This document discusses the evolution of web analytics from basic activity counting to predictive and linked analytics that provide insights and optimize customer experiences. It notes that while companies collect vast amounts of web data, they often fail to generate meaningful business insights. Predictive analytics can connect online data to effective action by drawing conclusions about current conditions and future events. The document advocates for linked analytics that apply predictive insights in real-time to create more profitable customer relationships through approaches like optimized landing pages and multi-variate testing.

1. Analytics meets…
targeting meets…
CRM
Julian Brewer
Trackz
2010

2. Web Analytics packages are sold as if they’re an
automatic coffee maker. In fact, it’s more like buying
a coffee Plantation.
You can still get your coffee (eventually), but you’re
going to have to stick your hands in a lot of more
manure than you ever knew.
Tom Cunniff (Yahoo User Group)

3. Analytics Evolution …
Recency
Frequency
Average Visit Length
Acquisition Method
Event stream
Section stream
Insight
Value
ROI
# Users
# Visits
# Page Views
Top Pages
Top Referrers
# Errors
WEB
ANALYTICS
WEB
STATS
WEB
STATS
Activity Counts
Business Insight

4. Numerous studies have pointed out that while
almost all Fortune 500 companies have great
investments in “Web Analytics” they still
struggle to make any meaningful business
decisions. Most people complain that there are
tera bytes of data and giga bytes of reports
and mega bytes of Excel and PowerPoint files.
Yet no actionable insights, no innate
awareness of what is really going on through
the clutter of site clickstream data.
Avinash Kaushik

5. 120m peopl e ar e
r egul ar l y onl i ne i n
Eur ope’s
f i ve bi ggest
m ket s.
ar

6. On aver age, i nt er net
user s spend a quar t er
of t hei r weekl y m
edi a
t i m on t he i nt er net
e

7. Sur f i ng t he i nt er net
i s t he 3r d m
ost
popul ar
l ei sur e act i vi t y of
onl i ne Eur opeans

8. 80, 000 new bl ogs
wor l dwi de ar e
cr eat ed
ever y day

9. Analytics Evolution …
Likelihood to Respond
Automatic Visitor Segments
Content Clustering
Significant Activity Sequences
Content & Activity Associations
Inbound Marketing Effectiveness
Search Engine Effectiveness
Insight
Value
ROI
Recency
Frequency
Average Visit Length
Acquisition Method
Eventstream
Sectionstream
PREDICTIVE
WEB
ANALYTICS
WEB
ANALYTICS
WEB
ANALYTICS
WEB
STATS
WEB
STATS
WEB
STATS
Activity Counts
Business Insight
Customer Intimacy
# Users
# Visits
# Page Views
Top Pages
Top Referrers
# Errors

10. Predictive Web Analytics: Defined
Predictive Web Analytics connects
online data to effective action by
drawing reliable conclusions about
current conditions and future events

11. “There’s a 60% chance of rain tomorrow”
Using historical weather data
and current weather
patterns, a forecast for the
near future is developed.
The forecast is whether or
not rain will fall
The probability of rain is
60%
… the decision is should I carry an umbrella or not?

12. Listen and interpret …
and Apply …

13. Associating Campaigns with Behaviour and
drawing conclusions, … isn’t easy
Search
Engine
Referral
Home Page
Login
Paid
Placement
Referral
Purchase
Research
Events
E-mail
Campaign
Referral
Email Campaigns are
strongly associated with
the Researching of
Events
Affiliate
Referral
Campaign
Search
Event
Purchase is strongly
associated with Paid
Placement but not at all
with Email
Activity

14. 60%
of Barclays
spend on
‘paid’ search

15. H1 Online adspend ’07 reached a record
£1,334.3m.
Spending on internet advertising grew by
41.3% yr/yr (Vs 3.1% overall)
Online’s share of total Ad spend grew to
14.7% up from10.5% for H1 2006.
….fuelling Inflation
Source: IAB UK, 2007

16. 1. Understand existing
Behaviour was crucial
to minimise search cost
2. Model ppc & seo traffic to understand
Customer Journeys
3. Leverage seo & ppc traffics to
Maximise SEO

17. M
odel cust om
er behavi our
pai d
sear ch
nat ur al
sear ch
Val ue of f ul l vi ew

18. modelled behaviour, findings …
Minimum of 20% un-attributed clicks
assigned to the campaigns (possibly as
much as 60%)
40% of journeys ended with a Brand click
(paid or natural)
Inferred correlation between work & home
activity

19. Benef i t s over al l i n 2006
5% i m ovem
pr
ent i n ppc cost s
wor t h
£400k
saved cost s
Addi t i onal 6% si t e t r af f i c
W t h a t ot al of
or
£1. 3

20. focusing the site …

21. Full
in page tagging
reveals that
….
Link text outperforms banners by 400%
Customers often missed I-banking link
Site search traffic is 2x more ‘sticky’

22. Customer focused …

23. New page loads
50%
Faster and click through rate
increased
43%

24. Average length of site
visit has increased
2 fold

25. Beyond
Predictive
Analytics

26. More than 80% of executives
believe that their company loses sales each
year because of its failure to engage
customers.
Economist Intelligence Unit:
Beyond Loyalty: Meeting the Challenge of Customer Engagement, 2007

27. 47% said that the
difficulty of measuring
customer engagement is the biggest barrier
to achieving greater levels of engagement.
Economist Intelligence Unit:
Beyond Loyalty: Meeting the Challenge of Customer Engagement, 2007

28. Distribution of Web Site Review scores …
Number of sites
97% of Web sites FAIL
basic usability checks!
Pass Score = 25
Source: Forrester’s 1,001 Web Site Reviews, versions 2-5

29. “At a time when firms in many
industries offer similar products,
business processes are among
the last points of differentiation.”
Tom Davenport
“Competing on Analytics”
Harvard Business Review

30. Analytics Evolution
REAL TIME APPLICATION
Landing Page Optimisation
Multi-Variate Testing
Journey Optimisation
CMS
Insight
Value
ROI
LINKED/CRM
ANALYTICS
PREDICTIVE
WEB
ANALYTICS
PREDICTIVE
WEB
ANALYTICS
WEB
ANALYTICS
WEB
ANALYTICS
WEB
ANALYTICS
WEB
STATS
WEB
STATS
WEB
STATS
WEB
STATS
Activity Counts
Business Insight
Customer Intimacy
Customer Tailoring

31. Li st en and i nt er pr et …
Appl y now
…

32. Linked Analytics
Predictive applications that:
• discover what customers want to do
• predict what they will do
• apply this knowledge real-time to create more profitable
customer relationships

33. Engaging in real-time ..

34. Winning landing page delivers
20%
Greater response
but
Interestingly we regularly run
3 variants
To target customer segments

35. How many dedicated web analysts are there
within your organisation?

36. Customers Rate Interaction Channels
How satisfied are you with each channel?
100%
80%
60%
40%
20%
0%
F2F
Phone
Research
Paper
IVR
Transaction
Web
Email
Service
Source: Forrester – Why Web Site Analytics Matter, April 2004
Chat/IM

37. Gaining customers
Prospect
Lead
generation
Lead
handling
Retaining
customers
Lead
conversion
Retention
mgt
Growing
Relationships
Upsell
Cross
sell
Web Analytics
Predictive Analytics
Linked Analytics
Max
Customer
value

38. Google Analytics … Ominture
…WebTrends
In-house or hosted …?

39. Analytics must …
Move from the simplistic …
Make sense and add value to the complex …