The Work of the Web - Understanding Web Analytics

Ross Jenkins is a frequent international conference speaker with nearly 10 years of online marketing experience covering Site Operations, Web Metrics, Behavioral Marketing, Site Search, and Web Analytics.

Thursday, February 21, 2008

13 Defining Observations About Web Analytics

I can only describe the following as simple anecdotes that I have observed to be true over time.

I have found it helpful to document and to refer to them from time to time. In 3 months, I am certain there will be others.

Enjoy.

  • Web Analytics is change management. And at the end of the day, if its truly your passion, web analytics is performance management. If you aren't changing anything, don't bother to report on everything. Seek improvement above all things. Don't define success by your peers. They may have a very different way of determining it.
  • Be thoughtful. Think COMMSS. Creative. Offer. Message. Measurement. Segment. Score.
  • Web Analytics is application development. Nothing on the web lives very long without growth. The web grows in the areas you feed it. Therefore, you must consistently monitor the integrity of the data. A credible analyst depends on it and is ultimately bound to it.
  • Web Analytics is diagnostic. I have often used web analytics to confirm or disprove my own observations.
  • Web Analytics is not reporting. You'll find yourself outsourced shortly if you truly believe so.
  • Web Analytics is not strategy, but is the linchpin of any successful channel roadmap. Don't confuse web analytics for strategy, although it is often used to define it. Channel under performance is the norm because of this fundamental misunderstanding.
  • Web Analytics is profitable. The last 3 analysts I interviewed were looking for salaries well north of 100k! None had more than 5 years of experience. Several had 3.
  • Web Analytics is Hard. Yes, it is. The data offers possibilities limited only by your imagination. The more you use the data to manage up, the more difficult analytics becomes.
  • Web Analytics is sell. There are probably 5% of all web analysts that can comfortably stand in front of large crowds, diverse backgrounds and varied business models....and smile..confidently delivering that impact message. Don't fool yourself. Web analytics is sell. Know your tools. Understand analytics. Experience the data, but sell it and in doing so, you sell yourself.
  • Web Analytics is optimization and optimization is math, whether or not you realize it.
  • Along the same lines, optimization should be the color of money. But financial data data exists outside of web analytics! Don't confuse revenue (net present value) for profit. Don't confuse conversion with success.
  • Web Analytics is not conversion. Conversion is profit. You must follow conversion to its end and that can never be found in a Web Analytic tool.
  • Web Analytics is too linear and too limiting to those with data experience. Vendors neatly package these branded applications. The data is sampled and formatted in ways that make it easier for the marketer to manage and yet, my experience has always been that the most powerful drivers to web analytics come from areas well outside of these applications.

Feel free to rip the cover off of Web Analytics.

Labels:

Thursday, December 27, 2007

Advancing Your Career in Web Analytics: 5 Things to Ask Your Next Employer

Over the past year, I've seen a lot of my colleagues move from vertical to vertical and job to job. Admittedly, I am no exception to this growing trend. The salaries of web analysts are on the rise and organizations are scrambling to acquire good web analytic talent. I've determined that there are at least 5 things you should ask an employer before you accept your next next job.


Can you provide samples of your most recent reports?
This may be difficult to get, but if they want you, they'll concede. Understanding the scope and frequency of reports should absolutely be considered. Reports may tell you how the company values its analytics and more specifically how it is connected to the overall business.But be cautious, its not how many reports you run, it's what you are measuring and why you are reporting on it. Try taking a look at the source code of the company's primary web site. You can tell a lot about the sophistication of the business by how a company tags their site. Some of the very largest companies have the worst implementations!


Is coding and development handled in-house or is it outsourced?
Web Analytics is all about change management. You could run hundreds of reports a day and if you aren't changing anything or even worse, you can't change anything you can't succeed. Your role of analytic, will quickly become one of Report Guy. I have a mantra: "If you aren't changing anything, then why report on everything?" Even the smallest of A/B tests (with statistical validity) can create enormous ripples for the business. Ask them to talk about the results from a recent A/B or simple multivariate test. You say they don't test? Perhaps this is a red flag.


What is your understanding of Web Analytics?
Here's a real opportunity to see what your potential boss thinks about Web Analytics. I've been in more than a few organizations where you can only travel as far as your boss will allow you. Without some overarching vision from those above you, there will be severe limitations. Make sure you get plenty of face time with Execs. Data will help you manage way up, so choose wisely.

What targets have you set for your business?
Many companies leveraging web analytics for the first time really don't manage to metrics. I find I work most productively when my compensation is tied to my performance. That peformance can be measured in metrics. Get your potential employer to share KPIs with you. Talk about stretch goals. Asking these questions can often give you a good sense for how realistic their expectations for the business really are. Finally, get them to describe the business and its online challenges. You'll want to understand what you are up against.

What percentage of the budget is being spent on Web Analytics?
This is a critical question. I've worked in some very large organizations that spent less than 5% of their overall budget on Analytics, not including staffing. I just don't think that's good enough. Ideally, I'd like to see at least 10 - 15% spent on resources that move the business. Companies willing to spend more around analytics will clearly be more interested in your professional growth.

A Web Analytics Career

Good luck. This field isn't easy. I've met a lot of really talented individuals over my career. But what a job?? You are always one step away from discovering the next greatest online marketing strategy.

Labels: