Archive for the ‘Analytics’ Category.

Making Search Funnel Reports Actionable

I’ve been messing around with the new Search Funnel Reports in AdWords trying to figure out how to use the data that it provides. Here are a few conclusions that I’ve come to that I think are actionable.

Path Analysis
Under Top Paths in the left hand column, drill down to “keyword path (clicks)” under the dimension drop-down box. This will show you the keywords that people used to click on your ads and how many times that happened before a conversion. Different paths can mean different user behavior which can give you clues on things to change on your landing pages or site. For example:
1. Head Keyword to Tail keyword Paths: Are visitors able to easily find what they are looking for on the site? Maybe improve site browsing and site search would keep them from going back to Google to refine their search.
2. Tail Keyword to Head Keyword Paths: May mean merchandising problems. If you don’t have very much specific product for the keyword, include more general product on the landing page too.
3. Same Term Multiple Times Path: Maybe they are comparing you against other retailers with the same product. Urgency in the offers may help close the sale sooner.
4. Unrelated Terms Path: Is there enough cross selling on the site? – you like Nike shoes, you might also like Nike shirts.

So with these ideas in mind take the top 500 rows of Top Paths and export it into Excel. This is where the manual part starts. What I do is build out the spreadsheet so I have a column for each one of the example paths above, then I look at the path and put a number one in the column that matchs the kind of path (see the image below). Once you go through this and add up the amount of conversions each path has you can get an idea of where the PPC landing pages are strong or weak.

Assisted Conversions
If you want to go out on a limb and try some broader keywords, the search funnel report will help you see if those keywords are helping to get more people started in the conversion funnel. Keywords can be either introducers, influencers or closers. Instead of only giving credit to the last click closing keywords, you can give some credit to the broader introducer and influencer keywords that educated and lead the user to the sale, which is worth something. Using the Assisted Conversion report in AdWords can also help define which keywords fall into the three categories. Keywords that do a lot of assisting should be given credit by building an assisted conversion metric into the CPA calculation like below. The tricky part is deciding how much credit to give those assisting keywords. In my example I gave 30%.

source: http://www.bydatabedriven.com/

The “Action Dashboard” (An Alternative To Crappy Dashboards)

Know the difference between a Reporting Squirrel and a Analysis Ninja?

One is in the business of providing data.

One is in the business of providing, to use a old fashioned word, information.

This one of the core reasons why most dashboards are “crappy”, i.e. they are data pukes that provide little in terms of context and even less in terms of actionable value.

Here are some examples of sub optimal dashboards, sub optimal in my mind from a actionable perspective. . . .

sub optimal dashboard-2

Perhaps the most common type is above. Lots of data, even drill downs included, but you can’t look at it and go: “Wow we need to do . . . “. No sirrie bob you can’t.

sub optimal dashboard-1

I wanted to point the above out purely because of a common feature of 80% of Web Analytics Dashboards, in excel with a billion tabs to look through. This is not a dashboard, it is the result of a massive sum of money paid to a Consultant who is trying to impress you with his / her excel skills – without actually telling you anything.

sub optimal dashboard-3

You are walking down the street. You look at someone from behind and you think “hmmm she’s / he’s pretty”. So you speed up and overtake them and in the process you sneak a glance at them (yes you are married but looking is still ok :) , and you are hugely disappointed. Not pretty. That’s the dashboard above. Very sexy and Web 2.0′fied and a ton of data there, but a lot less actionable than you might have hoped.

Why is this so? All the above efforts are well intentioned, took lots of honest work and probably took months to put together. So why?

Here are some hidden (corrosive) reasons why most dashboards tend to stink when it comes to helping the Executive make any decisions:

  1. They leave the interpretation to the Executive (/ customer / requestor / other Squirrels). This is a fatal flaw because most dashboards are highly aggregated views of any KPI and are missing all the nuance and analysis (that only you as Ms. Ninja have, and you don’t go with dashboard).
  2. Most Executives actually want insights / action recommendations but they don’t trust the Squirrels / Ninjas / VP’s / Data Providers. So they ask for numbers. We dutifully cram as many of them on to a A4 size paper in 3 size font and send it along with a magnifying glass.
  3. Most Squirrels / Ninjas live in a silo. Going out to collect enough tribal knowledge to actually know what is going on to then make recommendations from the data is not something that we do, nor are we encouraged by our Executives or our organization structures. This incentivizes data pukeing.
  4. Often dashboard creators tend to be “outsiders” (Consultants, Experts etc) and they often don’t have deep practitioner experience that would allow them to understand the human / “below the surface” issues like the above three. That leads non-Practitioners to make the common mistakes like creating the above three dashboards.

