Analytics 2.0

Much more than just tagging

The UP launches a Hands on Online Advertising Program

The Graduate School of Business from the “Universidad de Palermo” launches the first “Hands On” Online Advertising Program in Latinamerica.

The program aims to provide participants with all knowledge and tools available to promote a website.
With a strong practical approach, the classes will be performed applying theory with examples in real time.

I’m so glad of being part of this program for two reasons. First because it was developed having in mind that “if you can’t measure it you can’t manage it”. So we can say that Analytics crosses the program across every different module.

The second reason is because as you know I love the “Hands On” learning model and this program was completely developed with that model in mind as you can see in the list of people in charge of the different modules: Continue reading

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The Web Analytics Association voting period is open!!!

The voting period for the WAA Board of Directors election is finally open. All voting members should have received a email from the Vote Administrator, username and password to the online ballot. If you have not received yours, please contact Lindsay De Santis for the details. The vote closes April 10, 2009.

Whether I get elected or not I will keep working for the industry and the Web Analytics Association in particular but if I get that position the posibilities are infitite. So please think very carefull how are you gonna vote for.

and off course, good luck to…

- Anil Batra, Chief Analytics Officer, Ascentium, USA

- Daniel Waisberg, Head of Web Analytics, EasyNet Search Marketing, Israel

- David Millrod, Managing Partner, Technology Leaders, USA

- Khalid Saleh, President, Invesp Consulting, USA

- Olivier Silvestre, Co-founder, Tealium, Inc., USA

- René Dechamps Otamendi, Founder, Ox2/LBi, Brussels

- Sergio Maldonado, Director, MV Consultoria, Spain

- Stéphane Hamel, Web Analytics Advocate, Immeria Consulting Services, Canada

- Ed Wu, Senior Analyst, Global Consumer Online, Dell, Inc., USA

- Greg Asman, Director of Web Analytics, Aspen Marketing Services, USA

- Peter Sanborn, Group Manager, Web Analytics, Microsoft, USA

- Rachel Scotto, Metrics Manager, Sony Pictures Entertainment, USA

- Ray Sibulkin, Executive Director, Business and Marketing Analysis, Edmunds.com, USA

- Alex Yoder, Chief Executive Officer, WebTrends, USA

- Arie Abecassis, President, MindFireInc, USA

- Claudia Woods, Director of Strategic Development, Predicta, Brazil

- Jonathan Levitt, Vice President of Marketing, iPerceptions, Inc., USA

- Kimberly Weller, Product Manager, SAAS Institute, USA

- Mark Wachen, Managing Director, Interwoven/Optimost, USA

- Matthew Langie, Senior Director, Product Marketing, Omniture, USA

- Nicolas Babin, Chief Operating Officer, AT Internet (XiTi), France

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And the Nominees Are…

I am so glad to announce that I was nominated for a second time as a candidate to Board of Directors of theWeb Analytics Association. This is not a minor issue for me since I have been working very hard in the industry for a long time, mainly in Latin America and from such a position I would be able to work on strategies aimed at developing activities in the region.

I must also say that it is an honor for me having the chance of share this nomination with incredible professionals like Anil Batra (Chief Analytics Officer, Ascentium), Daniel Waisberg (Head of Web Analytics, Easynet Search Marketing), David Millrod (Managing Partner, Technology Leaders) Khalid Saleh (Co-Founder & President, INVESP Consulting), Olivier Silvestre (Co-Founder, Tealium, Inc), Rene Dechamps Otamendi (Co-Founder, OX2/LBi, Rene is a great professional and such a nice guy), Sergio Maldonado ( Director, Consulting MV) and Stéphane Hamel (Web Analytics Advocate, Immeria Consulting Services).

Finally, I want to thanks Lindsay De Santis for the incredible dedication on the organization, Richard Foley for all the work hi did for making my interview possible, to the tireless Jim Sterne and to all those that worked so hard to make all this possible.

The voting period will be open in a few days, so if you are focused in Latin America … VOTE FOR PEDRO … sorry … Vote for Juan ;-) . All nomination here and my nomination here.


