Experience Analytics and how it is changing the convert-sation
Digital analytics has become a core integration for any business wanting to be successful online. The digital analytics market was essentially kick-started in 1993, with the launch of the first digital analytics solution, 'Webtrends', which recorded text log files - a summary of HTML element requests on a specific web page that indicated when a page was loaded. Digital analytics has experienced a long journey since this to get where it is today. In this article, we'll show how and why analytics has evolved to be one of the most important tools to digital businesses.
The birth of mainstream digital analytics
Skipping forward 11 years, 2004 saw the creation of the Web Analytics Association (WAA), signifying that web analytics was now more accepted as a mainstream tool for web optimisation. The following year, 2005 saw the launch of Google Analytics, which quickly became the most widely used service on the market. Since 2005, digital analytics has evolved into a powerful business tool used to inform business-decisions, with a focus on improving customer conversions. But guess what, the analytics market is starting to change again! Analytics can be said to be in a state of transition, as companies become more concerned with how consumers are converting, but also how and why others aren't. The new phase we're now moving into is Experience Analytics.
Experience as a metric
A conversion is the most common metric used for the analytics of successful businesses today. What would you say if I told you that only 3% of digital users convert? Surely you would question what is happening to the remaining 97%?! A change in business-thinking is now seeing a stronger focus being placed on understanding the non-converting users. Are these customers turned off by certain aspects of the layout of web pages or is it something else? Many things could happen during a user's digital experience that could lead them away from a website. There are also consumers that convert that may have had negative digital experiences. The desire to understand these issues is why the transition to experience is taking place.
Companies that excel in customer experience grow 4 - 8% above their market
Essentially, companies are now taking a more in-depth approach that aims to improve user perceptions and interactions that should in turn improve conversion rates. And it's working! Business consulting firm, Bain & Company, performed their own market research that found that companies focusing on customer experiences are growing approximately 4 - 8% above their market.
The Clicktale Experience Cloud
With experience being the new focus of industry-leaders and enterprise-level organisations, analytical software platforms have begun to adapt. 2017 saw the introduction of the first 'Experience Cloud', created so that companies can understand and interpret all of their user experiences in one place. The Experience Cloud collaborates trillions of millisecond-level customer interactions – hovers, scrolls, pinches, to name a few – as well as parameters, such as pace and acceleration, to give an interpretation of digital body language. This data is then combined with machine learning, data science, advanced cognitive computing and psychological models. The formation of this data creates a unique set of insights revolving around experience that has been lacking in previous analytical platforms. Lets break down a few of the key areas of Clicktale Experience Cloud to make a bit more sense of it.
1. The Experience Center
The Experience Center is essentially the 'homepage' or 'dashboard' of the entire Experience Cloud. This view allows for the visualisation of all key customer experience analytics metrics overtime.
2. Path Analytics
The Path Analytics section allows for companies to view visitor behaviours by mapping out action paths. This gives a greater insight into where and when users are either converting or not converting. This backs up what we've been saying this whole time. The focus is experience now, not conversion.
3. Psychological Analytics
The integration of Psychological Analytics into this new Clicktail platform is what is creating the primary differentiation from other analytical software. Psychological Analytics essentially interprets data to give greater insights into what consumers are thinking and what their motivations are during their digital user experiences. Truly understanding Experience means understanding what is going on internally when users are interacting with your platforms.
It's a change in convert-sation!
The digital analytics market has a long story involving many changes in it's plot. The most recent chapter sees Experience Analytics jump to the forefront as the focus changes from conversions to experiences. A focus on Experience Analytics is already making a difference for large corporations. After using Clicktale's Experience Cloud, Sony stated "by comparing our growth before and after using Clicktale, we have experienced a 35% increase in average uplift in conversion rate."
Experience analytics is the future of digital analytics and successful business decision-making. If you have any questions or want to learn more, leave a comment or get in touch with one of our analytics experts today.