Occam's Razor by Avinash Kaushik

The new year is such a wonderful time. Wonderful smells in the air. The world is full of hope. Unachievable things seem achievable and are being polished into shiny resolutions. World peace seems within grasp.

As we spring to action full of passion I wanted to share with you all a short list of things that will expand your little world of online marketing & web analytics.

We all have a tendency of getting caught in a rut, using the same tool to do the same things and spew forth the same data. Change is hard, even if we know that we should be executing a multiplicity strategy to win in the web analytics 2.0 world.

Before all the excitement of the new year wears out, here are five simple things I would love for you to try so that your company will have a glorious truly data driven 2010!

#1: Don't suck.

Seems obvious. And yet in our quest for ever more hard problems to solve we forget that the number one goal of every website is not to suck. Especially at the really simple and basic things.

At a recent conference there were three keynotes.

One was extolling the wonderfulness of their multi channel campaign tracking. When I went to their website it was a 100% flash website with a constrained small size where it took too much looking to click on anything and then too much scrolling to read anything and unclear calls to actions (if any). That's sucking. No amount of great multi channel tracking will save this company, they suck at the basics.

The second was about predictive analytics and how using massive integrations between online and offline databases they had accomplished some really cool reporting of data (and make no doubt the IT work done over 18 months to accomplish this was cool). Their home page is a mess. 24% of the content covers what any visitor might want, rest is the company shouting at you (in many annoying ways). That's sucking.

The third was about how to create data driven cultures and how this person had created a impressively big cross functional team across multiple countries and standardized on Omniture after a lot of work over two and half years. I did a search on some of their products and they did not have page one search listings (on Google or Bing) for what should be their head terms. (That's sucking.) They did have PPC ads, which I click on the ad for specific product they land me on generic nonsense pages. That's sucking.

I share these stories to illustrate vividly how we in the web analytics world get lost in our data and Omniture and Google Analytics and reporting and lose sight of the the basics and the customer experience.

It is important to realize that if you suck nothing else matters. Not your api driven integrated massively multi channel attribution analyzed campaign lifetime databases. That is not going to save you or your company.

Before you attempt the hard make sure that you do all the standard stuff to ensure your company has a fighting chance to win.

Here are some tips to inspire you:

• I LOVE looking at the bounce rates for the top 20 landing / entry pages to the site. Find the losers, fix 'em. These guys are so bad they could not even get one click from the visitors.

• Sit down with the owner of the top ten pages to the site and look at them. I mean really look at them and ask this question: "What the heck are we trying to do with each page?" Make sure there is a clear answer (and a match between Customer Intent and Webpage Purpose).

• Check the load time of your important pages. Use something simple like: www.WebSiteOptimization.com Or whatever complicated tool you have.

• Sign up for your websites campaigns using your personal email address. See how the emails look. Relevant? Personal? Click on the links, what to you see on the landing pages? Fix!

• Create a funnel for your cart / checkout / lead submission process. Find the biggest abandonment page. Fix it.

• Ask your Finance department where most money is being spent on the web. PPC? Affiliate? Display? What? Take a week to segment that data and find out how to save 10% of the cost.

• Count the number of links on your main pages. I mean count them. There are 98 links on a travel site I am looking at right now, on the page for a hotel in Chicago. 98! This is a top site.

  What are the analytics people doing if they are not helping the product page owner figure out how to kill atleast 50% of those links on a product specific page. There should be one link: Search for Hotel or Make Reservation! Do this for your site.

• Fix the 25 things Dr. Pete lists in this delightful checklist: 25-point Website Usability Checklist.

There are so many ideas. I hope that before you go for massive web analytics glory that your use your wonderful powers first to make sure your site and customer acquisition strategy does not suck.

PS: Bonus tip: Make sure you visit your website once a week, atleast.

#2 Learn basic statistics.

The days of tools and reports simply puking data out are rapidly reducing. No longer can tools or "analysts" just puke 15 metrics on a report and hope to survive.

Web Analytics tools are starting to become smart (see: Analytics Becomes Intelligent). Data is starting to truly get numerous.

