As you know, from time to time I love to share with you information from some people I admire. In this case one of the main builders of the Web Analytics industry, Bryan Eisenberg, tell us how to use Personas for generating an eCommerce Lift.
Category Archives: Analytics Tips
Average time per visit handle with care
The average time per visit is one of the analysts favorites metrics.
The objective of this metric is reporting how sticky the website for its visitors is. The way most people use it is taking it directly from the average time per visit report. One of the most important things for a good analyst is first of all having an in depth understanding of the analyzed data. In online, all the information require a technical understanding besides the statistical understanding.
So, what does the average time per visit metric measures?. In most platforms average time per visit is calculated dividing the total time the website was navegated over the total amount of visits. What kind of insights would you be able to get from that information? In my opinion…none. why? Because you are measuring heterogeneous things together. All the navigated time including the people that entered your site, found out that it has not the required information leave the site inmediatly. If the quantity of non qualified users is relatively high will influence your metric at the point that the average could tends to cero.
A lot of people that has a website that requires a minimun navigation time get surprised when the average time per visitor is ten percent the required time for watching the welcome video/message. But at the end is completely logic, that metric is not usefull for that, it can not tells you the average time per visit of your site users when you are also including “lost users”.
So the main recommendation is as a first step using the non-bounced traffic segment, this way you can separate the “lost users” from your target users getting a much usefull metric.
But, what happen in cases where because of the analyzed system (website) a high bounce rate is not only not bad but even something good? Then you can switch thrr non-bounced traffic segment by the repeated visit segment.
This should not complicate your analysis unless you use external benchmarks, something that we never recommend. Compare yourself with your yesterday’s yourself, it would me more reallystic and challenging
“Understanding” – the hardest part of an Analytics Ninja work
One of the critical parts of an Analytics Ninja work is related with the way humans interact. Analytics Ninjas must understand what people need to make decisions and what they don’t. However, this task that seems to be pretty simple, in fact it is not.
First of all every human has a different mental model which process the information in a very particular way. The communication also differs based on gender, man and woman communicate in a very unique way.
Culture is something that pushes the differences among people. People from Argentina process the same information different than someone from the States (look other posts like “What’s a Latino?“, “Analytics, Focused on People?” and “Is time Just money?“.
All the above mentioned differences make our job very complex. Why? Because the first part of an Analytics Professional work is understanding the “System” and you wont be able to do that if you are not able to understand the way people communicate it to you.
So my suggestion is using the kid’s very same technique…the Why? Why? Why? Technique. Normally the less people talk the more they agree. This is usually desvastating…
I Leave you a very interesting video from the Monolog of Mark Gungor called the Tale of Two Brans, enjoy it!!!
Convertion Central by Google Analytics
Google Analytics has just launched “Central de Conversiones” (Convertion Central) which is a Blog with focus on help users to constant optimize their business.
I had and have the honor of being part of this project that is lead by the unstoppable Enrique Quevedo and the tireless Jeanette Haber. Continue reading
Yahoo! Web Analytics launched its 9.5 version…sweet!!!
Yahoo! Web Analytics (#YWA) has launched its 9.5 version. Among the new features you will find:

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
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).

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.
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:
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.

