Forrester.web Analytics Cornerstone

12
Making Leaders Success ul Every Day Mach 29, 2010 How We Aaics Wi Emege As A Coesoe O Csome Ieigece Joseph Sahope o Csome Ieigece Poessio as

Transcript of Forrester.web Analytics Cornerstone

Page 1: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 1/11

Making Leaders Successul Every Day

Mach 29, 2010

How We Aaics Wi EmegeAs A Coesoe O CsomeIeigece Joseph Sahope

o Csome Ieigece Poessioas

Page 2: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 2/11

© 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Inormation is based on best availableresources. Opinions refect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar,and Total Economic Impact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective companies. To purchase reprints o this document, please email [email protected]. For additional inormation, go to www.orrester.com.

Fo Csome Ieigece Poessioas

ExECutIvE SuMMAry

Marketers today have a dizzying array o online and oine touchpoints at their disposal, but without

a doubt all roads lead through the Web. For most organizations, Web sites, microsites, landing pages,

communities, and other interactive properties are mission-critical or acquiring, retaining, and

nurturing customers and other target audiences. By denition this reality makes the Web one o the

most crucial sources o insight or Customer Intelligence (CI) proessionals. o put that insight into

action, rms must leverage Web analytics beyond isolated Web site marketing and operations to eedanalysis, decision support, and execution or the entire marketing unction. Tis report outlines the

uture trajectory o Web analytics technology and gives CI proessionals pragmatic advice about how

to use that technology as a oundational component or customer intelligence that uels multichannel

marketing eectiveness.

 tAblE OF COnt EntSThe Web Is A Uderutiied Source Of 

Customer Isiht

Eter The Web Aatics Patform

Web Aatics Techoo Wi Eted BeodThe Web Site I Two Phases

 toda: We Aaics Cemes Is Posiio As

 the nces O Oie Measeme

 tomoow: Compehesie We Ieigece

Wi Die vae thogho the Makeig Mi

rECOMMEnDAtIOnS

Impemet A Web Iteiece Hub For

Customer Iteiece

WHAt It MEAnS

The Emeri Web Iteiece Hub Sets

Broad Mareti Chaes I Motio

nOtES & rESOurCESFoese ieiewed 15 edo ad se

compaies o his epo.

Reated Research Documets

“uS We Aaics Foecas, 2008 to 2014”

Ma 27, 2009

“Deig the Oie Makeig Sie”

Ocoe 17, 2007

Mach 29, 2010

How We Aaics Wi Emege As A CoesoeO Csome Ieigeceusig Sie-based Ieigece to Die Michae Makeig Impoemesb Joseph Stahope

wih Cao A. Do ad Emi Mph

2

2

4

7

8

Page 3: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 3/11

© 2010, Foese reseach, Ic. repodcio PohiiedMach 29, 2010

How We Aaics Wi Emege As A Coesoe O Csome Ieigece 

Fo Csome Ieigece Poessioas

2

THE WEB IS An UnDERUTIlIzED SOURCE OF CUSTOMER InSIgHT

Marketers are committing considerable eort to creating highly relevant integrated marketing

communications spanning online and oine, outbound and inbound, mass and addressable. Te

breadth and depth o options presents an incredible palette to marketers rom which to create

customer interactions, but the Web rises above all others as the tie that binds marketing channels

together. Tis phenomenon is evident in countless scenarios, such as email campaigns that drive

recipients to the Web site or the use o rich media within predominantly oine advertising

campaigns. And yet marketers still ail to realize the ullest potential o Web-based intelligence in

the context o multichannel marketing. Why? Because:

· Customer Intelligence teams are already overextended. No Customer Intelligence proessional

has ever complained about a surplus o ree time. Extending the use o existing Web-based

intelligence requires stretching beyond day-to-day business tasks and project work, a luxury 

that lean Customer Intelligence teams simply cannot aord in these recession-wracked times.

