For Michael Bellopede, the Internet has made the transition from theoretical science to applied science-or, more to the point, it's moved from an alternative delivery channel to a full-blown business operation. And like any business, some areas are going to perform better than others, calling out for quick improvement and corresponding shifts in strategy for those things that aren't working.
"Back in the early '90s, the big thing was getting a Web site out there," says Bellopede, the head of global funds services technology and solutions for SEI Investments, a proponent of Web analytics. "Now we want to see all areas of the Web operation in concert with each other. We want to have tangible methods of measuring how we're doing."
To accomplish that, SEI Investments and others are turning to Web analytics software to examine on-line initiatives, from measuring the ROI of on-line customer service sites, to growing on-line accounts, increasing cross-selling and improving the effectiveness of company portals.
As the Web continues to develop, the channel's becoming too complex to monitor by old-school means like page-views and hits. Institutions require technology that drills deeper and actually learns from customer behavior and measures performance by product line. "We're able to test our strategies and tweak things," Bellopede says.
Similarly, Chris Musto, vp of research for Watchfire GomezPro, says Web analytics give institutions a chance to understand the symptoms of what may be ailing their Web operations, and what needs to be cured. "It's a picture of where your customers are going and where they are leaving," he says.
As an example, Musto says a client of his own firm was suffering from a drop off in usage from one page to another in a series of Web pages connected to applying for a home loan. "We were able to focus on that particular drop off point and go through some possible causes, such as 'Is what you're communicating different than what brought people to your campaign;' or 'Is this the first page where you ask someone for information?'" says Musto.
Musto says that by using Web analytics a firm can determine the point where a drop-off in usage occurs, then work backward to figure out why. "We were able to do some reverse engineering," he says of his own experience.
What the process doesn't do is give a financial firm a specific solution to the problem. "It's telling you where you should focus, and it lets you know where you have a problem," Musto says. "It shows you where people are going versus where you were hoping they would go."
One company that financial providers are turning to for guidance in Web analytics is WebTrends. The company sells custom-tailored business consulting and reporting services. Its goal is to ensure that clients are meeting key performance indicators (KPIs) while enabling them to query data.
Financial firms can choose to either use hosted WebTrends On Demand or buy software that will enable them to get function-specific details on how their Web operations are performing.
WebTrends' financial clients include ABN Amro, Bank of Montreal, BNP Paribas, Credit Suisse First Boston, Deutsche Bank, H&R Block, ING, US Bank Corp., Sunlife Financial, Wachovia, Union Bank of Switzerland, Wells Fargo, JPMorgan Chase and SEI Investments. U.S. Bank, for example, uses WebTrends to guide both employee and consumer Internet strategy. "Our Web site must help our customers find what they need in an efficient and secure manner," says Teresa Gess, Web analytics manager for U.S. Bank.
SEI, a global provider of asset management and investment technology solutions, is using technology and consulting services from WebTrends to assist it in helping its financial clients determine what's working and what's not working on their Web sites, so they can make proper adjustments. SEI administers more than $288 billion in mutual fund and pooled assets, manages more than $120 billion in assets and has 22 offices in 11 countries.
Even if a financial institution is hitting its on-line business targets, SEI's Bellopede argues that it doesn't mean its Web machine is firing on all cylinders. "There could be areas of the site where usability is low, so we should focus more on other areas," he says.
Bellopede would not get specific in terms of what projects the firm has undertaken as a result of its work with WebTrends. He did indicate, though, that the way in which it changes its Web strategies is now different. He also says the new technology has enabled it to allocate its budget money differently and more quickly.
Watchfire's Musto calls Web analytics "part of a balanced breakfast," and that it's best used as part of an overall strategy to maximize Web performance that includes a number of other strategies that drive important factors like effectiveness and ease-of use. "Analytics are always used in conjunction with other things," he says. "It's a catalyst, not an answer. It's about asking the right questions."
