Developing Business Decisions : The 10 / 90 Rule For Web Analytics Success

To ensure that your money isn’t wasted, you need to spend even more. The way to spend it is by following Avinash Kaushik’s “10/90” rule. This directive suggests that for every $10 you spend on your analytics tool and implementation, you should spend $90 on intelligent digital analysts who can convert your data into actionable insights. Companies are eager to collect data, but that data is worthless until someone translates it into insights that drive business results (Gibson A., 2013).

In the world of technology that we live in today has forced companies in almost every industry to use whatever tools that are available to help them be competitive in their business industry. There are a few ways to do this, one of those ways is the use of Web analytics, which is the collection of raw data from users browsing habits and then taking the raw data and assemble the data into clear comprehensive results. This type of analysis is very useful for companies, as it helps them learn what users are doing and their habits and the best way to target these users.

According to Kaushik (2010), the goal of the 10/90 rule is to maximize the value of implementing web analytics, also “the cost of analytics tool and vendor professional services: $10; Required investment in "intelligent resources/analysts": $ 90; Bottom-line for Magnificent Success: it’s the people”.

In today’s companies, the analytics software plays the important role and guides the future activities to a great extent.

data. Ideally, the rule is used in a 1:9 ratio, ensuring the organization’s success (Kaushik, 2010).

When choosing a web analytic program or software you most take into consideration a couple of things. For instance, is it understandable, affordable and usable. A web analytic is like getting grades. It is constantly giving you grades and feedback on how you are doing online. Without some certain web analytic program it would be like being lost in the middle of the woods with no compass. Imagine having no idea where society is located, how would you know which way to go. Web analytic is like the compass directing you in which way improvement need to be made. How else would you determine according to Brain Clifton things like “is the visitor experience a good one, encouraging engagement, repeat visits, and sales, or are visitors bouncing off your website after viewing a single page?” (Clifton, 2012). These are all very important things that can help improve your online marketing and the effectiveness of your website. Online business owners if not on board with this should start soon.

Web analytics is the practice of measuring, collecting, analyzing and reporting on Internet data for the purposes of understanding how a web site is used by its audience and how to optimize its usage. Web analytics helps a business owner break down the measure of information that originates from the web and aides in extraction of information in a simplified manner. In addition, Web analytics helps the organization in externalizing and standardizing information including variables that can be compared with each other.

Offshoring web analytics is the current trend in outsourcing. Outsourcing web analytics is possible since it’s websites, the website’s popularity and business performance are intertwined. Outsourcing web analytics can be done ways, offsite and onsite web analytics. Most American companies are choosing to offshore to India due to it being an English speaking, as well as it’s cheap labor (Singh, 2012).

Web Analytics is a revolutionary way to support decisions in Web business using tools to collect and analyze data. The expression “ Collect and analyze data” it self is imprecise for a strong definition of Web Analytics, because of its paradoxically interpretation. According to Avinash Kaushik (Sybex, 2007) Web analyzes based only on data can’t motivate complete decisions, and even when there is lots of dates it necessary the small number of insights from the infinitesimally quantity of data. Therefore, I think that the best definition of Web Analytics is presented by Avinash Kaushik on his book Web Analytics 2.0 book, the art of online accountability & Science of customer centricity. For Avinash Kaushik Web Analytics is the web site and the competition around it qualitative and quantitative data analysis, in order to create

Web analytics can help businesses or organizations with a web presence stay competitive, leading to profitability. The use of analytics can be a powerful tool in a company’s strategic approach that can be used to differentiate it from its competitors and serve as a form of competitive advantage for the organization in competing in this twenty first century. In this essay, various definitions of web analytics and other key terms used in this field will be examined.

Web analytics is characterized as a sway 's investigation of a site on its clients. E-trade organizations and other site distributers regularly utilize web investigation programming is to quantify such solid subtle elements as what number of individuals went by their website, what number of those guests were novel guests, how they went to the webpage, what decisive words they sought with on the webpage 's internet searcher, to what extent they remained focused given page or on the whole website and what joins they tapped on and when they exited the webpage.

Web Analytics tools like Google Analytics provide a myriad of metrics that users can benefit from in order to enhance their business capabilities. These tools enable users to measure a broad range of web data from visitors, bounce rates, page views, conversion rates to dashboards, custom reports, and goals. It can be sometimes confusing to make sense from all the web data obtained. Some users utilize basic features of the web analytics tools and some others utilize complex features to crunch the data based on the specific business requirements. Sometimes users spend superabundant time to analyze complex data that really has not value.

Web analytics is how companies and firms are using technologies to track the behavior of visitors to websites designed to show information, sell products and services, and present a superior brand that meets their targeted customers’ needs. Companies have been unhappy with their marketing functions for almost as long as they have been in existence, because their ability to track the success of their marketing efforts has always been insufficient, or even better, non-existent. The emergence of the World Wide Web and the Internet and everything that is now done online digitally has changed all that, because digital tracking was now possible.

From the academic perspective, web analysis can be identified as a process of analyzing and measuring visitors’ behaviors based on the data from a website. Specifically, analysts would dig into the data and try to find out the meaning hidden behind those mathematical numbers and statistic and figure out the reason of every click that every visitor makes. Then analysts could come up with solutions to help companies improve web performance in order to attract more visitors and increase the dollar value that visitors spend on the site. In other words, web analysis can be also seen as an integration of diverse analysis activities with using different technics and tools from collecting data to transferring those data to visual outcomes and insights to do accurate business prediction and forecasting. In a word, web analysis could help business to figure out people’s real-time reaction to the message and information that business is trying to deliver on the web pages, and get a deep understanding about customers’ responses to recent marketing campaigns and activities on the web.

In the era of 2007-10 where most of the economies of the world slowed down and companies restrained themselves from making new investments there were others that were gearing up to reverse this trend. Viewing this as an opportunity lot of new companies entered into the consulting and business advisory domains. This phenomenon lead to an inception of once such company named “Analytics Quotient”. Analytics is once such field, which is not only making a mark upon the business of the companies but also changing the business trends by focusing on data utilization across functions and optimizing the available information that the company has.