the web analytics business process web analytics demystified

Copyright © 2006 Web Analytics Demystifiedwww.webanalyticsdemystified.com


The Web Analytics Business Process How to Drive Web Analytics ROI with the Tools and People You Already Have*

Eric T. PetersonWeb Analytics Demystified



Technology DeploymentTechnology Deployment

1998 1999 2000 2001 2002 2003 2004 2005 2006

By 1999, the really smart companies were calling WebTrends to buy a copy of Log Analyzer™

By 2001, everyone had deployed log analyzers; the really smart companies began moving to page tagging

By 2003, everyone had page tags; the really smart companies began hiring web data analysts

By 2005, everyone was trying to hire web data analysts; the really smart companies began aggressively A/B testing

It is now 2006;what will really smart companies do in 2007?



In 2007, the Smart will get Serious!

• I predict that in 2007, the really smart companies are going to re-examine how web analytics “gets done” internally

– They’ll re-evaluate their investment– They’ll look for obstacles preventing their success– They’ll start to formalize the process of doing web

analytics

• The results will be a gradual shift from web analytics as an ad hoc process to web analytics as a business process

In 2007, the Smart will get Serious!



Business Process and Web Analytics



What is a Business Process?What is a Business Process?

• Wikipedia defines a business process as:

“A business process is a recipe for achieving a commercial result. Each business process has inputs, method and outputs. The inputs are a pre-requisite that must be in place before the method can be put into practice. When the method is applied to the inputs, then certain outputs will be created.”

“Business processes can be thought of as a cookbook for running a business and reaching business goals defined in organization's business strategy.”



The Usual InputsThe Usual Inputs

• Web analytics is informed by a variety of data:

– Clickstream data– Performance logs– Customer data (feedback, relationship information)– Usability testing and controlled experiments– Marketing delivery and cost data– Costs and inventory data

• This data is often augmented with data from other channels (POS, IVR, etc.)



The Unfortunate OutputsThe Unfortunate Outputs

• Most companies simply settle for “canned” reports and hope to make heads-or-tails of summary data

– Assumes that all businesses are alike– Assumes some base level of understanding and comfort

with the data

• To compensate, companies create custom reports designed to highlight business relevant data

– Key performance indicator (KPI) reports– Digital dashboards



The Undefined MethodsThe Undefined Methods

• The disconnect between investment and use has led to numerous attempts to describe appropriate methods

– Most often you see the Continual Improvement Process– Designed to highlight that ACTION is the key to success with

web analytics …

• Unfortunately, the Continual Improvement Process over-simplifies the problem

– Describes the problem at too high a level– And so I propose a “new” set of methods for web analytics …



The Web Analytics Business Process



Management & Operational ProcessesManagement & Operational Processes

• Management Processes:– Describes how the web analytics organization will be

structured and how it will be integrated into the larger marketing and IT organization

• Operational Processes:– Describes how web analytics will actually get done

within the organization– Fundamental goal: To deliver “value” back to the

“customer”– The “customer” is another internal group (marketing,

merchandising, design, management, etc.) or external business partners



Management ProcessesManagement Processes

• The management processes describe to the organization how web analytics will be strategically integrated into the existing online channel

– Defining business objectives– Assigning internal ownership– Establishing goals and targets for improvement– Hiring and allocating resources– Defining change management hierarchies– Tracking return on investment– Selecting technology vendors– …



Operational ProcessesOperational Processes

• The operational processes are the actual “doing” of web analytics and the process generating the most tangible outputs

– Collecting and integrating data– Generating reports and writing analysis– Providing training to “customers"– Presenting analysis and recommending changes– Making and tracking changes– Tweaking data collection as necessary– Researching and integrating new ideas– …



You Diagram EVERYTHING!You Diagram EVERYTHING!

• Yes, it will seem pedantic

– But far too many companies have far from optimal use of their web analytics applications

• Business process diagrams are fairly well understood

– They enforce rigor in your approach to data and analysis– They help identify gaps in communication– They simplify process optimization– They serve as a basis for process checklists



Decision Points & Events …Decision Points & Events …



Specific Tasks & Sub-Tasks …Specific Tasks & Sub-Tasks …



Example: Web Page DeploymentExample: Web Page Deployment



How To Get StartedHow To Get Started

1. Get process modeling software– Microsoft Visio or SmartDraw– Business Process Visual ARCHITECT from Visual Paradigm

2. Diagram your existing processes– Start with “Launch New Campaign” and “Modify Landing

Page”– For extra credit, diagram the management process

“Establish Goals for Improvement”

3. Insert measurement steps as appropriate– Pre-deployment for baseline data– Ask: Is controlled experimentation appropriate?– Post-deployment report and analysis distribution

4. Distribute the new process!



Some Do’s and Don’tsSome Do’s and Don’ts

1. Don’t be sloppy– Carefully consider tasks and sub-tasks– Carefully label decision points and events

2. Don’t assume you’ll get it right the first time– Be prepared to re-engineer your Web Analytics Business

Process– Take careful notes about what goes wrong

3. Do assign ownership to each task– Tasks are completed by people and groups– Eliminate “I thought you guys were doing that …”

4. Do share your processes up the food chain– Let management see you’re focusing on this– Gather (and welcome) their input



In SummaryIn Summary

• Yes, you still need great technology and smart people

– This process simply allows you to do more with the investment you’ve already made

• Deploying the Web Analytics Business Process will help your organization “get serious” about web analytics

– The worst case is a formalization of what you already know– The best case creates structure and identifies opportunities– You’ll be on your way to the cutting edge before you know it



Thank YouThank You

Eric T. PetersonWeb Analytics [email protected]

Learn more about the Web Analytics Business Process at:http://www.webanalyticsdemystified.com/weblog