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Web Analytics is about understanding how your website is being used in order to optimise performance.

Effective use of analytics can help you find out which visitors are most likely to convert into customers or subscribers and use this insight to optimise marketing spend.

Here’s why we think you need to invest in Web Analytics…

  1. Measuring and maximising ROI
    Identify which referral sources (i.e. search engines, e-mail campaigns, newsletter sponsorships, print ads and affiliates) generate the most revenue, customers and orders for your business.

    Increasingly companies are creating ‘dashboards’ to allow managers at various levels in the business to gauge how well initiatives are performing in order to optimise them. This can happen in near real time.

  2. Learn more about your customers
    Define visitors by the content they read, the actions they take on your site, and the URLs they come from. Use this to inform your customer segmentation modelling and targeted marketing. Behavioural insight is can be particularly powerful (as opposed to, say, demographic modelling alone).
  3. Inform marketing activities
    Learn from web analytics about what is working in terms of pricing, offers, products, propositions, landing pages … and what is not working. You can use online as a cost effective, and fast, way to test propositions that you can then ‘take offline’.

    For example, you could use paid search, with customised landing pages, to trial particular propositions and then tweak until you had optimised response and ROI. You could then use this to inform a direct mail campaign, or above-the-live messaging.

  4. Increase conversions
    Click path tracking allows to adjust navigation and content to maximise conversion rates. Maximising conversions rates allows you to compete more effectively in a number of online marketing spaces: paid search, for example. If you convert better than your competition you can afford to pay more per customer.
  5. Help Customers Help Themselves
    Analysis can help you find out whether customers are finding what they are looking for on your website. Or, where they are encountering problems.

    This insight can then help you build knowledge bases, or self-service offerings, to help customers help themselves. This will improve conversion rates, improve customer satisfaction and loyalty, and decrease customer servicing costs via other channels.

For more, see our  Web Analytics Business Case , which provides you with a framework for an internal presentation and / or argument for a web analytics budget. There are five other internet business cases  to check out, to help you persuade the boss...

Graham Charlton

Published 14 May, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

2565 more posts from this author

Comments (1)


Julian Sharpe, Head of Account Management at Lake Star Media

As a business the Web Analytics is just as important as the media itself without visitor behaviour information, you can be wasting serious money and also losing visitors without knowing it.

In an ideal world you would have someone to look after this full time, the only problem is metrics of each package as they doesn't seem to a standard, with visitor levels etc. varying across the multiple packages available.

It still amazes me that some companies spend millions on media and then pennies on Analytics, as always you pay for you get and in most cases at decent packages soon recoups its investment

over 9 years ago

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