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!

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

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?

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 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

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 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

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 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 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 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:

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 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

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 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

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! 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!

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 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

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!

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

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

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

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 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

Eric T. Peterson

Web Analytics Demystified

[email_address]

Learn more about the Web Analytics Business Process at:

http://www.webanalyticsdemystified.com/weblog