analytics 101
TRANSCRIPT
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1. What is Analytics?....................................32. Optimization…………………….….………53. A Little Philosophy……………….…….…154. Bonus Round (data integrity)……………20
Table of Contents
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What is Analytics?
MaxConfused about this photo? Watch the video here.
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What is Analytics?
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ARCHITECTURE:The first half of this presentation is a “Google Analytics 101” of the TYPE of information you can get from an analytics platform.
ANALYSIS:The second half (philosophy) discusses why it’s important to think about HOW your data is collected and what the metrics in GA really mean – in order to avoid making potential disastrous assumptions.
It’s About Optimization
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Optimization
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eCommerce Revenue At the most basic level, we can look at how much money was made in a given period using Google Analytics.
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(on-site) Optimization
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Before they were customers, they were visitors Let’s look at how these people became customers – what did they do on our site?
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(on-site) Optimization
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Where did they enter our site?Are these entry pages gaining revenue?
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(on-site) Optimization
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Where are they going after they arrive?Which pages are failing to convert? Which pages are driving customers away?
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(on-site) Optimization
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Where did these people come from?Which channels are driving the most visitors? Which ones are actually making money?
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(on-site) Optimization
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More Granular How is each individual campaign performing?
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(on-site) Optimization
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Even More Granular How is each individual keyword or creative performing?
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Optimization
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And then this happens… That’s a lot of numbers, and not much context.
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Optimization
But what does it all mean???
A Little Philosophy
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A Little Philosophy
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Who remembers the Mars Climate Orbiter?
Launch Date: December 11, 1998Orbit height: 35 miles (57 km)Total Mission Cost: $327.6 million
The Mars Climate Orbiter (formerly the Mars Surveyor '98 Orbiter) was a 338 kilogram (750 lb) robotic space probe launched by NASA on December 11, 1998 to study the Martian climate, atmosphere, and surface changes and to act as the communications relay in the Mars Surveyor '98 program for Mars Polar Lander.
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03 A LITTLE PHILOSOPHY
analytics
“Today was not a good day.” – Mars Climate Orbiter
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A Little Philosophy
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Data Integrity is important (duh)
TAKEAWAY: Data without context is not only meaningless, it’s dangerous.
At the time, the crash of the Mars climate orbiter was blamed on a “computer glitch.”
In fact, the crash was the result of a unit error. Lockheed Martin supplied data in English units, while NASA software was expecting metric units.“People make errors. The problem here was not the error, it was the failure of NASA's systems engineering, and the checks and balances in our processes to detect the error. That's why we lost the spacecraft.” – NASA
In other words – a false assumption about the data was the root cause of this crash.
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This Guy is Occam
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COMMONLY KNOWN AS:“The simplest explanation is usually the best.”
ACTUAL TRANSLATION:“Plurality should not be posited without necessity.”– in other words – show me just enough to get the point across, because if you give me too much I may make false assumptions.
ANALYTICS DEFINITION:“Show just enough to get your message across.” (You DO have one, right?)– www.Kaushik.net
Bonus Round
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Bonus RoundCommon Errors in Data Integrity
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UNIQUE VISITORS
Week One: 10 unique visitorsWeek Two: 5 unique visitorsWeek Three: 10 unique visitorsWeek Four: 20 unique visitors--Total: 45 unique visitors
(What’s wrong with this picture?)
A: When it comes to unique visitors, you have to compare like vs. like (daily uniques, weekly uniques, monthly uniques). The same visitor might have visited twice in a week, resulting in two “unique visitors” if you are rolling up daily uniques.
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Bonus RoundCommon Errors in Data Integrity
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AVERAGE CONVERSION RATES
Week One: 100 visits, 10 purchases. 10% cvrWeek Two: 50 visits, 10 purchases. 20% cvrWeek Three: 10 visits, 5 purchases. 50% cvrWeek Four: 200 visits, 10 purchases. 5% cvr--Average CVR: 21.25%
(What’s wrong with this picture?)
A: In most cases, you should never take an average of an average. The reason being, you are comparing vastly different quantities – week 3 is a total outlier (only 10 visits, 5 purchases – 50% conversion rate is completely skewing the overall average). If you want to roll this up, the correct way to do it is to tally ALL the visits (360), divide by ALL the purchases (35) to get about a 9.6% conversion rate.
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“BOUNCE” Rate…
When is a bounce not really a bounce?
A: When a user comes to an informational page, learns what they need to know, and leaves. This is the INTENDED action (you are not always trying to convert – some visitors are at the “research” phase of the funnel vs. the buying phase).
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Bonus RoundCommon Errors in Data Integrity
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DIRECT TRAFFIC
What actually constitutes direct traffic?
(Hint: It’s not just direct traffic)
A: Direct traffic is anything that comes through without an identifiable source. See flow chart.
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VISITS
What actually constitutes a “visit”?
(Hint: what happens when you leave a page open?)
A: A “visit” is whatever your analytics platform SAYS it is. For example, Google Analytics defines a visit as a single session, which is “a group of interactions that take place on your website within a given time frame.” In GA, the session times out after 30 minutes of inactivity, and at midnight.
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