 

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Twin Interview – Jim Sterne and Eric Peterson

In order to get some different point of views about some topics of our industry I interviewed two of the main referents, Eric Peterson and Jim Sterne. Everybody know them so there isn’t  so much to add but my personal feeling… Great people and passionate professionals. 

Eric Peterson, with more than 10 years of working in the industry, is one of the most experienced professionals in the world. He is the Author of the book Web Analytics Demystified, one of the most important books in this field and founded Web Analytics Demystified Inc. in 2007 after working as an Analyst for Jupiter Research. His blog Web Analytics Demystified is one of the most relevant blogs in the Web Analytics Industry, with thousand subscribers around the globe.

 

 

 

 

Jim Sterne is the Founding President and current Chairman of the Web Analytics Association. He wrote several books like his widely acclaimed book, World Wide Web Marketing, was a groundbreadking look at commercial websites from the customer perspective. He also produces the Emetrics Summit in London and Santa Barbara which attract attendees and speakers from around the world.  

 

 

 

 

So, lets the party started!… Continue reading

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Avinash in the earth of tango

It’s been so long since I’ve interviewed Avinash in this blog (Actually the blog was called damia.com.ar in that time). In that moment I’ve just don’t even imagine having Avinash visiting our country or even Latin America.

 

However some years later that is a fact. The 17th of march Avinash will be landing Buenos Aires bringing with him his contagious passion and love for Web Analytics. The day after he will be presenting at a very exclusive event sponsored by Google.

 

 

If you don’t know Avinash, something difficult if you work in Internet (and/or had a chat with me ;-) ), he is one of the most passionated and experienced people in the Web Analytics Industry (you know I don’t like the word Guru). His blog Occam’s Razor is full of information based on Avinash’s experience with a very pragmatic view and he is always open to interact with his readers. He amazingly generated a very symmetric communication with his readers.

Avinash is also the author of the best selling book “Web Analtyics and hour a day” which has already translated into English, Korean, Portuguese, Chinese and soon will be available in Japanese and Russian.

He is also the Analytics Evangelist for Google, position from which help people with different level of expertise having a deeper understanding of their online projects changing the “metrics” view by the “understanding” view (PALM by Avinash: People Against Lonely Metrics).

I’m a believer that there is not smarter people, not even Gurus but just people that uses his passion for something (Like Web Analytics) as the fuel for making wonderful things in a very contagious way, that’s is why I’m so glad to having Avinash down here.

Welcome Avinash!!! 

more information about Avinash? click here

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The four lines magic chart

I do agree with you if this post title sounds a little funny to you but I’ll show you that it makes sense.
I’ve post several times about the importance of integrating information, it provides us the total picture of our situation avoiding inferring part of it, which means building better scenarios for most efficient decision making.
Lets use an example the ecommerce site from a computer company. What information this company normally use to understand what is happening with their businesses? Traffic and sales. Both are behavioral metrics which means that tell us what are people doing but not why.
What happen when there is a slow down in sales? Well, even when the available information is not enough for making an efficient decision, people tend to infer the part of the situation that is not answered with the available information.
So when there is an slowdown in sales people will infer that the problem is the promoted product, a non so efficient marketing campaign (paid search, banners, offline, etc) and several other reasons that sounds logic to the person that is analyzing the information (and off course, enough logic to convince the rest of the team).
However making decision in the above mentioned environment is not so healthy, not just because the decision may not solve the slow down in sales, but also because the company may be investing money in the incorrect place increasing the acquisition cost situating the company in worst situation. Lower sales at a higher cost.
Fortunately today we have lot of information sources not only with behavioral information but also with, for example, attitudinal information, which gives lot of relevance to the behavioral information.

So lets see an interesting, and very simple, four lines chart. The lines represent:
1-    Visits (Behavior).
2-    Sales (Behavior).
3-    Buzz (Attitudinal).
4-    Server Performance Monitoring (Environment).
In the X axe we have time (in days) and in the Y1 axe we have Q (quantity) and in the Y2 axe we have percentages (for Buzz and Server Performance).

