In the video “The Art of Data Visualization“, Josh Smith is quoted as saying, “Data is just a clue to the end truth.” This motto also applies to the world of marketing and its usage of data.
Avinash Kaushik, the co-Founder of Market Motive Inc and the Digital Marketing Evangelist for Google, defined his “trinity strategy” of Analytics as Experience, Behavior, and Outcomes. When developing “Web Analytics 2.0,”, he took this concept further. What Kaushik realized is that data should lead to meaningful action.
This shift of mindset leads to not merely data reporting, but to actionable insights as a way to create strategies and competitive advantage. The idea for WebAnalytics 2.0 is to focus on the “why.”
The paradigm of WebAnalytics 2.0
Kaushik then came up with a new approach that aligns with the quote from Josh Smith.
The first item is Clickstream Analysis or behavior analysis, that focus on the “what,” all the foundational data on analytics tools.
The second concept is Outcome Analysis, understanding the reasoning behind the data, the “how much.” Outcomes mean connecting customer behavior to the bottom line of the business. According to Kaushik, a website aims to delivery three types of outcomes: increase revenue; reduce cost; improve customer satisfaction/ loyalty.
The third and fourth elements are Experimentation and Testing, and The Voice of the Customer, which bring the Why. Performing tests and listening to the customer through surveys can create an immense competitive advantage and make your data conclusions more robust.
The last element is Competitive Intelligence or the “what else,” data that shows you how you perform against competitors.
All these elements together will lead to the Insights that will represent the “end truth” from data.
Avinash Kaushik explores these elements in the book “Web Analytics 2.0”. While some of the examples and tools he presents are outdated — the book is from 2010 — the concepts presented have resisted the test of time and remain incredibly relevant.
Occam’s Razor, Avinash Kaushik’s blog.