Are you on the right track with your Web Analytics?
Over the past few weeks I’ve been looking at various Analytics tools. However good the tools are, they are only as good as an organisation’s willingness to embrace, understand and act on the findings.
What I’ve found helpful with our clients is to spend time demystifying Web Analytics, and showing how it can help an organisation to grow online. I thought I’d share some of these insights with you.
A Bit of Background…
Web Analytics is essentially the analysis of how visitors find and use a website. The Analytics industry came out of the shadows in 2005 when Google bought the Analytics vendor Urchin. Shortly after the acquisition, the Urchin On Demand product was renamed Google Analytics and re-launched as a free product. Not surprisingly Google Analytics is now the most widely used hosted web analytics system.
Business is Booming…
The UK Internet economy is growing. It is estimated that during 2010, roughly 26 million people have bought goods, travel or other services online at least once a month . This means that the UK Internet economy is now estimated to be worth 7.2% of UK gross domestic product . Furthermore, the UK Internet economy is forecast to grow at 10% per annum between 2009 and 2015 to as much as £228bn.
As the online economy grows so to does the need for organisations to stay ahead of their competitors. Five years ago you could put some money into search, have a landing page and watch the money roll in. These days the online landscape is much more competitive. Rather than just investing in online advertising and having a pretty website, gaining valuable online customer intelligence insights will be key for companies wanting to make the most of the boom in online advertising.
Up The High Street…
High street shops and supermarkets spend millions on the psychology of store layout to entice people in and keep them there, tempting them to spend, spend, spend. Web Analytics tools help you do the same in the online environment – investing in Web Analytics can easily pay for itself. A 1% or 2% increase in the visitor conversion rate (ratio of visitors to sales or leads) can earn an organisation thousands in extra revenue for a modest outlay in software and expertise.
Business-Focused Metrics…
In the past, Web Analytics Tools have been seen as turbo charged stat counters. This is true of statistics like page impressions and bounce rates, which aren’t as insightful as metrics like conversion rates, download rates, visitor loyalty, visits to purchase and average basket value. These are the business-focused metrics that any Sales Director, Financial Director or CEO will understand and enjoy.
Staff & Process…
A common problem is that many organisations already have good web analytics software, but aren’t tracking all visitor actions like downloads, sign-ups or purchases. Many businesses lack analytics staff, and don’t have the processes in place to make sure that those golden Analytics Insights are turned into actions. Don’t be one of them!
Are you on the right track with your Web Analytics?
Start by asking yourself is your web data giving you real insights into your customers’ behaviour? Are you gaining business-focused insights or just scratching the surface with things like bounce rates? And are you able to make changes to your website, or run tests on your landing pages?
What are your experiences of Web Analytics? Are you able to turn your Insights into profitable actions? It would be great to hear your stories.