For all of the above reasons it is becoming ever more important that you are know atleast Statistics 101. You don't have to be armed with the knowledge of how to create various models or be able to jump into SAS and get naked with it. But you are going to have to know what a mean and a median and r squared and standard deviations and Z scores and confidence intervals and all that lovely stuff is.

If you have not been exposed to statistics perhaps you can take a class at a local community college or university. Many employers will pay for ongoing job relevant education.

Alternatively get one of the simpler books on the topic and immerse yourself in self education. Regardless of if you are a novice or an expert I think one of the best books to start with is The Cartoon Guide To Statistics ($13). A cartoon book? Yes. It is quite good.

Once you know statistics 101 you'll find that you'll think of data analysis differently and you'll get better at finding that proverbial needle of insight in the haystack of data. Knowledge of statistics is a key arrow to add to your analytical skills quiver.

Hello statistical significance!

#3 Try one (or two) new usability / VOC tool/'s.

My passion for the customer is, as they say, legendary!

Part of it is the humility I have developed at the powerlessness of clickstream data to answer all the needed questions. Part of it is that there are just so many darn good options out there to listen to our customers.

So this year why not try one of the newer more powerful and yet cheap usability analysis tools?

Here are some tools that are pretty cool and unique:

• Five Second Test. I absolutely love the idea of collecting "first impressions" from current customers, employees or just randomly selected people. Within thirty seconds you can take a screenshot of your lovely home page or landing page, upload it and for free get feedback from real people.

• 4Q / Kampyle / UserVoice. Each of these tools does something completely different, and yet each allows people to type things that you can read and be wow'ed or saddened by. Why not try one of these tools this year and truly get in touch with your customers and a real and meaningful way?

• UserTesting.com. You are not a small enough company, or a big enough one for that matter, to do usability testing. This is usability testing for ultra cheap, $29 per person. Set out the tasks, identify your audience, test happens, you watch the video and read comments, you cry, you fix things, you become rich.

  Also checkout Feedback Army.

• WebSort / OptimalSort. The information architecture on most website is terrible and the reason is that company employees create it for themselves. A great option to hear from the customers was to do card sorting studies. Problem? Expense! Not any more baby. Both these tools are quite affordable, all online and in a fraction of the time it would take to do a offline card sorting study you can get the key data you need. Sweet.

You don't have to do all of the above. But you do have to listen to your customers.

In 2010 Consider trying just two tools listed above that you have not used so far. I promise you that you'll want to give me a big hug the next time you see me.

#4 Try one new competitive intelligence tool.

I practically have a illicit love affair with competitive intelligence. And I am not embarrassed!

If I ever come to see your company, or you see me presenting publicly, then you have seen me present data about your company / industry and then proceed to say nice / not nice things. There is just so much gold out there to be discovered.

Here are some tools for you to try, ideas for analysis you could do:

• Compete.com / Trends for Websites. I love the depth of data now available in both tools for free (even if you use just the free part of Compete). Index your overall performance against your competitors.

  Where do people go after they leave your site? What are the top five referrers for your competitor? What are the top sites that get traffic for the word love? All free from Compete.

  People who visit my site, what other sites do they visit? What are the things they search for? What's the difference between US traffic and India? All free from Trends for Websites.

• Google's Search-based Keyword Tool. If you have never explored the long tail for your website (if you are a medium to large site) using SbKT you might be committing a crime. If you have never taken a list of keywords AND the landing pages recommended by SbKT where you have zero impression share and given it to your SEO team then you should feel bad. There is so much here.

  [Learn how to use SbKT here: Monetize The Long Tail of Search.]

• Google Ad Planner. Some display / banner ads stink because they are just terribly produced and blink and annoy you with sound and do insane things when you move your mouse over them inadvertently. Most display ads stink because they are not relevant / well targeted. Make sure that is not your ads. Use the Ad Planner to hone into the exact sites where you can find your audiences.

