Everything You Need to Know About Web Analytics

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What is Web Analytics?

Analytics is the analysis of data. In business scope, it is analyzing your business data and your competitors’ data for continuous improvement. Examples of analytics are used in everyday life as well.

If you've ever looked at how many people have viewed your Instagram posts, or how many people have reacted to your tweets, or even how many steps you've taken in a day, then you're already using analytics.

There are four different types of analytics –

1. Descriptive Analytics -  As the name goes, it describes what has happened. For example, how many customers bought a camera last month.

2. Diagnostic Analytics –
It answers the question of why that happened.

3. Predictive Analytics –
It gives us an idea about what will happen if you change your business strategies.

4. Prescriptive Analytics –
It helps you in applying the aforethought change in strategies.

Why Should You Opt for Analytics?

Analytics will help you with strategic marketing decisions with the aid of science, data, and facts. Before data analytics was popular, all decisions were made on the basis of the knowledge and gut feeling of the CEO and other authorities.

What Can You Achieve Through Web Analytics?

There are four different objectives that you can measure in your business - 

1. Branding - This is more difficult to measure because there isn't any specific data defining it. Many companies use loyalty cards to try and measure the number of customers that walk in.

2. Online information and support -
  You can see how many users visit your website or how many clicks does it take them to get to the information they require. This information can help you build a better user experience along with a better brand name.

3. Lead generation -
  It is how you can bring users to your website. For example, through adverts, Google search, through friend recommendations. For each of these different channels, you can measure the number of visitors and how much time do they spend on the website.

4. E-commerce -
This is much easier to measure because you can see how many customers are actually buying the products.

Conversions and Their Role -

Conversions are the key metrics used in website analytics. It refers to any activity on the website which might be important for the success of the business. It is good to know how many users visit your site but it is better to know how they interact with your site. This could be by clicking on a link on a page or by purchasing a product listed on the site.


Types of Conversions –

1. Micro Conversions – They are activities that precede a purchase on any website. For example, signups for email newsletters. 

2. Macro Conversions - They give you a wide idea of how your website is performing. For a retailer, it might be how many sales transactions he gets for a specific product. Similarly, for an insurance company website, it might be the number of online insurance quotes.

Challenges in Web Analytics - 
Timeliness of Our Data – While making decisions, the right data is required at the right time. If your data is even a little bit old, your decisions are going to be based in the past,

Quality of Our Data,

Availability and Integration of Data - There's a vast amount of data that is required but is not available. For example, data containing the income of the customers can be used for different campaigns, schemes, and discounts.


Important -

One of the important things about analytics is that you don't achieve the right results straightaway. Continual improvement is required. It is the process consisting of gathering data, reporting, analyzing, testing, and then getting some insights. Step by step process consists of -

Creating a mission statement,

Determining your strategy,

Identify Key Performance Indicators (KPIs) – These are tangible and measurable details that specifies whether the strategies used are correct or are they against the mission statement.

Define your segments,

Set targets.

Google provided analytics services, an online tool that measures website activities and performances. You can easily apply it on your website and immediately there is a vast amount of data to tell you who visited your website, where they're headed to, how long do they stay on the page and the different types of people who use your website.

As Google Analytics is a free online tool, it is very convenient to use. Using Google Analytics, you can analyze if any new campaign has driven more traffic on your website.

 

Written by – Ritika Singh

Edited by - Bushra Makhdoomi


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