Analytics 2.0

Much more than just tagging

Standard and non-standard metrics

If you are reading this blog you probably know metrics like Unique Visitors, Visit, Pageview, etc. Those metrics are Standard metrics, which means that the way those metrics are being measured is based on a definition made by a recognized organization (the Web Analytics Association), allowing comparisons among different projects. Actually when someone tells you “I have 10.000 unique visitors”  we all know the meaning of that (10.000 unique browsers being measured by a particular cookie).

Standard vs Non-Standard metrics

Standard metrics are very important, actually the Web Analytics Association have  a committee that works very hard trying to define those standards (The standardization committee), and very useful as well. Standard metrics are focused on external analytics, which means the analytics that relates your company/project with other companies/projects. So with standard metrics you can do external analytics for control, benchmarking (I don’t like so much external benchmarking but it does exist), etc. This means that you shouldn’t use standard metrics for Internal analytics ever? No, no, I’m not saying that. I’m just saying what’s the main focus of those metrics, but if any of those metrics is useful for you for Internal Analytics then just use it.

On the other hand you have the non-standard metrics. The non-standard metrics are those that you use for internal measurement and benchmarking. In this case it doesn’t matter that the metrics is not standard because you will only use it as a sensor that will allow you measure your own company’s performance.

Why I’m saying this? Because when looking for “sensors” to measure your performance you have to be creative, creating a metric able to capture the specific information that you or someone from your company will required.

So, when looking those metrics to measure your internal performance forget about all what you know and think about the ideal one and call it in a way that the users of the metrics will understand and don’t forget to write the description and formula of the metric everywhere the metric will be shown.

You can also download the Standard Metrics from the Web Analytics Association

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Dad is back and will lift your conversions

It’s seems like nothing changed for so many years…take a look at this post “Desired Advertising – DAD – Is that possible?“ and tell me if it is not actual? It is, and it is for the reason that the base of it it is that advertising should be planned and executed as a service it self and not as an stupid and intrusive manner of stolling peoples’ attention.

With the above in mind and always following the Web Analytics Association’s Code of Ethics, Imagine how better could be your clients that you contact them considering their interests and needs, following the Dad model

Yahoo! Web Analytics individual tracking

Do you think it is something sophisticated for your skills? It’s not…at all.

The only thing you need is an Analytics solution that allows tracking individuals and having a registration or login process in your website. To those that accept the tracking cookie you will have the information of the interest that that particular person has in a very specific moment. So you can create segments based on behavior and/or demographics and/or attitude and contact people with, for instance, a newsletter, that adds value to them. You can send them promotions based on what they are looking to buy, or events that could be of their interest among other benefits.

I test it with Yahoo! Web Analytics just because it was the closest one I have (and it’s a very good one!), but you can use any other with individual tracking. Test it and please let me know if you get any lift.

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The value of an smile – Analytics allows you to counting the uncountable

If you only read the first sentences you will probably think that this post has nothing to do with Analytics (that may be good for some people, but let’s think that since this is an Analytics blog, that is something bad), so let me invite you to read the entire post.

The value of an smile

Ten days ago I was having vacations after two years. When you don’t have vacations for such a long time you have the expectations that everything goes perfect.

The second day of vacations my kids asked me to visit a Dinosaurus thematic restaurant…. I went to a restaurant with my family. It hasn’t the best food in world nor the best prices, but the idea was having a good time with the kids.

So we arrived to the restaurant and asked for a table, the answers was “your table will be ready in 45 minutes” (first metric). My first reaction was, let’s go to another place but my kids were not agree with that idea, at all, so I had to stay there for 45 minutes. I remained inside of the restaurant since outside was cold, until someone from the restaurant told me, in a very bad manner, that I shouldn’t stay there but in the gift shop or outside. So I waited for 45 minutes in the gift shop (can you imagine how hard is staying in a gift shop with two kids for 45 minutes?) and came back to the “front desk”. After waiting like 5 minutes (second metric, and we are building our Analytics model :-) ) count someone told me, pretty ungently, that they still don’t have a table for me. So I waited for like 10 minutes (third one) and finally a very gentle waitress came to us with a big smile and invited us to have a sit .

I told her that before ordering I wanted the complaints book. I told her, you are the first person smiling in this restaurant. I understand that everybody here is working hard because the restaurant is full but that is not excuse for being rude or not gentle. We went there just for having a good time. She apologies for the situation and offered me to call the manager. I accepted. The manager was very gentle and always smiling. She said that probably their employees were pretty stress for their work and they “forgot to smile”. She told me that that is not an excuse, so they invited us to have a great time and to forgot about the past. We accepted, and finally we had a great time there.

