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Per User Pricing: The Good, The Bad & The Ugly

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Pricing is one of the most heavily debated topics in the SaaS world.

Not just how much to charge, but what pricing model to go with. Do you charge per user? A flat rate? Some kind of oddly complex credit system?

In the early days of selling software (and transitioning into SaaS), per user pricing was pretty standard.

But over time, companies started to realize that charging per user doesn’t always make sense for SaaS, and it could even limit your growth. Some people even look at per user pricing as one of the worst pricing models you can use.

On the other hand, there are plenty of companies happily charging for every user a customer adds to their account, and they’re raking in millions in MRR.

So, is per user pricing really as bad as some think? Or is it a missed opportunity for growth? Read on to find out.

What is per user pricing?

Just like the name suggests, per user pricing is when you charge a customer based on the number of users (or seats) they add to their subscription.

For instance, you might charge $10 per user per month. The more users the customer adds, the more they pay.

Per user pricing examples

Despite the negative reputation per user pricing gets, there are plenty of companies that use it.

Slack (we’ll talk more about them later) has two plans: Standard and Plus. Each has its own price per user.

slack price per user

Salesforce offers a lot of products and pricing options, but they stick to the per user pricing model for most of them.

salesforce per user pricing

Notice the fine print. They cap the number of users you can have in the lowest priced plan to 10 users. After that, you’ll have to upgrade to the next tier up.

Lastly, let’s look at Asana. Similar to Salesforce, they offer multiple plans, each with a different price per user.

asana price per user

The interesting thing about Asana though, is they have a free option. However, that free option doesn’t have unlimited seats.

asana per user pricing

Once you get past 15 users on your team, you’re going to have to be bumped up to at least the Premium plan. And that brings me to the next point—the downside of per user pricing.

The problem with per user pricing

At first glance, per user pricing might sound really tempting. The more users your customer adds to their account, the more money you get. Yay, expansion revenue!

Except it’s not that clear cut. There are some important things to keep in mind before you go with per user pricing that might make you reconsider.

Per user pricing can create price-shock

Going back to the Asana example, let’s say you’re a small business that’s been using the free version of Asana for about a year. You’ve gotten up to 14 users on your team, and now you want to add three more, putting you at a total of 17.

That would put you over the 15 user limit for a free account. Now, you go from paying zero to $229 per month, or a lump sum of $2241.96 if you make an annual payment (and that’s assuming you don’t add any more users to your account).

For Asana, that’s great. But for the customer, it can be a little frustrating. Even if you make it known that the price increase is going to happen (like Asana does), the price shock is still there.

Even if your customers aren’t going from a free account to a paid account, price shock can still happen with per user pricing. Let’s take a look at Salesforce again.

Their Essentials plan starts at $25 per month. But once you get up to 10 users, you’ll have to upgrade to the next level up, which is their Professional plan. And that’s $50 more per user per month. So let’s say you go from 10 users to 12, the price you pay per month more than triples:

Header

Essentials 

(with 10 users

Professional 

(with 12 users)

Price per month

This can understandably create some friction for customers. Luckily there are ways to combat this, which I’ll go into later.

Per user pricing can limit your growth potential

One of the most popular arguments against per user pricing is that “number of users” isn’t a value metric for most companies.

A value metric is the metric your product’s pricing is based on. Take our dunning management tool (Recover) for instance. Our value metric for it is MRR.

recover pricing

The amount you pay for Recover is based on your MRR, because the more revenue you have, the more potential revenue you’re losing from failed payments.

As our customers’ revenue increases, so does our expansion MRR, which leads to growth.

Now imagine if we were to use per user pricing for Recover instead. It wouldn’t make sense. Even if we were to charge $100 per user for Recover, our growth potential would be cut dramatically because there’s not a ton of value in people adding more users. They could all just share the same password.

Whether a customer has 1 or 20 users, they don’t necessarily get more value from just having those additional users.

With per user user pricing, your growth becomes dependent on the number of seats you can sell. And at that point, it’s almost like retail, which eliminates a lot of the benefits of the SaaS business model.

Per user pricing can rarely stand alone

In order to work, per user pricing almost always needs to be combined with another SaaS pricing model.

In all of the examples we’ve shown so far, the companies aren’t relying on just per user pricing. Slack and Asana come the closest, but they both also have multiple plans with added features.

Salesforce has different plan levels as well as add-on products and services. 

Like most things in life, there are exceptions. For instance, SEO Powersuite strictly charges per license.

