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                      Web Analytics: From Data to Decisions
                       Why do it? Who owns it? When is it important? How?




Johannes Oppermann                                   Conference on Web Analytics –
Account Strategist & Google Analytics Poweruser   Web Statistics and Their Evaluation
Google Austria                                                        May 28th 2009
                                                               Google Confidential and Proprietary   1
Agenda



  1 Why you should care about Web Analytics
  2 Who owns the Web Analytics function in your company?
  3 When should you do Web Analytics?
  4 How can you go about implementing a Web Analytics Process?

                                                    Google Confidential and Proprietary   2
Why you should
care about Web Analytics




                       Google Confidential and Proprietary   3
You are facing difficult questions about your Site

       How are users engaging
           with my site?

    How can I make my
marketing campaigns more
 effective & accountable?

      Am I creating
    effective content?

    Where and why are
  visitors abandoning my
       shopping cart?

          How do I improve
           site interaction?




                                                Google Confidential and Proprietary   4
What does “Web Analytics” mean, anyway?



        The Official WAA Definition:

        Measurement, collection, analysis and reporting
        of Internet data for the purposes of
        understanding and optimizing Web usage.



        Or, much shorter:
        Are you successful with your site or not?




                                                    Google Confidential and Proprietary   5
Useful answers & actions for everyone


                    • Track ROI on all online initiatives from a single report
   Executives
                    • Identify long-term trends in online marketing programs



                    • Get the most conversions at the lowest possible cost
   Marketers       • Target high return markets and market segments
                    • Test advertising creative for each of your campaigns



                    • Demonstrate the value of your site usability
                      improvements
   Webmasters
                    • Show how your site design decisions improve website ROI
                    • Identify web design parameters like visitor connection
                      speeds and browser types


                                                          Google Confidential and Proprietary   6
Analyze all marketing campaigns

                                Search Marketing



Banner Advertising                                                        Email Marketing




                                 Determine which
                             marketing initiatives are
                             driving the best traffic to
                                      your site




                     SEO, Referrals, Affiliate Programs & Offline


                                                                Google Confidential and Proprietary   7
You get to know what happens on your site




              Web analytics tools give you CONTEXT
       and visibility into the full on-site USER EXPERIENCE
                                                   Google Confidential and Proprietary   8
Who owns the Web Analytics function
in your company?




                      Google Confidential and Proprietary   9
Web Analytics should be owned by the business

Is your company big? Then it's probably less agile.

                      Avoid taking only the HiPPO (Highest Paid
                      Person's Opinion) into account. Ask the users!

                      Web data can be complex. So you need
                      someone smart to interpret it.

Also, Web Analytics can't be owned by the IT department alone.
Because they're solving other problems.

It should be owned by whoever will be made responsible if the website
fails. Marketing? Sales? E-Commerce?




                                                      Google Confidential and Proprietary   10
When should you do Web Analytics?




                      Google Confidential and Proprietary   11
We'll relaunch next week. Have some numbers?

Web Analytics isn't a one-off project. It's something that should be
integrated in your company's processes.

                                  Data

                   New Data
                                                 Analysis




              Action                                Insight


                               Decision

                                                        Google Confidential and Proprietary   12
How can you go about implementing
a Web Analytics Process?




                      Google Confidential and Proprietary   13
Focus on the bottom line

People will listen more to you if you make a difference in their lives:
Your stakeholders will support you if you can help them get a larger
bonus.

So, the question is: are you focusing on outcomes?

Example: "We make 30% of our sales on the web. A conversion rate of
5% instead of 3% will mean 100.000 € more revenue."

Now we're talking.




                                                         Google Confidential and Proprietary   14
It's not about your data. It's about your decisions.

Numbers are meaningless without context. Make them objective.

 14                       14
 12                       12
 10                       10
  8               vs.      8
                                                                               we
  6                        6
             we                                                                the others
  4                        4
  2                        2
  0                        0
       Q1                      Q1 2008 Q2 2008 Q3 2008 Q4 2008
      2008

                        Insight = Data + Analysis.

                                                       Google Confidential and Proprietary   15
Create a data driven culture in your company



                            Data

               Outcomes
                                       Analysis




           Action                        Insight


                          Decision


                                               Google Confidential and Proprietary   16
Choose the right metrics to solve for


Clickstream Analysis                       Outcomes Analysis
• Unique visitors                          • Support – problem resolution
• Top Landing Pages                        • Commerce – revenue
• Bounce rates                             • Lead generation – conversion
• Conversion rates                           rates
                                           • Could your users do what they
                                             came to do?


   Questions you can ask yourself
   • How much do we sell / convert? (Outcomes)
   • What are users really looking for here? What's happening? (Behaviour)
   • Why are the users clicking on random things? (A/B-Testing, Labs)



                                                          Google Confidential and Proprietary   17
Actionable insights and metrics that drive change

Insights – analysis – actions

Clickstream analysis: We're only inferring intent.

