Some fundamentals of digital analytics; its concepts, its methodologies, and a few words on KPIs. Session given in Madrid, Spain, on November 19th 2015.

1. Jacques Warren, CEO
MDA MASTER CLASS – Madrid 2015-11-19
DIGITAL ANALYTICS FUNDAMENTALS
CONCEPTS, METHODLOGIES, KPI

2. AGENDA
- Positioning Digital Analytics (well, all Analytics)
- Some concepts
- Practical cases and exercises
- Some more concepts
- Test
- Many more concepts
- Making the case for optimization
- Then I let you go

3. DIGITAL DATA AND ANALYTICS

4. Business
Without
Analytics
Business
With
Analytics
Analytics Added Value
THE PURPOSE OF ANALYTICS

5. Noise Signal Decision
Data Insight Action
THE PURPOSE OF ANALYTICS
Source: Éric Nguyen, Banque

6. “The world in our heads is not a precise
replica of reality (…)”
Daniel Khaneman
DATA AND REALITY

7. “The world in [our data] is not a precise
replica of reality (…)”
Paraphrased by me

8. What is Analysis?
DATA ARE FOOTPRINTS…

9. HISTORICAL DATA AND TRENDS
HUH!?
Outliers are not
the enemy

10. Visit Attributes
Visitor Attributes
Customer Attributes
DIGITAL ANALYTICS PLANES

11. A TOOL PERSISTENT MODEL

12. DIGITAL ANALYTICS FUNDAMENTALS

13. A SIMPLE MODEL
INPUT OUTPUTOFFER
2X 2X
1.2X1X ANALYTICS

14. A SIMPLE MODEL
Digital
ContentTRAFFICBanners
RESULTS

15. A SIMPLE MODEL – DIGITAL VERSUS
WHAT?
REALM OF CRO REALM OF CRM
DIGITAL ANALYTICS DATABASE ANALYTICS
DIGITAL CONTENT

16. % New Customers
% of Subscription
Pageviews/Session
Units/Orders
% Satisfied Clients
% Sales to New Visitors % Downloads
Subscribers RSS
% Email Sales
Conversion Rate
SEM Ratio
AOV/Campaign
AOV
% Web Sales/Total Sales
Sales/Session
LOOKING FOR THE RIGHT METRICS

17. DEFUSING SOME MYTHS
- TRAFFIC – Not THAT important
- CONVERSION RATE – Beware of blind optimization
- CONTENT IS KING – Nope, processes are
- WHAT ARE YOURS?

18. A LITTLE BREAK FROM CONCEPTS

19. Look at products
Shopping Cart Page
Order Form
ORDERS
CASE #1

20. CASE #2
IMAGE
Bla bla
bla bla
bla bla
bla bla
bla bla
bla bla
bla bla
bla bla
I WANT IT
FORM – Sept 1
Age
Destination
Trip Worth
Email
Continue
10%
10% of 10% =
1,2M$

21. CASE #3
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1mai,2013
2mai,2013
3mai,2013
4mai,2013
5mai,2013
6mai,2013
7mai,2013
8mai,2013
9mai,2013
10mai,2013
11mai,2013
12mai,2013
13mai,2013
14mai,2013
15mai,2013
16mai,2013
17mai,2013
18mai,2013
19mai,2013
20mai,2013
21mai,2013
22mai,2013
23mai,2013
24mai,2013
25mai,2013
26mai,2013
27mai,2013
28mai,2013
29mai,2013
30mai,2013
31mai,2013
OPENING HOUR PAGE VISITS AND MUSEUM ENTRNCES
OPENING HOUR PAGE VISITS MUSEUM ENTRANCES

22. KEY PERFORMANCE INDICATORS

23. SOME DEFINITIONS
Measures the evaluate the quality of an
organization’s performance in its execution of
strategic activities for its present and future
success.
Applied to Digital, KPIs tell us if the digital strategic
vision is executed well.

24. KPI CHARACTERISTICS
- Align with the online strategy, itself aligned with the
business one;
- Motivate action;
- Allow for prediction;
- Be standardized;
- Be displayed in context (targets, tolerance threshold, etc.).