SEO powersuite pricing

But they’re an outlier. When you look at their competitors, very few if any only use per user pricing.

I know, so far it probably sounds like we’re completely against the idea of per user pricing. But there are some instances when this pricing model does make sense.

When does per user pricing make sense?

Per user pricing isn’t all bad for SaaS companies. Here are some situations where it makes sense.

SaaS built for teams

If you sell a product that does get added value from having multiple users, per user pricing can make a lot of sense. This is typically the case for team-based SaaS products.

Slack is one of the best examples of this. Nobody’s using Slack alone, and it’d be weird if you were.

However, Slack doesn’t just charge per user. They charge per active user. What that means is you only pay for users that are actively using Slack. Here’s how they define active and inactive users:

slack per using billing policy

This is the best-case scenario for companies that charge per user. The problem is that Slack isn’t the norm. In most cases, SaaS companies charge for all the users added to a customer’s account, regardless if they login or use the product at all.

Project management software is another example of when per-user pricing makes sense. Asana, Trello and Monday all have some form of per user pricing.

Monday price per user

Since people collaborate on projects together in these tools, they can justify charging per user.

CRM is another example. With CRM software, multiple people add contacts, collaborate on deals and manage customer relationships.

Tools like PipedriveInsightly and Streak all have per user pricing for teams.

pipedrive price per user

Again, the key is that the extra users need to have added value in order to use this SaaS pricing model. I’ll get more into this when I talk about alternatives to per user pricing.

The takeaway

If you have a team-based SaaS product, charging per user could make sense. Just make sure there’s enough value added to justify the price.

Enterprise SaaS products

If you look at most of the companies that use per user pricing, you’ll notice a lot of them are targeting enterprise or mid-market customers.

It’s not a coincidence.

One survey from KeyBanc found that 33% of SaaS companies chose “number of seats” (or users) as their primary pricing metric.

Primary Pricing Metric

That number shocked me a bit, so I wanted to see what type of businesses were surveyed.

And when I looked further, I could see that most of the businesses surveyed were enterprise/mid-market focused.

enterprised focused companies

Since enterprise SaaS companies target larger customers, these numbers make sense. Larger customers means more potential users, which equals more revenue when you’re charging per user.

The takeaway

If you don’t fall into one of these two categories, relying on per user pricing might not be the right path to growth. There are exceptions, but for most SaaS businesses, there are more efficient ways to price your product for growth.

Alternatives to per user pricing

If you’re looking for a way to price your SaaS product without only charging per user, there are plenty of other options out there. We even wrote an entire guide about it: SaaS Pricing Models & Strategies Demystified.

That article dives deep into seven different SaaS pricing models, so I highly recommend checking it out.

For now, I’ll go over three options that can get you similar results as per user pricing, but without some of the downsides.

Try usage-based pricing

One of the appeals of per user pricing is that it allows your revenue per user to grow over time. But it requires your customers to add more seats in order to do it. A good alternative is usage-based pricing.

That’s when you price your product based on how much customers use it. For example, EmailOctopus charges based on the number of email subscribers you have.

emailoctopus pricing

Stripe charges a percentage of each card charge. So the more their customers bill, the more revenue Stripe earns.

stripe pricing page

Just like per user pricing, your average revenue per user (ARPU) should grow over time with usage-based pricing.

baremetrics arpu

This pricing model works better for some businesses than others. But if you have a way to price your product based on usage, it’s well worth a try. 

Start by defining your value metric. Your value metric should be based on where your customers get the most value from your product. For EmailOctopus, that was the number of emails sent, and for Stripe it’s the number of transactions that can be processed.

There’s a good chance you already know what your value metric is. But if not, you can look at product usage data or even survey your customers.

A good litmus test for whether or not you chose the right value metric is how simple it is to understand on a pricing page. 

For instance, on our pricing page, it’s super clear that our pricing is based on your MRR.

Baremetrics Pricing

But if you look at the pricing for Keap, it’s not quite as clear what the value metric is.

Keap pricing

Once you’ve defined your value metric, figure out how you can build your pricing around it. It could be a sliding scale like ours, per action like Stripe or buckets like EmailOctopus. It all depends on your business.

Charge per active user

If you’re set on charging per user, you’ll probably have happier customers if you go the Slack route and only charge for active users.

You can use a tool like Servicebot to set up per active user pricing if you use Stripe.

per active user pricing

This pricing strategy is helpful if you sell a product that’s meant to be used by entire companies or departments. 