  What sites are visited by: Men who are in the market for engagement rings. Women who are interested in the NFL. Young adults who are looking to buy net books. Affluent 100k+ folks or comic book buffs or brides to be.

  Now go buy advertising on those sites (from any ad network) and earn a higher ROI on your campaigns.

  [Learn more about Ad Planner: Competitive Intelligence Analysis: Google Ad Planner]

These four tools should keep you busy for a long time. Don't go at it all at once. Ask your boss's boss what his next 90 day priorities are, find the tool above that might have the insights, go on a honeymoon with it.

#5 Identify two new micro-conversions and goal values for each.

The road to web analytics glory (and a promotion for you) runs through the Micro Conversions path.

I am absolutely convinced that we don't get the love that we deserve from our company leaders because (even if we get beyond data puking) we rarely quantify the impact of all of work that the website is doing.

During Q1 make it your personal quest to identify two new micro conversions for your website (many ideas in the preceding blog post).

Now make sure, and this is absolutely key, you take one more step and quantify the economic value of each micro conversion (instructions and ideas: pages 159 to 162 in my new book Web Analytics 2.0).

That economic value will help you arrive at the number on the right, $83,848. That number will finally help you understand the complete value your website is adding to your business (only $21,454 is from the Macro Conversion). That number will allow you to measure your campaigns with a level of accountability that will be supremely awesome.

If you do nothing else on this list (I hope it does not come to that), please make sure you do this item. It is that important (especially if you are a non-ecommerce b2b government peaceful protest photo sharing website).

For the true Analysis Ninjas let me share one bonus item, one thing that will put even them above the top. . . .

Bonus: #6 Measure one thing that is "intangible".

The hardest thing to do in online analytics is to measure the intangible. How did people feel about the website experience? What was the positive brand lift? Did the unaided brand recall improve 60 days after the campaign (online or offline)? And more such questions.

Each is really hard to answer, one must think differently.

Here is a post with seven different strategies: Brand Measurement: Analytics & Metrics for Branding Campaigns.

As an Analysis Ninja go all out on three of them this year and take your business to the next level of measurement and insights.

Good luck ya'll!

Ok now your turn.

Care to share examples of sucking that you have killed on your websites? Got a creative use of statistics in your web metrics practice? Which is your favorite online customer listening strategy? Have you had success with quantifying goal values for your micro conversions?

What is your company's online, or online analytics, new year resolution?

Please share your thoughts via comments, thanks much!

I am absolutely thrilled that my book Web Analytics 2.0 has been released and is in retail stores now, online and offline! Hurray!!

Even with a broken right hand I can't help but write this post!

The waterfall of positive feeling stems from the fact that this book was very hard to write.

I only had one job, at Intuit, when I wrote my first web analytics book. I now have several full time jobs, plus this blog, plus speaking around the world, plus a family, plus… so much more.

It took weekends of writing and nights of editing and days of research combined with practicing the preaching by doing oodles of analysis and, more importantly, the support of the most understanding wife in the world.

At the end of it all it is rather gratifying to see one's book at a bookstore, helps grasp the magnitude of the process. And there's absolutely nothing quite like hearing your five year old yell in a busy Borders bookstore: "I FOUND DADDY'S BOOK!"

This blog post is in three parts: The pitch. Request for help. A lovely contest [Contest closed now, thanks for the entries!].

You don't have to read the whole thing & skip ahead, but that would hurt my feelings. :)

Here we go. . .

The Pitch:

I invite you to consider buying my second web analytics book. It is not only the most current book on everything important and bleeding edge in Web Analytics, it is a labor of love that will help you transform your personal thinking and assist in revolutionizing your organization (big or small).

It is not a technical book, though it will make you technically dangerous. It is not just a business book, though every dna strand in this book is more about online marketing than online analytics. It is not a hard book to read, though it is brain food.

Here's why I think you'll love it:

Chapter 1 The Bold New World of Web Analytics 2.0

No dragging of the feet, the book starts with a bang by laying out the framework that will be the center of every company that will leverage data (qualitative, quantitative, competitive) on the web. It ends with a challenge to embrace Multiplicity – without this it's goodbye greatness.

