Win with Advanced Business Analytics: Creating Business Value from Your Data

METRICS AND MEASUREMENT

Your analytics implementation must have metrics and measurement as a key component in order to track your analytics successes. The metrics will translate the business challenges into operational measures that can be monitored over time, not only for analytics impact, but for the entire company. If the metrics are well defined, they will be an objective means by which your company can measure progress and business analytics impact. Your company should use these metrics to quantify broad business objectives, such as “be the category leader in online travel,” into more specific and measurable objectives, such as “becoming the most visited site in the U.S. travel category, targeting 20 million unique visitors per month.” Other examples may include

• Increase productivity
• Increase market share
• Increase retention rate
• Increase wallet share
• Increase conversion rate
• Increase customer satisfaction
• Increase average order size/number of products
• Increase average spend per customer
• Decrease operational costs
• Decrease time-to-decision
• Optimize human capital

Your established metrics for each project will demonstrate the benefit of analytics implementation and will motivate cross-functional teams as your project progresses. Measurement should always be part of the implementation process, in order to track how the analytics solutions are performing and to address the question: are we getting the expected value and ROI from our analytics investment? Defined measurement will ...