Web Analytics Demystified

Matt Belkin of Omniture: Web Analytics is Easy!

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Matt Belkin of Omniture recently posted on a few of the pitfalls companies fall into when deploying web analytics. I was pretty surprised to see Matt, someone who was worked in this field nearly as long as I have, make the following statement:

“Analytics success is all about building a baseline for performance (your KPI trend), and trying new things to improve on this baseline. That’s it! That’s why I think it’s easy. I know other bloggers have argued that analytics is hard, but I’ve done this for a living and I can tell you that it’s not.”

Ironically enough I have been meeting many of Omniture’s largest customers recently, none of whom seem to think web analytics is easy. They universally have some difficulty associated with technology, people, or process—the triumvirate that is truly “web analytics”—and I suspect many of them had the same response I did when I read Matt’s statement above.

I quickly scribbled out the following response late last night but for some odd reason it has not been approved yet. I figured I’d post my comment here so that Matt and his customers would have a chance to read an opposing point of view.

“Hysterical! I talk to Omniture customers constantly who complain about how hard it is to do the most basic things like calculate bounce rate, integrate data using your Genesis platform, make sense of your reports, and even just get the data they need when they need it.

Perhaps the problem that you and people like Stephane Hammel are having with my statement is something called the echo chamber effect. You say something for so long, and your buddies all repeat it, that eventually you ignore the reality of the situation and begin to believe something that is clearly not true. Seth Godin accused me of doing this once (he was wrong, it turned out, people are deleting cookies … you’ve said so yourself!)

But you’re wrong, Matt. Web analytics is hard. Ask your customers, they’ll tell you.

It’s not just hard to improve your baselines, it’s hard to implement code properly, it’s hard to understand reports and definitions, it’s hard to find qualified staff to run these applications, it’s hard for HR to stomach the salaries we are asking for, it’s hard to train newbies, it’s hard to produce quality analysis based on only quantitative data, it’s hard to get management to listen, it’s hard to make management understand, it’s hard to select a good vendor when so many are failing, it’s hard to know if and when to migrate off of HBX, it’s hard to know which low hanging fruit to pick, …

You get the picture.

You make my point yourself in your post. If there are multiple versions of the truth, it’s hard to know who to trust. If there are multiple systems, it’s hard to know which system’s “click” is the right click to count. If you yourself have had to spend “countless hours trying to reconcile differences” in data, how is that “easy?”

In a way I’m happy you wrote this post because it reinforces everything I say when I travel the globe and meet with your biggest customers. They say “Our vendor says this is easy … there must be something we’re not getting.” I say, “Why would you expect your vendor to tell you that web analytics is hard? Would that make the sales process move forward more quickly? Would that make you more likely to buy their ever-expanding series of offerings? Would it make you think you won’t end up spending more money counting events, creating custom reports, or adding ad hoc segmentation tools?”

No. If you told the truth about web analytics, your prospects and customers would think twice about their investment. But that is exactly what companies need to do to be successful, really successful, with web analytics — take the science of audience measurement seriously!

When I say “web analytics is hard” I’m not saying that it is impossible, I’m not saying it’s not complex, I’m not saying that it is best left to the experts, and I’m not saying that companies should give up and go home. I’m saying that vendors, consultants, and customers should set their expectations regarding web analytics appropriately.

In my humble opinion, your customers need to know that web analytics is hard so they can:

  1. Plan to spend a reasonable amount of time determining their needs
  2. Allocate resources appropriately for implementation and deployment projects
  3. Set expectations with management about when results will begin to appear and what will need to be done with those results
  4. Make the case to management when they need additional resources, more software, or more time
  5. Have an appropriate relationship with their vendor, based on clear expectations

When people are told that “web analytics is easy” they take their investment for granted. They expect that a “standard implementation” or something that comes from a cut-and-paste template will serve their needs, that a 0.25 FTE will be enough to produce analysis, that results will be available in a matter of days, that the software they have will solve all their problems, and that they won’t need their vendor’s support from time to time.

In a way it’s ironic that you say “web analytics is easy” given Omniture’s obvious commitment to their customer’s satisfaction — Larry Freed of ForeSee Results taught me that satisfaction is a function of expectation; when you say “I’ve done it, it’s easy brah” then as soon as they realize the truth, you’ve failed to set their expectation correctly and thusly they’re unsatisfied.

With the increasing numbers of your customers experimenting with less costly tools, I would think that customer satisfaction would be your #1 priority.

