002092 cost of free

8/8/2019 002092 Cost of Free

http://slidepdf.com/reader/full/002092-cost-of-free 1/22

Presented jointly by:John Lovett; Senior Analyst, Forrester Research

John is a leading expert in Web analytics, multivariate testing and Web site optimization technologies.His research ocuses on applying marketing intelligence, garnered rom user behavior and click-streamactivity, to deliver highly relevant and engaging online experiences. John joined Forrester through itsacquisition o Jupiter Research, and he has more than a decade o experience in Internet marketingand Web technology research, as well as being an active member o the Web Analytics Association,where he serves on the Research Sub-Committee.

Tony Bradshaw; Vice President o Internet Business and Technology, DaveRamsey.comTony obtained his BS in Mechanical Engineering in 1993, ollowed by six years at a small businessmanu acturing company conducting engineering and network administration. In 2001, he joined DaveRamsey, who is a noted author, radio talk show host and entrepreneur. In his present role, Tony leads a

team o 50 Internet pro essionals, comprised o marketers, creatives and developers.

Tim Munsell; Lead Web Analyst, DaveRamsey.comIn 2002, Tim joined Dave Ramsey’s Web team as an Internet Marketer. When DaveRamsey.com madeWeb analytics a priority in 2007, Tim’s mathematics degree positioned him as the obvious choice or hiscurrent role. He continues to be instrumental in the company’s Web initiatives.

The Cost o FreeWORKBOOK

8/8/2019 002092 Cost of Free


The Cost o Free

INTROFrom ree lunch to ree pets, ree is very enticing. Most people pre er not to pay something they can get or ree. But what i ree has opportunity costs? Would yosacri ce quality and fexibility? Is ree always best?

In order to answer these questions as they relate to online marketing, we must rstdo the ollowing:

» Re-examine the analytics landscape » Evaluate the opportunity costs o “ ree” » See how DaveRamsey.com achieved 567 percent return on investment (ROI)with Omniture

Omniture’s OnlineMarketing Suitewas introduced toprovide a robustset o applications,plat orms, dataand applicationprogramminginter aces.

Omniture’s Online Marketing Suite was introduced to provide a robust set o applications, plat orms, data and application programming inter aces (APIs)—all the tools you need to really understand your customers and optimize your

online business. The Suite encompasses everything rom visitor acquisition tomulti-channel analytics applications. In this workbook, we will ocus on the onlineanalytics, reporting and solutions you can leverage within Omniture SiteCatalyst®.

8/8/2019 002092 Cost of Free


The Cost o Free

FREE TO A GOOD HOME

Free analytics tools are much like ree puppies. When you rst encounter them, they are cute, inviting and the idea o having them sounds wonder ul. When that irresistible urge strikes you, rst consider how much work anything ree may

require. In the case o the puppy, that means ood, walks, shelter, vet bills, etc.

Free can quickly turn into a lot o

responsibility and,sometimes, quitea mess.

Free can quickly turn into a lot o responsibility and, sometimes, quite a mess. With ree Web analytics tools, there are many things you need to align to ensure youcan properly manage the application and receive worthwhile value rom it.

8/8/2019 002092 Cost of Free


The Cost o Free

WEB ANALYTICS IS THE DECISIVE TOOL FOR

ONLINE CUSTOMER INTELLIGENCE According to Forrester Research, Web analytics is a oundational element or manyorganizations:

» 73 percent o businesses surveyed are currently using Web analyticsmeasurement technologies

» Spending growth is expected to scale at 17 percent annually over the next 5 years » Web analytics is the de acto standard by which digital marketing per ormanceis evaluated

Businesses are using Web analytics to evaluate their digital marketing initiatives,drive orward and make decisions based on data.

Looking speci cally at spending, we see hosted analytics (so tware as serviceproducts that are generated on-demand or clients) at 90 percent o sales— ar more popular than licensed analytics.

For 2009, Forrester estimates spending

at $431 million. Over the next 5 years, Webanalytics is projected

to grow to just under $1 billion.

For 2009, Forrester estimates spending at $431 million. Over the next 5 years, Web analytics is projected to grow to just under $1 billion. So there is signi cantgrowth opportunity or Web analytics, and it will continue to be a source o in ormation or companies that are moving their businesses rom traditional toonline channels.

