Ad Age: What's the biggest mistake most marketers
make when it comes to analytics?
Mr. Kaushik: Two big ones: First, they focus
too much on tools and collecting data. A few years back, I created
the 10/90 Rule. If you have $100 to spend on decision-making on the
web, then spend $10 on tools and $90 on people. Marketers
underestimate the investment required in big brains to find
insights. (The 10/90 rule was created before there was Google
Analytics; now with free analytics tools from all three search
engines, I suppose I have to change the 10 to 0.)
Second, they concentrate on aggregate metrics that aren't
actionable and focus on acquisition (visits/visitors) and not
enough on outcomes (increased revenue, reduced cost, increased
customer loyalty).
Ad Age: Are video-heavy, rich-media sites
affecting the importance of certain metrics?
Mr. Kaushik: Absolutely. We used to live in the
world of hits. Then we moved to page views. Now we are moving to
"interactions." ... The actions of your website visitors are
measured. Play, pause, next, send, forward, click, etc. -- each is
a "vote" by the customer to engaging in some kind of integration
with your web experience.
Ad Age: What should I do about where my traffic
comes from?
Mr. Kaushik: Traffic sources allow you to
understand where your traffic comes from -- and if you pair it up
with an outcomes metric, like conversions, leads, job applications,
then it tells you who your BFFs are. They also help you understand
a little bit more about customer intent, or what motivated the
person to come to the site. From search, for example: What were
they looking for, using keywords?
Ad Age: What about measuring buzz or brand
advocates?
Mr. Kaushik: At the moment, "buzz" measurement
is just "hits" from the early '90s. How often was your name
mentioned on Twitter? That's a good start, but we need
significantly more progress in understanding tone and texture and
sentiment before we can make these metrics more meaningful.
Ad Age: And the other metric du jour,
engagement?
Mr. Kaushik: I'm a fan of measuring customer
behavior that represents engagement. For example, I visit BBC.co.uk
about 200 times a month -- it's my primary source of news. To the
BBC, that's engagement. Now use the same analogy for Microsoft
Vista. I have visited the Microsoft website about 25 times in the
past four days. I'm eternally frustrated because I can't find the
one thing I need to get fixed. That is not an engaging behavior.
There is no universal, golden formula to measure engagement.
So I say, don't sexify; simplify. The BBC website is measuring
the fact I'm visiting its website 200 times a month. That metric is
called visitor loyalty. Let's call it that, not engagement.
Ad Age: What metrics should we focus on in
recession?
Mr. Kaushik: Only the one that focuses on the
website's customers and adds immediate actionable value. Now is not
the time to sit around and think of all the things you would like
to analyze; it's the time to focus on all the things you should
analyze.