Whether novice or pro, the annotations feature in Google Analytics (GA) is one feature your entire organization should be using. Earlier this year it became available to all GA account users and is one of the most simple features to use. Not only can it have a huge impact on tracking and monitoring site traffic, it will save you eons of time when going back historically to understand what components had the highest influence on generating traffic to and actions on your site.

What is the Annotation Feature in Google Analytics?
The annotation feature allows GA users to add notes to a website profiles’ traffic, they can share these with other users of this profile or mark them private. See example below. Notations were made to indicate when internal IP traffic was filtered, when an action to promote the site was performed and when campaigns launched.

What are the benefits of this feature and how can they make a difference for you and your company?
There are many spokes to an organization’s wheel such as PR, marketing, and customer service. In addition, there are the spokes that are not entirely under our control like social media channels. Since there are so many moving parts in an organization it is difficult to keep track of what may be influencing or impacting your daily web traffic.

The annotation feature in GA allows users to tell a story through site statistics. Perhaps major site changes were made, a new campaign was launched or a high profile blogger mentioned your company. These are just a few of the types of items that can be notated in the time-length of your web stats in GA. The possibilities are endless when logging and reviewing quarterly activity within your company – what happened this month, last month, the past 90 days? By allowing all departments to add notes to the site traffic they can provide insight into how their efforts are effecting the overall mission and understand which activities were most successful.

Think of annotations as a shortcut to digging into that spike in traffic or boost in sales. If you can follow traffic on a specific date or length of time when a specific campaign was launched you will be providing yourself and your team with a visual on its performance.

I’ve included a 58 second demo video from Google on their annotation feature below, enjoy and get to posting the notations in your stats regularly for the benefit of your entire team.

Groupon, the popular, online coupon service that launched less than two years ago in Chicago, has become a hit with money conscious consumers. But as it continues to expand to more and more cities including right here in Phoenix, local business owners are discovering the service isn’t without its downsides.

A Local Story

Dana Mule, part owner of Hula’s Modern Tiki at 4700 N. Central Ave., recently participated in a Groupon deal offering $30 of food for $15. The resulting hoard of customers that descended upon Hula’s to take advantage of the 50 percent off deal created havoc for Mule’s restaurant.

“Initially, it was disaster,” said Mule. “Far more people showed than we could accommodate, which made for long wait times … and angry people (which counteracts any benefit you’re supposed to get from this kind of marketing).”

How Groupon Works

The way Groupon works for consumers is relatively simple. Every day, a new local deal is featured on the Groupon homepage, sent to subscribers in a daily email and updated daily on the Groupon iPhone app. If the pre-determined minimum number of people purchases the Groupon within the established time frame, then the deal is active. If the minimum isn’t reached, then the deal is cancelled.

Mule initially decided to take part in Groupon to get additional exposure for his business and to expand his customer base, which are two of the key selling points Groupon uses to attract businesses. But as some experts have pointed out, there can ultimately be a backlash if the discount price ends up taxing a business’s ability to serve its customers, thus eroding their brand.

“The race to the bottom is never the way to get to the top,” said Ellen Malloy in a recent Reuters article regarding the Groupon phenomenon. Malloy promotes high-end restaurants in Chicago and blogs about the topic of discounting for Restaurant Intelligence Agency.

Groupon Threatens Customer Experience

According to Malloy businesses risk a cheapening effect on their brand and that the customer experience can be threatened if an oversubscribed offer ends up producing a short-term spike in demand.

Mule’s own experience with Groupon was uncomfortably akin to Malloy’s cautionary advice.

Groupon provides the business no tools to help manage the number of coupons sold – they up sell you to drive the value of the coupon up (making them more money),” said Mule. “They are not responsive with concerns – the amount of the sell given to the restaurant doesn’t even cover food/liquor cost – and they will not let you put a limit on the total number of Groupons you’d like to sell (we had to beg them to stop it at 1,000).”

After his initial experience with Groupon, Mule said he wouldn’t participate in the service again. He also advised businesses that require appointments, such as salons, to avoid Groupon altogether.

“We’ve talked to other businesses where they had sold so many Groupons that those were to only appointments they could accommodate for months, allowing them to take no additional new clients who would more likely become repeat customers,” he said.

So what do you think?

Forrester just released their Email Service Provider report for Q4 (Forrester Wave™). The report is a comprehensive evaluation of 15 top-tier vendors, and analyzes products and services across over 70+ criteria and three dimensions, including “Current Offering,” “Strategy,” and “Market Presence.”

The leaders of the pack with robust and highly-integrated solutions were ExactTarget and Responsys. Liberty Interactive Marketing has been a long-time user and advocate for ExactTarget given a customers complex needs with regard to segmentation, dynamic content, and integrating with other marketing channels like social and mobile.

While clearly the 70+ points of criteria knocked out a lot of smaller solutions like Campaign Monitor and Blue Sky Factory, it doesn’t mean medium-sized businesses should discount these. Before selecting an appropriate email service provider, sit down and determine what your needs are, from customer database integration to segmentation. What assets are you working with and what shape are they in?

And if you thought email was a passe marketing tactic for 2010 and beyond, you’ll be surprised to know that 68% of those surveyed by Forrester said that they anticipate that email marketing’s effectiveness will increase in the next three years.

The main focus for marketers will be to understand who their customers are and how to market to them personally and with relevance.

To stay ahead of the pack or just catch up I highly recommend downloading this email marketing report from Forrester compliments of ExactTarget.