Before leaving the waitress brought the check with a 20% discount for the inconvenience. It was a good way to say, the service was lower than the expected, so we reduce the price. The lower the price, the lower the expectations (price= product or service expectations – product or service provided). But what I kept thinking was, at the end of the day it is possible to measure uncountable things.

My complain was simple, nobody was smiling there. Even when I wait 45 minutes, even when they haven’t my table after the 45 minuties, the problem was…nobody was smiling. They understood that the lack of smiles in the restaurant worth 20% of the service. So, just imagine that the restaurant begins using that metric as one of the mains KPI’s and explain their employees the importance of smiling…”Everytime you don’t smile we lose 20% of the ticket, and in some cases even a client”. Actually is even a great deal for the restaurant paying like a performance fee. “If you smile and the client is happy, we pay you a and additional 2% of  the ticket value to your salary”. Remember the quote “tell me how you measure me and I’ll tell you how I’ll behave. Measure me in an illogical way and don’t complaint if I behave illogically“. Well, the “Smile rate” is very clear. All the people from the restaurant can understand the relationship between both variables (Income & smile) and if that is clear it’s easier to accomplish the followed results. Wouldn’t be awesome do an Anova model Analysis with the variables Income and Smiles? Never say this is uncountable as the first answer, be creative, every flow in your system is countable. If you don’t get the answer, probably you only need to dig a little more.

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Report your +1 in Google Analytics and Webmasters tools

Well, it is great to find out that at least some players in the industry are taken seriously the importance of information integration, the importance of having all the pieces of the puzzle available when creating the decision making scenario. A way to revert the situation displayed in “Top Performance Metrics“.

Last week Google released the +1 button, kind of a “Like” but for the Google+ Project. The best part of this released is that Google thought about integration from the beginning and you can measure the +1 button from Google Webmasters tools and Google Analytics understanding how +1 affect your traffic and traffic behavior.

Regarding Google Webmasters tools:

  • The Search Impact report gives you an idea of how +1‘s affect your organic search traffic. You can find out if your clickthrough rate changes when personalized recommendations help your content stand out. Do this by comparing clicks and impressions on search results with and without +1 annotations. We’ll only show statistics on clickthrough rate changes when you have enough impressions for a meaningful comparison.
  • The Activity report shows you how many times your pages have been +1’d, from buttons both on your site and on other pages (such as Google search).
  • Finally, the Audience report shows you aggregate geographic and demographic information about the Google users who’ve +1’d your pages. To protect privacy, we’ll only show audience information when a significant number of users have +1’d pages from your site.

Regarding Google Analytics, the good news is that is you configure the Javascript for Analytics, it reports not just the +1 but also other buttons allowing you comparing the different sharing actions by using Social Plugin Tracking in Google Analytics.
  • The Social Engagement report lets you see how site behavior changes for visits that include clicks on +1 buttons or other social actions. This allows you to determine, for example, whether people who +1 your pages during a visit are likely to spend more time on your site than people who don’t.
  • The Social Actions report lets you track the number of social actions (+1 clicks, Tweets, etc) taken on your site, all in one place.
  • The Social Pages report allows you to compare the pages on your site to see which are driving the highest the number of social actions.
Here I leave you a link to enable tracking for other social plugins in just a few simple steps.

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Objective oriented Scorecard

Scorecards are a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions (by Wikipedia), and looks like this:

 

What’s the problem with that kind of Scorecard? Even when the image is small the issue on it jumps from the screen…well, the problem is that there is no relation between the company strategy and the carried on activities (I mean each one of the measured metrics).

Let me show you my recommendation.

In the above Scorecard you can see that there is a relation between each metric that measures the operations performance and the company’s main Objective. In each measure level we can see how much money does each activity brings to the whole company and even find the main restriction in your System (Company), so you can point your budget to solve that particular issue (restriction) that will allow that more money flows through your system (company).

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Web Analytics, Digital Analytics, Online Analytics…why don’t we keep it simple?

Today’s WebAnalytics industry is discussing about how relevant is today the use of the term “Web Analytics”. So the general idea is finding a term that better defines our activity so, some ideas are Online Analytics, Digital Analytics, etc.

Analytics instead of Web Analytics

But before trying to find a new term why don’t we define the root term, “Analytics”. If you go to Wikipedia you will find this definition “Analytics is the application of computer technology, operational research, and statistics to solve problems in business and industry“. It’s looks pretty much like what I do in my daily work so why should we add any other word?

If you pay attention I never (in some particular cases) used the word Web Analytics, but Analytics instead. This is because I never understood why we (The “Web” Analytics industry) are trying to make complex what it is simple? Don’t misinterprets me, I’m not saying that the idea is stupid, it is just that I don’t understand it. Just that.

