Complete Beginner’s Guide to Analytics
What Are Analytics?
The internet has changed drastically since it’s inception,
and so has user behavior. Users have shifted from typing remembered URLs into
the address bar to relying on search engines to find a site for them. A user
will open and skim multiple tabs, rather than devoting full attention to one
page. All of this complicates the metrics of a site or application: to measure
success, an analyst cannot simply measure hits on the web server. They must
measure human behavior.
When gathering information, researchers employ both
qualitative and quantitative methods. Qualitative data is gathered through user
research: observing people to understand why they do certain things.
Quantitative data is garnered through analytics: identifying what actions users
take when they come to a page, and how many users take those actions.
This quantitative data allows us to measure baselines, use those
baselines to inform design decisions, and then measure the success or failure
of the design. While there are myriad things that we could measure, we use data
in only a few ways: to describe, to diagnose, to prescribe, and to predict.
Descriptive analytics are similar to the counters of old.
Descriptive analytics show baselines, such as how many people visit a page,
click on a button, or watch a video.
Diagnostic analytics might use the same metrics as
descriptive analytics, but with a different purpose. Diagnostic analytics help
us understand what happened, and why. For example, if an online retailer is
losing money, they might measure the clickthru rates of the links and exit
rates of pages along the customer journey, to see where they are losing people.
Prescriptive analytics refers to data that informs someone
of what they should do next. For example, when Google Maps collects data about
traffic at rush hour, they are able to prescribe a better route for drivers.
For those of us who are measuring the effectiveness of design rather than
traffic, prescriptive data still identifies patterns, and can thus inform our
future design decisions.
Predictive analytics are the final category. Predictive
analytics tell us what is likely to happen in a scenario. For example, if we
A/B test a new site header against our current site, that test will tell us
which header is more likely to convince people to stay on the site. If the new
header is more popular, we can predict that our traffic will grow if we
implement the new header.
All four types of analytics use metrics, often based around
Key Performance Indicators (KPIs). A KPI is a measurable action or signal that
is correlated to business success. For example, retweets on Twitter don’t
directly increase how much users like or know an organization. However, a
marketing team may correlate their retweets to brand recognition, in which case
they may use the retweets as one KPI. Ideally, an organization should have
multiple KPIs for one business objective, which increase the reliability of the
data.
Common Methodologies
Although analytics may seem convoluted to many designers,
the basic methodologies behind the field are simple and straightforward.
Essentially, the field of analytics is based on research, measurement, and
analysis.
Research
While web-based analytics is a fairly new area, research has
been around for hundreds of years. Researchers exist across every field from
science to marketing to anthropology, and the techniques they use directly
influence the way analysts do work, and the things analysts decide to track.
The work of researchers, particularly when combined with analytics, is closely
analogous to the scientific method:
Researchers begin by prioritizing their goals or questions,
in order to focus their attention. Once they know the goal of their project,
they create a hypothesis, and test that hypothesis. Data analysts can then
measure the results of the research and tests. Based on these tests,
researchers and analysts may both begin to recognize outliers, or results that
aren’t indicative of the greater whole, as well as patterns in the results.
They then come to conclusions, and even predict future outcomes based on the
patterns they identify.
Measurement
When it comes down to it, most metrics help us understand
how an organization or brand is growing. Marketers, entrepreneurs, and business
consultants all create their own methods of measuring success. They measure
numbers of users, speed of sites, amount of time spent on a page, and offline
details such as the amount of money made, the number of sign ups for a new
product or mailing list, or the number of purchases.
The danger for organizations who aren’t familiar with
analytics is that they only measure, without prior research or future analysis.
For example, a team might measure the number of people who visit the site.
However, without research into how many people visited in previous days, weeks,
or months, and analysis into how the two measurements compare, the measurement
is a meaningless number. This is why we often refer to data tracking rather
than measurement. Data tracking is ongoing measurement supported with research,
with an intent of analysis.
Analysis
Analysis is the process of breaking down information into
smaller pieces, and examining what that information means. It’s used in
mathematics, philosophy, chemistry, psychiatry, and even computer science.
Without analysis, all of the information gathered in research might be
measured, but it has no meaning. Analysis of information allows us to make connections.
For example, you might research how people access a website, and measure the
number of people who come from search engines. Analysis is then used to provide
context and answer essential questions: how many people visited similar sites?
How many visited your site today, compared to yesterday or last week or last
year? How many came to your site from Google, vs. from Twitter?
An interesting note: “analysis” comes from the ancient Greek
work ἀναλύω, which means “I unravel.” One of the earliest known uses of the
word “analytics” is in the title of Aristotle’s writing, Prior Analytics, a
work about deductive reasoning and the scientific method. Since we, as human
beings, are naturally interested in breaking down information and understanding
it logically, there is an obvious reason we find analytics so immensely
valuable.
Daily Tasks and Deliverables
Data analysis is a part of many professions, from marketers
to UX practitioners to data analysts. In this section, we will review some of
the analytics-related tasks a UX practitioner may undertake, and the associated
deliverables.
Setting Key Performance Indicators
Any time that a new initiative is launched, the analytics
expert will need to identify and set up the relevant key performance
indicators. These are closely related to the experience goals of a project,
which is why it’s so valuable for UX practitioners to collaborate with the data
analyst and understand analytics and metrics. The KPIs, as we explained above,
are the measurable actions that correlate to organization or project
objectives. For example, is the organization’s goal is to become a global
company, one KPI might be more website views from around the world, or a
certain number of sales coming from foreign countries. Ideally, each project
objective should have a KPI associated with it, which will allow the team to
measure the success of the project.
Optimizing Content
While we’ve been focusing mostly on the measurement side of
analytics, we haven’t touched on how this impacts user experience. Analytics
tell us what content or site areas need improvements—and that means that often
our analytics experts are the ones who can best optimize our work. This can
include understanding how Google’s search algorithms work, how to handle and
improve metadata, what keywords are most likely to reach our target audience,
and many more handy tricks of the trade. Before a page goes live or a campaign
launches, the analytics team (or person) will want to review everything, and
optimize the content so that it is most likely to succeed.
Setting up Analytics Tools
Once the KPIs have been determined, we need to add code to
the relevant pages in order to track site engagement, conversions, and other
metrics. Google Analytics is one of the most popular analytics tools, in large
part because Google has made it very easy to add tracking code to almost any
site. Sometime, development teams take on the task of analytics tracking, but
more often the analytics expert will provide the dev team with the relevant
code snippets required.
Monitor and Measure
Maintenance is a huge part of working with analytics.
Depending on the project, an analytics expert may create reports on a daily,
weekly, monthly, or bi-annual basis. For example, a social media campaign may
require daily updates. However, a new product launch could take 6 months to
bear fruit. Regardless of the time period, it’s in the monitoring, measuring,
and reporting that an analytics expert digs into the analysis. It’s not enough
to report on the KPIs; working with analytics means interpreting what the KPIs
show, and creating recommendations for the UX team that reflect those
interpretations.[Source]-https://www.uxbooth.com/articles/complete-beginners-guide-to-web-analytics-and-measurement/
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