For instance, employee advocacy software like Bambu or Sociabble are usually priced based on the number of total users. But a lot of times, all the users who were added to the account don’t end up using it long term. So the customer ends up paying for non-active users.

Sure, you’ll earn more money if you charge for all users (at least in the short term). But from my experience, companies don’t tend to pay unused software for very long, particularly if the price feels high.

If you want to keep customers long term (which you should if you work in SaaS), you might want to consider pricing your product in a way that encourages customers to stick around.

Offer additional users as an add-on

This is a happy medium between charging per user and value-based pricing. Instead of focusing your entire pricing model around the number of users, you choose a value metric that makes more sense, and then offer additional users as an add-on.

This pricing strategy makes a lot more sense for most SaaS companies, particularly if your product isn’t strictly team-based.

A good example of this is Ahrefs, who recently added an option to pay for for additional users.

ahrefs per user pricing

Their value metrics are all related to SEO analysis, so basing their entire pricing strategy on the number of users doesn’t make sense.

At the same time, having an entire team share one password and account can be an issue for some companies, so they have the ability to add additional users as an add-on. That creates an opportunity for expansion revenue for Ahrefs.

This approach makes sense when:

  1. The value customers get from your product doesn’t depend on how many users they have on their account, AND 

  2. There is some value to having extra users to a customer’s subscription

If the only reason you’re charging for additional users is so you can make more money, then you might want to rethink it.

Is per user pricing right for you?

There you have it. The good, the bad and ugly side of per user pricing.

Per user pricing isn’t quite as bad as some people make it out to be. But for most SaaS companies, there are better pricing models out there, and more effective alternatives like the ones I mentioned.

So the answer to the million dollar question: “is per user pricing right for you?”

… it depends.

Source: https://baremetrics.com/blog/per-user-pricing

SaaS

Here’s how fast a few dozen startups grew in Q3 2020

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Earlier this week I asked startups to share their Q3 growth metrics and whether they were performing ahead or behind of their yearly goals.

Lots of companies responded. More than I could have anticipated, frankly. Instead of merely giving me a few data points to learn from, The Exchange wound up collecting sheafs of interesting data from upstart companies with big Q3 performance.


The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.


Naturally, the startups that reached out were the companies doing the best. I did not receive a single reply that described no growth, though a handful of respondents noted that they were behind in their plans.

Regardless, the data set that came together felt worthy of sharing for its specificity and breadth — and so other startup founders can learn from how some of their peer group are performing. (Kidding.)

Let’s get into the data, which has been segmented into buckets covering fintech, software and SaaS, startups focused on developers or security and a final group that includes D2C and fertility startups, among others.

Q3 performance

Obviously, some of the following startups could land in several different groups. Don’t worry about it! The categories are relaxed. We’re here to have fun, not split hairs!

Fintech

  • Numerated: According to Numerated CEO Dan O’Malley, his startup that helps companies more quickly access banking products had a big Q3. “Revenue for the first three quarters of 2020 is 11X our origination 2020 plan, and 18X versus the same period in 2019,” he said in an email. What’s driving growth? Bank digitization, O’Malley says, which has “been forced to happen rapidly and dramatically” in 2020.
  • BlueVineBlueVine does banking services for SMBs; think things like checking accounts, loans and payments. The company is having a big year, sharing with TechCrunch via email that it has expanded its customer base “by 660% from Q1 2020 to” this week. That’s not a revenue metric, and it’s not Q3-specific, but as both Numerated and BlueVine cited the PPP program as a growth driver, it felt worthy of inclusion.
  • Harvest Platform: A consumer-focused fintech, Harvest helps folks recover fees, track their net worth and bank. In an email, Harvest said it “grew well over 1000%+” in the third quarter and is “ahead of its 2020 plan” thanks to more folks signing up for its service and what a representative described as “economic tailwinds.” The savings and investing boom continues, it appears.

