Measuring consumer behavior and watching consumers interact with your site are the best ways to find out what works and what doesn’t. There’s a great post on Signal vs. Noise about some of the things behind Amazon’s success. Two paragraphs that jumped out at me:

Use measurement and objective debate to separate the good from the bad. I’ve been to several presentations by ex-Amazoners and this is the aspect of Amazon that strikes me as uniquely different and interesting from other companies. Their deep seated ethic is to expose real customers to a choice and see which one works best and to make decisions based on those tests…

…This is done with techniques like A/B testing and Web Analytics. If you have a question about what you should do code it up, let people use it, and see which alternative gives you the results you want.

This data driven approach is especially valuable for a company in Amazon’s position where small changes in things like the click-to-sale rate could have a massive dollar impact. Even if you’re not in a position to do testing at this scale (or don’t have the traffic to make it meaningful), watching individual users is still incredibly valuable.

In an ideal world, you’d be able to do both - measure the aggregate and observe the individual.

P.S. If you find this mythical ‘ideal world’ tell me how to get there.

Related Posts: