,填補新出現或未滿足的需求,且為顧客創造價值。市面上多數的銀行、保險、信用卡公司為了推廣自己的金融商品,花上更多心思和心力製作網頁,且為了有效的拉進網站與顧客的距離,每年不斷地更新規劃及建置網站。
最近韓國政府機關為了對社會大眾提供更多元化的服務與資訊,致力於網站的建置,創造出高效率的公營事業.

Off-Line Business在與顧客長久以來的接觸下,對於顧客的瞭解已經非常地深,依照其營運目標進行客群區分,維持顧客長久關係所採取的最適方法中,建立了許多高效率的商業活動所適用的策略及系統工具等資源。通常我們稱這樣的作業模式為CRM (Customer Relationship Management),而為了提升營運績效所執行的策略性分析,則稱之為BI (Business Intelligence),以朝向著更為專業化的方向發展。

實際上,想要透過Internet Network遠端作業系統,對使用者或顧客採行同樣的策略時,卻是難以落實.過去的eBiz認為網站上商品的排列組合、資訊傳達、服務提供是最重要的營運手段的想法已成過去,近來在許多同業或是合併的eBiz的激烈競爭之下,為確保本身的競爭能力,需不斷地尋求更優勢的競爭策略。現在只要有不錯的商品或想法就可輕易的成立一家網站,吸引不少的人抱有創業的幻想。

實際上,過去我們在eBiz模式中常看到不少這樣的例子,毫無計畫就架設一家網站做經營,不久之後就會面臨在同業的競爭之中淘汰的現實。就此我們可以了解到,在如此眾多繁複的資訊與服務之中,不可或缺的就是提升自身的競爭能力,以及創造自我獨特的風格。如同off-line marketing,在on-line marketing也是先要進行認識顧客的作業程序,不同的是,對於造訪者是誰都不知道的on-line business的前提之下,就要建立一套完整的行銷計畫。

在經營 Internet Business的過程中,為提供顧客最佳的服務和行銷活動所能利用的資訊,只有顧客的會員資料,以及該顧客所累積的交易紀錄。雖然經由交易過程所產生的資訊內容是根據正確的事實所產生,但僅以購買事實來掌握整體顧客的活動行為及需求,建立一套對應措施,仍有有許多不足的地方。而且顧客的會員資料是否具有可信度並不重要,重要的是,要掌握到全部匿名訪客的活動行為,並不是一件容易的事情。因此,須開始更深入了解顧客們的活動內容,至少要對自己網站內造訪客的進行追蹤,了解他們的活動模式及需求。將顧客活動內容進行追蹤分析,透過定型化的報表,可輕鬆的掌握到整體訪客習性。為了獲取目前進行的作業是否達到營運效率的判斷指標,就要持續不斷的試驗和作業過程。

在網路環境的背景之下,初期Web Log分析Internet Business,單純只以網路運作系統的改進為核心的商業競爭,直到現在不斷試圖達成顧客核心需求及Web Business的目的,就這樣的結果,使整個範圍擴充到Web Analytic中。一些被評價是看法最瞻遠美國公司所聯合成的Web Analytics Association (WAA,
www.webanalyticsassociation.org)對於web analytics做了以下的定義:

"The measurement, collection, analysis, and reporting of Internet data for the purpose of understanding and optimizing Web usage"

雖然它對於為何要做Web Log分析的原因和內容有做詳細的定義,但是我認為定義不應該是永恆不變的,對於web analytics的定義,應該持續不斷地擴充發展。雖Internet Business環境中,訪客所面對的對象不是一般人,而是定型化的系統,但是透過顧客在網站(infrastructure)上如café、blog等community site或像是在網路書局的購物網站所做的活動情形來看,Internet Business的顧客對於特定網站會定期造訪瀏覽,取得一定的資訊及做購買的交易行為。

2007/01/03

Grocery Store e-CRM Philosophy (Part 1)

The alley where I live has a longstanding grocery store selling simple items such as food, drinks, and cigarettes. I visit the store about twice a week, buying a pack of cigarettes or beverages, but I encounter the owner infrequently and rarely make small talk.

After awhile, the owner grew accustomed to the brand of cigarettes I smoke. Every time I want to purchase a pack, he hands it to me before I even open my mouth. He also knows I'm married with two sons and where I live. Every time my wife or kids need to buy rice or fruits, the owner delivers them to our house without a word from us.

A similar situation developed with the owner of the bar 'n grill that my college buddies and I used to visit. The brewery next to the office is the same experience. The owner must not only know frequent customers, but also satisfy their needs to build trust and familiarity. This can increase return visits and actual revenue. Every e-business has wrestled with how to simulate real-life situations in the virtual online world in understanding customers, offering different services and information, and increasing revenue.

In a hypercompetitive environment, many small-scale stores running under an eBay-like operating method must utilize distinct services to please customers, fulfilling new or yet to be satisfied needs. To promote their financial products, numerous banks, insurance agencies, and credit card companies on the market spend tremendous efforts in producing web pages that can effectively draw customers closer to the website. These websites undergo constant upgrade and redesign. Recently, the Korean government has devoted itself to website design and higher efficiency, providing the public with multi-faceted services and information.

Offline business has a long history with and a deep understanding of customers. It involves segmenting customers based on operating targets, maintaining long-term customer relationships, and creating various strategies and tools for highly efficient business campaigns. We usually refer to this process as CRM (Customer Relationship Management). The strategic analysis for enhancing operating performance is called BI (Business Intelligence).

In reality, applying this process on the Internet Network is difficult. Past e-businesses believed website product placement, information transfer, and service provision are the most important factors. Now, they must continuously search for advantageous strategies to remain competitive against e-businesses within the same industry or mergers. Now, a good product or idea can help launch a website, attracting many enterprising individuals.

Actually, there have been countless examples of websites that fail due to unsound planning. We can see that it is imperative to create individual style to enhance competitiveness. Like offline marketing, online marketing requires a comprehensive knowledge of customers. The difference is that in online business, where visitors are anonymous, a complete marketing plan must be established.

In online business operations, to provide the best services and marketing campaign information, the key is member data and customer transaction records. Although transaction data is based on actual events, grasping customer behavior solely on purchasing information is insufficient. The reliability of member data is not significant. The main goal is to grasp the behavior of all anonymous visitors. This difficult task requires a deep understanding of customer behavior, tracking website visitors to learn their tendencies and needs. Tracking analysis of customer behavior can be presented in static reports for easy comprehension. To know whether or not the current task is meeting the standards for operating efficiency, constant testing is necessary.

In the online environment, initial web log analysis of online business merely focused on the improvement of the operating system. Now, web analytics has expanded to include customer needs and web business goals. Comprising of various reputable, visionary American companies, Web Analytics Association (WAA,
www.webanalyticsassociation.org) defines web analytics as such:

"The measurement, collection, analysis, and reporting of Internet data for the purpose of understanding and optimizing Web usage"

Although it also provides a detailed definition of the reasons and contents for web log analysis, we believe they are ever-changing. The definition of web analytics should constantly evolve. Visitors of an Internet business environment are not facing other people but rather a set system. However, based on customer interaction on website infrastructure such as café, blog, community site, or online bookseller, Internet business receives periodic visits and browsing for information and purchasing actions.