Leveraging analytics to improve internal processes in an organization and bottom line outcomes is challenging. The challenge is bigger in profitable companies that have experienced success using gut intuition to take strategic decisions. Moreover, changes in processes and attitude are required to create a data driven culture, but usually humans are predisposed to change, which makes it more difficult to leverage analytics. However, this challenge could be overcome by following a series of steps and proceeding cautiously to avoid any hazards that affect the success of the process. The steps, pitfalls and challenges to entrench analytics into an organization are described in this document.
Getting the attention from C-level executives is the first step to entrench analytics. There are two options to get their attention. The first option is using the data to expose a problem that affects directly the return of investment (ROI) of the business, and the second to show how ROI can be maximized by using analytics. Although the first option can get the desired attention, it can turn out negatively for the web analytics manager when arguing that the problem could be avoided if the information was provided in time. On the other hand, the second option places analytics as a great opportunity to increase profits and success.
Presenting an initial plan and getting approval for it is the second step. A meeting with the C-level executives is a good tactic for this because it will allow the analytics manager to convince the decision makers of using analytics. The meeting should outline the benefits of web analytics to get actionable insights and to optimize ROI. Furthermore it should present the overall process that needs to be implemented to move from a ‘gut instinct’ culture to a data driven culture. This meeting is of high importance because the senior executives‘ approval, support and level of engagement in implementing analytics rely on it.
The main challenge in this step is convincing the entire audience of web analytics as a must-have to increase profit and competitive advantage. Thus, the analytics manager should identify who are the detractors and believers of creating a data driven culture. Probably, the Chief Marketing Officer (CMO) who asked the analytics manager to champion the idea of leveraging web analytics in the organization is the best individual willing to help in the process, and she could be the first person to be empowered. However, approaching the people who are not totally convinced of entrenching analytics into the organization is also essential. These individuals need to be persuaded; otherwise they could put the process at risk.
Regrouping with each one of the C-level executives to define business objectives and develop key performance indicators (KPIs) is the next step. The development of KPIs, goals and metrics to measure the KPIs requires the introduction of accountability. Without accountability, web analytics is not taken seriously because nobody feels responsible for the metrics and targets defined, but as we all know introducting accountability is a delicate job.
In addition, it is essential to clarify any doubt, and discuss any issues the heads of the departments can have in relation to the process. Before communicating to the rest of the company about the new changes, the C-level executives need to feel confident to support and communicate the analytics project to their teams.
Getting the C-level executives and members of their teams engaged is the fourth step. The analytics manager has already convinced the senior executives to go ahead with the project and has received approval from them. The required stakeholders have been informed about the new changes, KPIs and metrics. However, if motivation and incentives are not provided, entrenching analytics into the organization will not happen.
Providing training is one of the best ways to motivate and engage involved stakeholders. The stakeholders will not see value in the analytics tool until they learn how to use the provided data to get insights and drive bottom line outcomes that meet their business objectives.
The challenge of training is to ensure that everyone understands the content and will not forget what was learnt during the first session. However, commonly people forget what was taught in a training session and as consequence do not use analytics to make strategic decisions. In order to mitigate this challenge, the analytics manager should not assume that after a training session, the stakeholders would become experts in web analytics. The first training session should teach people the basics of using the data to improve the website and KPIs performance. After that, the analytics manager should continue educating the stakeholders to create a data driven culture.
In addition, the IT department should receive training on tagging and procedures to update analytics code when making changes on the website, because is IT who implements the tagging in the website. Therefore, IT must be aware of the impact that a wrong tagging can cause to the outcomes and should follow procedures defined by the analytics manager when changes are required.
Another way to engage the stakeholders is providing incentives such as bonuses, contests or sharing success when targets are met. Instead of making emphasis on low performance and mistakes, the analytics manager should focus on highlighting good results. This also contributes to give a positive reaction to accountability. Stakeholders will try to perform better because they know their efforts are recognized and shared; they are transformed in heroes. In addition, Avinash Kaushik affirms in his book that once you have a hero, other stakeholders will get jealous and will want to turn into heroes as well, which will help with the process of leveraging web analytics.
Introducing experimentation and tests is the last step of the process to leverage web analytics. Especially in an organization where the decisions are made based on the opinions of the Chief Executive Officer (CEO). It is not anymore the analytics manager, designer or CMO’s opinion against the HiPPO, but the customer’s opinion that will define the winner. The customer’s opinion is the most important one because it has a direct impact for improving outcomes. Once the organization sees the benefits of implementing customer’s preferences, experimentation and testing will become part of the organization’s culture.
Following the steps described above will help to entrench analytics into the organization. However, there are two elements that need to be present in the entire process of leveraging web analytics. These elements are enthusiasm and patience. The analytics manager needs to bear in mind that creating a data driven culture does not occur from one day to the other. There are periods where the entire organization seems to be engaged and excited about analytics, but there are also periods where some stakeholders lose focus and motivation. Excitement and positivism are contagious, but negativism and apathy are even more. Therefore, the analytics manager must be prepared for this type of situations, and keep enthusiasm in every activity performed in order to reduce the chance of facing these situations.
NOTE: This post is a modification of the original project submitted in the module WA 4 Creating and Managing the Analytical Business Culture from the Award of Achievement in Web Analytics. The original text contains proper References.
NOTE: This post is a modification of the original project submitted in the module WA 4 Creating and Managing the Analytical Business Culture from the Award of Achievement in Web Analytics. The original text contains proper References.
