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Glossary

What is anomaly detection? Methods and examples for business metrics

Anomaly detection finds data points that differ sharply from what is expected. Types of anomalies, simple and advanced methods, a worked example on daily traffic, and what to do when an alert fires.

Lin Zhou Reviewed by Su He Also called outlier detection Last updated Nov 4, 2026 Glossary

Quick answer

Anomaly detection is the process of finding observations, such as a day of traffic or a single transaction, that differ so much from the expected pattern that they are unlikely to be normal variation and are worth investigating.

Formula: z = (observed − expected) / standard deviation of the baseline

What is anomaly detection?

Anomaly detection finds data points that differ so much from what you expected that they are unlikely to be normal variation. For a website or product, that might be a sudden drop in sign-ups, a spike in errors, or a traffic surge from one referrer.

The word that matters is expected. An anomaly is always relative to a baseline, so most of the work is in choosing a good one.

Three types of anomaly

TypeWhat it isExample
PointOne value is extremeToday's checkouts are 40% below normal
ContextualNormal in general, unusual for the context2,000 visitors is fine on Monday, odd on a Sunday
CollectiveEach value looks fine, the sequence does notConversion slips 2% every day for a week

Methods, from simple to advanced

  1. Fixed threshold. "Alert if errors > 50 per hour." Easy, but ignores cycles.
  2. Percent change. "Alert if visitors fall 30% versus last period." Simple; noisy on small numbers.
  3. Baseline band. Compare with the average of recent same weekdays and allow a band (±10%, ±30%).
  4. Statistical (z-score). Measure how many standard deviations today sits from the baseline.
  5. Models. Seasonal decomposition, forecasting models or machine-learning methods such as isolation forests, for many metrics at once.

Start with 3 or 4. They respect weekly cycles and are easy to explain when someone asks why the alert fired.

A worked example

Visitors on the last four Mondays (sample numbers): 1,180, 1,240, 1,210, 1,170.

  1. Baseline mean = 1,200
  2. Standard deviation = 31.6
  3. Today (Monday) = 1,020
  4. z = (1,020 − 1,200) / 31.6 = −5.7

A value more than 3 standard deviations from the baseline is very unlikely to be noise, so this is worth checking. With only four points the standard deviation is itself uncertain; a percent band (here −15%) is a useful second check.

When an alert fires: triage

  1. Is the data complete? A collection gap, a blocked script or a late batch looks exactly like a drop.
  2. Is it everywhere or in one segment? Split by device, country, source and page.
  3. Did something change? Releases, campaigns, holidays, outages. Check the annotations.
  4. Is it real but expected? A campaign spike is an anomaly you wanted.
  5. Record the cause so the next person does not investigate the same thing.

Anomaly detection in TapCub

TapCub monitors check a built-in measure (pageviews, visitors, sessions, bounce rate, average duration, errors, error rate) or a saved metric on an hour, day, week or month grain. The conditions map onto the methods above:

Monitor conditionMethod
Fixed thresholdFixed threshold
Period changePercent change vs the previous period
Forecast bandMean of the last 7 days and the same weekday; strict about ±10%, medium ±30%, loose ±50%; needs 14 days of history
AnomalyMean and spread of the same weekday over 28 days; confidence 70–99; needs about 30 days by default
Collection gapMinutes with no data, to catch broken tracking

A dry run shows how many times the rule would have fired in the last 30 days, which is the quickest way to tune sensitivity. Repeat notifications are held back for about 60 minutes by default. See also monitor.

See also

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Lin Zhou

Product Experience Specialist

Writes about product experience, practical workflows, and growth, turning complex processes into clear steps for everyday decisions.

FAQ

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Still have a question?

Chat with the team behind TapCub — we usually reply within a few hours on business days.

What is an example of anomaly detection?

An alert that fires when today’s sign-ups are far below what the same weekday usually brings, or when error rate jumps after a release.

What is the difference between an anomaly and an outlier?

They are often used interchangeably. "Outlier" usually means an extreme value in a dataset; "anomaly" stresses that the value breaks an expected pattern, which may depend on time or context.

Which anomaly detection method should I start with?

A baseline from the same weekday over the last few weeks plus a threshold in standard deviations or percent. It handles weekly cycles and is easy to explain.

How do you reduce false alerts?

Use a baseline that respects seasonality, require enough history, lower the sensitivity for noisy metrics, and suppress repeat notifications for the same issue.

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