Web Analytics and its importance to a successful business?

To know the importance of Web analytics we must first know the definition.

What is it?

Web analytics is defined as the "gathering, synthesizing, and analysis of website data."

To understand the importance of analytics we must first establish one thing.

What is the most important thing for a business to measure?

Profit.

To understand where a business's revenues are coming from, they must look at its web analytics. Web analytics are used to track a business's statistics in order to do 2 main things.

1. Find the most effective layouts/designs/products

2. Make changes

In order to establish a better online presence companies must track a websites traffic, conversion, and revenue. Web analytics give a better understanding to how high a business conversion rates are in accordance with profit. This can include tracking server requests, identity, timing of requests, navigation sources, technical information and even geography.

Key Performance Indicators

When analyzing a website analytics, you must establish Key Performance indicators so that you can establish which measures tend to be the most successful. Companies benefit knowing where profits are high and where profits are low. When you know that your conversion rates are lower on a specific section of your website than you know that changes need to be made. There is a number of things you can change in order to receive the desired revenues including different products, designs, or maybe just a simple layout change to the website.

The most important thing to a company is obvious, money.

We know this.

In order to maximize the number of profits a company makes they must continuously make changes in order to keep customers wanting more. The best way to do this, for a website, is to study the web analytics and adapt to what the customer needs tend to be.

Making changes to a website is a key to success for most companies but making changes that consumers want is a key to success for ALL companies.

Always remember that the most important thing to a company is not its profits.

It's the customers.