There are still a lot of online companies that don’t care about data analysis. They sell their products or services online, but don’t really take the time to analyse small things like how their customers find their site, or how those people use their website. Things like ROI or convertion ratios arn’t something they really care about it. I have a friend running a website selling Halloween kostumer, he didn’t care about things either, but that really changed when he found out how he could improve his business by analysing his data and taking action on those findings. For instance by analysis which adwords that wasn’t performing very well and deleting those, he cut down the adwords cost with about 20% without looing any sales. He could analyse his google analytics account and see which of his landing pages had a high bounce rate and then modify those pages, so that his visits stayed there a bit longer. He could see how the various changes to his website affected his return of investment, and after half a year of optimizing his website, based on data analytics, he actually managed to boost his sales with a whole 55% without increasing his marketing budget. So now he is selling a lot more halloween kostumer, and spending several hours a month going though various data for his website and constantly improving his business, based on those data. Sometimes this requires certain math skills, but most of the time it’s something you can easily do with just a standard knowledge of mathematics and numbers.
Who can benefit from data analysis?
There are many other business out there that could benefit greatly from data analysis, not only in the online sector but also locally. Often it’s a bit easier to do this online, when you have great free tools like Google analytics to help you. The worst part is, that there are still millions of online companies that haven’t even installed a statistics tool, so they don’t know (or care) about how people find their website, where they come from, and how they use the website. The same goes for container use in army technology. Something that should be important to everybody as you can see here.
For instance if I could see that a lot of people arrived to my site from an article on a certain website, it might be worth considering some kind of paid or sponsored advertising on that website, or if my conversion ratio was really bad compared to other companies in my niche, then maybe it was time to get a new website or improving the old one. I have seen several examples of companies improving their convertion ratios with 100-200% after getting a brand new website, where convertions and usability was in focus. So if you have a high volumn of sales, then this is certainly something that might be worth looking into.
Another example would be to use analytics to see which keywords was driving traffic to you website. Take the best ones, and see if you could increase that traffic even more, by doing some onpage search engine optimizations. Often it doesn’t take much to gain a few extra places, which could in return, easily double the amount of traffic from that keyword.