Behavioral Analytics

Web Analytics: What, Who and How

Why, Where, What and How
Measure Everything
Web Data Streams
Web Analytics
Clustering Tribes
Engagement Marketing
Tell Your Friends
The Enterprise
Mob Profiles
Biofeedback Marketing
Consulting Services

The web today is a major revenue channel for almost all companies of all sizes – it is major sources of consumer intelligence – with every click customers communicate their desires and needs.  Enterprises and marketers need to focus on what consumer behaviors on websites are dictating and demanding.  The consumer web data streams can start with an enterprise’s website, but the tapestry of behavioral analytics can include chat, transcribed phone calls, email, wireless and other transactional databases.  At the lowest possible level consumer behaviors can begin to be captured at the Web sever log files – these are the most common formats:

  • National Center for Supercomputing Applications (Common, Combined, and Separate)
  • Custom Log File Format (information captured is defined by the user)
  • W3C Extended (used by Microsoft IIS 4.0 and 5.0)
  • IBM Tivoli Access Manager WebSEAL
  • WebSphere Application Server Logs
  • SunTM ONE Web Server (iPlanet)
Log files provide the following type of behavioral information:
Domains and countries of site visitors with GeoIp detection
Search engines, and keywords used to find the site
Authenticated users, and last authenticated visits,
Number of visits, and number of unique visitors
Pages hits for each hour and day of week
Most viewed, entry and exit pages
Unresolved IP addresses list
Visits duration and last visits
Operating system used
Worms attacks
Browser used
Robot visits
Files type


For behavioral analytics log files can be used to track the movements and the return of website visitors.  Log files can reveal how visitors arrived at a web site, they can show which section of a site is most popular and an assortment of other web metrics.  Analog was one of the first log file analysis program back in 1995, soon after several commercial log analytics program came to market.  One of the first was WebTrends which added various graphs, tables and other business metrics, soon other firms followed, such as Accrue, WebSideStory, Coremetrics and dozens of others. Today these are the most popular log analyzers: 

   
Google.com/analytics – A free service for gaining insights into website traffic with advanced segmentation, custom reporting, motion charts, and more.
   
WebTrends.comA leading provider of web analytics and consumer-centric marketing.
   

Yahoo! Web AnalyticsAn enterprise site analytics tool that provides real-time insight into visitor behavior on their website.

 

Lyris ClickTracks.comIntegrate web analytics, bid management, and keyword research tools.

 

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Google Analytics is free

   

There are limitations to log files which report more on browser activity rather than consumer behaviors.  There are also problems with search bots which crawl around sites creating traffic which is non-human, then there the problem of recognizing unique visitors who today are typically assigned dynamic IP addresses, one potential solution is assigning unique identification number cookies.  Log files can be configured to report on a these unique entity cookies: USERID=CustomerA;IMPID=01234 the advantage to this approach is that this value can be linked with other enterprise databases.  As we found out in the prior section a cookie is simply a small text file that is used for tracking consumer clickstream behavior.  A cookie typically contains the domain, a lifetime date, and a value, usually a randomly generated unique number for deep link tracking by the issuing websiteJavaScript tags have become the most popular method of collecting web data streams, by simply adding a few lines of JavaScript code to a page all the data from visitors activities can be collect via a cookie:

function createCookie(name,value,days) {
     
                                    if (days) {
              var date = new Date();
             
                                    date.setTime(date.getTime()+(days*24*60*60*1000));
             
                                    var expires = "; expires="+date.toGMTString();
        }
       
                                    else var expires = "";
        document.cookie = name+"="+value+expires+";
                                    path=/";
}
function readCookie(name) {
       
                                    var nameEQ = name + "=";
        var ca = document.cookie.split(';');
       
                                    for(var i=0;i < ca.length;i++) {
               var
                                    c = ca[i];
               while (c.charAt(0)=='
                                    ') c = c.substring(1,c.length);
               if
                                    (c.indexOf(nameEQ) == 0) return c.substring(nameEQ.length,c.length);
        }
       