four_lines_chart

I also recommend adding information about Events that are relevant to the company and its projects. That is qualitative information that gives relevance to the qualitative information. I called that information “Internal notes”.
In the following example have two situations that require making decisions that are based in the following triggers.
1-    Alert – Drop in sales (9th of January): The marketing manager receive and alert from the Web Analytics tool because sales are down our daily average. The Marketing manager look at the four lines chart and finds out the following.
a.    Visits: No important variation in visits, no further analysis.
b.    Sales: As the alert informed, sales droped in more than 43% so further analysis is required.
c.    Brand Buzz: There is no important change in the brand or product buzz which means that we cannot asign the drop in sales to an attitudinal problem or perception regarding our brand or product.
d.    Server Performance Monitoring: There is a important drop in the server performance right on one of the conversion pages. Some minutes later in the shared notes appear a note from the Technology department notifiying the server issue.
In just 10 minutes of analysis we’ve got the answer and can correct the deviation. Sounds like actionable information, isn’t it?

2-    Alert – Drop in sales (18th of January): The marketing manager receive another alert to his email from the Web Analytics tool, apparently there is a almost 25% drop in sales. Whitout the four lines chart the same manager could try to infer that his company is experiencing the previous experienced server issue. With this model the Marketing manager look at the four lines chart and finds out the following.
a.    Visits: Visits are slighly growing, however nothing very important at this moment (howevery look at the data table and you can see that if the manager waits untill the jump in traffic is higher than normal, its too late for solving the problem).
b.    Sales: Almost 25% drop in sales.
c.    Server performance: Even when the manager look at this metric first based on the previous issue, he easily understands that there is no problem in the performance of the server.
d.    Brand balance: There is a negative variation (higher than the normal fluctuation) in people’s perception about our brand or product. Great! That tell us a lot about the problem. Visits increase as a result of the increase in buzz (when people talks about us, no matter they do it good or bad, our brand is more present in the web), this is because people reads about an issue about our product and inmediatly look at the company’s site in order to colect more information and, off course, to confirm the rumor.

In this example the problem was that our Laptops batteries had a contruction problem that prevent the bateries to charge after four of five charges. An important blogger commented about it and in just three days the information was distribuited all through the internet.

The negative information about our product makes that the higher traffic could not be converted in sales. People visited us to know about the problem, not to buy a deficient laptop.

The company found the problem in 10 minutes of analysis, and converted the information into action focused on return the company to the previous situation.

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How to improve your online businesses and not die trying

The main goal in online projects, like in the rest of the industries, it is to maximize the benefits. If you want to do that the key is taking as much as you can from you current capacity (what you already have).

The best thing that could happen to us is that much of what we are looking for (our goal) crosses through our system (campaign, website, shopping cart, etc). The effective quantity of things that flows through your system is called throughtput. 

In order to simplify the process lets say that our online project is based on three main activities.

1- SEM Campaign.

2- Product landing page. 

3- Sales confirmation.

Now lets say that the SEM campaign drop 50 people to our product landing page, from which 30 of them select a product and just 10 of them finally buy a product. So what is your troughtput? Exactly, just 10!!! Which means that is doen’t matter how many people you’ve got in your campaign and in your product landing page. All that people is your non converted stock, or to make it simplier, “raw material” that cannot be converted into final product. I mean, your goal it is generating money through sales and not acumulating people in your home page, that will increase your operative cost and decrease your thoughput. All the people you driven to your site through any campaign represent a cost to you so if that people doesn’t represent a sale it is just dropped money.

Now, you have in your system (project) several bottle necks. We don’t get all the clicks from our impressions, nor do the total pageviews (in the product landing page) from the clicks and finally we don’t get a sale from each pageview in a landing page (we could add an extra step, a very important one. We don’t get a repreated sale from each sale).

Lets see an example of how people behave today. Lets suppose that we have an ecommerce site. The ecommerce site receive leads (or potencial clients) from a banner campaign. We have the following process:

1- clicks= 1.000. 

2- product view= 200. 

3- sales (conversions)=  50.

Can you calculate the throughput? Well it seems to be very simple….just 50!. The problem is how we understand our system and, then, make desicions. In order to increase sales most people increase the advertising budget. Increasing hte advertising budget doesn’t increase your bottle neck capacity. It just increase the quantity of people in your site (remember that in this case your goal is money and your earn money by product sales) which increase your cost but not your thoughtput generating a huge stock in people (in this case people = stock = cost= waste of money).