I doubt you’ll publish this comment and I suspect you’ll be pissed off at me (again) for voicing an alternative viewpoint but consider this: I’m not saying anything bad about Omniture or any of the companies you guys are buying. I think Omniture is a great organization full of incredible talent. I think the market position you’ve carved out is enviable. I think you guys have tremendous potential to advance the market, driving adoption of Web Analytics 2.0, Web Analytics 3.0, and beyond.

“Web analytics is hard” isn’t about any vendor technology or any one person. “Web analytics is hard” is about your customers and their ability to use your technology and your guidance to their greatest advantage.

When you say “web analytics is easy” you’re oversimplifying what is involved in being successful with web analytics. When you say “I’ve done [web analytics] for a living and I can tell you it’s not [hard]” you’re not paying attention to what your customers are going through. When you say “from your perspective, it’s just not that hard” you’re demonstrating your intelligence but not your wisdom. In fact, your statement “Analytics success is all about building a baseline for performance (your KPI trend), and trying new things to improve on this baseline. That’s it! That’s why I think it’s easy” really says it all.

Suffice to say I was bummed to see this hyperbole and tired rhetoric in an otherwise insightful post.

Sincerely,”

I think it’s one thing when people evangelize for free products as an easy-to-learn entry point into the market, and another entirely when one of the market leading vendors makes such bold and (in my opinion) unfortunately misleading statements.

Our collective ability to be successful depends on having clear expectations, not false ones, and our satisfaction is a function of our expectations. I think Matt is setting the wrong expectation with his comments. What do you think?

Posted Friday, April 4th, 2008 | 25 responses | Add a Comment | Share, Save or Email


Karsten

Hi Eric,

you are so right. I fully agree. “We” consultants have to deal with expectations set too high, and buyers of analytics software still search for the button with the questionmark telling them what they have to do to improve their website. “Now that I have it implemented, why is my conversion rate still so low?” … To set realistic expectations, vendors should ask their prospects how the HR situation is, and tell them that software alone does not do the job. But I doubt this will happen.

Web Analytics is hard, and … the longer I work in the field of web analytics, the harder it gets, as we are facing new technologies (like ajax, rss, …) and new devices (like iPhone and other mobile access) faster than we can adopt measurement technology, KPIs and analysis.

And that is also why I like your blog and your ongoing efforts to “tell the truth” …

Thanks, and keep it up,
Karsten


Jeremy

Eric,

I could not agree with you more. As an HBX client I spend much of my waking hours contemplating when and if our organization migrates to Ominiture’s Site Catalyst Tool. The statements made by Matt about analytics being easy makes me doubt the decision to pull the trigging and migrate to Site Catalyst. I believe Omniture is really setting themselves up to fail if they continue to evangalize how easy analytics is. I have seen Site Catalyst in action and let me tell you it is not easy!!!

Also, as the sole owner of analytic analysis and reporting for my organization I find Matt’s comments insulting. I believe those of us in the field should be very proud to work in an industry that is challenging and forever a moving target.

Keep up the good fight!


eric

Karsten and Jeremy: Thanks for your feedback and encouragement! And thanks to everyone who has been sending similar comments in email.

I hope that we’re soon able to put this issue to rest and agree that on the surface some aspects of our practice are designed to be easy to accomplish, and that early on in our use of web analytics some things can appear to be pretty simple.

But the unfortunate reality (and I think Bryan Eisenberg made this comment in my blog awhile back) is that when we get really engaged and involved in trying to make people, process, and technology work together for the benefit of the business, “easy” is a word that is almost never used.


Jacques Warren

Anyone out there who’s found a $500,000 opportunity on their web site in the last three months, thanks to web analytics, has earned the right to call it “easy”.

The rest should keep sweating…


eric

Jacques: I might misunderstand you. I’ve been doing web analytics a long time too, and I have found countless million dollar opportunities at my clients. In fact, I think ** finding ** big revenue opportunities is quite easy … but making them manifest into real money, that’s the hard part.

Let me tell you a story: When I was a little younger (and had less gray hair) I did a very good analysis for an HBX client in the technology retail sector. They had a fairly obvious problem in their conversion funnel, and using web analytics I was able to easily quantify the value of the leak. I estimated that fixing the leak would net them roughly $1M ** per day **.

My CEO at the time and I traveled to their corporate offices to present this information. I gave what I thought was a very compelling case for making a change; I gave them reams of data, and I even gave them a nice little spreadsheet they could use to make the calculation on their own (thusly changing some of the assumptions.)

