Web Analytics Value Proposition For Executives

WEB ANALYTICS VALUE PROPOSITION FOR EXECUTIVES

The case for data driven website decision making

Monday, June 1, 2009

Gut or Data?


Gut or Data? How does your organization make website

decisions?



decisions? Gut or Data?



decisions? Gut or Data? No good data

availableNon-data based decisions to be

made

Insufficient analytical skills in employees

Lack of analytical talent

Multiple versions of the

“truth”


Research says…

Source: Quantitative Acenture Online Survey, July 2008https://www.accenture.com/Global/Technology/Information_Mgmt/Information_Mgmt_Services/R_and_I/SurveyAchieved.htm


Research says… Accenture surveyed more than 250 executives

in July 2008 about their companies' use of and investment in business analytics to remain competitive.













Nearly half of major corporate decisions are based on the good 'ole gut. (And that’s only what they say)



Why?


Why? 61% - No good data

available



available 55% - Qualitative

(emotional) factors




(emotional) factors 23% - Insufficient

quantitative skills in employees






36% - Shortage of analytical talent







No good data available

Non-data based decisions to be

made











made




“truth”









made




“truth”

It’s the way we’ve always

done it


So what?


So what? Nearly three-quarters (72 percent) of respondents say

they are striving to increase their organization's analytics use. Two-thirds surveyed recognize their decision-making failings and want to reduce their dependency on their gut.




Some key quotes from the research:




Some key quotes from the research: “There’s a strong concern over the future lack of analytical

skilled resources.”





skilled resources.” "We need to move from a mass-market approach to a more

segmented, targeted approach which requires significantly more analysis.”





skilled resources.” "We need to move from a mass-market approach to a more

segmented, targeted approach which requires significantly more analysis.”

"Companies can become mired in the past, i.e., ‘that’s the way we’ve always done business.’ Today’s marketplace and available technology requires the ability to revamp marketing and customer service strategies.”


So why give up on your gut?


So why give up on your gut? To quickly react to changes in customer

demand



demand Increase sales



demand Increase sales Increase profit margin



demand Increase sales Increase profit margin Increase customer loyalty and retention



demand Increase sales Increase profit margin Increase customer loyalty and retention Improve EBITDA




Measurement




Measurement Accountability




Measurement Accountability ROI


Example


Example A January 2008 report from Aberdeen

Group on retailers using “best in class” analytics tools and techniques increased



Group on retailers using “best in class” analytics tools and techniques increased Average year-over-year same-store sales by

11.7 percent




11.7 percent Average profit-margin by 9.3 percent




11.7 percent Average profit-margin by 9.3 percent Customer retention by 12.2 percent


In short…


In short… Using analytics can help you



Understand your customers



Understand your customers Quantify and improve marketing results



Understand your customers Quantify and improve marketing results Make better decisions



Understand your customers Quantify and improve marketing results Make better decisions Increase EBITDA


On Web Analytics


On Web Analytics In the April 2007 report "Web Analytics:

The Crystal Ball of Customer Behavior," Aberdeen found that 89% of Best-in-Class companies used, or planned to use, web analytics solutions as a method to measure corporate goals, such as improving the customer experience.


On Web Analytics In the April 2007 report "Web Analytics:

The Crystal Ball of Customer Behavior," Aberdeen found that 89% of Best-in-Class companies used, or planned to use, web analytics solutions as a method to measure corporate goals, such as improving the customer experience. Of these top performing companies, 28%

admitted that the data delivered by a web analytics solution was difficult to interpret.


What about “subjective” stuff?





Everything online is



Everything online isMEASURABLE


Everything is Measurable


Everything is Measurable Example – Should I authorize my CMO to spend ½ million

dollars on a 6 month branding campaign?



dollars on a 6 month branding campaign? Traditional – Do campaign (or not) and then do a focus

group before and after to see if your brand appeal increased




group before and after to see if your brand appeal increased Answer – Yes, people are liking our brand more, or

ooops, not.





ooops, not. Problem – You don’t know until it’s over






The Web Analytics Way – Ongoing measurement of brand keywords typed in search engines and direct/bookmarks for people who arrive at your site.






The Web Analytics Way – Ongoing measurement of brand keywords typed in search engines and direct/bookmarks for people who arrive at your site. Answer – Authorize two months, test and optimize the

campaign, then when your “brand” index is increasing X% monthly, keep the spend going!






The Web Analytics Way – Ongoing measurement of brand keywords typed in search engines and direct/bookmarks for people who arrive at your site. Answer – Authorize two months, test and optimize the

campaign, then when your “brand” index is increasing X% monthly, keep the spend going!

You know while it’s going on and can adjust


Ready to lose your gut?



Here’s how to get started



Here’s how to get started Hire an experienced web analyst, or a geeky

marketer with some analytics experience, or choose an interested geek internally and send them for training.





Invite said geek to every decision making meeting and ask for his/her applicable data.






Listen to their data.






Listen to their data. Whenever you feel that tingle in you gut, ask

your analytics person to prove it.






Listen to their data. Whenever you feel that tingle in you gut, ask

your analytics person to prove it. Enjoy your improved EBITDA


Why a Web Analyst?


Why a Web Analyst? Aberdeen’s “Crystal Ball” report also identified

the number one issue for organizations who are evaluating web analytics solutions:




“There is little direction from vendors on how to maximize the use of the data for

better business decisions”

















Why a Web Analyst?


Why a Web Analyst?


Why a Web Analyst?


Why a Web Analyst?


Why a Web Analyst?


Why a Web Analyst?


What you and your analyst should be doing…



Define Objectives



Define Objectives Map Objectives to Site



Define Objectives Map Objectives to Site Look for Opportunities



Define Objectives Map Objectives to Site Look for Opportunities Set Targets and Segment Audience



Define Objectives Map Objectives to Site Look for Opportunities Set Targets and Segment Audience Test the Change!



Define Objectives Map Objectives to Site Look for Opportunities Set Targets and Segment Audience Test the Change! Measure Results & Optimize




Repeat




Repeat

Repeat


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Thanks for your time!


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