Why analytics is important for your business?

Why analytics is important for your business?

Like a four years old, I always keep asking why? Mom, why do I have to do to my bed in the morning mom? Boss, why should I attend this meeting, anyway?

Asking why is a good way to remind yourself what matters, and where your focus should be. Let’s see why we need analytics in our businesses to keep on track

Why you need analytics?

  1. To measure and track your results across time
  2. To understand your visitors, leads, prospect
  3. To understand, track and improve the mechanisms used to convert your first visitor into a valuable customers.

If we take an honest look on how we use analytics in our busy day-to-day life we realize  that we..

  • look at the number of visit or hits (remember HITS is an acronym for How Idiots Track Success)
  • We also look at the number of goals and conversion rate.
  • maybe, if we have time, our traffic source and bounce rate
  • and that’s about it.

Wait a minute! Where is the understanding of our visitors and the performance of our website? We look at them, but we don’t give them the attention they really deserve. Not because we don’t want to, but because it takes to a great deal of time, some effort and perhaps analytics know-how. Sadly, these are the reports we should focus to keep our business on track.

The big question now become:   Can we do more “good analytics” without having to spend too much time?

Yes we can! Do you think top CEOs spend hours doing analytics? No! But they always know perfectly well their keys metric (KPIs if you prefers) by using executive dashboards.

What is a dashboard

A dashboard is the combination of few carefully selected charts, tables and metrics related to a specific business problem or area.  The power of the combination of several metrics is not trivial.  It allows you to discover pattern that might be hard to detect by looking at each report individually.  It also show you everything you need to know about a specific aspect of your business, like customer acquisition., list building,  funnels performance,  blog readerships, etc.

Ready to build your first dashboard?

Step 1: Chose the business aspect you want to improve and list the metrics and segment you want to use and click Add New Dashboard.

new_dashboard

 

Step 2: Beat the Blank page syndrome.

create_dashboard

 

Don’t reinvent the wheel!  Select the Starter Dashboard, or visit the dashboard gallery choose a dashboard that fit most of your needs.

Gallery

In order to be able to add a dashboard, you will have to log in to your Google Analytics account.  You will also have to choose the view (your profile name) where you want to create the dashboard.

share_db

Step 3: Remove all widget you don’t need.  Click on edit on any other widget that you want to keep and make sure the filters fit your situation.

After you removed all the widgets you don’t need, click on “edit” (the small pencil button) on every single widget to be sure that the filters and metrics make sense for you.

edit

If a widget displays the revenue, but like in my case, you used goal 4 values to evaluate you e-book sales revenue,  change the metric to Goal 4.

setvalue

 

Important!  Don’t skip this or you may end-up with funky results!

 

Step 4: Use and refine

It’s hard to create the perfect dashboard on the first time. After using it for a while, you will know if a metric is missing and if some are not that helpful.

That’s it for now!  In the next post, I will share with you the dashboard that I created to track my subscriber acquisition.

Leave a question in the comments if you have any.

 

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Marcos D'Urbano

Owner at Simple Analytics
During the past 10 years doing analytics and completing an MSc in Business Intelligence, I realized that very simple techniques can have a huge impact on our results and your bottom line. I created Simple Analytics because I do love analytics and firmly believe that complex things can be explained in a simple way. I teach and coach busy online entrepreneurs on how to use analytics to keep their business on track.