Omniture acquires Offermatica

Wow.

I go away for a fortnight and Omniture goes and buys a company behind my back. I guess that shows how much they consult me!

OK. Without wanting to sound the corporate lackey, I have to say I think this is a smart deal. Omniture appear to be moving towards the wonderful "site optimisation platform" that they've been looking for.

What have they bought? Its a company with proven success at creating and selling an application that wraps up the natty problem of how to make actionable analytics.

So where does that leave Omniture? Well marketing have come up with a wonderful tagline (que image I dont have yet)

AB + MVT + BT / Web Analytics = ROI.

Firstly, lets establish what (AB+MVT+BT) provides a customer. Lets ignore the AB bit and just talk about its more sophisticated cousin MVT and the different approach of BT and where you would apply either.

Broadly...

BT is based upon customers behaviour and aims to optimise a key tagline, banner, piece of content. You use it when you're really not sure what content you should be targetting at any one time.
MVT is based upon customers reaction to a single page. Its optimising the arrangement of content or indeed subtle differences in a tagline. Ideally, it's used when you know exactly the product, process or content on a page you need, you're just trying to refine it to make sure its presented in the best way - forms is an ideal situation, becuase by that point in a "conversion" process all customers are likely to behave similar hence the lack of need to segment the customer base.

Between them, that covers a lot of onsite optimisation (I'm ignoring campaign optimisation for the sake of this blog). The main areas left for onsite optimisation that I reckon Omniture need would be a rules engine and a recommendation /onsite search engine.

What applications would I buy next if I was Omniture trying to improve the Site Optimisation portfolio?

Rules engines are required because having smartly applied rules that can be deployed easily, understood clearly by business and provide an awful lot of benefit. (In an Omniture situation, a rules engine would be performing a similar function to a complicated CMS)

For instance, if you are launching a new product, have new content related to that product and have marketing spend related to that product, you do not need to waste any time "training" an analytic model. It just makes sense that things line up, have people coming from a certain piece of marketing going to a certain piece of content. In fact, in many "straightforward" businesses you would find examples of marketing activity and site content rules that would get you an awful long way.

This is actually something I've found in lots of work done with offline companies where the application of sophisticated analytics is a little more mature than the online environment. Rules, business knowledge and good management will get you an awful long way and often analytics is really best placed on top of the rules in one of the following ways:

1. to optimise, enhance or make incremental improvements on existing business processes
2. to discover new, as yet unknown patterns in customer behaviour which ideally are feedback to guide business strategy.

Obviously, if you have 50,000 peices of marketing activity, and 10,000 products, managing rules for all of that would seem impossible - but if you can segment the products and marketing activity in 20 segments with clear goals and an estimation of value, suddenly the task doesn't seem that hard. With these segments not only would you have less rules to manage but you would have a clearer understanding of marketing and product strategy that would have a dramatic step change in effectiveness.

Search/Recommendation Engines : I've already mentioned recommendations in this blog so wont go too far into this - The reason I have grouped these things are that they simply return a rank set of results based on a customer interaction. In the case of search engines, its a list of ranked content based on a given keyword. In the case of a recommendation engine, its usually a list of ranked products or content based on some website activity (like looking at another product). The main difference is how you do the ranking of delivered content. In a search engine, a user often has a specific thing in mind, the search engine must return as close a match to that thing as possible (PULL activity). In a recommendation engine, its usually more a "push" from the organisation and the results returned are not usually so directly matched, its usually more about making connections based on historic behaviour (behaviour and product activity + customer segment) (PUSH activity).

Heres an example - if I search for Canon IXUS on Google, I want to find things about exactly that, most probably a review or site with the cheapest price in my case, but still, things that have a direct relationship with the terms used.
However if I've just added to my basket a Canon IXUS on a site I dont really need to be recommended a Canon IXUS by the engine, I've seen that already. Better to recommend complimentary products (possibly bought by other customers with the Canon IXUS) or alternative products. Anyway - lets not get into how we do this ranking of content or products in either search / recommendations, the point although the algorithm is different is the mechanism for deployment (action -> return results -> customer selection) is exactly the same and that is something I reckon Omniture should be getting into.

ttfn

Web Analytics Skills Snobbery

"Web analytics" as an industry is funny.

http://blog.jimnovo.com/2007/07/19/aberdeen-web-analytics/

"We’re already seeing web analytics job postings with phrases like “strong knowledge of SAS and SPSS highly desirable” meaning employers are looking for cross-platform, cross-tool, cross-channel analysts. The folks with this cross-knowledge set who can also “speak business” are going to be a very hot commodity going forward. Fortunately, most web analysts already “speak business”, it’s part of the WA culture - and speaking business is the hard part for most analytical minds....."

