Are You Spending the Appropriate Resources on These Key Analytics Categories?

Over the past few months, I have been thinking about the appropriate split of resources (money, time, etc) that should be given to the different parts of an analytics strategy. I organize came up with 3 broad categories: Tools, Analysis & Action.

Tools are what you used to generate reports, Analysis is the process of interpreting data and Action are the experiments or changes that you end up implementing. From my experience with past clients (successful and failed projects), an appropriate split should look roughly like this:

  • Tools = 20%
  • Analysis = 35%
  • Action = 45%

Instead, we tend to see companies focus most of their time on Tools and then the remainder on Analysis. The last category (Action) doesn’t get nearly enough time to see meaningful results.

I’ll admit that these numbers are somewhat random but the underlying lesson is to be mindful of how you’re spending your resources when it comes to your data. At the end of the day, you want to be seeing tangible improvements in your product or business. If you aren’t seeing that, your split might too heavy towards one of these categories.

Actions for This Week:

In the past, what has been the split of resources across these 3 broad categories? Where did you spend too much time? Where did you spend too little time? More importantly, why do you think this happened? Email me with your answers and thoughts.

Interesting Articles & Resources

  1. We published a new blog post comparing the most popular tools for product messaging: Intercom, and Zendesk Connect (
  2. I love this article on the Mckinsey Quarterly on Why Data Culture Matters.
  3. Scott Belsky from Behance has a great piece on the “messy middle” of creating a great product.



One more thing before you go! Are you getting the data you need to grow your company?

I find most companies are stuck with high-level metrics and they aren't able to properly understand what actually drives user growth for their web and mobile products. To do that, you need the right data and the right tools.

If this sounds like your situation, then you should download our free tracking plan (and tutorial video). This is the document that you should create before you ever implement tools like Mixpanel, Amplitude, Segment, and Intercom. Click the image below to download your own free tracking plan (and tutorial video).

Ruben Ugarte
Ruben Ugarte
I'm the founder of Practico Analytics and I created this company to help companies use analytics data to grow their web and mobile products. I love combining data, psychology, and systems in work and in personal projects.

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