The Web Analytics Business Process

The Web Analytics Business Process How to Drive Web Analytics ROI with the Tools and People You Already Have* Eric T. Peterson Web Analytics Demystified

Technology Deployment Technology 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?

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! In 2007, the Smart will get Serious!

Business Process and Web Analytics

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. ”
What is a Business Process?

The 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 Usual Inputs

The 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 Unfortunate Outputs

The 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 Undefined Methods

The Web Analytics Business Process

Management & 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 & Operational Processes

Management 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
…
Management Processes

Operational 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
…
Operational Processes

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
You Diagram EVERYTHING!

Decision Points & Events … Decision Points & Events …

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

Example: Web Page Deployment Example: Web Page Deployment

How To Get Started
Get process modeling software
Microsoft Visio or SmartDraw
Business Process Visual ARCHITECT from Visual Paradigm
Diagram your existing processes
Start with “Launch New Campaign” and “Modify Landing Page”
For extra credit, diagram the management process “Establish Goals for Improvement”
Insert measurement steps as appropriate
Pre-deployment for baseline data
Ask: Is controlled experimentation appropriate?
Post-deployment report and analysis distribution
Distribute the new process!
How To Get Started

Some Do’s and Don’ts
Don’t be sloppy
Carefully consider tasks and sub-tasks
Carefully label decision points and events
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
Do assign ownership to each task
Tasks are completed by people and groups
Eliminate “I thought you guys were doing that …”
Do share your processes up the food chain
Let management see you’re focusing on this
Gather (and welcome) their input
Some Do’s and Don’ts

In 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
In Summary

Thank You
Eric T. Peterson
Web Analytics Demystified
[email_address]
Learn more about the Web Analytics Business Process at:
http://www.webanalyticsdemystified.com/weblog
Thank You

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The Web Analytics Business Process

by Marco Derksen on Oct 24, 2006

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