The 10/90 rule, its method of application & implementation:
Numerous studies have pointed out that while almost all Fortune 500 companies have great investment in web analytics they still struggle to make any meaningful business decisions. Most people complain that there are terabytes of data and gigabytes of reports and megabytes of excel and power point files. Yet no actionable insights, no innate awareness is present on what is really going on through the clutter of the clickstream data.
In order to fix the issue, the 10/90 rule was implemented. The rule says the following:
Goal: Highest value from web analytics implementation.
Cost of analytics tool & vendor professional services: $10
Required investment in intelligent resources/analysts: $90
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If we are paying our web analytics vendor (Omniture, Web Trends, Click tracks, Core Metrics, HBX etc.) $25,000 for an annual contract we need to invest $225,000 in people to extract value from the data. The reason behind this rule is as follows:
a. If our website has more than 100 pages and we get more than 10k visitors per month, we can imagine the complexity of interaction that will happen in our website.
b. It is given, if we open most web analytics tool, they show the exact same metrics, almost all of them measured and computed differently. So we have to sort this issue.
c. Finally, actionable web insights do not come from clickstream so we have to have people who are smart and have business acumen to tie clickstream behavior to other sources of data, information and company happenings.
So in order to apply the 10/90 rule we have to consider the following:
a. We have to apply for a free google analytics account at google analytics sign up
Avinash Kaushik in his blog proposed the 10/90 rule. [1] According to him, many large companies that have invested in web analytics tools still struggle to make any meaningful business decisions. Apparently, there is a no dearth of data that is collected via these web analytics tools for these companies. However, the caveat here is that there is no real useful information that is being analyzed from these data. In other words, there are not sufficient people with expertise in these areas working on these web analytics tools for these companies to make any meaningful suggestions from the data for the companies to implement and in return increase their profits or whatever they are trying to achieve/gain. The 10/90 rule suggests that for every $10 invested on web analytics tools, $90 should be invested on web analysts by the company to be able to expect positive results on their investment on web analytics tools. Primarily, the data collected from such web analytics tools is useless unless an expert is analyzing that data. It is the web analyst that is critical for the success from the ...
...among multiple companies, due to calendar scheduling. The difference between dashboards and scoreboards were the different styles of key performance indicator the two type of report formatted. And how (IAL) can use wiki in their favor by implementing cloud computing on their website.
Purchasing Research – Purchasing research may be costly, but the knowledge and insight it will provide is paramount. While Larry could surely conduct his own secondary data research for less than $15,000, a busy schedule and time constrain him. See research purchased in Q3.
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Sallam, Rita L; Tapadinhas, Joao; Parenteau, Josh; Yuen, Daniel;Hostman, Bill (2014, February 20). Magic quadrant for business intelligence and analytics platforms. Retrieved from http://www.gartner.com/technology/reprints.do?id=1-1QLGACN&ct=140210&st=sb
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