If you want your Executives / Customers to take action, you have to give them information and not data. It takes effort to get there, it will take all your charms (though no violation of any HR intimacy policies), and it will take some time.

Step one as always is to become aware of the above three problems.

Step two is to get a possible solution from the Occam’s Razor blog. :)

My attempt at solving this problem was to try and attack it from a human psychology perspective: How can I create a “dashboard” that will incent the right behavior from the Squirrels / Ninjas while giving Executives the information they need to make decisions (rather than engaging in a bitchfest which is the typical outcome).

Recommendation #1 was to move to a Critical Few philosophy for Executive reporting: Only report the three or five (at most!) metrics that define success for the whole business. Kill all the ancillary metrics that were nice to know (and my kill I mean let lower levels worry about it).

Recommendation #2 was my humble, admittedly ugly, attempt at a “Action Dashboard”:

executive management dashboard

4Q. (Sorry Jonathan! :)

Each quadrant representing a solution to a human problem that lead to crappy dashboards.
(Apologies for having to redact some of the data above, to protect the innocent.)

Let me walk you through it.

First very up top a clear identification of what the Critical Few metric was, who was responsible for that metric from a business perspective (translate into “head on the line”) and who was responsible for the analysis.

Also note the little red dot. That here indicated trouble. It can have two other colors, yellow for don’t fire anyone yet but get ready and green for send someone a big hug and a box of chocolates. Next. . . .

kpi trend

The first quadrant (the graphic) shows the trend for the metric. Ideally segmented (as is the case here, cart abandonment is illustrated for four key customer segments).

This quadrant is to satiate Executive curiosity that you know what you are doing, it will be glossed over (and that’s good!).

insights from analysis

The second quadrant (Key Trends & Insights) is to add value by interpreting the trends and adding context. It says there that some things are up or down (in english :) , and it also warns which data might be bad etc. You are starting to do your job here.

This quadrant is the one that Executives will read a lot initially, over time they will gain confidence in you, they will love that you share context (hello Ninja!), over time they will gloss over it (a good thing).

action

The third quadrant, clockwise, (Actions / Steps To Take) is force the shy Web Analyst to get out and talk to Marketers, Website Owners, VP’s, Whomever it takes to get all the tribal knowledge, identify root cause for the trends in the metric and recommend solid action to take. The Analyst will rarely be able to do this by themselves. It will require human contact with others, it will require conversations, it will mean identifying solutions collaboratively. It is a fantastic opportunity to become smart about the business.

This quadrant is key to driving action. No longer do you leave things to interpretation or let’s blame people etc. You are recommending what actually needs to get done. Your Executives will kiss you and over time this is the only quadrant they’ll read. It will also mean that monthly meetings will move from bitch fests to deciding who does what. Amen!

impact crater barringer-arizona

The fourth quadrant, (Impact on Company/Customer) exists in case it is not clear to the Executives why they need to take action (listen to poor old you the lowly Analyst). I feel it is the key thing missing from any dashboard, they are normally missing the kick in the rear end and this quadrant delivers it. It is the answer to this question: “As a result of this trend (up or down) what was the impact on the company and its customers”. It also forces you, Marketer / Analyst, to do hard work to estimate the impact and put it on paper.

This is the killer quadrant, if nothing else drives action this will, knowing exactly how much money was lost, how many customers were pissed, how much opportunity was wasted. Now when they ignore you they do that at their own peril and with their butt on the line. Trust me action you recommend will be taken.

See how simple it is?

You fix the human problems, you address the flaws in the system today and you actually become much smarter about the whole business (thanks to q3 and q4).

Win – win – win.