8/8/2019 002092 Cost of Free


The Cost o Free

Disruptive events have orever altered the Web analytics landscape. One o themost dominant o those events is the introduction o ree Web analytics tools.

They help the industry as a whole by elevating awareness and bringing increasedrecognition to what Web analytics can do or the marketplace. However, they alsocomplicate the decisioning process. Now marketers must take time to determine i a ree tool is suitable or they should go with a commercial tool.

FREE TOOLS ARE PREVALENT; YET, MOST AREUNDERUTILIZED OR MISDIRECTED

This data was obtained rom a Fire ox extension that actually identi es Web pagesand their tags, to determine which Web analytics tools are installed on di erentsites. It recognized that 73 percent o sites were using ree tools in some capacity.

8/8/2019 002092 Cost of Free


The Cost o Free

What was more intriguing was the duality o usage, with37 percent o sites usingboth ree and paid tools. This tells us that the analytics relationship is not alwaysan exclusive one.

TOP FACTORS IN CHOOSING AN ANALYTICS VENDOROR APPLICATION

Forrester asked marketers to identi y the most important reasons or choosing one tool or provider over another. The ollowing three actors topped the list:

1. Accuracy o in ormation2. Ability toservice my business needs3. Flexibilityo reporting options

Not that the other areas weren’t important; they were simply secondary considerations.

Rate these actors or the solution you use today rom 1-10. Then make a note o what you would like to see improved.

Factors Rate 1-10 What could be better?

Accuracy o in ormation

Ability to serve you needsFlexibility o reporting

37 percent o sitesusing both ree and

paid tools.

8/8/2019 002092 Cost of Free


The Cost o Free

ACCURACY OF INFORMATION REQUIRES

DATA QUALITY ASSURANCEThe quality o data generated by an analytics tool is a strong consideration or mosorganizations. Here are a couple o ways you can ensure accuracy and quality:

» Implementation testing: some vendors o er implementation testing to validate analytics tracking code and provide quality assurance » Tag maintenance: vendor-provided and third-party tag maintenance tools canidenti y mal ormed tags or debug tagging code

I you are trying to discover how customers interact with your Web site or makequali ed decisions about how to strategically proceed with marketing programs,

then you must be con dent that your data is reliable.

SERVICING NEEDS REQUIRES ORGANIZATIONS TOUNDERSTAND THEIR OWN CAPABILITIESReturning to the puppy metaphor, sometimes you don’t know what kind o dogyou have, whether it bites, barks or has di culty becoming part o your home.Likewise, marketers must be realistic about their capabilities and consider the

ollowing be ore selecting a vendor partner:

» Leading analytics programs begin with strategic vision that provides directionand corporate alignment toward a set o common goals

» This vision is supported by an organizational structure that instills rigor andprocess to data collection, interpretation and analysis

» Organizations arrive at this juncture through an introspective evaluation o

capabilities and needs

You need to have the right resources, both people and tools, in place within your organization and a clear in rastructure to make the most o analytics data.

ASSESSING YOUR WEB ANALYTICS PROGRAMThis exercise is like gathering elements in preparation or a new puppy. You mustbegin with introspection:

I you are trying to discover how

customers interactwith your Web siteor make quali eddecisions about how tostrategically proceedwith marketingprograms, then you

must be con dent thatyour data is reliable.

8/8/2019 002092 Cost of Free


The Cost o Free

» Organizational structure—you determine how are you sta ing or analytics,what is the reporting structure and the responsibilities o each o thestakeholders, such that everyone knows their piece

» Goals and objectives—having these de ined up ront is crucial because youneed to be able to point your analytics back to these milestones to see i your

tactics have been e ective » Metrics and key per ormance indicators (KPIs)—you must establish markersand thresholds o success or each initiative

What are the goals and objectives for your Web site? Name your top three:

1)2)

3)

Next, think o dog training and ways to gauge i your pet is learning the disciplineand behaviors you intended. Similarly, there are tough questions you need to ask o yoursel and your vendor partners:

» Implementation and maintenance—consider what it will take to integrate this tool into your Web site, who will per orm upkeep and how challenging thewhole endeavor is

» Analysis—ask yoursel i you will be able to drill down to the root cause o aproblem or win

» Reporting—you will want to customize it to it your speci ic needs, while seeiclearly in the inter ace what is happening to your data » Other optimization e orts—beyond Web analytics, you may want to use thissolution to later improve your entire online presence and achieve your digitalmarketing initiatives

A Web analytics program is only as meaning ul as the preparation and logic youinvest in it.