· Marketing responsibilities still live in channel-specic silos. Te customer experience is

requently broken down into components and owned by dierent departments, teams, or lines

o business, resulting in substantial integration challenges. Te complexity o synching customer

data grows exponentially when oine and online marketing are considered dierent business

units or when channel relationships are spliced apart between Web, bricks and mortar, media,

and CRM teams.

· Most rms lack an evangelist or Web intelligence. Outside o those who specialize in online

channels, most marketers in the enterprise are not aware o the cross-channel value o Web-

based intelligence. Tis squandered opportunity needs to be rectied by savvy CI proessionalswho understand the potential o — and can act as an advocate or — the multichannel business

 value o customer insights rom the Web.

EnTER THE WEB AnAlyTICS PlATFORM

I the Web is the common thread throughout the marketing mix, marketers can ill aord to miss

the opportunity to use Web analytics to close the gaps between cross-channel marketing tactics. We

believe that Web analytics platorms are one o the most critical sources o activity and insight or

Customer Intelligence because they (see Figure 1):

· Enjoy near universal adoption. At this stage, the penetration o Web analytics technology is

extremely broad and most companies already have the Web analytics capabilities in place and are

gathering the requisite baseline data rom which to start building strategic Customer Intelligence. 1 

· Provide rapid eedback. Activities on the Web play out in rapid time rames; campaigns are

oen completed in days or even hours, essentially at the speed o light when compared with

traditional media cycles. Te ability to gather and analyze data quickly allows or testing and

iterative improvements that ew channels can rival.

Page 4: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 4/11

© 2010, Foese reseach, Ic. repodcio Pohiied Mach 29, 2010

How We Aaics Wi Emege As A Coesoe O Csome Ieigece 

Fo Csome Ieigece Poessioas

3

· Deliver insight to a variety o stakeholders. Web analytics reports and dashboards,

overwhelmingly delivered as soware-as-a-service (SaaS), can be distributed to the entire

marketing team in numerous ormats that are appropriate or varying types o audiences,

creating a consistent view o activity and oundational set o data or CI initiatives.2

· Oer substantial qualitative and quantitative customer data. Te Web site delivers granular

customer data on a large scale to support signicant samples o specic behavior and outcomes.

Tis data includes a cross-section o known customers as well as anonymous visitors who can

be analyzed and used to support specic Customer Intelligence objectives such as segmentation,

remarketing, and behavioral targeting.

· Link to other channels and activities. Just as the Web site serves as a hub or customers’

multichannel activity, Web analytics platorms provide Customer Intelligence proessionals with

the ability to measure that activity and attribute business results rom the Web to other cross-channel marketing programs.

Fiure 1 the Mode We Aaics Paom

Source: Forrester Research, Inc.56720

Web analytics extensions Third-party integrations Bidirectional data flow and APIs

Bid managementExecute and optimizepay-per-click search

advertising

Data warehousingStorage and

integration of offlineand third-party data

Email serviceproviders

Design and deployemail marketing

campaigns

Site optimizationA/B testing,

multivariate testing,behavioral targeting,

andrecommendations

Web analyticsplatforms

Core Web analytics,collection and

measurement of siteactivity

Ad networks Target and deliver

ads to onlinepublishers

SegmentationSegment visitors

based on behaviorand outcomes

Ad hoc reportingAdvanced analysis and

data management

Listening platforms Track and measuresocial media activity

Page 5: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 5/11

© 2010, Foese reseach, Ic. repodcio PohiiedMach 29, 2010

How We Aaics Wi Emege As A Coesoe O Csome Ieigece 

Fo Csome Ieigece Poessioas

4

WEB AnAlyTICS TECHnOlOgy WIll ExTEnD BEyOnD THE WEB SITE In TWO PHASES

o optimize marketing perormance in a Web-centric world, marketers must apply Web intelligence

beyond the scope o site-level analysis. o be sure, Web analytics will still retain its prominence or

Web analysts and eCommerce specialists who need to track traditional Web metrics such as page

 views, unique visitors and exit pages. But Customer Intelligence proessionals should build on the

intrinsic characteristics o Web analytics tools to integrate data across sources and campaigns and

then leverage Web Intelligence to inorm multichannel marketing activities (see Figure 2).