When I started in 1999 you couldn't interest anyone in a spot of proper statistics (or data mining as it had been rebranded in the mid 90's - since then its going through a few more names like "predictive applications") and now we've come such as long way that people are actually recommending the skills! I'm astounded and hope this means I'll never struggle to find work again!

Suggesting that people with analytic competency struggle to "speak business" is down right insulting. I suspect Jim is playing on the rather archaic stereotype of the speccy techie analyst that do indeed still exist - probably all too often - but for every non-"business speaking" techie, I'll show you a non-"tech speaking" bullshitting business speaker which could do a company just as much damage. Unfortunately quality is not the preserve of any particular domain of business.

"Like I said, the data is data, the behavior is behavior - and the tools are just tools. Web analytics is patient zero, infecting the corporation with a proper analytical culture....."

I have always found it amazing how those people who classify themselves as in the Web business are so amazingly confident in their own abilities and so dismissive of those in the rest of business. Admittedly, at lot of new online businesses have been created in the past few years, some with new and unique business models. A lot of new people are being introduced to web analytics but to suggest web analytics is to infect the larger organisations with the principles of analytics is ridiculous, snobbish and reflective of the superiority complex the channel has had since the late 90's.

When you consider the current money spent on campaign optimistation, fraud detection, credit risk scoring, direct marketing, market analysis, market research, usability, call centre analytics, data warehouse, operational optimisation etc. it's a little brave to suggest that these web analyst souls are going to be treading on new ground, exploring the great unknown in terms of how you go about doing things in an analytic manner.

Its a good job Jim goes on to point out that data is in deed, data, and that behaviour is indeed behaviour otherwise I might have been more scathing. This is something that many "web analysts" have long overlooked. The majority of web analytics has all been done before in other channels however these web analysts have been too snobbish to appreciate it.

When you consider that most web analytics tools have in the past had a very limited drill down capability, little data import or export functions, little ability to tie information to other channels and on the whole little flexibility on what they record, its remarkable they've got where they are.

There are, no doubt, areas where web analytics differ to other channels, but to be honest these are mainly in the areas of data collection and the speed at which it is possible to turn around analytics into action - however, sadly, action is still often far from the minds of the majority of users in this area - and this is mostly because the analysts themselves are busy with the other parts of their roles and the tools they use do not lend themselves to much more than reporting.

And this is where other channels can still lend web analytics a hand. The number of applications out there, utilising analytics and business rules in an offline environment is huge - and web vendors can still learn an awful amount if they open their eyes and adjust their product plans.

"If you’re a web analyst and are offered a chance to do SAS / SPSS / Business Objects / etc. training, I would jump on it."

As for jumping on courses I would say this. If your organisation has the foresight to invest in your skills in any way, you should take it.

I would not limit it to SAS, SPSS and Business Objects. Much as I love the analyst world, and amongst it are some very talented people, going on a course will teach you little more than the ability to punch buttons, write code or both - and if you do something like a SAS course you'll be writing a lot more code than you thought!

If you want to learn coding, I'd pick your language carefully based on your organisation and your goals and learn that, rather than thinking knowing a bit of SAS syntax is going to make you analytic genius. (At least with SPSS the tools have a greater emphasis on usability and the novice can get past the "button pushing" stage and into analytics quicker). Simply put, spending time with individuals who have experience in these tools in your organisation is always going to be a lot better than simply going on a course.

Personally, I'd much rather have someone in my team who is a whiz in the Microsoft office products (namely Excel and Access) or perhaps an SQL coder. Someone who has the familiarity with regular business reporting and their data structures, linking data together and capable of understanding the impact of analytics/figures on an organization would always be my preference - so consider that the next time you have courses to chose from.

Remember. The web is usually only one channel or touchpoint of your business - in the long run the key is going to be pulling these channels together and any skills that will help that should be encouraged.

