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up dozens of automated reports that are sent out throughout the organization. People think they are doing their job because they are producing beautiful reports. Avinash Kaushik writes in his book Web Analytics: An Hour a Day that when he took over analytics at Intuit, he found the tool was sending out hundreds of reports. Out of curiosity, he turned it off. Nobody complained. Nobody actually read those reports. The focus on reports is the most common mistake. Analytics isn t about reports. It is for decision-making. The report is nice, but more useful is a short e-mail that explains what is going on and makes recommendations on what to do next.
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Expensive is safe If it s expensive, it must be better. Nobody ever got fired for buying IBM. Don t get side tailed by high prices. Focus on your business strategy: What information do you need to make strategic decisions If you can get the same information with a free tool or a $49-per-month tool, that s your solution. Buy only what you need. Technical issues This one is complex. There are technical aspects to analytics, especially with the large packages, so the technical team will get involved. Let the IT team help you on the technical issues, but keep the project focused on the business goals. In many cases, the vendors have experience with installation, configuration, and customization, so they can help you here.
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Select a vendor who has knowledge and experience with your industry. They can guide you with best practices. They can help you to select and define the goals and KPIs, as well as set up reports to collect the KPI data. They can also help you to set baselines so you know whether or not the process is working. This is one of the advantages of the paid tools. The free tools don t offer this. Analytics is evolving fast. Whatever you select will be a temporary solution. In a year or two, the tools will change. The digital fusion of offline and online marketing has only started. Many new solutions and strategies will appear. What we can do today wasn t possible a few years ago. Nobody knows what these tools will be able to do several years from now. A final note about data storage. It may seem that you would want to have access to the last five years of sales data, but things change so much that old data is not very useful. Your competitors are changing their strategies, new products and prices are available, and your customers
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CHAPTER 3:
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are changing. So don t worry if a tool can t read old data or won t store data beyond a few years. Generally, the last year of data is sufficient.
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How to Send Out Reports
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Ideally, reports should be on one page. Simplify the dashboard or the report to just four or six KPIs. Use graphs, pie charts, and tables with only a few lines. On Google s search engine, nobody looks past the third screen of search results, and we suspect the same for your reports; nobody will read page 4. The most important part of a report is your comments. It s your experience and judgment that are valuable. That s what tells others how to understand the reports. Here are some tips for creating your reports:
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Add your comments. Explain the report. What is going on What are we looking at Walk your readers through the reports. We launched a campaign on TV, and it produced this revenue at this cost-per-sale. Sales dropped last week because it was a national holiday. We lowered the cost-per-click by 50% and got rid of useless keywords, which caused the impressions to fall by 20%, but we improved the landing pages and focused on the top-performing keywords, so the number of conversions broke previous records. Make recommendations. Make suggestions on what to do. Here is where you really add value. No analytics tool can do this for you. Because you know the company s goals, the target customers, and what your company provides for them, you can make recommendations that result in effective change.
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It often helps to follow up reports with in-person meetings to make sure the recipients understand the reports and can take action. Make sure they understand the goal and how it produces revenues. If they see the connection between the goal and the report and how it is measured by the KPI, they can make changes to improve the results. Many analytics tools would be improved if the report required you to write a summary and recommendations before it went out. You could have the report sent only to you, where you add your comments and recommendations, and then send it out.
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