There is no ROI for web analytics
There have been many discussions about what is the value of web analytics. In fact there is a very interesting Forrester report that shows a significant ROI on a full time web analyst.
But in reality implementing a web analytics tool, producing reports, and even looking at those reports with an analytical eye does not actually create bottom line value.
All of the value of web analytics comes from what you actually do with the data you have analyzed. If you increase spend on MSN because you see that it converts better, then you have started to achieve an ROI on your analytics investment. If you A/B test your landing pages and find a better landing page design that converts better then you have begun achieving an ROI. If you start suggesting product Y when people are buying product X because you have noticed that people frequently buy them together, and you increase your average order value then you have gone down the path towards ROI.
The point is that unless you have thought all the way through your analytics strategy to the point that you have a plan in place to actually apply the data to specific areas you will get nothing from your web analytics investment.
So, what actions are you planning to take with your data?
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WebMetricsGuru wrote:
Web Analytics ROI (WaROI)
Web Analytics ROI, or WaROI, it occurred to me, is much like Search Engine Optimization ROI or Search Marketing ROI:"…The analytics tools are great, but the data and ROI you can get are so much greater when the data is shared…
Posted on 29-Sep-07 at 2:15 am | Permalink
Chris Grant wrote:
I’m gonna take one step back from your question and make it “what are you going to do with your data process?”
We’re finding we have to force the ROI thinking early in the process, and that’s our objective for the next few months. If somebody’s going to do a banner campaign, we seem to be the ones to say “what’s the goal, in terms of effects on the visitors?” Then, if they can articulate something, we have the possibility for an ROI. We also have a better campaign. We’ve had some blunders regarding which site URL to point banners to, because people hadn’t asked themselves this question before launch.
Posted on 11-Jan-08 at 9:47 am | Permalink