Software/SaaS

  • Uniphore: Uniphore provides AI-based conversational software products to other companies used for chatting to customers and security purposes. According to Uniphore CEO Umesh Sachdev, the company grew “320% [year-over-year] in our Q2 FY21 (July-sept 2020),” or a period that matches the calendar Q3 2020. Per the executive, that result was “on par with [its] plan.” Given that growth rate, is Uniphore a seed-stage upstart? Er, no, it raised a $51 million Series C in 2019. That makes its growth metrics rather impressive as its implied revenue base from which it grew so quickly this year is larger than we’d expect from younger companies.
  • Text Request: An SMS service for SMBs, Text Request grew loads in Q3, telling TechCrunch that it “billed 6x more than we did in 2019’s Q3,” far ahead of its target for doubling billings. A company director said that while “customer acquisition was roughly on par with expectations,” the value of those customers greatly expanded. I dug into the numbers and was told that the 6x figure is for total dollars billed in Q3 2020 inclusive of recurring and non-recurring incomes. For just the company’s recurring software product, growth was a healthy 56% in Q3.
  • Notarize: Digital notarization startup Notarize — Boston-based, which most recently raised a $35 million Series C — is way ahead of where it expected to be, with a VP at the company telling TechCrunch that during “the first week of lockdowns, Notarize’s sales team got 3,000+ inquiries,” which it managed to turn into revenues. The same person added that the startup is “probably 5x ahead of [its] original 2020 plan,” with the substance measured being annual recurring revenue, or ARR. We’d love some hard numbers as well, but that growth pace is spicy. (Notarize also announced it grew 400% from March to July, earlier this year.)
  • BurnRate.io: Acceleprise-backed Burnrate.io hasn’t raised a lot of money, but that hasn’t stopped it from growing quickly. According to co-founder and CEO Robert McLaws, BurnRate “started selling in Q4 of last year” so it did not have a pure Q3 2019 versus Q3 2020 metric to share. But the company managed to grow 3.3x from Q4 2019 to Q3 2020 per the executive, which is still great. BurnRate provides software that helps startups plan and forecast, with the company telling TechCrunch with yearly planning season coming up, it expects sales to keep growing.
  • Gravy AnalyticsLocation data as a service! That’s what Gravy Analytics appears to do, and apparently it’s been a good run thus far in 2020. The company told TechCrunch that it has seen sales rise 80% year-to-date over 2019. This is a bit outside our Q3 scope as it’s more 2020 data, but we can be generous and still include it.
  • ChartHopTechCrunch covered ChartHop earlier this year when it raised $5 million in a round led by Andreessen Horowitz. A number of other investors took part, including Cowboy Ventures and Flybridge Capital. Per our coverage, ChartHop is a “new type of HR software that brings all the different people data together in one place.” The model is working well, with the startup reporting that since its February seed round — that $5 million event — it has grown 10x. The company recently raised a Series A. Per a rep via email, ChartHop is “on-target” for its pre-pandemic business plan, but “far ahead” of what it expected at the start of the pandemic.
  • Credo: Credo is a marketplace for digital marketing talent. It’s actually a company I’ve known for a long-time, thanks to founder John Doherty. According to Doherty, Credo has “grown revenue 50% since June, while only minimally increasing burn.” Very good.
  • Canva: Breaking my own rules about only including financial data, I’m including Canva because it sent over strong product data that implies strong revenue growth. Per the company, Canva’s online design service has seen “increased growth over both Q2 and Q3, with an increase of 10 million users in Q3 alone (up from 30 million users in June).” Thirty-three percent user growth, from 30 to 40 million, is impressive. And, the company added that it saw more team-based usage since the start of the pandemic, which we presume implies the buying of more expensive, group subscriptions. Next time real revenue, please, but this was still interesting.

Developer/Security

Source: https://techcrunch.com/2020/10/23/heres-how-fast-a-few-dozen-startups-grew-in-q3-2020/

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They want to cancel their subscription? OK I don’t need them!

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You are building a product and you put your hurt and soul into it. You’re rewriting the details, crafting perfect pixel design, generating leads, ads campaigns, cold outreach, and publishing on all channels.

You present a perfect demo, onboard a new subscriber, and then he churns.

At that point you get mad and start making excuses:

  • “they don’t understand the product”
  • “they were using it wrong anyway”
  • “their business sucks”
  • “I don’t need them”

But honestly, YOU DO.

I went through the same process but eventually realized that:

A subscriber that wants to cancel the service actually tells me a lot about how the product can grow.

Once you reveal churn hidden opportunities, you can take action to prevent churn and make your way to the holy grail of negative churn.

It makes sense – positive growth depends on having CAC/LTV metric, it’s as simple as that. You are already spending a lot of greens on CAC but how much are you spending to increase LTV?

Let’s say you have 1,000 subscribers paying $10 monthly subscription = $10,000 monthly revenue.

Assume your monthly churn rate is 6% so the next month you will have 940 paid subscribers and $9,400 in revenue, and the month after that – 883 paid subscribers and $8,830 in revenue.

