Modern business intelligence tools give us the ability to collect staggering amount of data. In fact the problem now is not that they can’t get at the data it’s that we have so many tools and sources of data that they can’t possibly process at all.
And as in result we are getting buried by it.the goal of today’s analytics is not just to collect the data and store it away in meaningless charts or graphs and worst of all just store it to rot in digital safe and vaults. But the rather we want to take that raw data and organize it into something we can use, something actionable, something that has importance to us and needing to us as people.
From a business perspective we need to be able to answer all the questions that are fundamental to effectively marketing and growing our business. And all these questions vary specific complex but they don’t have to be. Some of the most important questions asked ourselves especially in the beginning, can be simple fundamental question such as how is the website doing.
This desire to analyze our website isn’t necessarily new not long after the Web was created site owners who are looking for ways to understand what was happening on their websites they built. You may even remember every site seem to have something like this:
I’ll admit I thought that was amazing and fascinating technology when it first appeared I even put them on all my websites and refreshed each day to see how many hits has piled up, but the truth is they tell us almost nothing that we could take the action to improve our site.
The limitations are obvious, so then we got a little bit more sophisticated with our first generation log analyzer analytic tool. But the truth is it’s just the same hit counter over time, still not to actionable. Even the most sophisticated of these:
Really don’t get to the question how is the website doing, they tell us how Web servers performing but that’s just the commodity these days. What we really care about as the performance of the content I mean visitors are interacting with the site and none of the above tell us that.
So how does modern analytic answered those questions?
Let’s take an example this is the result of the e-mail blast and was sent to the site and we are split testing two versions of the e-mail received and which one was more effective at generating sales.
Each line on the picture represents one of the versions:
Version 1 and version 2 we can see that these e-mails brought in the same amount of visitors, about 10,000 and the same pair is it value of $.15 and $.13 and you will be forgiving assuming that there wasn’t much action to see here because it’s so similar, but as analyst we need to get the data we risk missing valuable and perhaps buried insides. With two blasts a day this brings us to approximately 20,000 visitors per day.
At those values of the difference, 2 cents a difference brings up $12,000 per month in another words it means an entire salary of the well paid analyst. This is why it’s so important to get away from counting hits and in understanding user behavior and invalidating quality sources traffic and performance of all the elements of our site
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