Retailers are under-utilizing mature web analytics tools, analyst says

Although the web site analytics market has matured with nearly 50 providers of analytics products and services, many retailers have barely scratched the surface in using web analytics technology, industry expert Matthew Berk says.

“There are plenty of analytics tools, but most retailers haven’t dipped into some great short-term and long-term things,” he says.

Berk, an independent industry analyst formerly with Jupiter Research who specializes in web analytics, says some of the key techniques that retailers are under-utilizing are testing and comparing site traffic and conversion rates against different product segments, measuring the impact of multiple marketing campaigns on site traffic and sales, and split-run testing of different versions of web pages.

Berk adds that some retailers are tempted to try new and exotic analytics tools that, for example, try to predict shopping behavior. “But you can get more bang for the buck with basic measurements, such as by using split-run testing,” he says.

With split-run testing, a capability now commonly found in leading web analytics tools, site operators can present two versions of a web page to two different segments of visitors, then analyze which version garnered the most click-throughs or sales conversions. “You can look at the performance of the two versions, then decide which one to deploy,” Berk says.

For example, he says, split-run testing can be effective in determining the best versions of checkout pages, site search features, or merchandising displays.

“Web analytics is not about doing exotic things,” Berk says. “It’s about looking for the low-hanging fruit and deriving the most payback.”