Cost Of Analytics Tool And Vendor Professional Services

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Various studies have shown that while almost all Fortune 500 companies have invested in "Web Analytics", they are still struggling in taking actionable decision. Majority of them have the same complain, that is there is so much data that they are unable to look through the clutter and find actionable insights. This is where the 10/90 rule comes into play. According to this rule, for every $10 spent on a web analytics tool, we should spend $90 on the people to analyze the data. • Our Goal is to extract the highest value from Web Analytics implementation. • Cost of analytics tool & vendor professional services is around $10. • Required investment in "intelligent resources/analysts" is around $90. • Bottom-line for Magnificent Success is it’s the people. The rule is simple to implement. If we are paying our web analytics vendor (Omniture, WebTrends, ClickTracks, CoreMetrics, HBX, etc) $50,000 for an annual contract we need to invest $450,000 in people to extract value from that data. There are various reasons why we have come to formulate this rule: 1 If our website has more than 100 pages and we get more than 10,000 visitors a month we can imagine the complexity of the interactions that are happening with our website. Drop in marketing campaigns, a dynamic site, SEM, more pages, more traffic, promotions and offers and we have a tough situation to understand. 2 Most web analytics tools will produce exorbitant amount of data. This leads to a rat race, where the various vendors are trying to outdo one another in information gathering and data reporting. The bottom line is that it will take a lot of intelligence to figure out what all this data means in the real world. 3 Most of the web analytics tools show the exact same metrics, and a... ... middle of paper ... ...lytics account. 2 Once you get the code implement Google Analytics on your website in parallel with your favorite analytics tool. 3 Get a comfort level for delta between the two sets of key numbers (you know visitors, conversions, page views etc) and create a multiplier (my tool shows visitors 10% higher and page views 10% lower than Google). You will use this multiplier in future to compare year over year trends if you want to. 4 Cancel the contract with the expensive analytics vendor and use that money to hire a smart analyst. As the analyst will be able to extract as much value from Google Analytics when compared to your previous tool. As your organization grows, and the level of sophistication of supporting processes increases, perhaps in the future you might be ready to buy an expensive web analytics tool and then extract a corresponding amount of value from it.
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