The senior executives we presented to said it was very good work. They were a little embarrassed that we were able to find such a large problem so easily. Even with conservative assumptions, this looked like roughly a $300M correction they could make, largely based on good old fashioned web analytics.

Web analytics is easy.

Unfortunately, it took this company well over a year to make the change we recommended. In the meantime, they continued to hemorrhage money through their conversion process. We all sat and watched the money flow to their direct competitors — every day the numbers said the same thing.

When they finally made the change, miracle of miracles the money appeared! But it turned out we were wrong about the $1M per day estimate — we were too conservative and the amount of incremental revenue was even greater.

It took them over a year to discover this. Over a year to make a change estimated to make them an incremental $1M per day. More than 365 days of wasted opportunity.

Web analytics is hard.

If you want to take a simplistic definition of web analytics, as many of those so passionately arguing against me clearly are, then yes: web analytics is easy. If web analytics is little more than ** finding ** problems (not saying you disagree with me Jacques) then yeah, that’s easy. If web analytics is little more than producing pretty graphs in AJAX then yeah, that’s easy. If web analytics is nothing more than getting some code on pages, yes, that is sometimes easy …

But that is not web analytics. Web analytics is a complete discipline (in my opinion) that spans well beyond data collection and amazing wonderfulness of graph production: web analytics is complex, and in that complexity there is a lot that can go profoundly wrong along the way.

Thanks for your comment and as usual I look forward to seeing you in San Francisco!


Jacques Warren

Hi Eric,

Well, I was being sacarstic; you know I share your view about how hard Web analytics is. I have grown quite tired lately with all the discussions about tools, etc.; I think our field is currently running the danger of being perceived as underdelivering.

I think Web managers should really try hard to refocus their attention to finding opportunities right now.

I, too, have witnessed what you’re saying. One of the things that have puzzled me most in the last year is how slow, or ineffective, organisations are with acting on the discoveries our analyses make. It almost defy the purpose of being online. But I guess 500 years of print have created habits, in particular the idea that what is “printed” is permanent.

I would say that one of the biggest challenges of our field in 2008 is to create the necessary processes that will ensure those investments produce spectacular ROI.

I know that is at the heart of what you do, and you know I was quick to detect that WAD’s business proposition is presently amongst the most relevant ones.


eric

Jacques: Oh man, you should have used the <GRIN> tag in your comment! ;-)

I look forward to seeing you in San Francisco and continuing this discussion in real-time. I see we are in heated agreement.

Everyone: I have been getting a ton of really great feedback from many of you via email, especially from Omniture clients and people who have worked directly for Matt Belkin (and apparently still do.) Suffice to say I appreciate the kind feedback and respect your desire to keep your names anonymous.

That said, and this is ** not ** directed at Matt or Omniture, I think if you have a complaint about how your vendor positions themselves in the marketplace, you should voice your complaint directly. I think the vendors actually want to hear these kinds of concerns — and they really need to know how their biggest customers perceive their statements and actions so they can work diligently to improve.

Anyway, I already knew about the “Eric Peterson dartboard” but it’s still funny. Thanks for all your comments!


Steve Jackson

I just had one meeting this morning with a guy running Visual Site (Or Omniture Discover 2 or whatever it’s called now) and he said exactly the same thing.

It was sold so well as a problem solver and yet it’s actually created far more problems. It’s as you say a lack of process and people around the tool which is the problem, not the tool itself.

It’s unfortunate that some sales folks don’t make that clear (not all, but some).


Fernando Mladineo

As one who is new to web analytics and trying to find ways to implement it into my hobbyist sites, I would agree that web analytics is difficult. Granted, my sites were not built to be profit generating, so it’s been a little tricky to create conversion goals.

Having worked with Site Catalyst a few times (Omniture sponsors competitions at my university–BYU), I would say there is a fairly steep learning curve. That said, it is a powerful tool that can provide some very insightful information. The trick is, you need to be willing to invest a significant amount of hours before seeing results.


eric

Steve: I’m sorry to hear that! Obviously I think that Visual Site is a fantastic product, but I agree with you — until there is a more honest and direct conversation about what it takes to be successful with web analytics, companies investing millions in technology and resources run the risk of being disappointed.

Fernando: That is all I’m saying: you need to understand the effort necessary and be willing to spend the time. I’m not saying web analytics is impossible, undoable, or not worth the effort — not at all.

And I agree, all of these applications can provide tremendous knowledge and depth of insight about your visitors — provided you spend the time to learn what you’re doing.

