DigitalAnalyticsFundamentals-Lesson2 2CoreanalysistechniquesText
DigitalAnalyticsFundamentals-Lesson2 2CoreanalysistechniquesText
DigitalAnalyticsFundamentals-Lesson2 2CoreanalysistechniquesText
Introduction
There are many different ways to analyze data. In this lesson, we’d like to cover two techniques
segmentation and context that we believe are critical to good data analysis.
Segmentation
First, let’s talk about segmentation. Looking at aggregated data helps you understand overall user behavior
trends, like how their purchase patterns change over time. But in order to understand why purchase patterns
changed, you need to segment your data.
Segmentation allows you to isolate and analyze subsets of your data. For example, you might segment
your data by marketing channel so that you can see which channel is responsible for an increase in
purchases. Drilling down to look at segments of your data helps you understand what caused a change to
your aggregated data.
All reports in Google Analytics provide segmentation of your traffic. For example, take a look at your Traffic
Sources report. Each row in the table shows how a specific traffic segment performed. This lets you
compare different segments and understand which sources are bringing in the highest value traffic.
Let’s talk through some common segments that you might want to consider when looking at your own data.
● You can segment your data by date and time, to compare how users who visit your site on certain
days of the week or certain hours of the day behave differently.
● You can segment your data by device to compare user performance on desktops, tablets and
mobile phones.
● You can segment by marketing channel to compare the difference in performance for various
marketing activities.
● You can segment by geography to determine which countries, regions or cities perform the best.
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● And you can segment by customer characteristics, like repeat customers vs. firsttime customers,
to help you understand what drives users to become loyal customers.
Context
In addition to segmentation, another analysis technique that’s really important is adding context to your
data. Context helps you understand if your performance is good or bad.
There are two ways to set context internally and externally.
● Externally, context can come from industry benchmark data. This can help you understand how you
perform relative to other businesses similar to yours. For example, external context makes it easy
to see if an uptick in your business is due to a general growth trend for your sector, or is just
specific to you.
● Internal context helps you set expectations based on your own historical performance. For
example, you use historical data as a benchmark and set your key performance indicator targets in
your measurement plan.
Conclusion
Throughout this course, we will talk about how you can use segmentation and context when working with
Google Analytics data or other digital analytics data, so keep these techniques in mind for future
application.
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