If you run the calculation until the end of the year, you will see that on month 12 your monthly revenue is $4,760. Let’s see what happens to your LTV if you lower your churn rate from 6% to 1%: In the first month you will have the same $10,000, but at the end of the year your revenue will be $8,860.

Your LTV went from $4.76 to $8.86 -> that’s a 86% increase!

The article is written with love by me, the founder of Churndler.

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Source: https://hackernoon.com/they-want-to-cancel-their-subscription-ok-i-dont-need-them-6r1g3w5h?source=rss

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Analytics Consulting

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Your analytics should tell you everything. 

Tools like Google Analytics are incredibly valuable for businesses. Once you’re setup, you’ll have everything you need to analyze your performance data properly. Instead, many companies have realized that their analytics tools have introduced a lot of unexpected problems. 

They’re not getting the kind of value they need. 

That’s the good news. Most companies think their data is clean; that they’re making good decisions with the data they have. Most of these companies are wrong; they just don’t know it yet. This is why companies need analytics consulting. They don’t know what they don’t know. 

Today, I’ll show you how to find the right analytics consultant for your business.  

4 Ways an Analytics Consultant Can Help Grow Your Business

Many companies make the wrong assumptions. Using a tool like Google Analytics, clients think all they have to do is drop the tracking code into their web pages, log into their account, and begin analyzing their data. It sounds easy, but it often isn’t. 

There’s more to it than that. 

This is why you need an analytics consultant. With the right consultant, you’ll have the education you need to grow your business. You’ll be able to pull insights out of your data using a variety of methods. Each of these strategies is important because they have a cumulative effect on your business. 

Here are four ways analytics consulting can help you grow your business. 

1. Exclude spam traffic via bots, scrapers, and spiders

How much of your traffic comes from real visitors? How much of it comes from bots, scrapers, and spiders? According to Imperva, almost half of all internet traffic is non-human. In 2014, Google introduced an obscure setting that enables you to filter out bots and spiders listed in IAB’s Interactional Spiders and Bots list. This low-key setting is buried in Google Analytics, but it’s incredibly important; many small businesses still aren’t aware of this setting. 

You’ll also need help to filter out referral spam.

Referral spam is basically fake website hits; these bots, scrapers, and spiders land in your site. Site owners send their spam to your site. They hope you’ll see these referrals in your Google Analytics account, clickthrough, and visit their site. 

This junk traffic poisons your data. 

It gives you false readings based on inaccurate data. Your site may be more or less profitable, depending on your visits-to-spam ratio on your site. This isn’t something many businesses watch for in their analytics reports. 

A good analytics consultant will consistently filter the variations of spam traffic (e.g., direct spam traffic, referral spam traffic, etc.) out of your reports, so you get a clear picture of your marketing performance. 

2. Help you analyze your data properly

A lot of companies don’t know how to analyze their data properly. According to Forrester, between 60 and 73 percent of a company’s analytics data goes unused. Companies collect lots of data on customer activity, but they aren’t using it, why?

There are lots of reasons. 

  • Companies don’t know what they have 
  • Companies aren’t aware of the value of their data
  • They don’t know how to evaluate or analyze their data
  • Their data isn’t available to those who can use it 
  • There’s too much data to go through and not enough time to use it

Think about it. 

Right now, your company has valuable data about your customers. This is data you can use to attract more customers, lower expenses, grow faster, jump ahead of competitors, etc. 

If you’re unaware of the data, you can’t use it. 

A good analytics consultant will help you analyze your data properly, showing you what you have and how you can use it to grow your business. 

3. Identify the list of problems you’re trying to fix

Your data isn’t as valuable without context. 

If you know the problem you’re trying to solve, you have a pretty good idea of the answers you’re looking for in your data. 

That’s the problem though. 

A lot of companies treat their analytics tools as a technology issue. They focus their attention on the obvious issues like hardware or software. They rarely treat their analytics as a question and answer tool. That’s exactly what it is, though. 

Target had the right idea when they started their analysis with a problem/question. 

Remember the story?

“If we wanted to figure out if a customer is pregnant, even if she didn’t want us to know, can you do that?” It’s a creepy story that shows the power of questions and problems. A great analytics consultant will help you discover the issues you’re trying to solve and the questions that need answers. 

4. Focus your attention on the metrics that explain why

Analytics tells you what happened — what visitors did when they arrived on your site, the ads they responded to, what they read most often, etc. It doesn’t tell you why visitors do the things they do. Understanding what is important, but it’s more important to understand why something happens. 

