8.5: Key Terms

A/B testing

(also, split testing) method used to compare two versions (A and B) of a webpage, email, or advertisement to determine which one performs better in terms of user engagement or conversion rate

application programming interface (API)

means by which software applications communicate and interact with each other for the purpose of exchanging data and functionality

benchmarking

comparison of an organization's performance against industry standards and competing businesses

bounce rate

percentage of visitors who navigate away from a website after viewing only one page, indicating a lack of engagement or interaction with additional content

business intelligence (BI)

process of collecting, analyzing, and interpreting data to inform business decision-making and improve organizational performance

business intelligence reporting

process of creating, designing, and delivering reports and visualizations that communicate insights derived from BI analysis to support decision-making within an organization

call to action

prompt or directive placed within a website, advertisement, or marketing material that encourages users to take a specific action, such as making a purchase, signing up for a newsletter, or requesting more information

clustering

unsupervised learning technique used to group similar data points together based on their intrinsic characteristics or attributes

conversion rate

percentage of website visitors who complete a desired action, such as making a purchase, filling out a form, or signing up for a newsletter, out of the total number of visitors

cost-benefit analysis

systematic approach to assessing the costs and benefits of a proposed project, investment, or decision to determine its feasibility and potential return on investment

data analysis

systematic process using statistical and logical techniques to review, sort, and condense data for the purpose of gaining insight on areas of interest

data analytics

process of examining datasets to draw conclusions and insights, typically using statistical and computational methods to inform decision-making or solve problems

data marketplace

online platform or ecosystem where data providers and consumers can buy, sell, or exchange datasets and related services

data mining

process of analyzing large datasets to discover patterns, trends, and insights using statistical and computational techniques

decision tree

decision-making tool that uses a tree structure diagram in which branches represent choices and their outcomes

descriptive analytics

analyzing historical data to understand past performance, trends, and patterns within an organization or specific business processes

diagnostic analytics

examining patterns in data to identify correlations and causes of certain events or outcomes

extract-transform-load (ETL)

process used to extract data from multiple sources, transform the data into a usable format, and load the data into a data warehouse for data analytics

key performance indicator

measurable value that demonstrates how effectively a company is achieving its key business objectives and goals

linear regression

method that presents the relationship between variables as a linear equation on a graph

log file analysis

analysis examining server log files to gather data on website traffic, user behavior, and server performance, providing insights into website usage patterns and potential issues

metric

quantifiable measure used to track and evaluate the performance, progress, or success of a particular aspect of a business, campaign, or activity

operational decision

decision focused on day-to-day activities that involves optimizing processes, allocating resources, and managing immediate operational challenges

outlier

observation that deviates significantly from the rest of the dataset, potentially indicating anomalies, errors, or unique patterns that require special attention during analysis

page tagging

embedding a snippet of JavaScript code, known as a tracking tag or pixel, on each webpage to track user interactions, behaviors, and events

predictive analytics

use of statistical algorithms and machine learning techniques to analyze historical data and forecast future outcomes or trends

prescriptive analytics

using data analysis and modeling techniques to recommend specific actions or strategies to optimize business processes and outcomes

recency, frequency, and monetary (RFM)

task of customer segmentation or grouping based on their purchasing habits

regression

statistical analysis method used to quantify the relationship between variables and to make predictions

search engine optimization (SEO)

process of optimizing website content and structure to increase visibility and ranking on search engine results pages

sensor data collection

gathering data from sensors designed to detect and respond to physical or environmental conditions, such as temperature, pressure, or motion

strategic decision

long-term decision made by an organization to define their overall direction, goals, and competitive positioning in the market

tactical decision

medium-term decision made by an organization to achieve specific objectives or goals within a defined time frame

training

process that uses labeled or historical data to teach machine learning algorithms or models to recognize patterns, relationships, and trends, enabling them to make predictions or classifications on new data

visualization

graphical representation of data and information to facilitate understanding, analysis, and communication of insights and trends

web analytics

collection, measurement, analysis, and reporting of website data to understand and optimize user behavior, engagement, and overall performance

web scraping

automated extraction of data from websites, typically using software to simulate human browsing behavior and retrieve information from web pages