Building the Business Case for Analytics
Technology has changed. The world has changed. Compounding the fact that there are countless new devices to access information, more people are accessing information online every day. As such, techniques and drivers are changing. The customer is king. A great concept from the course:
Analyze the customer, not the channel or device
To lay the course foundation, “analytics” is first defined through the following quote from Avinash Kaushik.
[quote cite=”Avinash Kaushik” cite_small=”Author and Google Digital Marketing Evangelist” ]
Digital analytics is the analysis of qualitative and quantitative data from your business and the competition to drive a continual improvement of the online experience that your customers and potential customers have which translates to your desired outcomes (both online and offline).
The quote speaks to both technique AND intention.
- Quantitative data (stats, site traffic, clicks, demographics, etc.)
- Qualitative data (surveys, conversations, etc.)
- The intention of improving the online experience to drive towards desired business outcomes
It is easy to stop at simple (or even “vanity”) quantitative metrics like website traffic. They are the easiest to measure and therefore the easiest to report. Qualitative metrics require developing the appropriate questions first (a survey, for example). However, both techniques have limited usefulness without a firm understanding of business goals to underscore the discussion.
Here’s a handy visual that I grabbed from the course video that highlights “common” business objectives and their corresponding goals. The idea is that once you know the goals, you can begin to identify what needs to be measured.
Getting Started: Understanding Micro / Macro conversions
Two simple, but defining logical terms are “micro” and “macro” conversions. The “macro” conversion is the stated end-goal (i.e. closing a sale, generating a new lead via a contact form, etc.) while the “micro” conversions are steps that hopefully lead to a macro conversion (i.e. an initial request for more information, downloading a white paper or store coupon, etc.). The concept is simple but the process of identifying, acknowledging, and appreciating each step becomes very important when developing a campaign.
Getting Started: Attribution Methods
I love the general concept of attribution. To me, it echoes cost accounting techniques of understanding each step in a process well enough to assign value accordingly. To demonstrate, Google outlines three models: last-click, first-click, and linear.
A GREAT analogy presented is that of a basketball team. The player that scores receives the credit (“last-click”) but what about the assist? What about the value that each person played leading up to the score?
Disclaimer: This report is based upon the Google Analytics Academy. Much of the content and graphics are directly from the source. No ownership is implied.
Next: “Google Analytics Academy – Creating an Analytics Strategy (Coming Soon)”