Originally from London, Neil Patel is an American entrepreneur I had the pleasure of meeting a few years ago while speaking at a conference in Chicago.
As the co-founder and Marketing VP of KISSmetrics, a web analytics platform trusted by major brands like Amazon, eBay, and Foursquare, Neil has built a reputation as a visionary in the analytics space. Beyond business success, Neil is deeply committed to giving back, using earnings from his ventures to provide healthcare, clothing, and food for those in need. His philanthropic efforts, though ongoing, reflect his mission to “change the world.”
NC: Neil, how did you first get involved in the web analytics space?
Neil: One of my first ventures was an internet marketing agency offering SEO and social media marketing services. Over time, we noticed that businesses struggled to measure the ROI of their campaigns. This led us to create an analytics product to address that gap. It took several pivots to get it right, but we’ve made tremendous progress since those early days.
NC: What has surprised you most about this industry?
Neil: What shocks me is how many companies fail to act on their analytics data. They monitor metrics and hope for growth but rarely use the insights to optimise their strategies.
NC: What do you find most challenging about this industry?
Neil: The biggest challenge is creating a product that provides actionable insights rather than just data. We’ve worked for years to achieve this, and every day we get closer to making it a reality.
NC: What’s the best and worst thing to happen since you started working online?
Neil: The worst was losing over a million dollars in borrowed money when I was just 20 or 21. The best? Learning from those mistakes. The knowledge I’ve gained from those experiences has been invaluable and instrumental to my success.
NC: If you could change one thing about this industry, what would it be?
Neil: I’d shift the focus from tracking vanity metrics—like bounce rates and pageviews—to metrics that directly impact the bottom line, such as customer lifetime value, churn rate, and conversion rates.
NC: How do friends or family react when they find out you work in the online space?
Neil: Most don’t understand what I do, so I simplify it by saying I work at Microsoft. It’s not true, but it’s easier than explaining analytics. Plus, I admire Microsoft’s commitment to giving back and encouraging employee involvement in non-profits.
NC: Who has influenced your decision to work in this space?
Neil: Elon Musk. He’s my favourite entrepreneur and a huge inspiration. His approach taught me to think big and focus on creating game-changing companies rather than small ventures.
NC: What are your thoughts on the web analytics industry? Is it becoming overcrowded?
Neil: It’s been crowded for years, but most solutions focus on outdated vanity metrics from the Web 1.0 era. This leaves plenty of room for innovative players to address meaningful metrics like customer lifetime value.
NC: You’ve mentioned vanity metrics several times. Can you explain the difference between vanity and actionable metrics?
Neil: Vanity metrics are those that look good but don’t contribute to the bottom line—for example, bounce rates or time on site. Actionable metrics, like conversion rates and shopper rates, provide insights that help businesses make more money. Focusing on these is crucial for success.
NC: What trends do you see in the digital space, and what’s the next big thing?
Neil: The digital landscape is shifting. In the past, creating an online business meant building a website. Now, businesses can thrive through mobile and social applications. Mobile devices are outpacing laptop and desktop purchases, so companies must adapt their strategies to reach audiences in new ways.
Neil Patel’s insights and experiences reflect his expertise in the analytics space and his forward-thinking approach to business and philanthropy. He continues to inspire with his commitment to innovation, impact, and positive change.