5/18/06

Web retailers may prefer hosted analytics over time

More web merchants are likely to shift their web analytics program from installed software to an ASP model, says Jupiter Research. The reasons: ease of deployment and lower operating costs.

Paul Demery , Managing Editor, B2B E-commerce

More web merchants over time are likely to shift their web analytics program from installed software to a hosted program, says Jupiter Research.

While it doesn’t break out any numbers for the retailing industry, Jupiter projects that U.S. companies spent about $463 million on web analytics applications in 2005, rising to a projected $931 million by 2009. In 2005, U.S. companies spent a projected $249 million on installed web analytics software and $215 million on hosted applications, Jupiter says. But by 2009, spending on hosted web applications is projected to be $519 million compared with $412 million on installed software.

Among the industries more likely to use hosted analytics is retailing. “Retailers are more likely to outsource and shift to an ASP model for web analytics over time,” says Jupiter senior analyst Greg Dowling. “Compared to other industries, retailers run leaner information technology departments and hosted applications can be easier to deploy and over time have less cost of ownership.”

In general, web retailers also are beginning to use their analytics programs in more detailed ways, particularly to measure the results of site upgrades and customer satisfaction. “Web analytics is the nexus retailers are using to tie together initiatives such as A/B testing and customer satisfaction,” Dowling says. “They aren’t just measuring site traffic any more. Whether it’s installed software or a hosted model, retailers are getting more adept at using analytics to measure the total customer experience.”

Topics:

Analytics, Data analysis, Data management, Internet marketing, marketing

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