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Performance 

management 

system

A process used to 

evaluate and improve 

the efficiency and 

effectiveness of an 

organisation and its 

processes.

Performance 

measurement 

system

The process by which 

metrics are defined, 

collected, disseminated 

and actioned.

Design for analysis 

(DFA)

The required measures 

from a site are considered 

during design to better 

understand the audience 

of a site and their decision 

points.

Internet marketing 

metrics

Measures that indicate 

the effectiveness of 

Internet marketing 

activities in meeting 

customer, business and 

marketing objectives.

Effectiveness

Meeting process 

objectives, delivering 

the required outputs and 

outcomes. ‘Doing the 

right thing.’

Efficiency

Minimising resources or 

time needed to complete 

a process. ‘Doing the 

thing right.’

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Chapter 12  Digital business service implementation and optimisation

● 

resourcing issues – lack of time (perhaps suggesting lack of staff motivation), the necessary 

technology and integrated systems;

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data problems – data overload or of  poor-  quality, limited data for benchmarking.

To avoid these pitfalls, a coordinated, structured measurement process such as that shown in 

Figure 12.6 is required. Figure 12.6 indicates four key stages in a measurement process. These 

were defined as key aspects of annual plan control by Kotler (1997). Stage 1 is a  goal-  setting 

stage where the aims of the measurement system are defined – this will usually take the strategic 

Internet marketing objectives as an input to the measurement system. The aim of the measure-

ment system will be to assess whether these goals are achieved and specify corrective market-

ing actions to reduce variance between target and actual key performance indicators. Stage 2, 

performance measurement, involves collecting data to determine the different metrics that 

are part of a measurement framework as discussed in the next section. Stage 3, performance 

diagnosis, is the analysis of results to understand the reasons for variance from objectives (the 

‘performance gap’ of Friedman and Furey, 1999) and selection of marketing solutions to reduce 

variance. The purpose of Stage 4, corrective action, according to Wisner and Fawcett (1991), is:

to identify competitive position, locate problem areas, assist the firm in updating strategic 

objectives and making tactical decisions to achieve these objectives and supply feedback 

after the decisions are implemented.

In an Internet marketing context, corrective action is the implementation of these solutions 

as updates to website content, design and associated marketing communications. At this 

stage the continuous cycle repeats, possibly with modified goals. Bourne et al. (2000) and 

Plant (2000) suggest that in addition to reviewing objectives, the suitability of the metrics 

should also be reviewed and revised.

Measurement is not something that can occur on an ad hoc basis because if it is left to 

the individual they may forget to collect the data needed. A ‘measurement culture’ is one in 

which each employee is aware of the need to collect data on how well the company is per-

forming and on how well it is meeting its customers’ needs.