<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>Analytics Advice &#187; statistical significance</title>
	<atom:link href="http://www.analytics-advice.com/tag/statistical-significance/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.analytics-advice.com</link>
	<description>Web Analytics News, Tools and Discussion by Garry Przyklenk</description>
	<lastBuildDate>Sun, 31 Jul 2011 11:18:20 +0000</lastBuildDate>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.3</generator>
		<item>
		<title>Measuring ROI &#8211; Lesson 2: Becoming a data diplomat</title>
		<link>http://www.analytics-advice.com/2010/02/02/measuring-roi-lesson-2-becoming-a-data-diplomat/</link>
		<comments>http://www.analytics-advice.com/2010/02/02/measuring-roi-lesson-2-becoming-a-data-diplomat/#comments</comments>
		<pubDate>Tue, 02 Feb 2010 18:49:42 +0000</pubDate>
		<dc:creator>przyklenk</dc:creator>
				<category><![CDATA[Key Performance Indicators]]></category>
		<category><![CDATA[multivariate testing]]></category>
		<category><![CDATA[return on investment]]></category>
		<category><![CDATA[statistical significance]]></category>

		<guid isPermaLink="false">http://www.analytics-advice.com/?p=51</guid>
		<description><![CDATA[Divorcing yourself from opinion, or qualitative analysis, or wishy-washy suggestions can be a tough task.  Some stakeholders are statistically savvy and can look at numbers objectively, opting to do their own analysis &#8211; perhaps by using separate business intelligence. However, most people want to read interesting insights, even if it&#8217;s just to look smart at [...]]]></description>
			<content:encoded><![CDATA[<div class="tweetmeme_button" style="float: right; margin-left: 10px;">
			<a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fwww.analytics-advice.com%2F2010%2F02%2F02%2Fmeasuring-roi-lesson-2-becoming-a-data-diplomat%2F"><br />
				<img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fwww.analytics-advice.com%2F2010%2F02%2F02%2Fmeasuring-roi-lesson-2-becoming-a-data-diplomat%2F&amp;source=gprzyklenk&amp;style=normal&amp;service=bit.ly&amp;b=2" height="61" width="50" /><br />
			</a>
		</div>
<p>Divorcing yourself from opinion, or qualitative analysis, or wishy-washy suggestions can be a tough task.  Some stakeholders are statistically savvy and can look at numbers objectively, opting to do their own analysis &#8211; perhaps by using separate business intelligence. However, most people want to read interesting insights, even if it&#8217;s just to look smart at the water cooler.  For everyone to get on board, the trick is to stop saying, &#8220;I think&#8221; and start saying &#8220;the data shows.&#8221;<span id="more-51"></span></p>
<p>Finding valuable insight in segments of your traffic is a great first step.  Focus on one product, one traffic segment, and one conversion pathway through a site.  Slice and dice the traffic different ways until you notice a trend, or even something interesting.  You might find that first time visitors coming through organic search terms convert five times better than paid search visitors.  A perfect starting point for deeper dives across alternate product lines.</p>
<p>Oh oh, what if your data is sketchy?</p>
<p>What if your segments look a lot alike, and you think that 5% difference could mean something but aren&#8217;t sure?  That&#8217;s where significance testing and maybe even multivariate testing can help:</p>
<ul>
<li>If you DON&#8217;T have access to web development teams, test theories using a statistical significance test, such as PRC&#8217;s <a title="statistical significance calculator" href="http://www.prconline.com/education/tools/statsignificance/index.asp" target="_blank">statistical significance calculator</a>.</li>
<li>If you DO have access to a friendly web dev, consider working together to run an A/B or multivariate test using <a title="Google Website Optimizer" href="http://www.google.com/websiteoptimizer/" target="_blank">Google Website Optimizer</a>.  Using it is free, significance testing built-in.</li>
</ul>
<p>All of a sudden, the data starts showing room for improvement.  Creativity shifts to testing to find a winning combination, instead of intuition- or experience-based decision-making.  Perhaps for the first time ever, you can start attributing measurable difference in revenue and start prioritizing projects by potential shifts in &#8220;ROI&#8221; (using the term liberally here).</p>
<p>In addition, the data analyst can save measurable results to their war chest.  A bit different than intuition or experience, the war chest becomes a repository of educated guesses.  As you proceed to make improvements in ROI, you can start to reliably predict lost revenue for projects that are put on the back-burner.  Data (not the Star Trek android) becomes your friend; an ally in the fight (ok, tone that down to &#8220;challenge&#8221;) in development resources.</p>
<p>A new ally in data, new friends in web development, new supporters across business units, new weapons in your war chest.  Becoming a data diplomat is win-win-win.</p>
]]></content:encoded>
			<wfw:commentRss>http://www.analytics-advice.com/2010/02/02/measuring-roi-lesson-2-becoming-a-data-diplomat/feed/</wfw:commentRss>
		<slash:comments>3</slash:comments>
		</item>
	</channel>
</rss>