Chapter 2 The Optimal Strategy for Choosing Your Web Analytics Soul Mate

It will be hard for you to find a more compelling four step process to choose the right web analytics tool for your company. Soul searching, questions to torture vendors with, comparing vendors, running a pilot and negotiating a contract, it's all in there. You be off to the races right.

Chapter 3 The Awesome World of Clickstream Analysis: Metrics

The thing I enjoyed about this chapter (I know I wrote it, but still. . .) was that the first half works really hard to evolve your critical thinking skills. I love that because we take too much for granted, now you'll be skeptical. A good thing. The second half shows exactly how to pick the best metrics for your org and, my absolute favorite (Page 64), how to diagnose the root cause of a metrics performance.

Chapter 4 The Awesome World of Clickstream Analysis: Practical Solutions

When people think of web analytics everything they think about is chapter 4, and yet you'll find so many yummy treats here. The best WA report, segmentation, site search, SEO & PPC analysis, email, rich media, cookies, data sampling. . . . I am out of breath!

Chapter 5 The Key to Glory: Measuring Success

If I have one jihad it is to massively convert every person who touches the web to focus on measuring Outcomes! It is the one reason we can't achieve the greatness we so richly deserve. No more! Glory will be yours!! B2B. B2C. Small Biz. Large Biz. Non-Ecommerce. We make love to 'em all! One thing you'll read here that you'll read no where else? Computing Economic Value, a concept that will liberate you.

Chapter 6 Solving the “Why” Puzzle: Leveraging Qualitative Data

Oh, oh, oh qualitative analysis!! I am a Mechanical Engineer with a MBA, a late covert to the power of understanding the super sexy "why" by leveraging lab usability studies, surveys, card sorts, online remote testing and more. You get a jump start. The thing you'll adore: Pages 190 – 192.

Chapter 7 Failing Faster: Unleashing the Power of Testing and Experimentation

Sure you've heard of A/B and multivariate testing. But do you know how to truly win the game? There is no technical mumbo-jumbo here, just the real deal and how to get testing right. The thing you might not know / realize the power of: Controlled Experiments. I am convinced this is God's gift to online humanity, you'll agree with me by the time you reach Page 208.

Chapter 8 Competitive Intelligence Analysis

The most magnificent advantage the web possesses: everyone's data is available for everyone else to use. If Hilton Hotels has the data for Choice Hotels why not use it to "crush" them (sorry Sarah!). This chapter shows you how. I think the thing you'll be surprised by is at the start of the chapter (Data Sources, Types and Secrets).

Chapter 9 Emerging Analytics: Social, Mobile, and Video

The chapter I had the second most fun writing. Mobile, twitter, blogs, videos etc are just so darned hard to measure and so much changes every few hours that I had to really really work hard to find the essence of each and then make specific practical measurement recommendations that will stand the test of time. It was hard.

Chapter 10 Optimal Solutions for Hidden Web Analytics Traps

This is a collection of major reasons I think people fail at web analytics, and of course I boldly try to share how to avoid that fate. Behavior targeting, dashboards, accuracy, data mining, predictive analytics, and, the thing you'll appreciate the most IMHO, five steps for intelligent analytics evolution!

Chapter 11 Guiding Principles for Becoming an Analysis Ninja

All my life learnings laid bare. . . this is where you, yes you, start to evolve from a Reporting Squirrel to an Analysis Ninja! No metrics, data pukes, guidance on creating every more reports. No, none of that. Rather… analytical techniques, tips and tricks to apply to your job, how to evolve your thinking to a higher level.

Chapter 12 Advanced Principles for Becoming an Analysis Ninja

The chapter I had most fun writing (and rewrote the most number of times). It deals with two of the hardest practical challenges we face in the field of measurement: multi-touch campaign attribution analysis and multi channel analytics. Both are very hard to get right, both have a ton of fud out there, it was fun to share my recommendations.

