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Effective URL: https://www.quantummetric.com/blog/maximize-the-value-of-digital-analytics-in-the-face-of-belt-tightening/?utm_campaign=horizo...
Submission: On September 07 via api from US — Scanned from DE
Effective URL: https://www.quantummetric.com/blog/maximize-the-value-of-digital-analytics-in-the-face-of-belt-tightening/?utm_campaign=horizo...
Submission: On September 07 via api from US — Scanned from DE
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Trends & best practices
MAXIMIZE THE VALUE OF DIGITAL ANALYTICS IN THE FACE OF BELT TIGHTENING.
September 6, 2023 By: Tom Arundel
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It’s a dilemma we’re hearing more and more these days: how do you unleash
digital analytics excellence on a shoestring budget?
With pressure to do more with the same (or less) funding, many digital leaders
are reevaluating how their digital and tech spending decisions are prioritized.
And while some budgets are up, business leaders are still facing more pressure
to show the value of their investments.
Why? The reality is customer expectations continue to evolve, channel
preferences shift, and economic uncertainty isn’t going away anytime soon. In
this environment, investing in digital initiatives requires a strategic approach
that balances cost savings and revenue growth. Decision makers need to invest to
maximize the ROI of their programs, and those who fail will see their budgets
reduced, particularly if economic challenges endure.
THE RISKS TO COST EFFICIENCY.
The challenges and risks of everyday digital processes to cost efficiency are
real. Here are some problems digital leaders face every day:
* Ambiguity and misalignment around when and why customers struggle, leading to
slow degradation of the digital experience
* Risk to bottom line: As tech debt rises, so does the cost of fixing it.
* Lack of confidence when prioritizing
* Risk to bottom line: As reliance on guesswork increases, the potential for
minimal or negative value increases, leading to substantial escalation of
costs and negative ROI.
* Difficulty scaling digital/analytics expertise across the organization
* Risk to bottom line: When digital expertise is at a premium, it can lead to
operational bottlenecks and inefficiencies, impacting overall productivity
and hindering growth.
5 WAYS TO LEVERAGE DIGITAL ANALYTICS TO PROVE THE VALUE OF YOUR INVESTMENTS.
Even though digital has become vital to any strategy, it has become challenging
(and critical) to demonstrate the ROI of digital and tech investments and stay
ahead of budget cuts. Below are 5 ways you can prove ROI in the face of cost
cutting:
1. Stay ahead of anomalies: You’ve seen it happen many times – there’s a sudden
(but expected) surge in user traffic on Cyber Monday. However, due to
inadequate monitoring for the spike, the system becomes overwhelmed. As
frustrated customers struggle to complete their purchases, many abandon
their carts, resulting in a significant loss of potential revenue.
* Steps you can take: Invest in proactive monitoring to get a baseline and
detect behavioral anomalies, monitor and report on digital KPIs and get
real-time alerting when changes occur.
2. Assess the business magnitude faster: Digital and CX teams are constantly
stretched thin to prioritize backlogs while managing tight resources and
timelines. Inevitably, teams are forced to react to negative feedback and
become distracted by unnecessary escalations, or surprised by unknowns.
* Steps you can take: To operate more efficiently, get visibility into where
and why customers struggle and be able to correlate that with business
impact.
3. Know the cost of doing nothing: You’re the digital leader of your company’s
native app and you’ve addressed most of the tech debt and stabilized your
KPIs, but with minimal growth. Now, you’re eager to boost user engagement,
retention and revenue, but it’s difficult to know where to optimize and
convince budget holders to invest.
* Steps you can take: You need the ability to automatically calculate the
“cost of doing nothing” with automatic opportunity analysis to be able to
test iteratively, build data-driven hypotheses and validate which releases
and experiments have the biggest lift on your KPIs.
4. Empower analytics self-service: Today, lean teams are forced to do more with
less. Unfortunately, analytics tools are too cumbersome, and the experts are
nowhere to be found. This results in guesswork instead of data-driven
decisions.
* Steps you can take: Utilize automatic guided analysis and get real-time
alerts when a KPI drops below baseline, so anyone in the organization can
self-serve and make data driven decisions with guardrails.
5. Simplify and consolidate your analytics stack: You’ve likely seen the number
of different (yet similar sounding) analytics tools explode over the last
few years. Not only do tools and capabilities often overlap, but the
complexity is overwhelming.
* Steps you can take: With web analytics, product analytics, digital
experience analytics and journey analytics are all merging together, you
need simplicity, clarity, speed and action. Quantum Metric can help you
eliminate silos by delivering a single and shared view of customer-defined
truth.
* A few examples of potential cost savings:
* If you have multiple session replay tools, we might recommend replacing
one or more of them in order to realize cost savings.
* If you have multiple product analytics tools, we may recommend either
replacing or complementing them with Quantum Metric, depending on your
use cases and capabilities.
* If you have traditional web analytics tools, Quantum Metric can
complement with behavioral/technical data for better understanding of
website usage and customer behaviors/intent, as well as diagnosis when
website metrics deviate from the baseline.
* For real user monitoring (RUM) tools, Quantum Metric can complement
and/or reduce spend with page-level performance monitoring and alerting.
1.
*
Despite tightened budgets, digital analytics can be an essential compass for
business success. With strategic investments, data-driven insights can empower
digital teams to:
* Prioritize and focus on what matters most to boost revenue, increase customer
engagement, and promote digital self-service.
* Reduce customer frustration and time spent on resolution by building more
seamless experiences and freeing up valuable time and resources for
higher-value tasks, boosting overall efficiency.
* Foster digital expertise and retain talent by investing in the right
technology that empowers informed decisions, so every member of the team can
become an expert and more efficient.
Digital analytics isn’t a luxury—it’s the pivotal guide through lean times,
ensuring every investment delivers tangible value on balance sheets and to
customers.
EXPEDITE DIGITAL ANSWERS.
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