Over time you’ll gain a lot more trust from your Executives and all the crappy dashboards can die and be replaced with one that looks like this one. . . .

executive management dashboard-nirvana

Now you are asking your Executives to simply layer their own judgment on the recommendations and help the company take action. Who needs to see the numbers? They pay you and I to deliver actionable insights.

I stress that it won’t happen overnight, but shoot for that nirvana state.

May the force be with you.

Ok now your turn. Care to share your own learnings and battle scars? Your success stories? Perhaps critique my “Action Dashboard” (sorry could not think of a better name, do you have suggestions?). Your perspectives are most welcome and would be greatly appreciated. Thank you.

PS:
Couple other related posts you might find interesting:

source: http://www.kaushik.net/avinash/2008/04/the-action-dashboard-an-alternative-to-crappy-dashboards.html

Real Value of Web Analytics

OK, I’m going to go out on a limb here and say something that might not make sense at first: the most important outcome of successful web analytics (or SEO effort or landing page testing, etc.) is not a better web site. The most important outcome is a better, more functional company.

Let’s pause from the execution side of analytics this week to focus on something a lot more important. Yes, web analytics can identify a host of issues with usability, marketing, technology, information architecture, etc., and fixing these things leads to improvement in volume of visits, exposure to new visitors, increased conversion rates, increased revenue, increased profits, and on and on. These are wonderful, almost magical things. But they all completely pale in comparison to what small improvements in operational efficiency can mean to an organization. In simple terms, it is stupendous to know what your business needs to do next, but it is so much more important to take notes when your company tries (and sometimes struggles) to get it done.

Now I should probably take a small step back and say that the impact of this idea scales with the size and complexity of an organization. To say that the best outcome of web analytics on a blog is an increase in operational efficiency is crazy. Unless, of course, the writer frequently gets into arguments with himself and defends his own bad decisions. But beyond a very small operation, nearly every company doing business online has significant operational issues, and thus, significant dampening to their upside.

Think about analytics in your own company for a moment. Let’s say you’re a crack analyst (or SEO, or paid search marketer, or whatever) and you figure out a few things you think will really move the needle, or that are broken and are harming conversion. It is not unheard of for an update to a home page, a change to a form, a new small feature release, or even a repair of a broken image or link to take two weeks, a month, a quarter, even six months. And let’s say that the upside of fixing one of these things is a +0.1% increase in your conversion rate (which, let’s say, is already 2%). The day you fix the issue, you are making 5% more per visit. That is huge. But what sucks is that you didn’t have that 5% for six whole months. You might not realize it, but that may have cost you millions (or scale to something that sounds scary to your own business).

The problem with the operational issues a company experiences is that they limit literally everything, and they are almost all preventable or can be significantly improved. They don’t just hold back that 5% upside. They hold back the next project and its upside. The backlog of work means hiring more people, which means greater overhead, more process, and more complexity. And the endless meetings to bring everyone and their dog into each decision means that people aren’t free to think and innovate around new opportunities. Whatever Linchpins you do have are snapped.

What you can do

The approach depends largely on who the “you” is, but here’s the gist of it:

The first step is admitting you have a problem (don’t worry, this isn’t a 12-step program). Without placing blame, the organization has to realize that it can be a whole lot better than it is today.

The second step is creating overlap. On the web, specialization can be a big problem when web sites are built on assembly lines (product to UX to design to IT…) and people protect the borders of their particular discipline. People are going to have to learn to trust one another so small issues can be corrected without assembling the whole village. And to build that trust, people need to learn how to do a few things beyond what they’re doing today.

There are plenty of .NET developers in the world who can make something pretty. There are plenty of usability designers who can write good PHP. Overly-specialized people actually work against each other because they can ignore the context of their work. If you have a company full of single-purpose employees, you may need to rethink your strategy. And this overlap allows you to…

Get small (or act small). As small as possible. Break up into groups where you can go from brainstorm to prototype in a couple days. Let the IT guy draw a picture. Let the design guy ask questions about the code. For some organizations, this is going to be very hard, but I’ve seen big companies do it and it’s amazing.

