#17/25: Actionable Web Analytics

It isn’t having the most data that wins; it’s being able to do the best analysis.

Web analysis means taking the data from web analytics and using it to make changes to your site and business decisions based on the data.

Performance marketing seeks to maximize the ROI of all web initiatives over the long term. As a result, it rejects creative branding projects that may win accolades in the industry but fail to take business objectives into account. It also rejects short-sighted tactics, such as page packing, which increases click-through rates while harming the long-term reputation of a company’s website.

Data-Driven Organization

  1. Business goals drive decison-making
  2. Avoid gut feelings
  3. Invest with business goals in mind (measurable)
  4. Employ performance metrics though the whole company
  5. Segment users according to their needs and value


  • Be willing to take risks – set performance goals for yourself
  • Present benefits
  • Rate your Data Drive
  • Do you have agreed-upon success metrics for your web channel?
  • Can most people identify the overall success metrics the same way?
  • Have you monetized your key site behaviors?
  • Do you prioritize projects and initiatives based on potential financial impact?
  • Do you evaluate all projects post-launch to determine their impact on your business?

Test your data drive

  • Do you commonly use web analytics to identify opportunities to improve your site?
  • Do you conduct attitudinal surveys to identify opportunities to improve your site?
  • Do you use competitive data to benchmark success and identify best practices?
  • Do you analyze behavioral, attitudinal, and competitive data in conjunction with one another to drive greater insight?
  • Do you include success-metrics in statements of work and RFPs for both internal teams and outside agencies?
  • Do your creative briefs include success metrics and behavioral, attitudinal, and competitive benchmarks?
  • Do you employ an ongoing testing and optimization methodology based on insight generated from data?
  • Do you segment your site to customize experiences and determine the best page solutions for different audiences?
  • Do you measure the offline impact of the web channel?
  • Do you reward employees based on performance against specific KPIs?
  • Do you regularly take action on data to improve site performance?

Analytics Intervention

  1.   Admitting the Problem
  2.   Admit your Problem
  3.   Agree that is a corporate problem > all have to work together


Business Goals:

  • What makes your business successful?
  • What will contribute to long-term success?
  • What will hurt the success?
  • What are the business goals?

Site Goals:

Awareness ladder

  • Awareness -> Did people know me? Analytics helps improve performance
  • Interest -> Website, Blogs, Forums, Review sites, etc.
  • Consideration -> More information, good information, etc.
  • Purchase -> Buying, Checkout


KPIs are

  • tied to your organization’s unique goals
  • Measured over time
  • Agreed on by the people

Goals of your website

  • Web-Monetization Models
  • Online lead-generation form
  • Phone inquiries generated online
  • Customer service savings
  • Upgrade offers
  • Prospect education
Leads closed x average revenue per sale / total sales = avg. lead value

Whenever you make changes to a support site, you should also survey people who visit it to determine whether they’re getting their questions answered – or if you’re driving them away.

Scenario modeling

Example: Ad Supported Site


Don’t stop at the sale – after sales support / etc. = they can still cancel the order

How to group data?

  • Search keywords
  • Aggregate – Top 10, 20, …
  • Cluster for groups
  • Search terms by site section / page
  • Segmentation based on visitor type
  • ZAAZ Exit Ratio: Site exits from page / page visits to that page
  • Branding Metrics
  • Direct visitor traffic
  • Perception studies
  • Repeat buyers
  • Branded searches
  • Survey offline purchasers
  • Referral actions by visitors
  • Blog / Social media buzz


  • Hot box on each page which displays segmented content
  • Noncustomers were invested to sign up for a new account
  • Online bankers were cross-sold additional financial services
  • Customers without online banking were encouraged to sign up


  • Dynamic Prioritization
  • Projects priorization based on business impact
  • Agile teams for new important projects
  • Accountability of initiatives
  • Scorecard


Process status:

  • Do you refresh your site often?
  • Do you try out options using tests?
  • Do you use insights from analysis?
  • Do you analyze all initiatives for their impact?
  • Do you document and share best practices?

