Just driving more traffic is like adding water to a leaky bucket! In order to get more profits, you have to analyze user activity to see why they don’t do more of what you want them to. Actions (special offers, forms, etc.) need to be defined and measured. Changes to increase actions need to be made and tested again and again. The average conversion rate is around two percent but some top sites have conversion rates at ten, twenty or thirty percent or more. If you are happy with an average or lower conversion rate you are making a big mistake. Analytics is what helps test for increasing conversions and to provide a better user experience for visitors.
Unlike traditional advertising, where as the old saying goes “I know half of my advertising works, I just don’t know which half”, online advertising offers a huge amount of data which can be measured and analyzed. In some cases you know exactly what marketing efforts produce what amount of ROI and you can then confidently and successfully pour money into these areas. This is a big part of why internet marketing has become so successful and dominant.
Here are a few reasons why you must consider opting for web analytics:
• Get the statistical and often surprising facts on what customers are really doing not just what you think or hope they are doing. You’ll learn about the likes and dislikes of your customers and use this knowledge to renovate your site.
• You can test alternatives used by competitors to see if they have an impact on your audience
• You can better understand how your visitors are experiencing and interacting with your site. Based on this, you can make your website more functional and easy-to-use
• Web analytics can help you understand the conversion rate of your visitors and provide you with solutions to maximize the conversion rate
• With data on your site’s entrance pages, exit pages and visitor activity, you can take actionable steps to improve the performance of your website
• Find out the traffic patterns on your site and get information on where they break down
• A/B testing can help you decide which site design options are working to your advantage. This way you can choose the best site design or creative elements for your website
• All this can result in an increased bottom-line and improved ROI on all your marketing efforts!
Image: Will Folsom