Thanks to both of you for your thoughts!


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John Wyllie

Matt should be glad web analytics is not easy! If it were, I’m sure there would be very little need for his Best Practice Consultancy team at Omniture to exist – as all of Omniture’s clients would be sipping Margaritas on the beach after clocking-off from their “easy” web analytics role at lunchtime.

I think the fact that there is a Best Practices team at Omniture, plus so many Consultants in the market demonstrates just how complex this industry is.


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Soeren Sprogoe

I’ve definately found that the more I work with Web Analytics, the harder it gets.

In the beginning everything was simple, because I didn’t know the complexity of things. Now I know, and I find both the difficulty, but certainly also the opportunties, of web analytics greater than ever!

Man, I wish I was back at the beginning again. What a simple, careless life… Full of opportunity, rainbows and butterflies :-D


michael choe

i agree with matt belkin partially. i don’t think web analytics is as hard as avinash kaushik or eric peterson says. the hard part is defining your business objectives, ‘building a baseline for performance’. implementation of web analytic software may be tedious and time consuming but not necessarily difficult.

my 2 cents.


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Devin

I don’t know why it took me so long to find this article and resulting conversation. Whether “Web Analytics” is hard or easy really just depends on where you draw the line between what is and isn’t “Web Analytics”.

As Eric mentions, if you consider “Web Analytics” to be simply thumbing through the collected data and identifying problems. No, not difficult. If “Web Analytics” includes that plus simply specifying what information needs to be collected to answer specific business questions? Still not terribly bad. However, what about both of the above PLUS following up with your development teams to make sure your tagging recommendations are actually implemented properly? Or, better yet, all of that PLUS getting enough actual buyin and commitment from upper management to USE the results of this analysis to drive change in the company’s site and business if the analysis dictates it to be necessary?

I could continue, but there’s no need. I’m hoping it’s clear from my examples that there is little use in information without action, ideas without implementation, or desire without commitment. Unless the total package exists, all the unbelievably valuable analytics tools and packages won’t do any of our companies any good.


P

[ This email came in more or less anonymously since, based on a simple IP lookup "Patrick Phorin" clearly works at Omniture but when I tried to look him up in the company directory no such person exists. Normally I don't allow anonymous comments but since the author's employment can be verified I suppose that gives the comment enough context. ]

Eric, i think your article is a little off base and the intent was just to make Matt look bad and not address any real issues.

Statements can be taken in many different ways, and this seems to me to be a case where you are mixing the conceptual with practical. Matt seems to be saying that conceptually web analytics is easy, which I think is true. Just like if someone were to say basketball is an easy game all you do it but the ball in the hoop. Obviously the practice of making hoops is really hard, especially when you add in all the possible factors that could stop you. Obviously the practice of succeeding in web analytics involves the consideration of a multitude of factors. To imply that one of the industries best overlooked such a simple consideration of practical factors is pretty ignorant on your part.

As as part of a consulting organization Matt has no incentive to frame Web Analytics as easy, while you do have incentive to frame it as hard. :)


eric

“Patrick”: I appreciate your comment but think that perhaps your loyalty to Matt/Omniture is biasing your thinking. I quote Matt directly: “I’ve met with customers who’ve identified ROI opportunities in 30 seconds from analytics” and “If I can sit with a customer and show them how to derive millions of dollars in value in 2-4 minutes, teaching them to be self-sufficient and repeat this value-based optimization on their own, how can that be complex?”

How are these statements conceptual?

Matt says verbatim “… Omniture Consulting represents one of the largest strategic consultancies for analytics in the world – and if anything, you’d think I would want to say analytics is hard so we could likewise try to benefit from this perceived complexity. But I don’t. Because it’s not.”

Matt is saying unequivocally that he believes that web analytics is not hard and not even complex! By proxy he appears to be saying that anyone who struggles to be successful with web analytics must be doing something wrong.

Really?

Your comment that “as part of a consulting organization Matt has no incentive to frame Web Analytics as easy” is naive. Every Omniture’s employees success is derived from the success of your software sales organization and ultimately your stock price. If Belkin walked around telling customers that “web analytics is hard” how long do you think it would be before Chris Harrington ran him out of Orme?

I’m guessing about 30 seconds … :)

All of the for-fee vendors have every incentive to proclaim “web analytics is easy” because it moves the buying process along. The problem is that most of your customers don’t have an “easy” experience implementing/using/paying for/communicating the value of/etc. your solutions and thusly Matt’s statements create a conundrum for the customer — if Omniture tells me this is supposed to be easy then why am I struggling?