Try to find trends and patterns, then segment & drill deeper.

Once you're done, formulate a hypothesis and test it

Example: "I think our signup form is too long. So conversion rates
should go up if we leave out all the unnessecary fields."

Experience Analysis:
• Testing
• Experiments
• Usability studies


                                                       Google Confidential and Proprietary   18
Necessities & Tricks of the trade

• Decision making – "It's not my opinion, it's the data!"

• Give context – data over time, other competitors, user tests.

• Listen to customers, Listen to bottom line

• Bet on outcomes ("I think page A will convert better!")

• Reporting is not analysis – reports will not tell you what to do by
  themselves. So go exploring! At least 20% unstructured analysis.

• Empower analysts, encourage a culture of risk taking (Failing means
  learning what to do better)

• Test and try things out!


                                                            Google Confidential and Proprietary   19
It's all about continuity



          Website Optimizer




                              Google Confidential and Proprietary   20
How can Google contribute? Google Analytics.
Free, hosted web analytics tool that helps advertisers improve their sites
and increase their marketing ROI with 80+ standard reports.

                                              Use Google Analytics to:
                                              • Understand how visitors engage
                                                with your site
                                              • Compare performance of all
                                                marketing efforts from emails to
                                                keywords to offline campaigns
                                              • See all your AdWords Campaign
                                                data, and track non-Google
                                                campaigns as well
                                              • Identify areas for site improvement
                                              • Pinpoint breakdowns in conversion
                                                processes
                                              • Track e-commerce metrics, such
                                                as revenue, average order value,
                                                and conversion rates


                                                           Google Confidential and Proprietary   21
Our own A/B Test with the Picasa download page

We measured outcomes by comparing the number of downloads each
of the landing pages generated.




                                                Google Confidential and Proprietary   22
A: Uses “Free”, Picture, Action Oriented




                                                                                 23
                                           Google Confidential and Proprietary
B: Cleaner, Button, Value Proposition




         B Page Increased Downloads by 30%!
                                                                                    24
                                              Google Confidential and Proprietary
Thank You!
Q&A




             Google Confidential and Proprietary   25
Where to find more information

Google Analytics Website: www.google.com/analytics

•   Create an account, find implementation instructions & FAQs

Official Google Analytics Blog: http://analytics.blogspot.com/

•   Get updates on new features & tips from Google practitioners

Website Optimizer Website: www.google.com/websiteoptimizer

•   Learn how to get started with A/B and multivariate testing

Occam’s Razor by Avinash Kaushik: www.kaushik.net

•   Blog by Google’s “Analytics Evangelist” provides insightful posts for web
    analysts and marketers of all levels of experience

"Web Analytics an Hour a Day" by Avinash Kaushik (Wiley Publishing, heavily
  used for this presentation)

                                                                 Google Confidential and Proprietary   26

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Webová analytika – proč? kdo? kdy? jak? (Insight Model)

