Digital analytics is all about using data to drive change. But the data needs to be relevant to your business.
To get the most benefit from analytics you need to tailor the implementation to your needs. In this lesson
we’ll talk about how to create an analytics measurement plan that is specific to your business.
Good data is the foundation for making smart decisions. Managing and implementing infrastructure for this
data may require some time and effort, people, processes and technology. The larger your business, the
more involved this can be.
Let’s talk about the skills you need on your analytics team. You need someone who understands what the
business objectives are and the strategies used to support those objectives. You also need someone who
understands what analytics can do. Finally, you need someone with technical skills who can implement an
If your organization is large, you may need an analytics team that can support different business units. If
you have a small business, your measurement plan will be simpler, and you may be able to fill all these
needs on your own.
Once you’ve organized the right people to be involved with the planning conversation, decide what you need
to measure. Start with a measurement plan which identifies your business objectives.
The next step is to understand your technical environment by documenting your technical infrastructure. In
this stage you will be asking your team questions like:
● “What are our server technologies?
● “Are we active on mobile?”
● “Are we using responsive design?”
● “Do the technologies we’re using make it possible to track everything we need to track?”
One of the most important concepts in digital analytics is the idea of macro and micro conversions. A macro conversion occurs when someone completes an action that’s important to your business. For example, if you’re an ecommerce company, the most important macro conversion is usually a transaction.
A micro conversion is also an important action, but it does not immediately contribute to your bottom line.
It’s usually an indicator that a user is moving towards a macro conversion. It’s important to measure micro conversions because it helps you better understand where people are in on the journey to conversion.
Many times, when we talk about macro and micro conversions we discuss the idea of attribution. Simply put, attribution is assigning credit for a conversion. We want to assign credit to our marketing channels in order to understand the return on our marketing investment for each channel. If we spend $100 on a marketing activity our hope is that we will generate more than $100 in revenue.
The most common type of attribution is called lastclick attribution. “Lastclick” means that all of the value associated with the conversion is assigned to the last marketing activity that generated the revenue. The last marketing activity gets all the credit.