Focusing on the right metrics is the answer. 

The right analytics consultant will help you answer the “what” — basically looking in the rearview mirror. But they’ll also help you look ahead; They’ll dig deeper, showing you the why behind visitor and customer behaviors. 

Your analytics consultant should provide you with the education and support you need to squeeze more value out of your data.

How to Get Started With an Analytics Consultant

Avinash Kaushik has a three-step framework he uses to help analytics consultants support their clients. He calls it Data Capture. Data Reporting. Data Analysis. The nice part about this framework is the fact that it’s easy for both clients and consultants. 

Consultants can use each of these buckets to analyze your goals, objectives, and the results they want to accomplish with each. 

You’re basically goal setting with this framework.

Here’s a closer look at each of these three buckets and the goals for each of these. 

  1. Data Capture: Work in this bucket is focused on audits or updating data capture methods (e.g., updating, editing, or customizing tags). This step is especially important because it determines the quality of what comes afterward. If you’ve done a good job with your data capture methods, you’ll have accurate data and reporting you can use for your analysis. 
  2. Data Reporting: Your consultant sets up the reports you need on the intervals required. Your consultants help you identify the reports you’ll need, and they provide you with the reports you need regularly. 
  3. Data Analysis: This is what Avinash calls an open-ended assignment, but it’s one you’ve provided to your consultant. You’re asking them to answer specific questions for you — your consultant should be able to show you what to measure, what your data is saying, what to do based on your data, and why you should do it. 

Here’s what this means for you. 

You’ll want to find an analytics consultant or agency that can handle all three steps in this framework. This also means you’ll need a clear idea of problems you’re dealing with ahead of time. 

Measuring the ROI of Analytics Consulting Services

Many companies don’t understand analytics.

If you don’t understand analytics, that’s okay; you just need to know whether you’re generating a return on your analytics investment. According to Nucleus Research, analytics returns $13.01 for every $1 invested

Your consultant should be able to calculate your return on analytics investment

This obviously much easier if your consultant is focused on the data analysis bucket. Suppose they’ve made several data-driven improvements to your site over three to six months. Their recommendations have lead to an increase in revenue, profit, or a return on investment for you. They should be able to verify your return on investment using the worksheet I’ve linked above. 

The good news is the fact that analytics, as a discipline, is data-driven.

Checklist For Finding the Right Analytics Consultant

Choosing the right analytics consultant requires a very different set of skills. If you’re working with an independent analytics consultant, you’ll need to approach this in one of two ways. 

  1. Choose a consultant with all of the skills needed to perform across all three buckets (data capture, reporting, analysis). 
  2. Choose an agency with analysts and implementation specialists needed to generate the results you need. 

Here’s a list of the skills needed for each of the three roles in your buckets. Avinash breaks these skills down in detail in his web analytics consulting framework post

Here’s a quick summary. 

  • For the data capture bucket, your consultant should have the skills of an implementation specialist. They’re experienced with tag managers; they understand data dimensioning and working knowledge of tracking variables. 
  • With the data reporting bucket, your consultant should be familiar with report creation in your analytics platform; they should also have a master list of the custom reports you’ll need for various options. It’s also ideal if your consultant has a working knowledge of his own set of customizations. 
  • For the data analysis bucket, your consultant should be a web analyst. Your consultant should be comfortable with advanced statistics and analytical techniques. They should be experienced in descriptive, diagnostic, predictive, and prescriptive analytics. 

If you’re working with an independent consultant, they should be an industry veteran with the skills I’ve listed above. If you’re working with an agency, they should have employees with the skills for each bucket. If you have implementation specialists, you can handle data capture and possibly reporting. 

Just make sure they’re a fit for that role. 

Conclusion

Many companies aren’t familiar with analytics consulting. They’re not entirely sure how analytics impacts their organization. That’s okay, as long as the ROI is there. 

Using a tool like Google Analytics, many companies assume that all they need to do is customize the tracking code, drop it onto their web pages, log into their account, and begin analyzing their data. It should be that easy, but it isn’t. 

There’s more to it than that. 

With most companies, their analytics data goes unused, they collect lots of data on customer activity, but they don’t know how to squeeze value out of their data. Analytics consulting can help you evaluate your performance data properly. Choose the right team,  and your data will tell you what you need to know. 

Source: https://neilpatel.com/blog/analytics-consulting/

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