This document provides an overview of web analytics for B2B marketers. It discusses how web analytics has evolved from simple metrics like page views to more sophisticated capabilities that provide insights into customer segments and online behavior. The document also covers selecting a web analytics vendor, common uses of web analytics like A/B testing and campaign tracking, and how analytics can be used to improve websites and drive business results.
Improving website conversion rate through sitecore
A Practitioner’s Guide to Web Analytics: Designed for the B-to-B Marketer
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2. Marketers must decide the vendor to work with who will run the web analytics. The vendor landscape is diverse, and there are distinct differences between vendors. An overview of some of these key differences is provided in Exhibit 1.
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4. Whether this vendor should be able to provide a complete digital marketing solution (i.e. SEM, SEO, e-mail, social, …) or simply help with the web analytics
5. The need to analyze Web 2.0 technologies; mobile, social, video, and Flash
6. The kind of data received and the need for customization with data manipulation
14. Analysis: web page optimization (A/B testing), digital marketing campaign management and ROI tracking, pathway analysis and optimization, conversion funnel analysis, customer segmentation analysis, integration with offline channel data into CRM systems
18. Buyer needs to combine web analytics data with offline channel sourcesFor more details comparing the major web analytics vendors and their capabilities, see Exhibit 1.<br />Web Analytics Drives Business Results<br />While no formal academic study has been done directly linking improvements in the website to improvements in a company’s bottom line, there are a number of individual company testimonials that point to profitability gains as a result of investments in web analytics. For example, InterContinental Hotels improved their online booking process, which added $45M to $60M in additional yearly revenue (Sage, 2010). By focusing on what customers actually want after gaining a deeper understanding of their online behavior, Citrix increased its conversions from search engine marketing by 1900% and decreased its cost per conversion by 80% after making the right digital investments (Unica Case Studies, 2009).<br />Marketing Budget<br />The entire web analytics industry is estimated to earn about $514M in 2010 (Lovett, US Web Analytics Forecast, 2008 - 2014, 2009). Two of the major forms of interactive marketing spend occur at the beginning of the sales cycle, on search engine marketing (SEM) and display advertising. In 2010, it is estimated that $26.1B will be spent in these two areas, which represents about 11.7% of the overall marketing budget in the US. Since the overall interactive marketing budget is about $29B, this clearly shows that in the digital space firms are willing to spend far more of their budget on lead generation activity, which web analytics can help with, and much less on conversion, an area which web analytics is particularly well suited to address. Of the remaining portion of the interactive marketing industry of $3B, only about $1B is directly tied to customer retention by way of email (VonBoskirk, 2009). Yet in a recent survey, when B-to-B Marketers were asked “How important are web sales to your company’s overall sales strategy,” 50% responded with a 4 or 5 on a 5 point scale, 5 being extremely important (Davis, 2009). This then begs the question, why are so few dollars being spent to convert leads into sales?<br />Unless the web channel is entirely focused on lead generation with different channels servicing other parts of the sales process, marketers are over allocating their digital budget towards lead generation. Therefore, as it stands web analytics spend will barely place a dent in the aggregate digital marketing spend and consequently it should not be the primary driver behind choosing an analytics vendor. Additionally, most of the money being spent on lead generation is wasted without an optimal website as search and ad placements are designed to bring users to the website, only to have very low returns because of a website’s sub-optimal ability to convert customers. The end game from SEO and digital ads is not to get the user to the website, but rather to get them engaged while on the website in the hopes that it eventually leads to a sale. To improve the website such that it produces desirable user behaviors, an investment in web analytics is imperative, as it is the basis for website redesign and a source to show the ROI for money spent on interactive media.<br />Challenges and Solutions With Web Analytics<br />Challenges for MarketersPotential SolutionsDetermining the goal for web analyticsWeb analytics goals should originate from a strong marketing plan incorporated with a well thought-out digital marketing strategy. Combined with the knowledge of what web analytics can do, these goals should align with the overall marketing strategy.Creating rich customer segment profiles, combining on- and off-line customer behaviorGiven this difficulty, Forrester Research recommends scaling down the data integration at first such that it is not the entire CRM system but rather a particular campaign or piece of customer information that is most relevant (Burns M. a., 2008). Otherwise, it can become a large IT project without proven results.The vast amount of data collected and the need to be forward thinking and allow for flexibility in the analyticsGiven this challenge, having clear metrics aligned to marketing goals, and asking the right questions, becomes critical.Marketers often get caught up in web analytics jargonUltimately, web analytics is a way to improve the web channel with the same marketing outcomes: to get qualified leads and convert them into sales. By understanding the set of goals for the web channel and aligning easy to interpret metrics for web analytics to measure the progress towards those goals, it moves marketers away from typical web reporting (Steffen, 2009).Integrating content creation with website management; which both impact the overall on-line user experienceGiven this challenge, incorporating web analytics goals and key metrics provides guidance for the content creation process.The emergence of new platforms such as social media, video, and mobile browsing, all pose new Web 2.0 challenges for web analytics.The best vendors are already able to track user behavior on 2.0 technologies, so it’s not an analytics challenge but rather a website design challenge to determine which 2.0 technologies to incorporate.It is hard to differentiate between the top web analytics vendors, namely based on differences in their actual capabilities. While vendors can provide other analytical services outside of on-line analytics, which broadly covers the digital spectrum that includes web analytics, the channel specific strategy is confusing because the other main areas in analytics of business intelligence (reporting, dashboards, …), predictive analytics (statistical analysis, data mining), and marketing analysis (optimization, simulation) are hard to separate from the vendor with the best web analytics capabilities given an overall need for multiple analytics solutions from a CMO perspective (Vittal, 2009).Selecting the right vendor will not determine success in the marketplace. Rather, an overall willingness to try new ways to improve the user experience on-line, which is critically important given the ease of A/B testing and ability to determine success factors with web analytics metrics, will drive success. It is less about the vendor selected and more about how that vendor is used.It is hard to gain real actionable insights into user behavior, as opposed to a bunch of web usage statisticsFor this reason, having someone in your marketing organization dedicated to the analytics, not just reporting, is important. This person should focus on linking the analytics to the overall digital marketing strategy. While web analytics continues to become more automated, human interpretation to gain insight into customer behavior is still the most valuable part. “You have to be committed to web analytics. You have to be willing to assign resources…You have to be willing to commit to the process of understanding and doing it. There’s more to it than a nice looking [web analytics tool] interface” - Eric Peterson, author of Web Analytics Demystified (Karpinski, 2009). 36% of website decision makers believe that resources are more important than the technology (Lovett, US Web Analytics Forecast, 2008 to 2014, 2009). This underscores the point that data is only useful insofar as there are experts to drive analysis and uncover insights which the web analytics tools help to uncover.Getting the right analytics tools is difficult, given that most web analytics are designed to be scalable and work across multiple products, segments, and companies. Furthermore, the tools are all retrospective in their reporting and don’t help in areas where marketers spend the majority of their time; planning for and going after future business. Using new analytics and Web 2.0 technologies, it is important to first determine what the company wants customers to be doing on the web channel. Ultimately, if the desirable user behaviors are known, then analytics can help understand how to achieve those goals.The quality and accuracy of data reported is questionable. Furthermore, the data can often be inaccurate and quite disorganized.In web analytics, the common 80/20 rule applies. Ultimately, this is a fast moving space, and as long as web analytics is directionally accurate, it will help companies make more informed decisions. Certainly accuracy is important, and that should not be compromised, but it’s also not the only factor to consider.<br /> Exhibit 1: Web Analytics Vendor Comparison <br />Works Cited<br />Author, No (2009), quot;
Web Analytics: Success Stories,” B to B, 15-15.<br />Bannan, Karen (2008), “What to Measure?” B to B, 13-14.<br />Burns, Megan and Suresh Vittal (2008), “Q&A: Five Web Analytics Answers Direct Marketers Must Know,” Forrester Research, 1-4.<br />Burns, Megan (2007), “Where To Get Help With Web Analytics,” Forrester Research, 1-17.<br />Hossack, John (2008), quot;
Is Google Analytics Taking Over the World?quot;
(accessed February 26, 2010), [available at http://blog.vkistudios.com/index.cfm/2008/2/22/Is-Google-Analytics-Taking-Over-the-World].<br />Hudson, David, Garry Lee, and David Honan (2008), “The Revolution Masterclass on Web Analytics,” Revolution, 37-38.<br />Johnson, Carrie and Elizabeth Davis, (2009), “B2B eBusiness: Preparing For Online Liftoff,” Forrester Research, 1-6.<br />Karpinski, Rich (2009), “Analyzing Analytics 2.0,” B to B, 14-16.<br />Karpinski, Rich (2008), “Measuring New Media Not Easy,” B to B, 22-24.<br />Kaushik, Avinash (2010), Web Analytics 2.0. Indiana: Wiley Publishing.<br />Lovett, John (2009), “US Web Analytics Forecast, 2008 to 2014,” Forrester Research, 1-9.<br />Lovett, John (2009), “The Forrester Wave: Web Analytics, Q3 2009,” Forrester Research, 1-12.<br />Sage, Adele (2010), “Executive Q&A: Website User Experience Reviews,” Forrester Research, 1-5.<br />Sen, Arun, Peter Dacin, and Christos Pattichis (2006), “Current Web Trends in Web Data Analysis,” Communications of the ACM, 85-91.<br />Steffen, Don (2009), “Web Analytics: What's the Goal?” Information Management, 50-51.<br />Thomas, Joe (2008), “The Way to a Winning Website,” Marketing, 15-15.<br />Walters, Tim, P. D. (2008), “To Succeed With Web Content Personalization, Start Failing Now,” Forrester Research, 1-9.<br />Unica Case Studies (2009), “Citrix Systems, Inc. Supercharges Online ROI with Unica NetInsight Web Analytics,” (accessed February 25, 2010), [available at http://www.unica.com/documents/us/unica_casestudy_citrix_072109.pdf].<br />Vittal, Suresh (2009), “The Marketing and Customer Analytics Software Landscape,” Forrester Research, 1-8.<br />VonBoskirk, Shar (2009), “US Interactive Marketing Forecast, 2009 To 2014,” Forrester Research, 1-7.<br />Walker, Brian K. (2008), “Optimizing eCommerce Analytics,” Forrester Research, 1-7.<br />Webber, Alan (2009), “How to Take B2B Relationships From Indifferent to Engaged,” Forrester Research, 1-9.<br />Webber, Alan (2009), “The New Competitive Priorities for B2B Websites,” Forrester Research, 1-10.<br />Wind-Mozley, Steve (2008), “Web Analytics - New Need for Analytics,” Revolution, 59-60.<br />