Most of my colleges from the Web Analytics Association are not just Google Analytics, Omniture or NedStats users. They are working with information to solve business problems.

At the end of the day, we are all talking about integration but then when an channel at the operations level changes need to change the name of what we do?. I think we are living fantastic moments, technology is finally allowing us integrating all our business information generating more realistic decision making scenarios. Are we gonna return to the beginning?

Again…Websites, SMS, Twitter, Facebook, TV, Radio, etc, are not Different Strategic Marketing options, are just channels in which we can execute ourStrategy or we cal also say, in which we can operate our strategic decisions. Should we start negotiating the AA.com domain with American Airlines…mmmhhh ok, we better start soon…it’s not gonna be easy :-)

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Tell me what’s your marketing and I’ll tell you who you are

Traditional Marketing, Digital Marketing, Online Marketing, Direct Marketing, Social Media Marketing and Email Marketing and some of the hundred types of Marketing we hear about.

Marketing stands for generating market or demand. So in my opinion there is just one strategy, I mean, that one. A company needs income and benefits to keep on track, if the companies do not generate income and benefits they, earlier or later, will be out of the market.

So, in my opinion, strategically talking, there is just ONE Marketing. The one responsible of bringing money to the company, besides the decision is going to online, digital, social, or whatever else marketing. So, online marketing, digital marketing, social media marketing, email marketing, or any other are, as a matter of fact, operational marketing. Which means that the company will have a unique Company Objective, and a unique Marketing Objective that will be focused on help the company achieve its Company Objective. Depending on the strategy the marketing department will decide going to one of the Operational Marketing channels.

So today we can talk about Facebook, youtube and twitter. But tomorrow can be any other thing else and the company would not change its strategy because of that.

Now, let’s come back to the measurement side. We have the exactly same problem. Each supposed type of Marketing has its own measurement platform way too isolated. Wouldn’t be that because of how do they think their marketing? I guess the answer is yes. We are talking about integration for several years (like Integration, where are you?), even thought vendors efforts related to integration where pretty shy, you know why? Because companies are not demanding that a lot. If you are a vendor you have a list of improvements and new features to develop and the priority is based, in part, on what clients demand the most. Demand and Supply.

So, if you think your company has several “marketing” areas and each one works in an isolated way, why would you need a unique platform that measure everything in an integrated way? Exactly, you would’t.

How many marketing departments does your company has? And how many measurement platforms? Does it make any sense?

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Web Analytics – The strategy for overcoming the resistant to change

If you are in the middle of the process of convincing your boss to begin with the Web Analytics activities you will, as we already talked at my book Meta Analytics, definitely face a lot of troubles trying to make people (not just you boss) overcome the resistance to change. Don’t you ever underestimate the power of people resisting to change. So take a look at the following video and prepare for a very challenging ride.

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Five tips for successful Online Projects

The Internet projects have a particular complexity, everything is changing constantly. In this kind of environment is very risky to base your decisions for new projects in previous ones since the possibility that the same formula works in this new very unique situation is almost null.
Due to the above mentioned situation is normal that managers and analysts have to make decisions based on very unique and particular scenarios, that is why I highly recommend going beyond the conventional Analytics activities focusing on comprehend the human mind and understand the analyzed system:
1- Every new problem must be taken as that…a new problem. Never try to compare it to some previous one.
2- Defining the solution or objective is a team work. This way you will eliminate your subjectivity and promote having plan clear and understandable for everyone.
3- There is one main object that prevent increasing your system (project) throughput. So, keep focused on optimize its efficiency.
4- One measure and action cycle at a time. If we do everything together we going to loose the possibility of understand the cause and effect relation among variables.
5- Keep focus. The information must be of use for making decisions and controlling, do not spend your time analyzing “interesting” information. Your time worth and the best way to invest it is making your project (company) generating profit.

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Analytics is human stuff

For many year people used to thing that the web analytics practices can become completely automated. If current web analytics solutions are cool, with more r&d vendor will be able to develope a platform that even analyze the info and make some decision based on it.
On one hand humans mind was on that direction, on the other hand the reality was driving us to a completely different environment.

As said in my last post 2011 will be, or should be, the year were Learn, analysis and action become the main pillars of Web Analytics. And you know what? None of those pillars can be done by computers.
The good thing is that this year we have no excuses, if you want to increase your performance, you will be responsable. Responsible does not mean guilty, responsible mean that you are in charge of that, that you have the interest and the capacity to carry on those activities.

So, if you have several tools, all well implemented, with lot of information…that is good…but not enogh. This year you better get an Analytics team, or even better, an Analytics Swat team that take all your information and get actionable insights. Then work on that fields, learn and start over, and over again.
Tools are cool, but this year, this year humans will be coolest.

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