Now, why should we try to drive more people to your site when the restriction (bottle neck is not there). Even when it is true that we will increase our sales, we are just cheating ourselves because we are not solving our main bottle neck, the one that is restricting our sales.

If instead of understanding our project as lot of things we consider that they are one thing compossed by a group of things working together is gonna be easier to make the correct decision. Our bottle neck is sales, ok?. Right. What would be our first step in order to improve our sales? First of all we should try to understand what is preventing us of increasing sales from 50 to 200. Right now that is just our restriction and we must focus all our resources in improving that bottle neck. Any improvement we carry on in that bottle neck will generate more results than in any other place within your organization. Why? It has two reasons. The first one is because if just one extra thing flows thorugh this  bottle neck you will increase directly your thoughtput. I mean, it doesn’t matter how good are you improving things in other part, if you don’t get a new sale then you didn’t improve anything. The second reason is “because you are attacking the problem directly”. It is like when you play pool. You hit the white ball with the stick, the white ball hit the next ball and so on. So you are hitting the last ball with less strenght than if you hit it directly. In our case, you will gett more results with the same resources if you “hit” (solve) your restriction directly.

Remember, your system has just ONE main restriction preventing your system from a higher throughput, and it changes everytime. Follow the next steps:

Constrain 

1. Identify the constraint (the thing that prevents the organization from obtaining more of the goal)

2. Decide how to exploit the constraint (make sure the constraint is doing things that the constraint uniquely does, and not doing things that it should not do)

3. Subordinate all other processes to above decision (align all other processes to the decision made above)

4. Elevate the constraint (if required, permanently increase capacity of the constraint; “buy more”)

5. If, as a result of these steps, the constraint has moved, return to Step 1. Don’t let inertia become the constraint. 

Thanks Eli Goldratt for sharing your awesome ideas with us. 

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Relevant information in non-perfect enviroments

If you lose more than 30 minutes a day analyzing your site its probably that you are not doing things as good as possibleMost of the people I know carry on the following analyzing process:

1- Login to the Web Analytics tool and I look at the traffic. If it looks similar to yesterday (or the same day from the last week), then we are ok.  If the traffic is higher or lower, then I try to find why.

2- To find the “why” I look at the different reports and (if available) I cross data trying to get some insights. I also download the info to an excel file and keeps working on it there, since excel is more flexible. 3- I get so much information and things get more and more complicated. 4- I have lot of other things to do, so I leave everything as it is (still with no answer). 5- As the last possibility I ask people from other departments if they have any idea about that change in traffic. 6- Based on those answers and some interesting insights I´ve got, I infer the rest and get the answer that makes me feel more satisfied… Required time: 4 / 8 hours…(the rest of the people leave in the step 3).Even when it is true that the best thing we can do is integrating all the information in a main “repository”, allowing to answer all the question in the same place, it is also true that for some companies or persons it is not an option for both technical or time constrains. So what can we do if it is not possible to us a full integration? The simplest solution is having an agenda with al the activities are occurring in our company, not just ours, but from all the departments of functional areas.  Companies are “systems” which mean a groups of things interconnected that work together with a unique mission. So if we modify one particular part of the system, we are also modifying the complete thing, and not just one part. Coming back to the agenda, why it is so important? Because, even when it won’t tell us immediately “why” we have an spike or drop in traffic, it will tell us immediately where can we find the answer. Example, we launch an Adwords campaign and in parallel our website get offline for an hour making that the spike in traffic from the Adwords campaign is counteracted by the offline time.Without an agenda with events or “milestones” the analysis would be: 1- Technology Department: Amazing, the server was down for about an hour but it had no impact to the site traffic. Don´t tell anyone!!!. 2- Marketing Department: The Adwords campaign generated no traffic!!!. 3- CEO: The traffic has no change, we are just great!!!. The event calendar gives the big picture making more efficient the analysis and decision making process.How can I have an event calendar (or agenda) when it is a non supported feature in my Web Analytics tool?The simplest option is having a Google Spreadsheet shared among your team. Simple and useful. You can also add this functionality that will export your Google Analytics report directly to Google Spreadsheet making your analysis even more flexible and simple. I hope you find this tip useful.

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