More isn’t always better. Vast amounts of data can offer material for deep insights but can also overwhelm and complicate decision-making.
This is where Minimum Viable Analytics (MVA) comes in.
MVA offers a minimalist approach to digital analytics. It enables fast, data-driven decision-making without the complexities and costs associated with extensive data infrastructures.
This approach is handy for startups and growing businesses that need to become data-driven quickly and efficiently. It can also benefit enterprises migrating to a new analytics platform.
MVA provides the essential data and insights
Minimum Viable Analytics (MVA) is a simple, minimalist digital analytics implementation designed to provide the essential insights needed for decision-making.
It focuses on a few key components:
- Measuring Traffic Understanding the flow of visitors to your website. For example, a new e-commerce store might initially focus on tracking the number of visitors and their navigation paths through the site.
- Tracking Campaigns: Monitoring the performance of marketing efforts. A startup launching its first digital marketing campaign would benefit from tracking which channels (e.g., social media, email, or paid ads) are driving the most traffic and engagement.
- Monitoring Conversions: Keeping track of how many visitors complete desired actions, such as purchasing or signing up for a newsletter. For instance, a SaaS company might track free trial sign-ups as a key conversion metric.
- One or Two Micro-Conversions: Track significant non-conversion actions, like downloading a whitepaper, clicking on a specific link, or signing up for a newsletter as events.
Most small and medium-sized businesses need nothing more complicated than these essential metrics. Yet most people in analytics suggest complicated setups with highly granular data are necessary for value creation.
I disagree with them.
Benefits of MVA
Almost every company should start their digital analytics implementation with an MVA.
Very often, the benefits of an MVA are much higher than the value of data we miss by not implementing a state-of-the-art enterprise-style data collection with all the bells and whistles.
Speed
MVA is quick to implement, allowing businesses to become data-driven rapidly.
By focusing on essential metrics companies can quickly set up their analytics framework and start making informed decisions immediately.
For example, a small online retailer could start tracking visitor traffic and purchase rates within a few days, gaining immediate insights into customer behaviour.
Cost-Efficiency
MVA minimises the initial expenditure on analytics tools and integrations.
Instead of investing heavily in sophisticated analytics systems from the outset, businesses can start with standard, cost-effective tools and expand as needed.
For instance, free tools like GA4 or Piwik PRO can provide valuable insights without significant financial investment.
This allows a small or a new company to allocate resources to other critical areas.
Focus
MVA concentrates on essential metrics that directly impact decision-making.
Businesses avoid the noise of less relevant data, allowing them to focus on what truly matters for their growth and success.
For example, a startup might prioritise tracking user sign-ups and active users rather than getting bogged down by tracking all tiny user interactions.
Scalability
MVA provides a solid foundation that can be expanded as the business grows.
As the need for more detailed insights arises, additional metrics can be easily added.
The analytics infrastructure and tracking plan should grow alongside the company.
For instance, an e-commerce site might start with simple traffic and conversion tracking.
As its customer base expands, metrics like customer lifetime value and cohort analysis become valuable.
Compliance
The principle of data minimisation is a fundamental aspect of data privacy regulations, such as the General Data Protection Regulation (GDPR).
MVA aligns perfectly with this principle, focusing on gathering only the most critical data for decision-making.
MVA ensures that only relevant data is collected. This approach prevents the accumulation of unnecessary data.
Focusing on high-quality, critical data and analysing it closely is almost always more beneficial than spending time and money on tracking everything.
Conclusion: Minimum Viable Analytics (MVA) might be all you need
Minimum Viable Analytics (MVA) might be all you need to become a data-driven marketing or product team.
Focusing on essential metrics, implementing cost-effective tools, and regularly reviewing insights can help businesses make informed decisions quickly and efficiently.
Start small, stay focused, and build your analytics capabilities over time.
There is a time for more advanced setups, but only with enough traffic and conversions.
FAQ
MVA is especially beneficial for 1) startups and 2) small to medium-sized businesses that must quickly and efficiently become data-driven without a significant upfront investment. It’s also a valuable first step for 3) enterprises transitioning to new analytics platforms or 4) those looking to streamline their existing analytics efforts.
The key is to identify metrics that directly impact your business goals. Start with basic metrics such as traffic, campaign performance, and conversion rates. For example, an e-commerce store might focus on visitor traffic and purchase rates, while a SaaS company might track trial sign-ups and feature usage.
Yes, MVA aligns well with data privacy regulations like GDPR as it adheres to the principle of data minimisation. This means collecting only the data necessary for specific business purposes, thus enhancing user privacy and reducing the risk of data breaches.