The illusion of free analytics

Analytics has never been free, and never will be

In the early days of analytics, many digital agencies rebelled against paid analytics tools. The argument was that Google Analytics was free, creating the illusion that analytics was free. It was a subtle way of "being on the client's side" and saving costs. In the end, a large number of agencies simply threw a GA script on the site and did not take advantage of it in any way, but the client was told that the analytics were fine.

The use of analytics is evolving

GA became the most widely used visitor tracking tool on websites, and because it was free, there was no longer much interest in what data it collected and where the data ended up.

Fortunately, the use of analytics has evolved over the years, both in offices and in companies. Now the industry is waking up to the idea of introducing paid and at the same time GDPR-friendly visitor tracking tools, especially in the public sector.

But the fact is that analytics has never been free. For years, the definition and use of analytics has been included in the service fees of more advanced agencies, even if it is not always specified in the invoice.

What are the costs of using analytics

The cost of using analytics consists of the technical work and the analysis work. However, very often the biggest cost comes not only from unused analytics, but also from misinterpreted results and the resulting wrong actions.

Cost of using analytics

1. Technical execution
   • Commissioning - configuration, technical installation
   • Building reports and views
   • Technical maintenance
2. Qualitative making
   • Time spent going through the data
   • Analysis work
3. Costs of analytical failure
   • Measures taken following incorrect conclusions
   • Situations not measured and analysed ➔ Measures not taken that could have been of great benefit

From cost to income

Analytics should be an investment for which a return is sought. Its use is aimed at improving operational efficiency, i.e. maximising marketing results with the resources available. In the corporate sector, the most common objectives are increased sales or lower customer acquisition costs, and in the public sector, better marketing and communication results.

How analytics becomes revenue

1. Data collection is on target - simply installing a script on a website is not enough
2. Building useful perspectives ➔ Getting answers to the right questions and measuring the right things
3. Understanding the factors affecting the results and reacting correctly to them
4. Systematic use of analytics

It is almost irrelevant whether the tool costs a few hundred dollars a month. Missed opportunities and wrong reactions are much more costly. And in any case, the cost of the work itself (own or purchased) is many times higher than the cost of a software licence.