Remember that there is such a thing as too fast. The student who does best wrote her essay a week before it was due and had time to think about it. The one who did worst was the one who stayed up writing all night before it was due. But the good student’s paper would have sucked just as much if she turned in her work immediately without that week of thought. Get done quickly, but let things marinate before you make them final.

So use your analytics, SEO, PPC and other awesome skills to come up with ways to make your site a conversion machine, but pay close attention to why it takes you so long to get there. Will the above approach work for everyone? Probably not. But the first of your competitors who gets it done is going to mop the floors with you. History has shown us that companies that can be efficient and work in concert make a mockery of those who can’t.

More ideas on taking this approach and getting well-rounded:

I’d love to link to something Seth Godin wrote, but he focuses a lot on how being a generalist isn’t a good thing. I don’t believe that he always means that literally (I think he would endorse this approach), so if you know him, ask him!

source: http://searchengineland.com/the-real-value-of-web-analytics-40016

Turning Web Analytics into Strategy

We have more web metrics and data than there are stars in the universe (slight exaggeration!).

Yet we stink at informing decisions. Our reports are ignored. Sites & online marketing continue to suck.

A large part of the reason is that a large part of our job seems to consist of glorified data puking, hoping someone will be impressed. After all there is so much data in those reports!! #fail

This blog post encourages you see the forest, the much hyped big picture, and shares a framework that will help you ensure that every single moment of your day is spent on activity that will be:

    1. of value to your organization, hence appreciated and acted upon

    2. has a clear line of sight to the one thing that matters: profit

If you don’t want your professional life to be frittered away then please come along this short journey.

First some context…

If you have seen one of my keynotes recently then you have heard my near evangelical fervor when it comes to trying to convince you to compute Economic Value.

If you have Web Analytics 2.0 then you already know who much attention is paid to this concept in the book (jump to page 159 for how to compute it for your website).

soccer match win plan

The reason for this emphasis is to help fix our miserable failure at at creating data driven organizations.

To steal your energy away from being just in the report / data production business.

To encourage you to do better than spend a lifetime implementing analytics tools, building data warehouses, chasing the next shiny object.

My recommendation has been:

1. Identify your Macro Conversion (focus on this a lot!).

2. Report revenue. Report like crazy on the 2% conversion rate.

3. Identify your Micro Conversions.

4. Compute the Economic Value (see page 159). Show your bosses and HiPPO’s the complete value of your website.

That last one will get any organization to sit up and pay attention.

Why?

Because for the first time in their young and passionate life they’ll see the complete value your website is adding to the business. And because my dear it will be a huge number that no one can ignore! You are going to tie your work to the bottom line!

Revenue = Good. Economic Value = God! [Also slight exaggeration :) ]

Professor Ken Wong’s Magic Potion

Prof. Wong is the award winning Commerce ‘77 Teaching Fellow in Marketing at Queen’s School of Business (and an awesome speaker, you should hire him for your next event!).

He took the stage after my talk and said, I am paraphrasing here, “Avinash did not go far enough in his keynote. Economic value is important but the only thing that matters is Profit!”

That was awesome!

One of Prof. Wong’s key points was how the success of our work, as Marketers, is measured based on a lot of things but not often enough based on perhaps the most important metric of them all: Net Income.

Prof. Wong covered a lot of key points (as a MBA with a minor in Marketing I wanted to take off my clothes and jump for joy when he said the 4P’s of Marketing are killing Marketing!).

I wanted to share two of his slides that left a lasting impression on me.

They are particularly applicable in the web analytics context. In sharing my interpretation of them my hope is it will change a little bit how you think about your work and success.

The very first slide, “Profit: The Ultimate Client Need”, shares the key elements that need to function for the outcome (ROI) that causes companies to remain in business.

ken wong roi flow chart

My interpretative points.

Net Income is driven by two important variables:

Unit Margins (how much you make on each X you sell or Y service you provide)

Unit Volumes (how many of X or Y you sell)

Margin times Volume gives you the golden metric Net Income!

[Keep this formula in mind, your life should be revolving around it else you are wasting everyone's time.]

Peel the onion back one more.

Unit Margins is in turn driven by two more variables:

Price (how much you charge for X product or Y service)

Cost (how much it costs you to make X or provide Y)

Price minus Cost equals Unit Margins.

