What is Click Through Rate and why CTR is important?

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Click through rate (CTR) is “a ratio showing how often people who see your ad or free product listing end up clicking it.” Improving click through rate ensures maximum output in the form of relevant customer actions.

Are you chasing the right goals?

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What gets measured gets managed. You would have heard this several times. There is so much focus on measuring and reporting all data that is easily available. This leads to information overload. Colorful charts on the projector screen scream for attention. Quite often, teams waste energy and time on meaningless reports. What are you monitoring? What are your goals? Are you chasing the right goals?

How do you measure business growth?

Increase in sales revenue and profitability are the two most common objectives for every business. Businesses measure month on month, quarter on quarter, year on year growth in sales. However, it is important to segment the growth data for actionable insights. How do you measure business growth? Do you look at the overall trend? Do you segment customers into groups and monitor trend for each group?

Do you measure the spread of data?

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Performance reports and dashboards often report the average values. When measured alone, averages tend to lie. Understanding the variation along with the average performance and addressing the root causes for variation will help you better conform to customer expectations.

What are your actionable metrics?

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“For a report to be actionable, it must demonstrate clear cause and effect”. Eric Ries made this argument in his bestselling book “The Lean Startup”. He is right to stress on the importance of monitoring actionable metrics. Quite often we get into the trap of vanity metrics. Either these vanity metrics look good or the data is easily available. However, as the name suggests, these do not lead to any action as cause and effect are not established. Have you identified actionable metrics for your business? What metrics do you monitor?