A Web analyticsprogram is only asmeaning ul as thepreparation and logicyou invest in it.

8/8/2019 002092 Cost of Free


The Cost o Free

FLEXIBLE REPORTING OPTIONS ENABLE WEB

ANALYSTS TO TELL A STORY WITH DATA Flexibility is critical or the ollowing unctions:

» Calendar customization—establishing data structure that can match your time de initions » Dashboards—dividing and disseminating in ormation to stakeholders so that iresonates with them

» Custom reports—having the ability to set unique parameters » Funnel analysis—examining how visitors traverse your Web sites » Multi-campaign attribution—understanding how upstream e orts impactdownstream conversions

» Rich media measurement—seeing how audio, visual and interactive elementsin luence your data

» Segmentation—digging into data to ind patterns and groups

Tip: Don’t let your Web analytics program su er by merely reporting on data; tak the time to uncover the story hiding within the data.

COST OF OWNERSHIP As we’ve seen, accuracy, service and fexibility are paramount to building ane ective analytics approach. Yet, we cannot ignore the cost o ownership.

Here are ve methods or quanti ying total cost:

1. Provides the vital stats o marketing2. Enables you to answer tough questions3. O ers insights or new directions4. Reveals methods or continuous improvement5. Drives decisioning throughout the organization

Tip: Don’t let your Web analytics

program su er bymerely reporting ondata; take the time

to uncover the storyhiding within the data.

8/8/2019 002092 Cost of Free


The Cost o Free

I you cannot gauge the pulse o your marketing activities with your Web analytic tool, it is not paying o or you…even i it started out ree. Be care ul to consid the resource hours (overhead investment) and missed online sales (lost revenue) a ree tool can actually cost you, i it isn’t right or your organization.

Like “Ol’ Rusty,” your Web analytics tool could become your best riend, i therelationship ts.

DAVERAMSEY.COM CASE STUDY When it comes to ree tools, Google Analytics is the primary player on the marketand the standard by which other ree tools are measured. The question is, howdoes it compare to Omniture SiteCatalyst ®?

The team at DaveRamsey.com began by looking at the goals o each application:

» Omniture’s goal is to provide cutting-edge technology to keep clients aheado the marketing curve

» Free solutions , like Google Analytics, are not designed to be that provider’score business; they are merely supporting their business goals, typically leaving

them behind the marketing curve

As a ormer client o Google Analytics, DaveRamsey.com wanted to grow with apartner who made analytics their chie business.

So, let’s compare the strengths o the leading online ree tool with a paid tool likeSiteCatalyst:

» Advanced segmentation » Inter ace usability » Visualization

» High customization » Extensive pathing » Robust dashboards » Data insertion and extraction » Client care access

Be care ul to consider the resource hours

(overhead investment)and missed onlinesales (lost revenue) a

ree tool can actuallycost you, i it isn’t right

or your organization.

8/8/2019 002092 Cost of Free


The Cost o Free

CUSTOMIZATIONDelving into customization, here is a side-by-side comparison o the tools:

» 4 conversion goal unnels—to see how people navigate leading up to a page » 1 custom variable—always most recent attribution » Hierarchies/site section—expertise is necessary » Measurable events—at expense o other pages

» 40 custom event metrics—such as number o times a link was clicked » 80 custom event variables—like banner loads » 110 custom page variables—enables page categorization » Customize variable attribution— low o elements » Customize variable persistence—one page or entire visit » Calculated metrics—enhance standard metrics to orm new ones » Site sectioning—divide and conquer » Site hierarchy—how it’s structured or navigation

The level o customization required is unique to each business, but fexibility has auniversal value.

VALUE OF CUSTOMIZATIONWith a diverse product o ering, rom lead generation to physical products at retaDaveRamsey.com had to have e ective, robust customization. Here are some o

the essential wins they were looking or:

» Visibility into variety o conversion points » Attribution to marketing initiatives » Visitor segmentation » Long-term value o marketing campaigns » Multi-level site visibility rom aggregate to domain to individual page

Let’s expand on the idea o visibility by scrutinizing fow.

