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Plus Report - By Thomas Baekdal - March 2016

Measuring Impact Is Critical For Niche Verticals

There is something wonderful happening in the world of analytics, in that the trend towards far more meaningful and actionable analytics is picking up speed. And not only that, but we are starting to see more companies defining their business model around this new type of data.

In publishing we have seen how we have moved from first a view based form of analytics to attention based analytics, championed by companies like Chartbeat. But now we are moving a step further into the new world of impact based analytics.

Think about how big a change this is. It's absolutely wonderful.

But there is another change that I and many others have been talking about for years that we are now finally starting to see in real-world use. And that's how analytics needs to be flipped upside down.

The problem with analytics today is that it's based almost entirely on the 'funnel'. You start at the beginning and then you follow their path all the way down to a conversion (the end).

There are a number of problems with this line of thinking.

The first problem is that it defines the end to be when people buy something. This is not the end at all. That's part of the beginning of a much longer relationship (hopefully) defined by repurchase rates and customer lifetime value.

Just think about it. How many analytic reports have you seen where lifetime value and customer momentum were the primary metrics that everything else revolved around? None, right? At best, this extremely important piece of data is hidden under some kind of sub-reports, or often only revealed through custom reports.

 
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Thomas Baekdal

Founder, media analyst, author, and publishers. Follow on Twitter

"Thomas Baekdal is one of Scandinavia's most sought-after experts in the digitization of media companies. He has made ​​himself known for his analysis of how digitization has changed the way we consume media."
Swedish business magazine, Resumé

 

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