Chapter 13 The Web Analytics Career

The chapter I should have had in the first book. How to plan a career in web analytics (paths, salary, longevity), and how to then cultivate the right set of skills. If you are a leader then how to spot great talent, how to interview them and make the right choice.

Chapter 14 HiPPOs, Ninjas, and the Masses: Creating a Data-Driven Culture

Some might argue, rightly so, that the most elusive thing to accomplish is to truly bring data democracy to your organization. This chapter bravely hopes to help you do exactly that: excite people about data, remove organizational barriers, use data to change behavior, dealing with data quality, and creating data driven HiPPO's.

Convinced?

Nothing, absolutely nothing, in life is easy. But if you have the will and access to knowledge then that just might help you choose an optimal path, a path where your hard work will yield above normal results. That's my hope, and promise, with Web Analytics 2.0.

Jennie and I have decided to donate 100% of our proceeds from this book, just like for the first one, to two charities. This book benefits The Smile Train and Ekal Vidyalaya. We are very excited about that.

Request For Help:

As you all know my philosophy for this blog is eat like a bird, poop like an elephant. But if you are up for it I would love to ask you for a bit of help.

Recommend the book.
If you know someone who needs to turbocharge their online existence, please recommend Web Analytics 2.0 to them. Even in our hyper connected world, nothing works like a personal recommendation.

If you use a link please consider using: http://bit.ly/akwa20 That link has an affiliate code, all proceeds of which go to the above mentioned charities.

Review the book.
If you have a blog, website, twitter account, any kind of platform, it would be great if you could write a review of the book and help spread the word.

If you purchased the book online then please, pretty please, review the book on the store's website. Amazon. Borders. Target. Powells. Whatever you used.

Connect me.
I am very very bad at pimping. So if you know someone who is someone (or knows someone who knows someone) then please consider connecting us. Especially people outside our analytics / search circle. Authors. CEO's. Journalists. Influencers. TV anchors (or weather man/woman). Oprah (I can dream, can't I?).

Our world is separated by six degrees of separation, I am sure you know someone who just might consider helping me with my cause.

Share a picture.
I love getting to know my audience, and while your emails and tweets are pretty fun there is nothing like a picture.

I had a "Web Analytics: An Hour A Day Fan Mail" flickr group that has some incredible pictures from around the world, bringing my audience closer to me.

I would love to do the same again for my "Web Analytics 2.0: Fan Mail". Be as creative as you want to be. Babies. Cats. Posters. Cars. Places. Or the best, you. All would be welcome.

I will only post the pictures with your permission. Please send them to blog at kaushik dot net. Thanks!

A Lovely Contest:

[The contest is closed now. Winning entry details.]

Steve Cunningham invited me to be a part of a little "contest" he is running. The prize is a delight, you get to win a pack of seven books on online marketing & social media: Six Pixels of Separation, The New Community Rules, The Whuffie Factor, Trust Agents, Crush It!, Duct Tape Marketing, and Web Analytics 2.0.

How to win you ask? Two ways.

1. Answer this question in comments below: If you were to measure the success of a company's social media efforts how would you do it?

Pick any social media channel, or all. Only a short answer is required. The most innovative / interesting answer wins. No answer is too small or too simple.

[If you have my book already then my answers in the book to this question will win you major brownie points, but perhaps not the contest! :)]

2. You can get four more chances to win, if you want. Simply visit these blogs and answer a different question on each: Steve Cunningham, Beth Kanter, Tara Hunt, and John Jantsch.

Good luck!

A Word of Thanks:

This is from my book's acknowledgment page…

I would like to express my deep appreciation to the readers of my blog, Occam’s Razor. In approximately three and a half years I have written 411,725 words in my 204 blog posts, and the readers of my blog have written 615,192 words in comments! Their engagement means the world to me and motivates me to make each blog post better than the last. It is impossible to thank each person, so on their behalf let me thank three: Ned Kumar, Rick Curtis, and Joe Teixeira.

A very solid case can be made for the fact that neither one of my books would exist without you and your engagement and encouragement.

Gracias. Arigato. Ngiyabonga. Xie xie. Obrigado. Shukriya.