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If you have something that is linear, such as a shopping cart, and in order to purchase, the customer has to follow a series of steps, then you can set up a funnel. In this case, you are measuring the order s success/failure rate. This is one of the few situations where a funnel is appropriate. Q: The current use of analytics is based on the classical model of the Web as a set of web pages where users move from page to page. Analytics tools measure those clicks. Web 2.0, blogs, RSS, and other new tools don t work this way. Is analytics appropriate here Are there other tools A: Yes, the Web is becoming a very fluid medium. It is moving away from just page-topage views and clicks to offering new forms of media consumption. Analytics tools can only tell you how many clicks you got for an RSS feed or how far people got in a video. This is known as event-driven tracking and analytics. But they can t tell you what your media consumption is or how many people subscribe to your RSS feeds on an ongoing basis. In this space, companies such as Feed Burner are creating innovative ways of capturing data and analyzing it. The analytics vendors are starting to wake up and will add real ways of tracking these media to show total content consumption. They will figure out better ways to add analytics and tracking codes that go beyond the limits of JavaScript and log files. Q: Many of today s high school and college students don t use the traditional Web anymore. They don t even use e-mail. They use instant messaging, SMS on cell phones, messaging in Facebook and MySpace, Twitter, and other tools. What is the role of analytics here A: It s the same. The role of analytics at the end of the day is two-fold. First is to measure the impact you are having on your customer experience. Second is to understand if you re spending money wisely. Those are the two problems to solve. Traditional analytics is going to die in a few years. We are starting to see the emergence of open platforms that will let you capture any type of data. It will be a flexible, open hierarchy in which a company can define the core things it wants to track. Some analytics developers have already developed apps to track activity in Facebook and the such. They are adding a lot more innovation to this field and will push the ability to customize our tracking features. Other analytics vendors will have to catch up with these new developments. New metrics to quantify these new types of apps will need to be developed. I imagine they may be conversation metrics. This will change, but measuring and improving customer experience will remain.
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CHAPTER 3: Analytics
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Q: A company has a website. They want to add analytics. How do you advise them on selecting the right package A: Start simple. If you ve never used an analytics tool, I recommend Google Analytics. Analytics is theoretical until you start using it. Once you start using it, you ll understand it very quickly. Use a free tool such as Google Analytics to explore the business questions you d like to get insights and answers to. Write these questions down and then set up new analytics profiles to see if you can get useful data. If your business needs more analysis, move up to a more sophisticated tool. Having experience with analytics tools makes the next vendor selection much easier. Q: In your book Web Analytics: An Hour a Day, you recommend that a company should supplement their analytics with survey data. Why is this How can companies use polling and surveys to supplement their web analytics A: There are two parts to a question: what and why. Analytics tells you the what. But it doesn t tell you why people do what they do on your site. Why do people bounce off a page Why do they buy more of a certain product Why does one campaign convert less than another The why is missing from analytics. No analytics tool can tell you why a visitor came. In conducting a survey, ask two questions. First, why did you come to our site Second, were you able to complete your task at our site This metric is your task completion rate. The third question: Were you able to complete your task, and why not This is why surveys are important. Combining the numbers with the why is a powerful marriage that tells us specifically where we need to improve our site, what it is we need to improve, and why we need to improve it. Q: What s the landscape for analytics Where is analytics going in the next few years A: First will be the development of a more flexible architecture to capture data. The Web is moving away from page-driven sites. Second, companies are now building tools to solve for the trinity. Analytics data can be combined and analyzed against other sources of data. The third trend I see is automated decision making. This can lead to onsite targeting of video media, content, and products, and not merely be confined to targeted advertising, e-mail remarketing, or customer retention campaigns. This can be based on media consumption, application usage (RSS vs. IM), buying preferences, etc. We re heading in a direction where we will see more sophisticated forms of behavioral targeting. Another shift I think will happen is web analytics will morph into a business analytics application. In larger companies, web analytics has been siloed and hasn t been
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