There is a lot of discussion in the web analytics community on what percentage of your analytics budget should be spent on tools vs. people. However, the question I’m posing is what percentage of your company’s online revenue should be invested in analytics to begin with? (Aka, 50:50 of what?)
With free solutions like Google Analytics out there, I’m not surprised some companies initially baulk at the cost of an enterprise solution. (After all, it’s more than “free”.)
I thought it might help us all to understand what other companies are doing. Therefore, if you’re at liberty to divulge (keeping in mind this is anonymous – I’m not asking who you are, or what company you work for) would you answer the following two questions?
I will happily share the findings with the community once complete.
An example is below, under the poll.
Your company generates a total of $200MM in yearly revenue.
(Note: revenue, not profit.)
$100MM of that comes from the online channel.
You spend $1MM total on analytics
$300K spent on tools
$700K spent on people.
= 1% spent on analytics
0.3% on tools
0.7% spent on people.