Web Analytics: Data & Uses

Instructor: Sean Kennedy

Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.

Web Analytics allows a company to analyze the behavior of visitors on a website. In this lesson, we will discuss what web analytics is, how to the identify an audience accurately, how to measure key performance indicators, and how to utilize conversion rates.

What Is Web Analytics

Do you ever wonder how companies determine who visits their website? Web analytics helps analyze the behavior of visitors on a website. Web analytics is a beneficial marketing tool for businesses to attract more people to their website and improve performance on their website. Web analytics helps improve a company's performance by identifying their audience accurately, measuring key performance indicators (KPIs), and increasing the conversion rate online.

Imagine you own a company that sells different scented candles. The company is relatively new, and you want to know how to increase sales and the number of visitors on your website. As an owner, it would be essential to utilize web analytics to help determine who your target audience is and how to improve your website to attract more visitors. You might want to learn which candles are the most popular, how many people sign up for an online newsletter, or even how they found your website. Using web analytics allows a new owner or any business owner to analyze the behavior on their website.

Identify The Audience Accurately

Sometimes a company may think they are aware of their target audience but notice their sales are not where they want them to be. Using web analytics allows a company to determine who their actual target audience is. Tracking how individuals interact on the web page will help identify the audience accurately. The company can see what links the consumer clicks on and what interests the customer has. It could be possible that the company is focusing too much energy on a particular product, and the other products are not receiving the same marketing attention as the others.

There are many different analytic tools that allow a company to determine who their target audience is. By using Google Analytics, a company can track where all their consumers are located, who makes purchases, and who signs up for newsletters. Using all this information will allow a company to determine who the target market is and what population of the country it should try and focus on.

Measure Key Performance Indicators

Key performance indicators (KPIs) measure the success of the company's performance on the web. KPIs help determine who the new visitors are and returning customers to a website. Another vital KPI is using web analytics to determine how people arrive at a business's web page. It is beneficial to know if a customer arrived at the website through using a search engine, social media, clicking an ad, or if they just went directly to the website.

KPIs help determine the bounce rate a company's website has. A bounce rate is the amount of time a user spends on a web page. This tool is essential to track whether customers are staying on the page and looking around or if they are quickly leaving the website. The bounce rate helps determine if users can easily find what they are looking for to purchase an item or service.

Utilizing Conversion Rates

A conversion rate is the number of visitors on a website who take the desired action. Whether it be a customer making a purchase or an individual signing up to receive emails, these can all be counted as the conversion. It is up to the company to determine what goals they wish to reach when it comes to conversion on their website. The company can see which items on the web page brought the highest conversion rates.

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