Fiure 2 We Aaics Eoes I two Phases

Source: Forrester Research, Inc.56720

CRMEnterprise

datawarehouse

Customerdatabase

A/Btesting

Multivariatetesting

Behavioraltargeting

Social Applications

Mobile Video

Widgets

Web intelligence

Web analyticsplatform

CampaignsCustomer

data

Offline data

Emerging Web channels

Multichannel marketing Marketing laboratory

Traditional Web channels

Today: Pull Web intelligence

Tomorrow: Push Web intelligence

Search Site

Displayadvertising

Email

 Targeting

Page 6: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 6/11

© 2010, Foese reseach, Ic. repodcio Pohiied Mach 29, 2010

How We Aaics Wi Emege As A Coesoe O Csome Ieigece 

Fo Csome Ieigece Poessioas

5

Toda: Web Aatics Cemets Its Positio As The nuceus Of Oie Measuremet

Web analytics provides the baseline principles and oundational technology to serve as the central

clearing house or tracking and measuring activities across the digital media spectrum, making it

the heart o a broad ecosystem o digital channels and activities. By integrating this treasure trove

o Web data, Customer Intelligence proessionals will begin to turn their Web analytics solutions

into a single source o digital insight that provides the means to sync inbound and outbound

activity. Tis evolutionary phase is in progress today as Web analytics vendors endeavor to build an

expanding array o capabilities. Te result is that Web analytics solutions are surpassing commodity 

unctionality and starting to exhibit many o the characteristics that Forrester orecast or the Online

Marketing Suite.3 How? Vendors are extending their platorms to:

· Capture the social media zeitgeist. Te social media explosion creates an entirely new subset

o Web channels, and with consumers in the driver’s seat, listening is now as important as

contributing. Web analytics vendors like Coremetrics and Webtrends are now oering purpose-built analytics extensions to measure activity on social networks such as Facebook and overlay 

those metrics onto existing tracking mechanisms to support integrated online analytics and

attribution.

· Enable rich media to be the engaging content consumers crave. Marketers are going all out

to create relevant content that drives site trac and engages customers. Rich media, namely 

 video, as well as content rom multimedia and application development technologies such as

Adobe Flash and Flex, require special consideration or tracking and measurement. But these

should not be separated rom standard Web measurement. Why? Because rich media is usually 

served up alongside or within traditional Web protocols. Te power o rich media is driving

serious investments, including Adobe’s 2009 acquisition o Omniture, which clearly envisions

measurement and optimization becoming a top consideration even at the point o content

creation.4 

· Support the very personal and growing mobile Web. Te rapid penetration o increasingly 

powerul Internet-connected mobile devices has created a new window to the Web that eatures

its own standards and usage patterns. Mobile Web analytics is essentially a subcategory o 

traditional Web analytics and should be used in-line accordingly.

· Incorporate ofine data into the online marketing mix. Marketers are increasingly pulling

inormation rom oine sources, including operational, customer, and campaign history datainto Web analytics platorms. Tis helps to enable comprehensive on-site decision support,

provide contextual analysis, and drive more meaningul metrics. With 53% o US online

consumers researching products online but buying oine, this capability is imperative or

Customer Intelligence proessionals.5 Vendors like Omniture and Webtrends are now providing

robust data warehouse options to accommodate these data eeds and integrate them seamlessly 

into the Web analytics tool set.