                                    return null;
}
function eraseCookie(name) {
       
                                    createCookie(name,"",-1);
}

JavaScript log files are easier to maintain than server log files and as the shift to the Web as the main channel for consumers, enterprises have shifted the responsibility for web analytics, such as log maintenance and reporting from internal IT shops to outside vendors.  Typically these web analytic vendors rely of JavaScript tagging to track and report on visitor activities. Most of which report on such web metrics as page views, number of visitors, top exit pages, and other measurements that provide little useful information for behavioral analytics. However, new vendors such as Lyris and Omniture allow marketers and enterprises to capture deeper web data which is required for the segmentation of visitor behaviors that provide much more insight than a count of web site ‘hits.’ 

   
Putting a few lines of JavaScript code in a page can instantly tag the entire website – the reporting can be outsourced to an ASP vendor.  Page caching by server farms such as Akamai Technology is not a problem for JavaScript tagging.  Special reporting tags can be placed at carts, checkouts, order confirmation pages to capture and report on number of products purchased, order value, inventory control and other revenue metrics.  The one caveat about JavaScript tagging is that it is that they collect consumer behavior data on the browser side rather than the server side – if your strategy requires storing consumer behavior data on your servers – tagging will not work for you. 

   

An optional method of collecting web data is via a packet sniffer which are special types of hardware from such vendors as Clickstream Technologies and SiteSpec, some of which work with JavaScript.  Packet sniffer are an outsource solution to web analytics which sit between the consumer browsers and an enterprise’s corporate website, hence they can collect absolutely everything including passwords, name, addresses, and credit card numbers. One caveat about packet sniffers is that they cannot capture and report from Adobe Flash, Ajax or RIA files. The optimal solution is the merge of packet sniffers and JavaScript technologies for capturing and reporting on consumer behaviors.

 

As with all behavioral tracking cookies cannot be used to identify consumers: behavioral analytics is a reaction to behavior not individuals – privacy is not an issue.  Cookies allow an enterprise to recognize consumers when they return to their website by responding with targeted content or services.  For most purposes a website setting a cookie does not need to know the identity of the consumer - it just needs to remember the browser prior visit.  The important fact to remember most sites don’t know a consumer by their name rather they know him or her as: ID 511946jm33dd8839.  To learn more about cookies go to cookiecentral.com.

   
It is important to define the main purpose for a web site to ensure the use of the right web data via the right mechanism, service or hardware.  For example, for a retailing or e-commerce site the metrics are sales, repeat and new customers, conversion rates, etc.  However, for a support site it is timely resolution, while for a lead generating site it is the number of leads. Clearly defining the purpose for a web site can guide the marketer and enterprise in deciding what, who and how web analytics will be conducted.

   

Marketers and enterprises have the option of writing personal information about consumers to a cookie gleamed from registration forms as long as it is stated in the website privacy policy.  If personal consumer information is stored in a cookie it should be encrypted to protect the privacy of the consumer.  The use of cookies for behavioral analytics is totally in control of an enterprise, so that their website may create a cookie with unique but anonymous content; or on the server side they may create a file that logs that anonymous content alongside any personal information that consumers have provided, such as their zip code, or the type of product, service or content they prefer via the completion of a registration, survey, contest or order form.

   
Registration forms can be used for creating dynamic databases and are excellent marketing engines, they should solicit enough information for segmentation analyzes along product lines and demographics, such as a ZIP code, forms can be built using Perl, PHP, CGI, or commercial software. The information solicited from online forms can be linked to a unique cookie random designated consumer identification number, enabling an enterprise to associate the behavior and purchasing values of customers. The following websites provide information and software for the creation of forms: Regonline.com and Formsite.com.
 
