Tuesday, November 02, 2010

Remove 1 data field. Increase profit by $12M. tx @monkchips

Amplify’d from www.silicon.com

Online travel firm Expedia has found that data analytics can deliver a multi-million dollar kick to a company's bottom line.

The company used analytics to identify a single change to a web page that generated an overnight surge in sales, Expedia's VP of global analytics and optimisation Joe Megibow told the Premier Business Leadership Series conference in Las Vegas last week.

Expedia analysts realised the site needed to be changed after investigating why many customers who clicked the 'Buy Now' button on the company's site did not complete the transaction.

After putting in their bank name, these customers then went on to enter the address of their bank, rather than their home address, in the address field.

"When it came to address verification to process the credit card, it failed because it was not the address of credit card holder," Megibow said.

"After we realised that we just went onto the site and deleted that field - overnight there was a step function [change], resulting in $12m of profit a year, simply by deleting a field.

"We have found 50 or 60 of these kinds of things by using analytics and paying attention to the customer."

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