  • 1. Client Logo Web Analytics: From Data to Decisions Why do it? Who owns it? When is it important? How? Johannes Oppermann Conference on Web Analytics – Account Strategist & Google Analytics Poweruser Web Statistics and Their Evaluation Google Austria May 28th 2009 Google Confidential and Proprietary 1
  • 2. Agenda 1 Why you should care about Web Analytics 2 Who owns the Web Analytics function in your company? 3 When should you do Web Analytics? 4 How can you go about implementing a Web Analytics Process? Google Confidential and Proprietary 2
  • 3. Why you should care about Web Analytics Google Confidential and Proprietary 3
  • 4. You are facing difficult questions about your Site How are users engaging with my site? How can I make my marketing campaigns more effective & accountable? Am I creating effective content? Where and why are visitors abandoning my shopping cart? How do I improve site interaction? Google Confidential and Proprietary 4
  • 5. What does “Web Analytics” mean, anyway? The Official WAA Definition: Measurement, collection, analysis and reporting of Internet data for the purposes of understanding and optimizing Web usage. Or, much shorter: Are you successful with your site or not? Google Confidential and Proprietary 5
  • 6. Useful answers & actions for everyone • Track ROI on all online initiatives from a single report  Executives • Identify long-term trends in online marketing programs • Get the most conversions at the lowest possible cost  Marketers • Target high return markets and market segments • Test advertising creative for each of your campaigns • Demonstrate the value of your site usability improvements  Webmasters • Show how your site design decisions improve website ROI • Identify web design parameters like visitor connection speeds and browser types Google Confidential and Proprietary 6
  • 7. Analyze all marketing campaigns Search Marketing Banner Advertising Email Marketing Determine which marketing initiatives are driving the best traffic to your site SEO, Referrals, Affiliate Programs & Offline Google Confidential and Proprietary 7
  • 8. You get to know what happens on your site Web analytics tools give you CONTEXT and visibility into the full on-site USER EXPERIENCE Google Confidential and Proprietary 8
  • 9. Who owns the Web Analytics function in your company? Google Confidential and Proprietary 9
  • 10. Web Analytics should be owned by the business Is your company big? Then it's probably less agile. Avoid taking only the HiPPO (Highest Paid Person's Opinion) into account. Ask the users! Web data can be complex. So you need someone smart to interpret it. Also, Web Analytics can't be owned by the IT department alone. Because they're solving other problems. It should be owned by whoever will be made responsible if the website fails. Marketing? Sales? E-Commerce? Google Confidential and Proprietary 10
  • 11. When should you do Web Analytics? Google Confidential and Proprietary 11
  • 12. We'll relaunch next week. Have some numbers? Web Analytics isn't a one-off project. It's something that should be integrated in your company's processes. Data New Data Analysis Action Insight Decision Google Confidential and Proprietary 12
  • 13. How can you go about implementing a Web Analytics Process? Google Confidential and Proprietary 13
  • 14. Focus on the bottom line People will listen more to you if you make a difference in their lives: Your stakeholders will support you if you can help them get a larger bonus. So, the question is: are you focusing on outcomes? Example: "We make 30% of our sales on the web. A conversion rate of 5% instead of 3% will mean 100.000 € more revenue." Now we're talking. Google Confidential and Proprietary 14
  • 15. It's not about your data. It's about your decisions. Numbers are meaningless without context. Make them objective. 14 14 12 12 10 10 8 vs. 8 we 6 6 we the others 4 4 2 2 0 0 Q1 Q1 2008 Q2 2008 Q3 2008 Q4 2008 2008 Insight = Data + Analysis. Google Confidential and Proprietary 15
  • 16. Create a data driven culture in your company Data Outcomes Analysis Action Insight Decision Google Confidential and Proprietary 16
  • 17. Choose the right metrics to solve for Clickstream Analysis Outcomes Analysis • Unique visitors • Support – problem resolution • Top Landing Pages • Commerce – revenue • Bounce rates • Lead generation – conversion • Conversion rates rates • Could your users do what they came to do? Questions you can ask yourself • How much do we sell / convert? (Outcomes) • What are users really looking for here? What's happening? (Behaviour) • Why are the users clicking on random things? (A/B-Testing, Labs) Google Confidential and Proprietary 17
  • 18. Actionable insights and metrics that drive change Insights – analysis – actions Clickstream analysis: We're only inferring intent. Try to find trends and patterns, then segment & drill deeper. Once you're done, formulate a hypothesis and test it Example: "I think our signup form is too long. So conversion rates should go up if we leave out all the unnessecary fields." Experience Analysis: • Testing • Experiments • Usability studies Google Confidential and Proprietary 18
  • 19. Necessities & Tricks of the trade • Decision making – "It's not my opinion, it's the data!" • Give context – data over time, other competitors, user tests. • Listen to customers, Listen to bottom line • Bet on outcomes ("I think page A will convert better!") • Reporting is not analysis – reports will not tell you what to do by themselves. So go exploring! At least 20% unstructured analysis. • Empower analysts, encourage a culture of risk taking (Failing means learning what to do better) • Test and try things out! Google Confidential and Proprietary 19
  • 20. It's all about continuity Website Optimizer Google Confidential and Proprietary 20
  • 21. How can Google contribute? Google Analytics. Free, hosted web analytics tool that helps advertisers improve their sites and increase their marketing ROI with 80+ standard reports. Use Google Analytics to: • Understand how visitors engage with your site • Compare performance of all marketing efforts from emails to keywords to offline campaigns • See all your AdWords Campaign data, and track non-Google campaigns as well • Identify areas for site improvement • Pinpoint breakdowns in conversion processes • Track e-commerce metrics, such as revenue, average order value, and conversion rates Google Confidential and Proprietary 21
  • 22. Our own A/B Test with the Picasa download page We measured outcomes by comparing the number of downloads each of the landing pages generated. Google Confidential and Proprietary 22
  • 23. A: Uses “Free”, Picture, Action Oriented 23 Google Confidential and Proprietary
  • 24. B: Cleaner, Button, Value Proposition B Page Increased Downloads by 30%! 24 Google Confidential and Proprietary
  • 25. Thank You! Q&A Google Confidential and Proprietary 25
  • 26. Where to find more information Google Analytics Website: www.google.com/analytics • Create an account, find implementation instructions & FAQs Official Google Analytics Blog: http://analytics.blogspot.com/ • Get updates on new features & tips from Google practitioners Website Optimizer Website: www.google.com/websiteoptimizer • Learn how to get started with A/B and multivariate testing Occam’s Razor by Avinash Kaushik: www.kaushik.net • Blog by Google’s “Analytics Evangelist” provides insightful posts for web analysts and marketers of all levels of experience "Web Analytics an Hour a Day" by Avinash Kaushik (Wiley Publishing, heavily used for this presentation) Google Confidential and Proprietary 26