Your analysis should tell you everything.
Tools like Google Analytics are incredibly valuable to businesses. Once you’re set up, you have everything you need to properly analyze your performance data. Instead, many companies have realized that their analytics tools have created many unexpected problems.
They are not getting the value they need.
That’s the good news. Most companies think their data is clean. that they will make good decisions with the data they have. Most of these companies are wrong; they just don’t know yet. For this reason, companies need analytical advice. They don’t know what they don’t know.
Today I’ll show you how to find the right analytics consultant for your company.
4 Ways An Analytics Consultant Can Help Your Business Grow
Many companies make incorrect assumptions. With a tool like Google Analytics, customers just need to put the tracking code on their websites, log into their account and start analyzing their data. It sounds easy, but often it isn’t.
There’s more to it than that.
This is why you need an analytics advisor. With the right consultant, you will have the education you need to grow your business. There are several methods you can use to extract insights from your data. Each of these strategies are important as they will cumulatively affect your business.
Here are four ways you can use Analytics Consulting to grow your business.
1. Eliminate spam traffic via bots, scrapers and spiders
How much traffic is coming from real visitors? How much of that comes from bots, scrapers, and spiders? According to Imperva, almost half of all internet traffic is non-human. In 2014, Google introduced an obscure setting that allows you to filter out bots and spiders that are on IAB’s list of interactive spiders and bots. That reluctant attitude is buried in Google Analytics, but it’s incredibly important. Many small businesses are not yet aware of this attitude.
They also need help filtering out referral spam.
Referral spam is basically fake website hits. These bots, scrapers, and spiders land on your website. Website owners send their spam to your website. They hope you see these links in your Google Analytics account, click through and visit their website.
This junk traffic poisons your data.
It gives you incorrect readings based on inaccurate data. Your website may be more or less profitable depending on your visit to spam ratio on your website. This is not something that many companies look for in their analytical reports.
A good analytics consultant will consistently filter the variations in spam traffic (e.g. direct spam traffic, referral spam traffic, etc.) from your reports so that you can get a clear picture of your marketing performance.
2. Help analyze your data properly
Many companies don’t know how to properly analyze their data. According to Forrester, between 60 and 73 percent of a company’s analytics data is not used. Companies collect a lot of data about customer activity, but don’t use it. Why?
There are many reasons.
- Companies don’t know what they have
- Companies don’t realize the value of their data
- They don’t know how to evaluate or analyze their data
- Your data is not available to those who can use it
- There is too much data to go through and not enough time to use
Think about it.
Your company currently has valuable data on your customers. With this data, you can acquire more customers, reduce costs, grow faster, be one step ahead of the competition, and more.
If you don’t know the data, you can’t use it.
A good analytics advisor will help you analyze your data properly and show you what you have and how you can use it to grow your business.
3. Identify the list of problems that you want to fix
Your data isn’t that valuable without context.
When you know the problem you’re trying to solve, you have a pretty good idea of the answers you’re looking for in your data.
But that’s the problem.
Many companies treat their analytics tools as a technology problem. They focus their attention on obvious problems like hardware or software. They rarely treat their analysis as a question and answer tool. But that is exactly what it is.
Target got the right idea when they started their analysis with a problem / question.
Do you remember the story
“If we wanted to find out if a customer was pregnant even if she didn’t want us to know, can you do that?” It’s a creepy story that shows the power of questions and problems. A great analytics advisor will help you identify the problems you want to solve and the questions that need answering.
4. Focus on the metrics that explain why
Analytics tells you what happened – what visitors did when they arrived on your website, what ads they responded to, what they read the most, etc. It doesn’t tell you why visitors are doing the things they do . Understand what is important, but more importantly understand why something is happening.
Focusing on the right metrics is the answer.
The right analytics advisor will help you answer the “what” – basically in the rearview mirror. But they also help you look ahead. They’ll dig deeper and show you the why behind visitor and customer behavior.
Your analytics consultant should provide you with the training and support you need to get more value from your data.
Get started with an analytics consultant
Avinash Kaushik has a three tier framework that he uses to help analytics consultants support their clients. He calls it data collection. Data reporting. Data analysis. The nice thing about this framework is that it is easy for both clients and consultants.
Consultants can use any of these buckets to analyze your goals and the results they want to get from each of these buckets.
With this framework, you are basically setting goals.
Here’s a closer look at each of these three buckets and the goals for each of those buckets.
- Data acquisition: Work in this area focuses on auditing or updating data collection methods (e.g. updating, editing, or customizing tags). This step is especially important as it determines the quality of what comes after. When you’ve done a good job with your data collection methods, you’ll have accurate data and reports to use for your analysis.
- Data reporting: Your advisor will prepare the reports you need at the required intervals. Your consultants will help you identify the reports you need and provide you with the reports you will need on a regular basis.
- Data analysis: This is what Avinash calls a perpetual assignment, but which you have made available to your advisor. You ask them to answer certain questions for you. Your advisor should be able to show you what to measure, what your data is telling you, what to do based on your data, and why you should be doing it.
That is what this means for you.
You want to find an analytics consultant or agency that can do all three of the steps in this framework. It also means that you have a clear idea in advance of the problems you are dealing with.
Measuring the ROI of Analytics Consulting Services
Many companies don’t understand analytics.
If you don’t understand analytics, that’s fine. You just need to know if you are getting a return on your analytics investment. According to Nucleus Research, Analytics delivers $ 13.01 for every $ 1 invested.
Your advisor should be able to calculate your return on analytics investment.
Of course, this is much easier if your advisor focuses on the data analysis bucket. For example, let’s say you’ve made several data-driven improvements to your website within three to six months. Your recommendations have resulted in an increase in sales, profits, or return on investment for you. You should be able to check your return on investment using the worksheet linked above.
The good news is that analytics, as a discipline, is data-driven.
Checklist for finding the right analytics consultant
Choosing the right analytics consultant requires very different skills. When working with an independent research advisor, you need to approach it in two ways.
- Choose a consultant with all of the skills required for all three areas (data collection, reporting, analysis).
- Choose an agency with analysts and implementation specialists to get the results you want.
Here is a list of the skills required for each of the three roles in your buckets. Avinash describes these skills in detail in its Web Analytics Consulting Framework Post.
Here is a quick summary.
- For the data collection bucket Your consultant should have the skills of an implementation specialist. You have experience with tag managers. You understand data dimensioning and knowledge of tracking variables.
- With the data reporting bucket Your advisor should be familiar with reporting on your analytics platform. They should also have a master list of the custom reports you will need for various options. It is also ideal if your advisor has knowledge of their own customizations.
- For the data analysis bucket Your advisor should be a web analyst. Your advisor should be familiar with advanced statistics and analysis techniques. You should have experience in descriptive, diagnostic, predictive and prescriptive analytics.
If you are working with an independent consultant, they should be an industry veteran with the skills listed above. When working with an agency, they should have people with the skills for any bucket. When you have implementation specialists, you can take care of data collection and possibly reporting.
Just make sure they are suitable for this role.
Many companies are unfamiliar with analytics consulting. You are not entirely sure how analytics will affect your organization. That’s okay as long as the ROI is there.
With a tool like Google Analytics, many companies assume that all they have to do is adjust the tracking code, place it on their websites, log into their account and start analyzing their data. It should be that simple, but it isn’t.
There’s more to it than that.
Most companies don’t use their analytics, collect a lot of customer activity data, but don’t know how to get the value out of their data. With the help of analytics advice, you can properly evaluate your performance data. Pick the right team and your data will tell you what you need to know.