Why indeed?

The truth is obvious to anyone who has actually done this work for a living, which is all the more interesting that you wrote this comment. Especially since I suspect you either work in consulting or PR at Omniture, didn’t it occur to you based on the comments above that arguing this point is getting you nowhere? It’s as if you believe that by digging the hole deeper and deeper you’re somehow going to emerge on the other side — when in fact all you’re doing is digging a deeper hole, perhaps one you cannot even get out of!

My incentive to tell everyone who will listen that “web analytics is hard” is simple: the statement is true. Want to know why I think so? Read this:

http://blog.webanalyticsdemystified.com/weblog/2008/02/web-analytics-is-hard.html

Your basketball analogy is very good and I hope you don’t mind if I use that in my presentations on the subject this Fall. Basketball looks easy … until you actually put the ball on the court and start dribbling. When you do that, your legs get in the way, someone is trying to stop you, and the hoop is a lot farther away than it looks on TV …

In terms of my trying to make Matt look bad and the implication that “one of the industries best” overlooked such a simple consideration is “pretty ignorant on my part” … I guess I would argue that A) based on the email I got from many of Omniture’s biggest customers responding to this post Matt is doing a fine job making himself look bad, B) I suspect I use a slightly different measure of “industries best” than you do, C) nowhere in his posts on the subject did I see evidence of your “simple consideration” and I hate to assume, and D) maybe I am ignorant, but at least I’m willing to sign my name to my work. Are you?

If you’d like to engage in a real debate on the subject please write me directly from your work account. Otherwise thank you for your comments and I wish you all the best.


(another) Patrick

I think this is kind of funny:

My name is Patrick. I’ve posted on your blog before. I love playing basketball and use it as an analogy between basketball and Web Analytics (or SEO or…) every other day. And I think in an earlier comment (underneath another post) I said something similar as this anonymous poster:

That there are skills where you have a high barrier to entry, because simply acquiring that skill is tough (getting a degree, perhaps even a PhD in mathematics) and there are skills that are rather easy to acquire: such as web analytics or shooting a basketball (with the right form).

But just because you know how to shoot a basketball properly (even with perfect form), doesn’t mean you can make 90% of your midrange jump shots in practice. And it sure doesn’t mean you can go to the NBA and hit 3-pointers regularly in a game situation against some of the best defenders in the world.

Running with the right form is also a skill that isn’t very hard to acquire, but that doesn’t mean everybody who knows how to run (with the right technique) can run the 100m dash with the top sprinters in the world. So just because the skill itself isn’t overly difficult to *acquire* doesnt mean it is very easy to become really good at it.

Anyway, sorry for repeating what I’ve said before, I really just felt like saying that this wasn’t the other Patrick who’s posting around WA blogs and the WA forum using basketball as an analogy a lot, too ;-).


eric

Patrick: Yeah, the Omniture guy who (badly) tried to hide his identity fessed up and wrote me a long email which I responded to personally. I guess the notion of a “whois lookup” is new to some people ;-)

I think we argued this in the past, and this is just semantics I suppose, but I just don’t think that the skills you outline (web analytics, shooting a basketball with the right form) are “easy” skills to acquire.

Not being much of a basketball player myself (but a rabid fan to be sure) I can only comment on web analytics. But I think if you look at the kinds of requests for information that are published in the Yahoo! group the more logical conclusion is that web analytics skills are actually pretty hard to acquire. Otherwise, why would there be so many “newbie” questions all the time (which are inspiring a series of RTFM responses from old-timers)?

Perhaps we’ve moved on from debating the definition and use of the term “easy” to debating the definition and use of the term “acquire” …

Either way, the whole debate was more or less over until the guy from Omniture decided to (poorly) defend his boss … c’est la vie!

Thanks for setting the record straight!


Patrick

Hehe, I must admit I probably don’t know enough about web analytics to judge this as well as you. But for SEO (and I think for web analytics, too) I think it is true. Which is why there’s always a debate about “SEO isn’t rocket science”…or is it? Obviously there are more difficult things in the world to learn, but if SEO was as easy as so many people state, then why are they not quitting their day jobs and blasting through the affiliate space? “Umm..well..that’s different! I only said it was easy. Not that umm..”.

But I guess you’re right. I shouldnt have said it was “easy”, I guess. I just meant to say that it wasn’t “rocket science” – whatever rocket science is hehe.


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