In brief: Analytics turns data into explanation and decisions; measurement determines which data is collected and according to which rules. Without a shared definition, even a precise report can be read incorrectly.
How I use analytics and measurement in practice
Before I begin tracking analytics and measurement, I write down its precise definition, data source, and the decision it should influence. I check the numerator, denominator, time window, currency, and any duplicates. I then read the value in the context of margin, capacity, and customer quality; one number without comparison cannot say what a company should change.
What to watch out for
The greatest risk is a report without a decision. When analytics and measurement are measured only because they are available in an interface, the team gets another chart, not better management. Also beware of comparing periods in which the website, tagging, or counting method changed.
Questions for the decision
- Exactly how do we calculate the value, and from which source?
- Which decision will change if the number rises or falls?
- What can distort or duplicate the measurement?
- What do we compare the value with so that it has business meaning?