Web analytics - measurement, collection, analysis and reporting

Introduction to Web Analytics

Web Analytics is the measurement, collection, analysis and reporting of Internet data for the purposes of understanding and optimizing Web usage. (Official WAA definition). To be able to measure your website’s performance and practice web analytics, a web measurement tool is needed to provide you with a number of metrics or data points. Google Analytics provides valuable, easily accessible data that is an excellent basis for your web analytics initiatives which will help you enhance your online presence and reach your business.

Web analytics is used practised professionally as well as privately. Despite all the different angles and data points that can be explored there are a few basic rules that apply for all:

• You CAN go into various levels of analysis with the data your reporting tool provides you with, but frequently ask yourself the question: “Do I NEED this knowledge?” and preferably define exactly what information you’re looking for before going into analysis. Overanalysis is a waste of time and leads to needless complications. Often the most valuable discoveries do not require rocket science
• Know which metrics are of most value to your organization - define your Key Performance Indicators (KPI’s) and stick to those as a measure of your website’s (and organization’s) performance. Examples of KPI’s are, ‘lead conversion rate’, ‘cart conversion rate’, ‘revenue per visitor’, ‘average order value’, ‘page views per visit’ and ‘average time spent on page’

Website data that isn’t used directly for KPI tracking is still very useful to be able to learn more about your website visitors. How can you expect to improve lead conversion rates when you don’t really know who uses your site and what exactly they want. Data such as keyword phrases used in search engines, most popular links on product pages, entry and exit pages and most popular products are valuable indicators that will help you create personas. I’ve dedicated a separate page to developing personas and you can find the definition here.

• Change is the key phrase you should focus on: Compare sets of data and learn what the differences are, why there are differences and how you can action that knowledge. Action is the keyphrase here, which signifies all that we want to get out of web analytics and which is the most valuable perspective to work from while analyzing website data.What is the analysis worth when no concrete conclusions can be drawn that help us improve conversions, enhance website usability, fix problems, drive traffic, analyze keyword performance and pinpoint the most valuable traffic sources for example.

I remember the endless discussions on which tools provide the most accurate data, on whether log analysis or page tagging provides better data accuracy. A few years later most of us know absolute data accuracy is irrelevant. Use one set of data (and perhaps have a backup) and focus on comparisons of data in restricted time frames to analyze change.

Please refer to the web analytics terminology page for definitions of various terms used in web measurement and analysis.