Interesting Rand Schulman Article

Interesting article from Rand Schulman and some of his time in the industry. Interesting to note some of his comments on WebSideStory and the subsequent Visual Sciences stuff. Not only that but also making a case for cross channel applications and optimisations with his new company Unica.

A few interesting snippets from the article, enjoy.

"People woke up and started to understand that the online business was really very much the same as the offline business."

I think people are still coming to terms with this in the larger organisations with an offline history. If you were to look at the numbers of people supporting / analysing the online channel compared with those in the offline world within an organisation and take into account the money the channels bring in, I think the web is still rather undervalued even if you believe that the web channel should be a more efficient tool for reaching customers.

"One of my major contentions was in 2003 that web analytics is not inherently a stand alone application. You can’t just look at the numbers, but you must take action on those numbers."

Again I think this is still a problem. Many organisations have never got to a point where they have a good enough grip on there numbers to feel empowered to take actions. In my experience, those that do are often the marketeers spending those large sums online who are on average doing the most in this area, not the site analysis /content /conversion people. Lets face it, its the marketeers who have the majority of the money and its usually easier for them to switch on and off campaigns than the site based people. Whether they are taking good actions on the numbers they see it always arguable :-)

"I think at the time WebSideStory was the first mover around the integration of actionable applications, and the creator of the first suite of standardized and public APIs"

First mover in the online space perhaps. Other vendors had for some time been trying to open up systems and databases to enable application development.

"but marketing people just don’t need the infiniteness of the slicing and dicing of real time data"

Thanks goodness someone said it.

The reason why you do need the slicing and dicing is because people havent figured out a simple way of representing the data that is needed so give you access to all to cover their bases.

However, that doesnt mean that marketeers shouldn't slice and dice. They should have applications that do the slicing and dicing automatically for them to come up with the best results, but then marketeers should have the key figures presented to them in an easy to understand manner with explanation of how the figures got there. (The last thing I want to see is millions of marketeers all slaviously following the output of black boxes.)

"If you agree with my primary contention that web analytics products collect data, and then they trigger other applications, there is no “visual” requirement about a triggering mechanism whereby you threshold the business rule, and you take the actions."

See note above about black boxes. The problem with people who build clever applications is they often dont think about the users and the feedback they require to either

a) make sure the app isnt going off the rails
b) gain insight to make the app or other sections of their business better in some way

"The market is going full circle to encompassing cross-channel marketing and cross-channel action, not just cross-channel reporting, but cross-channel action, and combining online and offline action."

360 degree view of the customer is not news.The thing is vendors are only now building the tools to cope with it properly and all vendors have their weakness, yes, even Unica...

"But, all the vendors are talking about this “cross-channel” thing now, and what they are really talking about is cross-channel reporting."

Again, thats what a lot of the web analytics people are saying, but look at people like Omniture and our Touch Clarity solution? What about SPSS and their predictive applications? Its pretty simple, companies whose emphasis is one reporting will continue to have those leanings, but that doesnt mean there arent a lot of application builders out there.

"That’s going to be a fundamental shift back away from the client side to the server side, where log files and tag information will come together."

Very interesting. It will pose difficulties for those vendors who are not used to dealing and integrating with different data sources. Many of the web analytics vendors have had data processing relatively easy as web logs have been of a relatively standardised format for years and if you're tagging you can make your own data structures no problemo. New systems, new data sources, then integration gets really interesting...

"Secondly, we are going to have to have a notion of the correlation of orthogonal web-based events” versus the linear display of a series of page view- based events"

Not sure what that really means. Orthogonal in my book is perpendicular, correlation implies they are lined up - orthogonal != correlated !!

I'll cut him some slack as I really like the article. I suspect what it means is a move away from pages that can very easiloy be linked together and causaly related to things that operate a little more independently. I dont expect this will be unsurmountable its simply that vendors will need to organised their data into a specific level and report on it, like say customer level. I expect data mining type stuff to become more prevalent.

"Some of these are finding out that the client’s greater engagement on the website means lower conversion to their store."

Needs to be said to a lot of people. There's process and engagement. You want to be able process as quickly as possible. You want to be be ableto engage as long (or as often) as possible. The same website can often have both and depending on who you're speaking to in an organisation, both can be important.

"Yet we have these huge and vast stores of personal information that are going to be employed for the benefit of us all as individuals. Those benefits will help us live richer lives."

And lets not forget the corporations who own the data and the people who build the apps...