10 90 Rule Analysis

The 10/90 rule was postulated by Kaushik (2010) to get the highest possible value from the implementation of web analytics. Analysis is the most important attribute in web analytics. Without it, all the data that the web analytics tools gives is just mere data with little or no meaning to the company. With this understanding Kaushik (2010) created the 10/90 rule which states that if a company spends $10 on getting analytics tools and professional services, it has to spend $90 on hiring analysts who will spend time on analyzing and interpreting the data from the web analytics tools. They will hence find out the information about what needs to be done in order to improve their website and in turn become the intelligent resources of the company.
It helps looking at it as in investment made as it will bring good returns to the company in the long run (Kaushik, 2007). The article The 10/90 rule for web analytic awesomeness (2011) says that it has to be taken into consideration that the web analytic tools only assists people to get an actionable insight. When more money is spent on getting tools and external consultants for the tools, the company will only be left with quantitative data that is of no meaning after the contract with the consultant ends. So, companies need to follow the 10/90 rule to benefit better by investing more on web analysts who will perform various tasks like analyzing strategies, reporting, understanding the context as well as the tool and exploring new strategic options. More emphasis must be given to the analysts spending time on analyzing, optimizing and seeking new opportunities (The 10/90 rule for web analytic awesomeness, 2011). To sum up while administering the 10/90 rule, a company has to appreciate the importance of analysis of data and spend $90 on analysts for every $10 spent on tools. For example if a company spends $25000 on getting web analytic tools, it has to spend $225000 on analysts who can interpret the data meaningfully (Kaushik,