Tracking And Data Analysis For The Small To Medium Sized Business

By David Bullock

Tracking and analysis are the core of analytics. However, many times as I watch small-to-medium online businesses that are looking to make sales, there are little to no analytics processes in place. Basically, they are not paying attention to their businesses.

It starts with gathering the data to be monitored. Monitoring is equivilent to eyesight. If you can’t see anything, you have no chance of making any moves in a positive and profitable direction.

I am not speaking of the analytics program itself. I am talking about the thinking and the processes that should drive the need for analytics. It is easy enough to install a program like Google Analytics or Clicktracks and then do nothing with the data.

What I am speaking to is putting in an actionable process in place that will use the data to make decisions about the business.

Before the business owner can improve a selling process, he or she needs to define, design and document that process. Then, the tools (i.e., counters) that are required can be put to use. Here is how these steps break down: 

* Define – What should this page do? What is the purpose of this section of the site? What data is needed to show that this section is working?

* Design – Chart your process with a diagram. If you cannot chart it, then it is not real. (www.flowchart.com)

* Document – What are the metrics that are associated with this part of your selling cycle? How will they be measured?

* Data Gathering (Counters) – What tool(s) will gather the required data?

There is no way to improve something that you cannot see. As a process engineer, I know there is always a process and a flowchart in place for every manufacturing process. In fact, the process is designed, examined and dissected into small action loops long before any product is ever produced. Why not the same for business?

The online sales process is very similar to the manufacturing process. If you boil it down you only have:

* Inputs - visitors, content on website

* Processes - customer acquisition

* Process Environment - website, email

* Outputs - conversions

Those four items make up a system. That’s it.

The key is to create thinking that allows you to pay attention to, monitor and track the activity between input and the actual output. Bear in mind, you can make this very complicated if you so desire. Really, though, it is about simply paying attention and monitoring your business.

The gap between the expected and desired output and the actual output is where the opportunity for learning and improvement exists.

Because I am working with companies with smaller data sets and less sophisticated tools, the need to have processes in place is become more critical.

When you have the data, you can assess and act. Without data, you have no basis for action. Without processes, you are inventing, in the moment, with every new transaction. With a process in place you can create a standard operating procedure.

This thinking is not new. Make it real to you so that you are able to think and act with it.

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