A common theme at many of our clients is the failure to get any real insight from web and other analytics. All too often we find only the most basic analytics in use. We also find that few people pay attention to the analytics. In addition, no one has thought about what value they really want to get from a site or channel and then to ask how to measure that value. It’s a tough nut to crack without proper investment and a true champion.
That’s why I like this article from McKinsey on Raising Return on Analytics. Yes, they focus on the insurance industry but their three key points are relevant to any company. Here’s my favorite quote:
One insurer found a way to prioritize analytics investments and align them with strategy. After an annual strategy refresh, the CEO asked each business unit to define and prioritize analytics use cases. With these priorities in hand, the senior team created a five-year analytics road map, focusing on investments with a potential for at least 250 percent annual return on investment in steady state. This clear articulation of the value at stake and investment rationales ensured that all analytics work was aligned with the organization’s strategic goals.
I love this because reports of any kind should answer the question on where you are getting value as it aligns to your strategy. It should point out issues that you can address and areas in which you can improve. But the key is to ask what value you want from your strategy in that business or channel.
Bottom Line
Yes you should invest in analytics. If you manage front end channels of any kind, that investment should include some deep thought on your strategy and how your analytics answers questions on how you perform to that strategy. I suspect that as you answer those types of questions, it will be easy to prove success and to make a case for additional investment.