8/8/2019 002092 Cost of Free


The Cost o Free

» Basic page-to-page path » 4-goal conversion unnels

PATHINGDaveRamsey.com wanted to see how each tool handled pathing:

» Basic page-to-page paths » 3-level direct paths » Unlimited 7-level unnels » Point-to-point path discovery » Pathing/ unnels available or:

» Pages » Page groups » Page variables » Conversion events » Conversion variables

SiteCatalyst provides a visual fow chart o pathing, with an increasingly deeper dive into the data at every turn. Furthermore, the tool is easy to use and fexibleenough to change your pathing analytics on the fy.

8/8/2019 002092 Cost of Free


The Cost o Free

As you can see rom this comparison, SiteCatalyst unctions in intuitive branches that are quickly trackable and highly expandable.

VALUE OF PATHINGProper pathing can be critical to company growth. Here are some key requirements:

» Visibility into conversion process holes » Visibility into tra ic movement between sites, internal sections, even productand campaigns

» Visit segmentation beyond entry points

As a result, pathing infuenced the team’s major decisions in creating a new design or DaveRamsey.com, including navigation placement.

SiteCatalyst unctionsin intuitive branches

that are quickly trackable and highlyexpandable.

8/8/2019 002092 Cost of Free


The Cost o Free

CUSTOM REPORTS AND DASHBOARD DISSEMINATIODaveRamsey.com recognized that they needed to provide personal access tomultiple shareholders in their organization, both through reports and dashboards.Looking at both tools, here is what they ound:

» 1 dashboard per account » Custom reports/dashboards shared through email only

» Unlimited dashboards per account » Custom reports/dashboards can be shared with all or speci ic users throughreport menu inter ace, bookmarking, direct linking and email

This individualized, on-demand access rees up the analytics team to ocus onother areas o progress.

VALUE OF REPORT DISSEMINATIONIn addition to bene ts or the analytics team, the organization as a whole bene ts:

» Multiple users can easily collaborate on custom reports » Multiple dashboards or multiple purposes » Other generated reports can be used as a oundation or new customreports/dashboards

8/8/2019 002092 Cost of Free


The Cost o Free

This level o sharing has amazing potential or productivity gains and cross-teamcollaboration.

DATA INSERTION AND EXTRACTIONDaveRamsey.com ound that once you have your data you need to be able toaugment and export it:

» Limited data export

» 50,000 rows data export » Presentation-ready Excel exports » Insert o line data into Omniture

» Categorize tracked data » Correlate online and o line transaction inside SiteCatalyst

Knowing i your lead becomes a sale, regardless o whether it is online or o fine,is a dramatic win.

Value o data insertion and extractionWith SiteCatalyst, DaveRamsey.com identi ed the ollowing data bene ts:

» Large reports can be downloaded quickly » Downloaded reports are ormatted and presentation-ready » Can have correlating online and o line data accessible to all users » Less need or users to be Excel wizards

The savings in time and training are substantial.

8/8/2019 002092 Cost of Free


The Cost o Free

CLIENTCAREMost importantly, DaveRamsey.com was looking or a knowledgeable,accessible partner:

» Independent Google consultants, not Google employees » Additional charge » Quality o service questionable

» 24/5 phone and live chat support and email support or both technical andproduct use questions (24/7 support available)

»

Monthly learning labs » Omniture consultants » Omniture Summit and networking with peers » Omniture University (online and in-person training) » Developer network » OmnitureCare on Twitter

In short, the team needed the ability to call with questions and have access toeducational resources.

VALUE OF CLIENTCAREDaveRamsey.com ound that Omniture’s customer service o ering was beyondcompare:

» Fast support or both technical questions and quick questions » Ongoing education to increase the power and expertise o Omniture users » Quick access to tool experts

Service expertise does make the di erence. The right partner will help you tobetter analyze your data, leverage your online spend and learn new ways to getmore rom Web marketing.

8/8/2019 002092 Cost of Free


The Cost o Free

So, optimizing the online experience and their metrics was crucial—a task beyond

the capabilities o a ree tool.They needed a partner that t their needs andgrowth strategy, someone they wouldn’t outgrow.

