Digital Analytics

Digital Analytics are the methods by which the information about your customers is gathered and analyzed. It is important to have the tools, the processes and the people in place to support the measurement, reporting, analyzing, testing and improving of your business practices.

There is a very famous quote "There are three kinds of lies: lies, damned lies, and statistics."  often attributed to Benjamin_Disraeli (1804–1881)

Unless you have the right data and the correct analysis method you are telling yourself lies or having them told to you, usually at great expense. This is a surefire way to send your business in the wrong direction. A lot of the analysis can be automated but because of how databases are set up some of it just can't be automated. This is why it is so important to set up your database in the way that the maximum amount of data that YOU require can be automated. 

 

You have to be smart about the data that you study and how you study it. Many years ago I was involved in a design of experiment DOE for a packaging machine. When putting together a DOE there are two things to consider one is the number of factors or what you think might be contributing. The next is levels for a DOE there are a min of two levels a high and a low.  To figure out the number of experiments that you have to carry out you select the number of levels and the raise that to the exponent of the number of factors, so for example if you have 2 levels and 5 factors it will be 2^5 or 2x2x2x2x2 or 32 experiments and then you at a min double that number of experiments to duplicate all the experiments. Triplicates are preferred for better accuracy. As you can imagine 96 experiments on a packaging machine or even 64 are not undertaken lightly. What a DOE does is show you interactions between factors. Say for example you have no google ads, emails sent, and you haven't posted in social media for a week, that is your low level. The next week you send out an email, put some money into google ads, and post a great cat video in your social media every day that is your high level. Now assuming that you have the back end set up so you can extract the data correct you can do a data analysis that will tell you which of the methods was the most effective. Now wait a minute you are saying I can just look at the numbers and see which one is the most effective if I do them one at a time. Yes you can but this is where a DOE comes into it's own because what it tells you more then any other way of analysis is how the the factors interact with each other. So for example it will tell you how much the e mail campaign affected your bottom line but also how much the combination of Google ads and an e mail campaign at the same time affected your bottom line.

 

It all sounds simple but it's not and there is a LOT of work in a properly designed DOE and there are other, many other methods of analysis what is most important for your business is to set up the correct measurement, report, analysis and testing method so that your business practices DO improve. Don't just go to a programmer and say I want you to give me this data because you might just might find the price tag on getting that data will give you a heart attack because they didn't tell you how difficult it would be because they assumed you knew or they didn't care it was work so they are doing it and handing you the bill.

 

Talk to us about what information your business will benefit from having and let us facilitate you getting it.

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Last modification: Wed 26 Aug 2015
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