Your website is your business’ touchstone. A company’s website is most often the first impression a consumer gets of your business, is a vehicle of communication between your company and the customer, and is a resource of information that will ultimately convince the online consumer to use your product or service. The more you know about how effective your website is, the better you can maximize its success. Web Analytics is the process of collecting, reporting, and analyzing Internet data to most effectively optimize your website. By harnessing this important data, you can strengthen your website’s weak spots and promote your website’s strong spots to increase your conversion rates and the profitability of your website.

Web Analytics works in two ways: measuring the potential traffic and buzz that your website could be getting, and analyzing real time data about your web traffic, page hits, and conversion rates to write more effective advertisements and create a higher converting website. By comparing the web traffic data against key performance indicators, Web Analytics measures the performance of your website in a commercial context to improve your Internet consumer response. By understanding the features on your website that makes consumers use your products or services (for example, which landing pages compels your customers to make a purchase), you can increase the potential for business while strengthening your bottom line and decreasing your marketing spend. Gaining powerful insight into what your web traffic is telling you can greatly improve your marketing initiatives in a much more economic way than older, more traditional marketing techniques.

The easiest way to track analytics is with Google Analytics – a free tool that requires minimal effort and good numbers. Other services that are more expensive yet comprehensive, like Omniture SiteCatalyst are also extremely useful! Also don’t forget to regularly track and report your numbers so they’re put to good use.