Web and email beacons, also known as bugs and clear or invisible GIFs can also be used in combination with cookies for behavioral analytics of consumers.  A beacon is typically a transparent graphic image – a 1 pixel x 1 pixel that is placed on a website or in an email.  Beacons allow enterprises to record the behavior of consumers, they also can track the consumers IP address, timestamps, and the existence and content of cookies previously set by their website.  There are also software and service providers which offer complete turn-key customer analytics and behavioral tracking services.  This is how beacons can be used to capture web data:
1. Consumer uses his or her browser to go to a website.
2. The request is received by the web server. 
3. The server returns a page along with a request for a 1 x 1 pixel image from a third-party server.
4. As the page load so does the beacon executing a call for the 1 x 1 pixel back from the third-party server.
5. Third-party sends the pixel along with code for reading cookie information, IP address, and any other data pre-determined by the website and the third-party service provider.
 
Beacons are vital mechanisms for behavioral tracking and reporting and depending how they are created can tell an enterprise how consumer arrived at a website, what purchases were made and total sales to those customers.  Beacons can also be used to track emails, to find out what recipients opened them and what URL links were clicked on.  Beacons can also be linked back to personally identifiable customer profiles and accounts.  Beacons can be used in conjunction with cookies and registration forms for behavioral analytics.  It is important for enterprises to fully disclose the use of cookies and beacons enabling consumers the option of opting out.  These Internet mechanisms however optimize and enhance the customer experience by targeting offers and content consumers are most likely to appreciate and desire. 
 
However, by combining the tracking clickstream data streams created by these Internet mechanisms with offline demographics enterprises and marketers can make more relevant messages to consumers and stop bombarding them with irrelevant communications. There are several types of networks an enterprise can subscribe to for behavioral analytics.  These include demographic and advertising networks which pool information from networks of member websites and offline demographics information linked to physical addresses such as a zip code.  There are also recommendation engine networks which use collaborative filtering technologies for behavioral analytics as a service. 
 
An enterprise can mix and match from these behavioral analytics networks.  Enterprises can also choose to subscribe to some of these service providers in combination with its own streaming analytical software for optimizing consumer personalization.  A key consideration for an enterprise is the market and industry they are a part of; secondly they need to evaluate what products and services they offer consumers.  These issues will determine the type of behavioral analytic services an enterprise will subscribe to.  There are also tracking and reporting services such as those by ComScore that work similarly to the television Nielsen ratings. There are also surveying vendors such as ForeSee Results and iPerceptions for finding out why consumers arrived at a website, what they were looking for and did they find it, this can be content, products or services. 

   

For an enterprise and marketer solution provider several modes of behavioral analytics are possible, first they can subscribe or partner with demographic, advertising and recommendation networks to enhance their online presence and sales via these on-demand services.  Secondly, they can construct behavioral analytics systems within their company or their clients; leveraging all the consumer data aggregated from their transactional databases, email servers, call site, website and operational systems using new streaming analytical software. Thirdly, they can combine both subscription services with their own analytical software based on their specific needs.

   

These are some of the on-demand behavioral analytic service providers, which can be leverage along with in-house real-time analytical streaming software products by enterprises:
   
Revenuescience.comMarketing platform for digital media reaching over 65 percent of the US online audience. 
 
SageMetrics.comUses a combination of web analytics with targeting based on combined user profiles. 
 
DigitalRiver.comEcommerce platform for software and consumer technology manufacturers. 
 
Analytics-iq.comTargeting and risk scoring based on proprietary database consisting of 1,500+ demographic, psychographic, attitudinal, and econometric attributes. 
 
Coremetrics.comLifetime Individual Visitor Experience (LIVE) Profiles are the core of their client data warehouse for web analytics. 
 
Foviance.comMulti-channel consultancy for websites, telephone, TV and print. 

   

Both deductive and inductive streaming analytical software are a new breed of products that can be applied to making behavioral analytics filters a reality to enterprises.  Software streamers argue that enterprises cannot afford to collect consumer events and deal with them later in batches, long after the sales opportunities have come and gone.  These new streaming analytical software products enable real-time behavioral analytics filters since they are specifically designed to trigger offers, recommendations and alerts by either matching them to user provided business rules or by rules created via inductive data analyzes. 

