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Q: Google Analytics is free. What s the business case for graduating to a larger package The CEO wants to know why she should spend good money for another tool. A: Anytime you can get something for free, it s probably worth considering. Google Analytics is a standalone application that provides basic reporting, but it lacks segmentation and integration capabilities. We believe that site analytics delivers significantly more business insights when you are able to integrate all your critical online and back office data. You are also able to act more effectively on these insights when your web analytics solution is part of an integrated marketing platform. Q: At what size can a company start to apply EMM At how many customers or what level of revenue does it become appropriate A: We find that companies with at least $30 million in annual revenue have the business need and marketing budget to invest in EMM. We do see smaller web-centric companies investing in our site analytics solution because of the mission-critical nature of their sites. But in general our range of companies is from $30 million to the largest companies in the world. If you look around the U.S., there are about 25,000 companies in that range. Globally it s about 50,000 companies to be very conservative. It s a pretty big market. Q: What s the ideal size of the team A: We often see teams of about 50 to 100 people in the marketing organization, but we have some customers effectively leveraging our EMM capabilities with teams as small as five or six people. Smaller teams tend to focus on our marketing automation capabilities while larger teams also gain significant benefit from our collaboration and workflow management capabilities. Q: What about Web 2.0 Analytics was based on the Web 1.0 model and tracking of page-by-page click activity. But Web 2.0 sites are actually an application, not a website. Is it a mistake to apply Web 1.0 analytics to Web 2.0 Do we need an entirely new approach to Web 2.0 sites A: There s a common tactical issue that companies must address in web analytics around page tagging vs. event tagging for Web 2.0 content. Event tagging is technically straightforward in most analytics tools, but marketers do need to determine what events should be captured for analysis. There is a tendency to just capture everything, but too many client-side analytics events can impact a user s experience on your site, which negates one of the big reasons people are deploying Web 2.0 interface technologies. The bigger issue we see with Web 2.0 is a change in paradigm around how consumers interact with a company. Media fragmentation has made it increasingly challenging for marketers to get their messages across. Then there is the networking effect that happens in the Web 2.0 world. It s the social network that s influencing people and their perception of companies and brands. Power has shifted to the consumer, and their individual experiences of your brand both positive and negative can easily echo across the Web. This viral effect is something that marketers also seek to leverage with compelling and innovative
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viral campaign strategies. These changing paradigms impact what you need to measure and place a premium on understanding your customer s experience of your company both directly and indirectly. Q: One of the problems with Web 2.0 is the lack of a clear business model, which means a lack of clear KPIs. How would you address this A: Business models and appropriate metrics are still evolving around Web 2.0. But remember, any time you spend marketing money, you can establish performance objectives or you can treat it as more of a branding activity. A lot of marketers would tell you that marketing cannot be measured. I personally don t believe that s true. I think that you can often find proxies to assess your marketing efforts. We are seeing the world move more toward measurable marketing. I think Web 2.0 media and its linkage to web analytics as a technology is the perfect example of why people want to measure usage and apply metrics that range from engagement to more specific ROI models where appropriate. I can tell you that Web 2.0 media is much more measurable than television, but not nearly measurable enough when compared to other types of marketing campaigns, such as keyword search, paid search, and organic search. It depends on how your company defines measurement and how strongly the CFO wants exact numbers from the CMO. Ten years from now or sooner CMOs are going to have to justify marketing spend across all channels and media types. Q: In the event of a recession, what would you recommend to Web 2.0 sites A: One strategy would be to do more with what you have. Another is to invest in technology that offers a strong measurable ROI. Let me give you an example. In the last recession there was a major retailer who had 26 projects. After the first year, only two projects got funded. Our project was one of them because it had measurable ROI. If you spend $1 you will get $5 back. Q: Where do you think cross-channel analytics vs. web analytics is going in the next few years A: I believe that web analytics as a standalone market will eventually disappear. As a result, I think there are three trajectories for web analytics technologies going forward. One trajectory is for web analytics to be an integral part of an e-commerce platform where people are opening up online stores. The second is for web analytics to be absorbed into the more general category of business intelligence using analytics to interpret business data, not just for the website but for the business as a whole. The third trajectory is for web analytics to be part of a marketing suite because a website is a very integral part of the marketing organization in many industries. Our view is that web analytics as a technology needs to be an integral part of EMM. We think web analytics will be a key component of cross-channel analytics and we are seeing clear signs from marketing buyers who believe this, too.
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