The decision was by no means instantaneous. T hey evaluated top-tier productsand entry/mid-level solutions. A ter much examination, they determined Omniturewas their best choice or analytics partner.

WHY OMNITURE?DaveRamsey.com recognized that Web accounts or 55% o their revenue, withanother 20% in online leads converting into o fine business. Like many other companies, they were becoming increasingly dependent on the Web.

DaveRamsey.comrecognized that Web

accounts or 55% o their revenue, withanother 20% in onlineleads converting intoo fine business.

8/8/2019 002092 Cost of Free


The Cost o Free

Seeing these outstanding results, DaveRamsey.com continues to expand within theOmniture Online Marketing Suite, having recently acquired Omniture Discover ®.

QUANTITATIVE LIFTIt was imperative or the team to demonstrate results:

» Important to show value to their executives—why go out on a limb to move rom a ree to paid tool? » 567 percent irst-year ROI (includes all related costs: training at OmnitureUniversity, travel, implementation, analyst)

» A year a ter SiteCatalyst, they opted to implement Omniture Test&Target™—resulting in a 400 percent monthly ROI in 90 days

A year a ter SiteCatalyst,

they opted toimplement OmnitureTest&Target™—resulting in a 400percent monthly ROIin 90 days

8/8/2019 002092 Cost of Free


The Cost o Free

EXPANDABILITY The growth potential built into Omniture’s plat orms makes it very attractive to anycompany looking to grow in the online marketplace. In the case o DaveRamsey.com, they ound that Omniture is unique in its product o erings and open ormat.Omniture tools are expandable with their needs, helping to accelerate their growth.

In addition, with Omniture’s vast landscape o partner solutions, DaveRamsey.comcan continue to build bene cial online relationships and better integrate leading

technologies into their site…ensuring they remain ahead o the curve.

CONCLUSION » Free isn’t a bene it i it doesn’t drive business » Accuracy, service and lexibility are key » Don’t settle or less than what you need to thrive, at any cost » The opportunity costs o “ ree” add up » Missed opportunities o ten remain undiscovered with ree analytics solutions » Growth necessitates speed, expandability and staying ahead o the curve » The best tool will give you the best results, i you have a supportive partner and use it properly

» Any analytics tool should pay or itsel i it can interrogate data and deliver gems o in ormation to push your online marketing in new directions

» Free really isn’t ree

***

For questions related to in ormation provided by Forrester Research, email JohnLovett at jlovett@ orrester.com.

I you would like to learn more about Web analytics tools and measurement,contact your Omniture Account Manager or call (866) 923-7309. For internationally-located businesses, visit Omniture.com or the o ce in ormationnearest you.

Omniture tools areexpandable with

their needs, helping to accelerate their growth.

8/8/2019 002092 Cost of Free


The Cost o Free

NOTES

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

8/8/2019 002092 Cost of Free


© 2009 Omniture, Inc. All rights reserved.This document contains con dential and proprietary in ormation, and is the property o Omniture, Inc. Any reproduction or transmission o this document (inwhole or in part) is strictly prohibited. This document is provided or in ormational purposes only and the contents hereo are subject to change without noticeThis document is not warranted to be error- ree, nor subject to any other warranties or conditions, whether expressed orally or implied in law.

WEB: omniture.comEMAIL: [email protected]

AMERICAS

+ 1.877.722.7088 TEL

+ 1.801.722.7001 FAX

AUSTRALIA

+ 612 8211 2707 TEL

KOREA

+ 82.2.2008.3228 TEL

UK

+44 (0)20 7380 4400 TEL

+44 (0)20 7380 4401 FAX

NORDICS & BENELUX

+ 45 (0) 36 98 89 50 TEL

+ 45 (0) 36 98 89 51 FAX

JAPAN

+ 81.03.6418.6600 TEL

FRANCE

+33 (0) 1 70 37 53 56 TEL

+33 (0) 1 77 72 56 38 FAX

HONG KONG

+ 852 2168 0873 TEL

GERMANY

+49 (0) 89 9040 5408 TEL

+49 (0) 89 9546 4252 FAX

SWEDEN

+ 46 (0) 8 601 30 91 TEL

002092 cost of free

Documents