   
Today, web analytics can be delivered with only a few clicks of a browser from such service providers as VisiStat or Google Analytics for real-time web site tracking, without any software to install. The key to web analytics is the segmentation of web traffic behaviors – this can be by the type of respondent, by type of pages visited, by keyword used, by search engine they arrived from and most importantly by the product or service purchased.  Strategically asking for input from visitors, consumer and customers is very important and can be the basis of additional data for analysis.  Constantly ask in surveys, emails and texts for customer service feedback, which can be analyzed for keywords, but most importantly service patterns, can be identified for improving the user experience in a web site.  Surveys coupled with clickstream data can enable behavioral analytics for targeting the right content, product or services to consumers. 
 
C H E C K L I S T:
Web analytics can also be improved by concentrating on other areas for the optimization of efficiencies of a web site, such as the following:
1. Email Marketing
2. Social Media Marketing
3. Search Engine Optimization
4. Internet Consumer Behavior
5. Strategic Internet Public Relations
6. Pay Per Click Campaign Development
7. Website Advertising and Design Principles
___________________________________________________________________________ 
 
Email marketing is an inexpensive and highly effective method of customer acquisition, retention and communicating with consumers, such as when confirming an order status.  Web 1 x 1 pixel beacons can be embedded in the email sent to consumer to report to the sender what, when and by whom the email was read and other response metrics.  These email metrics can involve total emails sent, total bounced, total opened, total unsubscribe, total clicks on links, etc.  With respect to clicks on email offers can lead to the measurement of total number of orders generated, total amount of sales from the email marketing campaign, average order size generated and lastly total revenue generated per email sent. Email marketing efforts need to be closely linked to web analytic initiatives and the tools used to measure the overall effectiveness of a web site. Social media marketing is covered in detail in another section of this site.   
   
Search engine optimization (SEO) simply seeks to improve the number and quality of visitors from the results of natural keyword searches, from either Google (72%) or Yahoo (18%).  As you can see both these search engines account for nearly 90% of all searches on the Web, so how a site ranks with these two engines is highly important, this requires the placement of the right keywords in the main page and the strategic use of right meta tags, meta keywords and relevant description of the site.  This can be performed by an enterprise internally or it can be outsourced to a SEO vendor many of who provide such services as keyword research, link building, web site audits and content development.  SEO vendors provide full service, consulting and training as well as an assortment of metrics including page ranking, traffic reports and popularity in comparison to competitors.  Some simple rules for optimizing SEO is avoid using JavaScript pop-ups or FLASH in the home page since search engines cannot spider them. 
 
Good web site advertising and design principles involve several basic elements: 
 
Overall: Provide a clear path to the user’s tasks organized by importance, frequency and sequence, be consistent with links, colors and buttons, don’t force users to register and don’t push sound, animation or other sexy stuff at users. 
  
Layout: Objects should flow from left to right and top to bottom, avoid scrolling when ever possible and make the pages printable. 
 
Design: Be consistent with colors, buttons and links, avoid blatant advertising, simple is best. 
 
Navigation: Measure what tasks are most popular and prioritize them in subsequent re-designs of the site, don’t force user to perform task they may not want or need, link should communicate the content they lead to 
  
Content: Use simple vocabulary, keep it short, list prices when applicable, allow for comparisons to be made, strive for contrast between text and background, use bulleted lists, and display the search box on the upper-right corner of the pages. 
   
Lastly, consider the purpose for a site: support, sales, content, leads, information? Now, consider the metric for measuring success or failure, bounce and conversion rates, total sales revenue?  Next, who will be doing the determination as to the business success, your web analytics vendor: Omniture, WebTrends, ClickTracks, Coremetrics or WebSideStory – most likely not, tools only provide the methods by which to measure the effectiveness of a web site.   
 
Web analytics needs to be integrated and measured against the total efforts of an enterprise and all its channels.  A good strategy is to use free web analytics tools to evaluate clickstream data, such as Google or Yahoo and concentrate funding on hiring modeling specialists to gauge the business metrics of a site.  Use the web itself – Google “web analytics blog” regularly to find the latest on new techniques, tools and technologies – web analytics is a continuous process for measuring key performance indicators for enterprises and marketers.