25. MORE THAN METRICS
KPIs are a some kind of language;
how we talk about the business.
KPIs must be the results of a
consensus.

26. A PROPOSED METHODLOGY
- Reaffirm the digital strategy;
- Define and list the expected outputs;
- Document and reconfirm consensus;
- Validate data quality and availability;
KPI WORKSHOP &
PROCESS
- Decide how results will be communicated.

27. KPI & DRIVERS

28. KPI & DRIVERS

29. EXAMPLES OF THAT TYPE OF WORK
DOCUMENT

30. EXAMPLES OF THAT TYPE OF WORK
DOCUMENT

31. EXAMPLES OF THAT TYPE OF WORK
WHERE YOU
WORK

32. AN ANOTHER LITTLE BREAK FROM
CONCEPTS

33. TEST KWANTYX

34. TEST KWANTYX
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
January/15
February/15
March/15
April/15
May/15
June/15
July/15
August/15
September/15
October/15
November/15
December/15
TAUX DE CONVERSION

35. TEST KWANTYX

36. TEST KWANTYX

37. SEGMENTATION

38. ATTEMPTING A DEFINITION
- Subdividing a dataset to identify smaller
populations with meaningful behavior.
- Segmentation is at the heart of the
analysis process. It tells us about
possible causes of behavior, and
where/how to influence them.
- Segmentation is to the analyst what
dissection is to the physician

39. SEGMENTING WHAT?
- Segmenting by behavior types or attributes.
- Segmentation Levels: traffic, visitors/users, customer file

40. LOOKING THROUGH DIEFFERENT
ANGLES
Basic Digital Analytics Segmentation -
Sources

41. WHO IS THERE TO DO WHAT?
The Importance of Use-Case (Gary Angel’s great contribution)
Three principles are the foundations of the two-tiered segmentation
approach:
 Its about understanding the buyer/visitor, not measuring the activity on
the website;
 Intention drives visitor behaviour, so we can reconstruct intention from
sequences of actions;
 Once we have established the visitor’s intention, we can then
determine whether they were successful or not in accomplishing their
task

42. WHO IS THERE TO DO WHAT?
We aim to determine WHO the visitor is and WHAT
they are trying to do.
With these elements, we build use cases. With use
cases, it then makes sense to segment KPIs.

43. TOWARD THE TWO-TIERED
SEGMENTATION
Web Site Usage Segments (KWANTYX’s Client)
- Information Seeking Prospects
- Advanced Prospects – Ready to Convert
- Clients Managing Their Account
- Clients Adding Services
- Job Seekers
- Others

44. DIGITAL ANALYTICS CONTEXT

45. Measuring Marketing is measuring people
who do marketing.
METRICS ARE POLITICS

46. METRICS ARE POLITICS

47. TRUTH
CAN YOU HANDLE THE TRUTH?

48. THE ILLUSION OF TRUTH

49. ANALYTICS GOVERNANCE

50. Source: Gary Angel, EY
WELL, TALK ABOUT A PROGRAM!

51. Source: Gary Angel, EY
WELL, TALK ABOUT A PROGRAM!

52. Source: Gary Angel, EY
WELL, TALK ABOUT A PROGRAM!

53. Source: Gary Angel, EY
WELL, TALK ABOUT A PROGRAM!

54. Source: Gary Angel, EY
WELL, TALK ABOUT A PROGRAM!

55. Source: Gary Angel, EY
WELL, TALK ABOUT A PROGRAM!

56. OPTIMIZATION

57. DOES DIGITAL ANALYTICS WORK?
Isn’t optimization the whole purpose of Digital
Analytics?

58. WHAT IS OPTIMIZATION
https://www.youtube.com/watch?v=BzLSTpaZkrI
Go watch that video. Watch it up to the end, and see what 63 years of optimization could do. Show it to
your team next time they say you can’t squeeze any more value. Remember: the 1950 people were at
the top of their game…

59. Measure everything you do,
THE OUTTER LIMITS

60. Measure everything you do, but
don’t do only what you
measure.
THE OUTTER LIMITS

61. RECOMMENDED READINGS