Get it?

So if you want to have very high Margins you have two variables you can control. You can charge lots for your product or service (think of a Vertu phone).

You can also make it at the cheapest possible cost (no phone costs $100k, you make it for $300 and sell it for $100k).

You can of course also charge lots and lots and it costs you a lot to produce (think of a Tesla car). But give some thought to how you’ll stay in business.

Continuing the onion peeling…

Unit Volumes, our other variable to have high Net Income, is driven by two variables:

Market Share (is your share 90% or 5%?)

Market Size (is that share of a market the size of Maldives or China?)

Both share and size are important.

You’ll sell lots of X or Y if you have a high market share and the limit you’ll hit is the size of the market (you can then play in the current size or grow the pie).

Line of Sight

Line of Sight.

Having a clear line of sight means that you are able to map every metric you report on (or better still torture with segmented analysis to find insights) every single day directly to the strategic objective of the company.

Prof. Wong is suggesting, rightly so, that that strategic objective is Net Income.

And you have only one of four things that you’ll move through actions your company takes: Price. Cost. Market Share. Market Size.

Here’s my crystallizing question for you. . . .

When you report the metric Page Views Per Visit which of the four are you solving for?

How about with Bounce Rate? Or Time on Site? Or % of New Visits? Or Visitor Loyalty? Or…..

Is there a direct line of sight between what you as a Marketer are being incented on, or you as an Analyst are spending time analyzing?

If not, are you surprised that no one loves you? Sorry… I mean… no one loves your work?

Here is a simple exercise you could go through: Pick out all the metrics you are reporting today (on your dashboards and top reports). Try to put them into one of the four important buckets from Prof. Wong’s slide.

The clear line of sight exercise. . . .

web metrics line of sight framework

Were you able to cleanly bucket all metrics you currently report? Time on Site and Conversion Rate and Task Completion Rate and % Internal Site Search Exits and Cart Abandonment Rate and % of the Page Scrolled and % of Visitors Refreshing Pages and all the other sweet things.

Some of the metrics in the above paragraph are complete crap, you are wasting your time and everyone else’s time with them. And you’ll now discover that very quickly because you won’t have a place where you can bucket them.

Other metrics will make you think harder. Where do you bucket Conversion Rate? Are you impacting Price or Cost?

What about Customer Satisfaction? Or Page Rank!

Not every metric will map cleanly, and that is ok. I had to think really really hard to bucket each of my metric in the above picture. Some of the metrics were controversial. But bucket I did.

If it turns out your web metric has no line of site then it might be time to kill.

If the work you do can’t be mapped into Price, Cost, Market Share or Market Size then why are you doing it?

Before you dip your hands into Omniture or WebTrends or Surfaid, :) , answer that question.

I know it seems like a lot of work for a “lowly” Analyst to do. It is. But without it there is little hope for your personal success (promotions / bonuses) or your company’s success (higher Net Income).

“What Matters Most” Fishbone Analysis

As you look at the picture above it is amply clear that the metrics I have chosen in each of the four buckets are perhaps unique to me/my business.

The reason is simple… they are a reflection of the strategy my company is currently executing, i.e. our “world domination via an effective data driven online marketing plan”.

This simple truth, that metrics should reflect current business strategy, is the reason I loved another slide from Prof. Wong’s presentation.

It leveraged the same framework, but added “what matters most”. . .

marketing what matters most sm

[Click on the image above for a higher resolution version.]

The focus is still on Net Income driven by, hopefully, improved Margins and Volume which in turn are driven by much beloved 4 levers of Price, Cost, Share and Size.

What is awesome about the “fish bone” above is that it drills down to the 14 specific strategies that most businesses will use to become great (or simply survive).

You Ms. Web Analyst now have a framework you can take to your Marketing Directors and CMO’s to discuss which of the 14 strategies they are currently executing to drive the 4 beloved levers.

Ask any Web Analytics “Guru” or “Professional Speaker” or “I am so important you are paying me $5,000 an hour to give you generic advice Consultant” and they will always tell you that all good journeys in web analytics start with asking your bosses this question: What are the goals of the organization?

