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Excellent Analytics Tip #24: Obsess About Real Business Profitability

kaushik.net
If you want to be slightly more awesome (admit it, that sounds so tempting!), focus not on what happens 30 days after but rather what happens over a longer time horizon. Say three to six months after the original customer was acquired. Your "funnel" would look like this ? Awesome, right? Now you are getting into the yummy customer lifetime value territory. You are getting in the delicious quality of customer territory.
Excellent Analytics Tip #24: Obsess About Real Business Profitability - kaushik.net - Your Highlight Location 117-122 | Added on Saturday, 20 July 13 08:47:56
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Now compare returns rate for Facebook and AOL and Email and ? on and on. You just have to stretch the time horizon you are looking at a bit more (look at the data 30 days after the order was fulfilled, typically the window for returns). And you have to stretch your data sources and not be limited by Adobe Analytics or whatever else you have.
Excellent Analytics Tip #24: Obsess About Real Business Profitability - kaushik.net - Your Highlight Location 114-116 | Added on Saturday, 20 July 13 08:47:40
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Typically, we measure success by analyzing where people come from, and how many of those place an order online. That is not bad. But we can make a very simple extension to our analytical/success view and look at returns as well. This makes us smarter in how we judge success. For example, Google could send you a ton of traffic via your pay-per-click campaigns. A bunch of them could also convert. But if the return rate for the orders is 10%, you may wipe out your entire profitability.
Excellent Analytics Tip #24: Obsess About Real Business Profitability - kaushik.net - Your Highlight Location 109-114 | Added on Saturday, 20 July 13 08:47:17
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