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Strategy has to do with the company and its customers. Set the direction of the company, determine the company s strengths, or define the company s unique selling point (USP). This may also include a definition of the company s target audience or ideal customers. What type of customer do they want to attract How does the company position themselves in the marketplace How can the company increase brand loyalty
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Tactics are the decisions that support and carry out the strategy. Tactical issues are day-to-day decisions in the channels. Tactics aim for growth and revenue goals, which are often defined by numbers such as KPIs. For example, the radio campaign s cost-per-lead is too high, so reduce the ads on radio stations that don t produce leads. The Google pay-per-click (PPC) campaign has good keywords and ads, so copy these into the Yahoo! and Microsoft PPC accounts. Give the list of the top PPC keywords to the search engine optimization (SEO) team so that they can improve the site s SEO.
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If a company hasn t determined its goals, it will make poor choices in strategy and tactics. Everyone involved with analytics has to be clear about the company s goals and strategy because they are making the day-to-day decisions to optimize campaigns that create customers and produce revenues. When they know the company s direction, they can focus these optimization decisions. This is why analytics should be done by people who have the company s interests at heart. In the beginning, you can use outside consultants to kick-start your analytics process. However, some companies leave the analytics entirely to consultants. That isn t a good idea, because the company is placing the ability to define their goals and tactics in the hands of outsiders. Consultants often look only at short-term tactics, such as optimizing for conversions or increasing leads. In general, you can work with outside consultants to train and support your team, but eventually, you should consider bringing analytics in-house or building a close partnership with the consultants.
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The word analytics has several meanings:
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Web analytics is a tool that came out of engineering s web stats packages and was taken over by marketing departments. Web analytics collects website traffic data to learn how visitors behave in order to improve the marketing strategy. It uses key performance indicators (KPIs) to measure the results. Web analytics is done with software packages such as Omniture or Google Analytics. Quantitative analytics uses statistics and predictive modeling. PhDs in statistics and mathematics are trying to build models to manage companies according the mathematical rules, similar to how quantitative analysts (so-called quants) are trying to model stock
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CHAPTER 3:
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market portfolios for Wall Street investment houses. This approach is not concerned with marketing or customers. Quantitative analytics is done with spreadsheets, mathematical software, and data warehouses. Thomas Davenport s Competing on Analytics (Harvard Business School Press, 2008) describes this quantitative approach to analytics. When we use the word analytics, we mean the use of web analytics for marketing. Up to now, web analytics had to do with websites. As online and offline marketing are merging into one, it s better to just use the word analytics.
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Analytics
Five Steps Toward a Data-Driven Organization
Because analytics lets you measure your strategy and tactics, it gives you the ability to make decisions based on objective data. With analytics tools, you can carry out tests and see what actually works. You can compare campaigns and channels and then rank them by the generated revenues. Here are five steps for implementation of an analytics strategy:
1. Identify your business goals. These are the company s strategic
goals, such as the company s unique value for customers.
2. Identify business decisions or actions to be taken. What campaigns
and tactics can the company use to reach those goals
3. Establish benchmarking. This includes the sales trends for the
recent past. It also includes customer surveys, voice of customer (VOC), panel interviews, and competitive intelligence to determine the competition s market share and the company s position in relation to competitors.
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