The advice is sound (and well worth $5k/hr). The problem is that we never get an answer from the customers of our data / our management. You are $5k x 8 hrs short and still none the wiser.

Get off the slow train to nowhere…. You now have a new BFF: Prof. Wong’s “What Matters Most” slide!

Don’t ask the generic “What are the goals” question. Ask “Of these 14 specific strategies which are we currently executing”.

Once they tell you which ones (be patient, it might shock them that you are giving them something tough and specific to think about), you’ll be in business.

The 5 strategies they pick from the right-most column will help guide you in terms of picking the right Key Performance Indicators / Web Success Metrics for your business.

And you know why a win now is guaranteed?

Because each metric you identify starts with a specific business strategy which has a direct line of sight to the 4 beloved levers which will have a impact on Net Income!!!

Minorly orgasmic right? [Trust me, you do this and you'll agree. :) ]

Summary:

Recommendation #1: The Web Analytics Maturity Mandate!

For far too long we have been like toddlers… bumping into things, having a limited vision, working just what we know (which is little).

What I love about this approach is that it forces us to grow up. It forces us to understand what we are solving for: Net Income. It forces us to have a line of sight between our work and the ultimate goal: Net Income. It forces us to not live in our dungeon but rather take a well defined framework to enable the discussion that will yield wins all around.

No lip service to how important process is. This blog post shares what you specifically must do to succeed!

industrial evolution

Recommendation #2: Win With Web Metrics: Steps

Here are the specific steps I recommend you follow for optimal execution of the recommendations.

Step 1: Learn Finance 101 and the terms outlined in the slide titled “Profit The Ultimate Client Need“.

Step 2: Don’t pick any metrics, don’t run reports, resist the charms of Google Analytics, Omniture Discover2 etc.

Step 3: Meet with your Management team (or the senior most Marketing person) and identify which strategies outlined in “What Matter’s Most” the company is executing (/wants to execute).

Step 4: For each strategy identified in step 3 identify the Web Metrics / KPI’s with a clear line of sight to the 4 beloved levers.

Step 5: Use the Web Analytics Measurement Framework as the foundation of all your reporting.

Step 6: Spend you work day on focused segmented analysis to identify actionable insights you can report using the Web Analytics Measurement Framework that will help drive data driven actions on “What Matters Most” so that your company will improve in the one thing that matters: Net Income.

Step 7: The happiness you’ll get from leading a meaningful professional life will make you irresistible to the opposite sex which in turn will lead to happiness in your personal life! Enjoy it.

A simple but effective 7 step process.

:)

Good luck.

Ok now it’s your turn.

Do you agree that a focus on Net Income and a focus on “what matters most” is key to success in web analytics? Can Web Analytics tie the work they do, the metrics they report, into Price, Volume, Market Share & Market Size? Or is our work simply not that important? In your job today how do you ensure line of site? Will you change anything based on the recommendations from Prof. Wong?

Please share your feedback / critique / ideas.

Thanks.

[UPDATE]

Zach Olsen, who blogs at By Data Be Driven, has taken the Clear Line of Sight framework outlined in this post and applied it to a medium sized eCommerce website. It is so wonderful, take a look:

zach olsen web analtyics framework sm

[Click on the image above for a higher resolution version.]

Zach’s effort is awesome for these key reasons:

  • Really clear line of sight from Business Objective to Net Income.
  • Clean flow from What Matters Most to 4 beloved levers (Price, Cost, Share, Size).
  • (This one I love the most…) Identifying of Targets for each metric! You can’t be serious about Web Analytics without doing this!

I hope you are as impressed by Zach’s effort as I was.

He has also done something sweet for all of us… he has created a excel spreadsheet that you can download and customize for yourself, and hence get a jumpstart! You can download it at this blog, bottom of this post: Web Analytics Framework Example. Please download it!

My thanks to Zach for his effort and for his permission to share it here.

[/UPDATE]

PS:
Couple other related posts you might find interesting:

source: http://www.kaushik.net/avinash/2010/06/win-web-metrics-line-sight-net-income.html

The Real Value Of Web Analytics

OK, I’m going to go out on a limb here and say something that might not make sense at first: the most important outcome of successful web analytics (or SEO effort or landing page testing, etc.) is not a better web site. The most important outcome is a better, more functional company.

