Successful Analytics ebook 1
Successful Analytics ebook 1
Two versions of Google Analytics are available-the free version and Google Analytics Premium (the paid-for version). Which one is right for you? First off, let's get price out of the way. The standard free product is of course free to use, though you need to allow a budget for building a data strategy, implementation, and performing insights analysis. On the other hand, Google Analytics Premium is an annual contract, billable monthly, at a fixed cost of $150,000 per year.
Is that good value for money? For those websites with very high traffic volumes, Premium can represent great value for money when competitive tools bill by volume.With some other tools, the more data you have, the more you pay. Premium's price is fixed up to one billion data hits per month (approximately 100 million visitors per month). In addition, for budget planners a fixed-fee pricing model is advantageous for when your traffic can vary significantly, for example, by season: you know exactly what your analytics bill for the coming year will be.
For websites with modest volume, spending $150,000 a year on data collection and reporting can look like a big expense. Therefore, the tool needs to be clearly justified within the organization.
In the middle are websites that have the necessary budget but need guidance on selecting the right tool for the job.
All users want to make an informed decision as to which is the right tool for their organization. No one wants to spend $150,000 a year on a product they could have gotten for free. Likewise, no one wishes to advocate a free product and risk not being taken seriously by colleagues due to underestimating the significance of the task it is required for.
THE VALUE PROPOSITION OF PREMIUM
From an analyst's point of view, the free and Premium products appear almost identical. In fact, if you were to log in to the user interface of each product, you would be hard pressed to tell the difference-either visually or by features. So why is there such a gulf in price? To answer that, consider the four cornerstones of the Premium value proposition, as shown in Figure 2.1 : the contract, horsepower, features, and service.
The value proposition of Premium is not just about gaining access to extra features. Rather, Premium is tailored to the needs of the enterprise as a whole. For example, all users love the idea of free-to-use products. However, at the enterprise level, procurement departments have a hard time dealing with free. That's because many enterprises require clear answers to questions such as Who is responsible for this service? Who has access to it? What if it stops working? Who owns the data? Who is our account representative? These answers need to be formalized into a legally binding document before the product can be adopted as an official business tool within the organization. That formalization process isn't available with a free product. If this describes your organization, then Google Analytics Premium is the right product for you.
Having a formal contract in place solidifies responsibilities and provides a direct point of contact for ensuring the service is running. And that means having an SLA in place. For Premium users, Google's standard SLA provides the following guarantees. These percentages are based on a calendar month:
99.9% guaranteed uptime for data collection
99.0% guaranteed availability of the user interface and reporting
Data freshness guaranteed to be within 4 hours
( Data freshness means that the data in your reports is never more than 4 hours old.) If any of these levels is not maintained, you receive a credit against your next invoice.
As you would expect, Google provides no service-level guarantees for the free product. As any Google user knows, the reliability of Goog