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May 16 2008
Web analyses lost on businesses
Companies are typically failing to adopt a coherent strategy which ties in web analytics data with business objectives, according to research published this week by E-consultancy and Lynchpin
Most companies understand that you have to listen to your customers, but when your customer is just a bunch of clickstream trends on a graph produced by an analytics package then they tend to ignore them entirely so says the latest report.
Less than a fifth of companies (18%) have an internal strategy that ties data collection and analysis to business objectives. More than half (56%) of responding organisations said they are “working on this”, while a further 22% say that they don’t have such a strategy.
Many companies are also under-investing in internal web analytics staff, according to the Online Measurement and Strategy Report published by E-consultancy this week in association with analytics consultancy Lynchpin.
The research also found that only a quarter of company respondents (25%) say that their web analytics “definitely” provide actionable insights, with a further 56% saying that this is only sometimes the case.
Spending on technology accounts for 45% of company spending on web analytics compared to 18% for consulting and services and a further 36% on internal staff.
Linus Gregoriadis, head of research at E-consultancy, said: “Respected analytics experts advise that the amount spent on technology should only really be the tip of the iceberg when it comes to analytics investment.
“Our research shows that many organisations are under-investing in internal analytics staff and failing to implement a coherent measurement strategy which can help them turn their data into something of real value to their business.”
The majority of company respondents (58%) say that half or less of their web analytics data is useful for driving decision-making. More than a third (38%) say that 30% or less of their data is useful.
The most widespread use of web analytics tools is for reporting traffic figures, the research found. Almost nine out of ten responding organisations (88%) said that this is an “important use” of web analytics.
The next most important function of analytics is to help understanding of customer behaviour, deemed to be an important use by 70% of company respondents.
Andrew Hood, managing director of Lynchpin added: “Analytics’ reputation is in tatters. Millions have been invested by large corporations around the world in analytics software that does not give business the answers it promised.
“Today, there is a massive disconnect between the analytics market and what business needs. It is vital that the analytics sector address this issue and provide the business consultancy and online strategy needed to unlock the potential of analytics software.”
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