Let’s pause from the execution side of analytics this week to focus on something a lot more important. Yes, web analytics can identify a host of issues with usability, marketing, technology, information architecture, etc., and fixing these things leads to improvement in volume of visits, exposure to new visitors, increased conversion rates, increased revenue, increased profits, and on and on. These are wonderful, almost magical things. But they all completely pale in comparison to what small improvements in operational efficiency can mean to an organization. In simple terms, it is stupendous to know what your business needs to do next, but it is so much more important to take notes when your company tries (and sometimes struggles) to get it done.

Now I should probably take a small step back and say that the impact of this idea scales with the size and complexity of an organization. To say that the best outcome of web analytics on a blog is an increase in operational efficiency is crazy. Unless, of course, the writer frequently gets into arguments with himself and defends his own bad decisions. But beyond a very small operation, nearly every company doing business online has significant operational issues, and thus, significant dampening to their upside.

Think about analytics in your own company for a moment. Let’s say you’re a crack analyst (or SEO, or paid search marketer, or whatever) and you figure out a few things you think will really move the needle, or that are broken and are harming conversion. It is not unheard of for an update to a home page, a change to a form, a new small feature release, or even a repair of a broken image or link to take two weeks, a month, a quarter, even six months. And let’s say that the upside of fixing one of these things is a +0.1% increase in your conversion rate (which, let’s say, is already 2%). The day you fix the issue, you are making 5% more per visit. That is huge. But what sucks is that you didn’t have that 5% for six whole months. You might not realize it, but that may have cost you millions (or scale to something that sounds scary to your own business).

The problem with the operational issues a company experiences is that they limit literally everything, and they are almost all preventable or can be significantly improved. They don’t just hold back that 5% upside. They hold back the next project and its upside. The backlog of work means hiring more people, which means greater overhead, more process, and more complexity. And the endless meetings to bring everyone and their dog into each decision means that people aren’t free to think and innovate around new opportunities. Whatever Linchpins you do have are snapped.

What you can do

The approach depends largely on who the “you” is, but here’s the gist of it:

The first step is admitting you have a problem (don’t worry, this isn’t a 12-step program). Without placing blame, the organization has to realize that it can be a whole lot better than it is today.

The second step is creating overlap. On the web, specialization can be a big problem when web sites are built on assembly lines (product to UX to design to IT…) and people protect the borders of their particular discipline. People are going to have to learn to trust one another so small issues can be corrected without assembling the whole village. And to build that trust, people need to learn how to do a few things beyond what they’re doing today.

There are plenty of .NET developers in the world who can make something pretty. There are plenty of usability designers who can write good PHP. Overly-specialized people actually work against each other because they can ignore the context of their work. If you have a company full of single-purpose employees, you may need to rethink your strategy. And this overlap allows you to…

Get small (or act small). As small as possible. Break up into groups where you can go from brainstorm to prototype in a couple days. Let the IT guy draw a picture. Let the design guy ask questions about the code. For some organizations, this is going to be very hard, but I’ve seen big companies do it and it’s amazing.

Remember that there is such a thing as too fast. The student who does best wrote her essay a week before it was due and had time to think about it. The one who did worst was the one who stayed up writing all night before it was due. But the good student’s paper would have sucked just as much if she turned in her work immediately without that week of thought. Get done quickly, but let things marinate before you make them final.

So use your analytics, SEO, PPC and other awesome skills to come up with ways to make your site a conversion machine, but pay close attention to why it takes you so long to get there. Will the above approach work for everyone? Probably not. But the first of your competitors who gets it done is going to mop the floors with you. History has shown us that companies that can be efficient and work in concert make a mockery of those who can’t.

More ideas on taking this approach and getting well-rounded:

I’d love to link to something Seth Godin wrote, but he focuses a lot on how being a generalist isn’t a good thing. I don’t believe that he always means that literally (I think he would endorse this approach), so if you know him, ask him!

source: http://searchengineland.com/the-real-value-of-web-analytics-40016