Page 7: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 7/11

© 2010, Foese reseach, Ic. repodcio PohiiedMach 29, 2010

How We Aaics Wi Emege As A Coesoe O Csome Ieigece 

Fo Csome Ieigece Poessioas

6

Tomorrow: Comprehesive Web Iteiece Wi Drive Vaue Throuhout The Mareti Mi

As Web analytics platorms continue to evolve, Web data will be pervasive throughout most

customer interactions. Platorm extensions will tie together digital measurement tools, and

marketers will be in a position to expand the infuence o Web intelligence to drive customer

interactions across channels. Tis closely aligns with Customer Intelligence proessionals’ goal to

obtain a more complete set o insights that in turn enable a more responsive and adaptive marketing

organization. Extending the use o Web intelligence in this way will help CI proessionals:

· Give the contact center context. Contact centers need customer data — and they need it within

the context o active interactions. By extending Web intelligence, CI practitioners will be able

to include online insights to round out existing contextual inormation to drive more eective

customer interactions. For example, data on customers’ recent Web site visits, relevant social

media activity, or usage o other support outlets can be passed through to call center agents

(CSAs) along with standard contact history and account inormation. Tis will enable CSAs tomore closely match customers’ needs and dispositions and drive appropriate next actions.

· Assemble a comprehensive customer prole. Customer Intelligence proessionals need to

get marketing teams to share activity, transactional, and historical data to ensure they are

targeting eectively.6 Tese Web-derived advances will drive real-time intelligence and support

inbound as well as outbound marketing. omorrow’s Web analytics platorms will help acilitate

this synchronization to inorm timely and relevant relationship nurturing and campaign

development across all channels. 7 How? One way is the analysis o digital media activity prior

to the launch o campaigns to better understand customers’ propensity to purchase. Another

is to actively track campaigns to provide insight into customer buying cycles and identiy 

opportunities or micro-segmentation and remarketing.

· Transorm the Web into a laboratory. Te Web’s speed, fexibility, and data-driven nature make

it the ideal testing ground or branding and marketing concepts, regardless o the intended

execution channel, even those destined or oine or mass media delivery. Marketers will be able

to rapidly test email, advertising, technical site decisions, and direct marketing campaign

prototypes on the Web site without interrupting mainstream site activity by using Web analytics

platorm extensions such as A/B testing, multivariate testing, and behavioral targeting techniques.

Page 8: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 8/11

© 2010, Foese reseach, Ic. repodcio Pohiied Mach 29, 2010

How We Aaics Wi Emege As A Coesoe O Csome Ieigece 

Fo Csome Ieigece Poessioas

7

r E C O M M E n D A t I O n S

IMPlEMEnT A WEB InTEllIgEnCE HUB FOR CUSTOMER InTEllIgEnCE

 toda’s makeig pocesses geeae emedos amos o daa, which is pica maaged

ad aazed i isoaed, chae-specic sios wihi he makeig ogaizaio. tha appoach

ais o eaize ha he poeia o iegaed Csome Ieigece is geae ha he sm

o is pas. CI poessioas shod sa idig a We ieigece h o ake adaage o he

ac ha he We sie is a acho poi o michae csome ieacios. to sccess

depo a We Ieigece h, CI poessioas ms:

· Idetif cadidate activities for ehaced CI. I’s o pacica o peom michae

daa ad aasis iegaios acoss he eie makeig mi a oce. Csome Ieigece

poessioas shod ook o ea wis mappig o eisig csome epeiece

es ha ae headed hogh digia chaes. the pioiize aciiies ha ceack deep csome isigh ha a isio o We ieigece ca poide. Fo eampe,

We aaics ad Socia Ieigece ae oios edeows as escaaig i-diecioa

acii ads ad cosmes o socia ewoks dies makees o cose he oop

ewee We sies ad socia media.8 

· Do more with the Web aatics patform. the mos oios wa o eed a eisig

We aaics impemeaio is cosig daa coecio ad aasis gaps hogh

he addiio o cioai om o edo’s ow oo ki o om is ceied paes.

Commo We aaics chae eesios icde iegaed appicaios o pa-pe-cick 

seach makeig, emai makeig, ad socia media moioig. Aaica eesios o

We aaics icde A/b ad miaiae esig ad ehaioa ageig appicaios.

