Introduction to Business Analytics

Project
Web Analytics at Quality Alloys, Inc
EXECUTIVE SUMMARY

Quality Alloys, Inc (QA) is a small US based distributor of alloys used in Industrial manufacturing. QA
decided to expand the marketing reach by establishing a web presence and promotions, for which the
company spent $25K.

QA utilized Google Analytics to access the wide range of web metrics and along with the sales and
financial measures, to measure the value of QA’s website.

Descriptive Analytics of the available data is carried out to identify the value of QA. During the
promotional period, the number of visits and unique visits had increased compared to the other periods.
However the conversion rate to sales is relatively low, and the pounds of material sold decreased than
initial and pre-promotion period, and the same trend continues for post- promotion.

Analysis:
1. There are 65000 - 8000 unique visits to the QA website in which majority of them belong to the
region South and North America who use search engines like google and yahoo or referral sites
like google ads or page add to vist the website.
2. Its been observed that users using windows operating system and who prefer internet explorer
and firefox browsers contribute to the major portions to the total visits
3. There is no correlation between website visits and revenues. It can be inferred that the website is
not successful enough in driving sales.
4. Traditional promotions done by QA by distributing brochures of companies products and services
did drive traffic to the website but did not contribute to the sales.which can be inferred from
Revenue vs Visits plot
5. The website is generating interest among the people as the number of unique visits and
% of new visits are high but it doesn't interest the users to contribute to sales
6. The rate of profit displayed a declining trend during the promotional period, which can be due to
the additional promotional expense and failure of the promotion to generate revenues.

Recommendations:
1. QA can target its visitors who are from south and north America through Google leads and page-
Ad ads.
2. As there is a high bounce rate, there is a possibility that the visitors are not finding the website
useful enough or finding the process of calling the executive too tedious. To mitigate this, QA
could develop a shopping cart within the website which is easy to place the order for the visitors.
This way, we can track the sales and revenue can be generated easily.
3. Add appropriate keywords so as to target more relevant customers to the website who are willing
to purchase.
4. QA can make seasonal discounts or offers or coupon codes or bundling offers to attract the
audience during the promotional period.
5. The website should include the price aspect of the products and services by QA to help them in
their purchase decisions.
 ANALYSIS

Q1.

From the trend, it can be observed that during the promotional period, the unique visits to the website had increased
while during other periods it remained low.

From the graphs we can say that both revenue and profit of QA follows a similar trend.
It can be observed from the bounce rate and average timer on Site , that bounce rates have been increasing over the period
especially during promotional period and there was a sharp dip on the average time on site during the same period.

Q2.
Q3.
Q4.

During the promotion period, visits to QA website had increased compared to other periods. Even though
the visits increased, pounds of material sold decreased compared to initial and pre-promotional periods
and further decreased during post-promotion, causing revenues to fall over the period and so are the
profits.

The website generated interest in the promotional period, but that interest does not lead to sales. So the
$25K cost of advertising only led to further decrease in profits.

Q5.

correlation= 0.86893.
It was observed that with the increase in Pound Sold, revenue is also seen periodically increasing. The
revenue and the pounds sold are highly correlated.

Q6. The scatter diagram of Revenue vs Visits

The correlation coefficient of revenue vs visits is -0.059 i.e. the variables revenue and visits are not
correlated.

Q7.
From the correlation it’s evident that there is no strong relationship between the variables revenues and
visits to the website. The revenues are strongly related to pounds sold as the correlation value is
calculated to be 0.86.

Q8.

The following observations are made from the data provided on Pound sale on the weeks from Jan 3,
2005 to July 19, 2010

a.Summary value of the data set

Mean 18681.55517

Median 17673

Standard 6840.51
Deviation

Minimum 3826

Maximum 44740

To create Histogram using the pounds of material sold data:

 ● No of intervals was calculated as Square root of total number of
observations

Count 290

No. of groups 17

(Squareroot of
count)

● Calculation of Frequency chart from data analysis:

Bin Frequency

3,826 1

6,233 3

8,639 10

11,046 16

13,453 35

15,860 46

18,266 43

20,673 35

23,080 32

25,486 22

27,893 16

30,300 13

32,706 7
35,113 4

37,520 5

39,927 0

42,333 1

More 1

Histogram of the Pounds sold data

Q8 c. Looking at the Histogram, we can observe that the Histogram is not perfectly bell-shaped and is
not symmetric around the Mean of Pounds sold. The Histogram is positively skewed, with its tail
extending towards the right.

Q8 d. To check if the data follows Empirical rule:

mean +- 2 std. dev 95% 275.5 276

mean +- 3 std. dev 99% 287.1 288

Q8e.
Interval
Theoretical % of Theoretical Actual No. Obs
Data
No. Obs

mean + 1 std. dev 34.0% 98.6 84

mean - 1 std. dev 34.0% 98.6 117

1 std. dev to 2 std. 13.5% 39.15 35

dev

-1 std. dev to -2 std. 13.5% 39.15 40

dev

2 std. dev to 3 std. 2.0% 5.8 9

dev

-2 std. dev to -3 std. 2.0% 5.8 3

dev

Q8 f. The number of values expected between Mean and -1 Standard deviation is 98.6 but the actual
number of observations are 117. The extending tail on the right side indicates that there can be outliers on
the RHS of distribution.

Q8 g.
Lbs. Sold

Mean 18681.55517

Standard Error 401.6884574

Median 17673

Mode 14905

Standard Deviation 6840.50794

Sample Variance 46792548.87

Kurtosis 0.563661442

Skewness 0.632307485

Range 40914

Minimum 3826

Maximum 44740

Sum 5417651

Count 290

Confidence 790.6058069
Level(95.0%)

Q9.
There were a total of 69431 visits observed. In the initial period, the average visits per day were 1055.
The promotional period saw an average of 1814 visits to the website. The post promotional period saw an
average of 857 visits. During the promotional period, to reach the target audience, QA used brochures.

Q10.

It was observed that maximum traffic sources were from referring sites with 38,754 visits and 20,964
were from search engines.
The top three referring sites are: googleads.g.doubleclick.net, pagead2.googlesyndication.com and
sedoparking.com with 15626, 8044 and 3138 visits.

The Top Two Search Engine Sources of Visits were observed through Google and Yahoo with 17681 and
1250 number of visits.
 The top visits are 22616 and 17509 from South America and North America

Internet Explorer and Firefox have the highest number of visits with 53080 and 13142.
It can be assumed that the top referring sites are mostly viewed from the above top browsers used.
The top Operating System used is Windows with 67063 number of visits to sites.