Select projects:

  • Comparing Opportunities
  • Cost
  • Likelihood of reaching the target range
  • Profit potential
  • Timeline
  • Payback period
  • Total impact on site experience
  • Don’t set expectations too high
  • Identify test cases
  • Use WA to find under performing pages
  • Ask the customer
  • Do competitive research and look at other websites (!)
  • Prioritize Tests
  • What is the potential upside?
  • Ease of technical implementation
  • Ease of measurement
  • How much time will it take?
  • Optimizing Segment Performance

“The big win that can come from an analytical approach is the rapid impact and iteration that data can have on design.”

#12/25: Data-Driven Marketing

Data-driven marketing and marketing metrics start with the principle of keeping score for all major marketing activities.

Marketing budget falls into:

  • Demand generation marketing
  • Branding and awareness
  • Customer relationship
  • Shaping markets
  • Infrastructure
  • Low performers invest 4% less than average on marketing
  • High performers invest 20% more than average; more on customer relationship, branding and infrastructure
  • High performers increase their budget in recessions


  • Know Yourself: Strategic Objectives
  • Know Your customers: Database & Analysis
  • Segment your Customers: Selection & Targeting
  • Data-Driven Marketing: Campaigns
  • Build Trust: Privacy Issues
  • Keep Score: Metrics

How to start?

  • Why should your customer care about data collection?
  • Start small: Walgreens started with a regional store op VP and found savings of $5m
  • Contential: start with focus groups and find data with high ROI
  • Contential: found out that people don’t like their airline, because luggage misses, flights are delayed – started to sent out apology letters within 12h to these customers
  • B2B market: What is in for your partner? Try to connect directly to the end customer

My point is that if you can measure something, you can control it. In this case, the measurement was the calories consumed and the exercise calories burned. The result was clarity in decision making for what I eat, which meant I lost the weight and ultimately completely changed my diet.

Road map

  1. Design – Objectives, Scope, Metrics, etc
  2. Diagnosis – Balance, Risk, Returns: Insights
  3. Opportunities – for action: quick hits, adjustment
  4. Tools
  5. Process – recurring reviews, etc.

So I asked in my survey research, “Do you outsource the creative component of your marketing?” The answer was that 72 percent of firms surveyed outsource the creative. Insight: The vast majority of marketing organizations are not in the creative content business, but instead manage the process of marketing.

Brand awareness = Ability to recall a product or service

  • Often brand awareness surveys
  • Social media activity
  • Billboards with vanity urls / phone numbers
  • Branded search words

Test-drive = Customer pretest of a product or service prior to purchase

Churn = Percentage of existing customers who stop purchasing your products or services, often measured in a year

Customer Satisfaction (CSAT)

  • Would you recommend this product or service to a friend or colleague?
  • 10 point scale, 9/10 points only count as loyal customers
  • NPS: detractors (0-6) subtracted from promoters
  • You can ask “would you recommend” and “are you satisfied”
  • “How much did you spend in different stores in the last x months?” “How much are you probably going to spend in different stores in the next x months?”
  • “What product or services would you not recommend to a friend?”

Take rate = Percentage of customers accepting a marketing offer (CTR * Transactions CR)

I realized that in marketing it is better to be approximately right than exactly wrong, and I started to appreciate the value of qualitative data.

Financial Metrics

  • Profit
  • NPV (Net Present Value)
  • IRR (Internal Rate of Return)
  • Payback period

ROMI Framework

  • Business Discovery: Understand business and impact of marketing
  • Base Case
  • Costs
  • Upside
  • ROMI impact
  • Sensitivity Analysis


  • Start small and segment
  • Segment customers based on CLTV
  • Compare short term and longterm customer value

WOM = 1 + Number of clicks from recommendations/Number of direct clicks

Agile Marketing

  • iterate fast
  • near real-time data, iterate / measure at least 10 in the campaign period

Analytics Marketing

  • propensity modeling -> what wants the customer next
  • market basket analysis -> what do customers also buy
  • decision trees -> easy to understand

Marketing Campaign Management

  1. Selection of campaigns (scorecards)
  2. Portfolio view
  3. Monitoring
  4. Adaptive learning
  5. Technology


  1. Lack of top management support
  2. Lack of respect
  3. Lack of cross-functional alignment
  4. Lack of employee skill

Data-Driven Marketing is a pretty robust book. The first 50 pages are a short version of the rest of the book. The rest of the book is filled with case studies and anecdotes. It is written very causally which is pleasant. I think that it is a very valuable book if you are new to the idea of using data or want an overview on data-driven marketing.