Ogaizaios wih sigica iesmes i iea It shod aso pse iegaios

ewee hei We aaics paoms ad eepise daa waehoses o he sppo

michae makeig.

· Push Web iteiece isihts ito mutichae mareti iitiatives. Oce he We

Ieigece h is i pace, i’s ime o p he isighs io acio wihi he ageed

pogams ad campaigs. Sa gaheig daa aogside eisig pocesses, adi he

daa ad aasis deieaes o accac, docme aseie peomace, ad he egi

eeagig he isighs o decisio-makig.

· Sweat the detais to coect the dots. Despie edos’ iceasig ope sace o i-

diecioa daa echage ad he aaiaii o compehesie iegaio pois schas APIs ad xMl echoog, he os is o CI poessioas o desad he ow o daa.

Pshig ad pig daa aod he eepise ad ewee sppies adds compei ha

i maaged impope, ess i seios daa qai ad aiio poems. to pee

hese isses, ocs o deig he ssem o ecod, pima kes, ad oweship o each

eeme o he pogam a he egiig o ee pojec.

Page 9: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 9/11

© 2010, Foese reseach, Ic. repodcio PohiiedMach 29, 2010

How We Aaics Wi Emege As A Coesoe O Csome Ieigece 

Fo Csome Ieigece Poessioas

8

· Road trip! be a sog adocae o he isio o iegaed michae makeig

ogaizaio, sppoed he We ieigece h. Schede a iea oad show, hos

Weias, hod ow ag ches, sa a og, o sed o a ewsee oiig

icemea pogess ad sccess soies. takig he ime ad eo o edcae pees,

eecies, ad sppies wi ciae a ce ha aes We-ased ieigece ad heps

ohes ecogize he apped poeia o his isigh. Do as mch as s schedes ad

he ae dge ca wihsad. I ohe wods, oe-commicaig is ee a ad hig.

W H A t I t M E A n S

THE EMERgIng WEB InTEllIgEnCE HUB SETS BROAD MARkETIng CHAngES In MOTIOn

Ogaizaios ae iceasig hei asoe ad popoioa makeig sped o digia chaes

i spie o a goa ecessio, idicaig ha he We is acceped as a idispesie e i

makeig. 9 Oe he e wo o hee eas he emphasis o sig We ieigece o ijec

csome kowedge deepe io he eepise wi die damea chages i michae

makeig. Whie ofie makeig chaes wi coie o see as aed compoes o 

he mi, he wi come de iceased sci as makees ook o emae he aspaec

ad eecieess o he We chae.10 uimae, makees’ sese o se-peseaio wi

oce hem o aioaize hei pioiies ad make sigica adjsmes o he aace o hei

makeig mi ased o measae aiio ad ieae accoaii.11 

EnDnOTES

1 Forrester data indicates that 73% o businesses are currently using or piloting Web analytics

technologies. See the May 27, 2009, “US Web Analytics Forecast, 2008 o 2014” report.

2 raditional licensed soware solutions launched the Web analytics industry o its starting blocks

in the late 1990s, yet hosted oerings overtook their licensed counterparts in 2006. Since then, the

use o hosted oerings has grown dramatically . See the May 27, 2009, “US Web Analytics Forecast,

2008 o 2014” report.

3 Te complete Online Marketing suite has two core components: 1) the central hub — the molten

core o the suite that enables marketers to manage and integrate online data, and 2) the network —

a thriving community o technology and service partners that delivers execution, targeting, and

measurement services. Te central hub is the novel part o the suite; current interactive marketing

specialist vendors will make up the network layer. See the October 17, 2007, “Dening Te OnlineMarketing Suite” report.

4 On September 15, 2009, Adobe announced that it would acquire Omniture or $1.8 billion.

Adobe’s CEO, Shantanu Narayen, promised that the combined entity would help marketers realize

the ull value o their digital assets. For Forrester’s take on this acquisition, see the September 24,

2009, “Adobe’s Acquisition O Omniture Rocks Online Marketing” report.

