the ultimate 5-minute business analytics primer for first-timers
Getting into your business data and building out reporting might be the most impactful thing you can do for your business.
Unfortunately, for most, it’s unfamiliar territory and it can be a daunting task.
Don’t be discouraged if you’re feeling overwhelmed or unsure where to begin. Analytics can be a full-time job (literally) and colleges offer entire degree programs focused on business analytics. There’s a lot to learn – but that doesn’t mean you need to be an expert (or even hire one) to strengthen your business with analytics.
In this quick, 5-minute read, we’ll cover what ‘analytics’ really means, the unique aspects of reporting on a blog-based business, and offer some suggestions on where to get started reporting on any business. (Plus, if you make it to the end – or skip there – you’ll find a free worksheet to help kick things off!)
analytics 101
A quick Google search tells us ‘analytics’ is:
the systematic computational analysis of data or statistics
- information resulting from the systematic analysis of data or statistics
It’s short, accurate, and not terribly helpful if you’re new to working with data and analytics. So let’s break it apart a little more.
Analytics is, of course, all about analysis – which is really just a technical word for examining something closely. Analysis should be judgment-free and focused on what is actually happening rather than what we want to happen. We may question how the results came about, but check words like ‘good’ or ‘bad’ at the door when you sit down to analyze your data.
Systematic, generally speaking, means to use a system. Reviewing our data in an organized, logical way is critical to generating real insights we can use to improve. Without some kind of method or system in place, we can’t compare results over time or between different categories, so the information we would end up with wouldn’t actually tell us much at all. And while we may look to trusted sources for inspiration and ideas, our ‘system’ doesn’t have to be found in a textbook.
Finally, we have computational – arguably the most intimidating word here – which simply means relating to computers in some way. Since we’ll be using computers and software to analyze data we retrieved from computer programs, we’re covered.
Other terms to know:
Reporting
Reporting is a general term that I’ve seen used in a variety of ways, but it usually refers to the organized data output you’ll use for ongoing analysis and review of a topic. A report might come in the form of a spreadsheet, a series of charts and graphs, or even include a summary and highlights depending on where it comes from.
Key Performance Indicator (KPI)
KPIs are areas of interest that tell us how we’re progressing toward our goal. While often overlooked, they’re important to our business reporting because they help us determine whether the performance we see in our data is taking us in the direction we want for our business.
blogging vs business analytics
Running a blog as a business is different from running a boutique or an auto shop in many ways. Your revenue might come from many sources and might not involve selling anything at all. Of course, that means your analytics should look a little different from someone with an Etsy shop or a catalog of online courses.
But bloggers should be just as tuned into their data as other kinds of business owners – if not more. Because your audience exists entirely online, engaging with your social content and viewing your blog, your analytics is the only way you can see the behavior of your audience as a whole. Understanding what content resonates with and draws people further into your site, and which content isn’t working as well as you would like is critical to your business – and can only be achieved by getting familiar with your data.
you can’t do it all at once
There is only one way to eat an elephant: a bite at a time.
Once you get started, you may find that you have more data available to you than you realized – an overwhelming amount, even. Don’t fret. When it comes to your business, the more comprehensive a picture, the better, but having a little bit more insight than you had yesterday AND using that insight to make your business stronger is more important than hoarding every report you can get your hands on right away.
Similarly, you’ll be better off spending your time learning and getting comfortable in one new tool or process at a time, rather than trying to do everything at once. If you’re overwhelmed by your options, consider kicking things off with one of these –
If you can only track one area of your business, it should probably be the part that pays. Start at the source of your revenue and then work your way backward through your customer’s path to sale, rather than casting an unsustainably wide net in hopes of finding your would-be customers.
Whether you set goals for your business yearly, monthly, or otherwise the strongest goals include a numerical value. If your goal focuses on a completely new area or activity for your business, that number may be a rough estimate based on research and estimation. Goals that focus on improving an existing piece of your business, however, should reflect previous performance and benefit greatly from reporting. Plus, no matter the goal, tracking and reporting on progress is essential to telling when you’re achieving what you want and when it’s time to try something new.
If you’re paying for a product or service to run your business, you should get a sense of whether or not you’re getting what you expect. List your business expenses then figure out what data is available to you for each. And while expenses like your website or marketing often come to mind, don’t forget about activities like the cost of traveling to clients or childcare costs. Nailing down this reporting not only determine your ROI for a particular tool or service, but it can also be a big help at tax time or when comparing new products to those you already use.
designing goals & reporting
While there are lots of resources out there to help you set fantastic business goals and go after them, we haven’t found much guidance around reporting on those goals. Download our free worksheet to help define how you’ll measure your goals to make reporting on them a snap!
keep going
If you’re just getting started with data and analytics – you’re not alone. Luckily, by getting your feet wet and exploring posts like this one, you’re on your way to building a stronger business using your data. Focus on making progress one bite at a time, learn as you go, and most importantly, keep going!