Page 10: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 10/11

© 2010, Foese reseach, Ic. repodcio Pohiied Mach 29, 2010

How We Aaics Wi Emege As A Coesoe O Csome Ieigece 

Fo Csome Ieigece Poessioas

9

5 Fiy-three percent o US online consumers say they research products online that they 

subsequently buy oine, illustrating the Web’s substantial potential to infuence and drive sales

made via other channels. See the February 5, 2010, “Using Digital Channels o Create Breakthrough

Multichannel Relationships” report.

6 A comprehensive view o the customer helps marketers deliver productive customer experiences,

support marketing measurement, and drive new business opportunities. See the June 19, 2008,

“Creating A Multichannel View O Your Customer” report.

7 Te shi rom traditional programs underpinned by mass advertising, direct mail, and

telemarketing to highly relevant and personalized communications delivered through a

multitude o interactive and direct channels doesn’t happen overnight. Marketers need a new

set o tools to support this transormation. Campaign management solutions — at the center

o marketing communication design, development, and execution — must evolve to support

this transormation. See the December 14, 2009, “Te Forrester Wave™: Cross-Channel Campaign

Management, Q4 2009” report.

8 But most CI proessionals still don’t integrate listening into other aspects o their marketing

strategies. CI proessionals must develop a strategy to make listening a core part o the bigger

picture. See the March 12, 2010, “Dening Social Intelligence” report.

9 Our orecast examines the pace o the shi toward interactive marketing as a more substantial

part o the marketing mix. We expect search marketing, online display advertising, email

marketing, social media, and mobile marketing collectively to grow to nearly $55 billion by 2014.

See the July 6, 2009, “US Interactive Marketing Forecast, 2009 o 2014” report.

10 Marketers can’t see value in multichannel marketing until they can measure it. V spending is still

the biggest above-the-line expense, even as Internet usage increases and mass media audiencesragment. Yet 65% o marketing leaders think Internet measurement is more useul than V

measurement. See the January 15, 2010, “Te Future O Media Measurement” report.

11 Our latest research uncovers 40 best practices that leading Customer Intelligence (CI)

proessionals use to build a culture o accountability, and we grouped them into our categories:

1) strategic organizational alignment; 2) cross-unctional business processes; 3) value-based

metrics; and 4) transparent communication o results. See the March 23, 2010, “Te Marketing

Accountability Index” report.

Page 11: Forrester.web Analytics Cornerstone

8/6/2019 Forrester.web Analytics Cornerstone

http://slidepdf.com/reader/full/forresterweb-analytics-cornerstone 11/11

Forrester Research, Inc. (Nasdaq: FORR)

is an independent research company

that provides pragmatic and orward-

thinking advice to global leaders in

business and technology. Forrester

works with proessionals in 20 key roles

at major companies providing

proprietary research, customer insight,

consulting, events, and peer-to-peerexecutive programs. For more than 26

years, Forrester has been making IT,

marketing, and technology industry

leaders successul every day. For more

inormation, visit www.orrester.com.

Headquarters

Forrester Research, Inc.

400 Technology Square

Cambridge, MA 02139 USA

 Tel: +1 617.613.6000

Fax: +1 617.613.5000

Email: [email protected]

Nasdaq symbol: FORR

www.orrester.com

M a k i g l e a d e s S c c e s s E e D a

5672

For inormation on hard-copy or electronic reprints, please contact Client Support

at +1 866.367.7378, +1 617.613.5730, or [email protected].

We oer quantity discounts and special pricing or academic and nonprot institutions.

For a complete list of worldwide locations

visit www.forrester.com/about.

Research and Sales Ofces

Forrester has research centers and sales ofces in more than 27 cities

internationally, including Amsterdam; Cambridge, Mass.; Dallas; Dubai;

Foster City, Cali.; Frankurt; London; Madrid; Sydney; Tel Aviv; and Toronto.