Website analytics / statistics Monitoring and analysing the impact of web marketing

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1 Website analytics / statistics Monitoring and analysing the impact of web marketing What are website analytics / statistics? Web analytics is the measurement, collection, analysis and reporting of website related data. Analytics uses this data to understand where visitors originate, how they use the website and how / when they leave. Behaviour of visitors can then be analysed to help understand the effectiveness of the website, the traffic generating activities (marketing of the website) and can help inform improvements. What are the benefits of website analytics / statistics tools? Analytics can measure, analyse and report of the visitor s interaction with the website. If analysed correctly, this should provide a good understanding of the effectiveness of a website and any marketing activity to drive traffic to the website. The key benefits of website analytics / statistics are: Provide key business metrics (statistics) The information for many business metrics such as conversion rate (desired objective, i.e. percentage of visitors to sales) and cost per conversion can all be calculated by the data derived from analytics packages. Monitor and analyse effectiveness and ROI The above information and metrics can be used to monitor the return on investment and effectiveness of the website or any part of the website or electronic marketing activity that relates to the site. It is particularly useful for analysing the impact on traffic (visitor) generating activity such as search engine optimisation, advertising and marketing on the website. Inform new activity The analysis can be useful to inform any new website content, navigation or traffic generating activity that is to be undertaken. The results of analysis should be taken into account when undertaking decision making. Any decision to invest resources in new website activity must be based on strong information. Website analytics can help provide this information. Understand customers and trends Website analytics can provide some understanding of how users interact with a website, the products and services they require and how they want information delivered. How can website analytics / statistics tools be obtained and used? Nearly all websites supplied by a website developer or hosted will be provided with some form of statistics or analytics tool. This tool will be of one of the following two types: Log file analysis based tools This type of statistics package analyses log files from the server that is hosting the website. Nearly every hosting provider / website developer will be able to provide access to this type of tool. 0

2 Page tagging based tools These tools require a small piece of JavaScript (programming code) to be added to the code of a webpage by a web developer (or other professional). Usually this type of analytics is more accurate and can provide more information than log file analysis. Typically log file analysis tools are referred to as website statistics and page tagging tools are referred to as website analytics but these terms can be interchangeable. For most business, page tagging based systems will provide the best results although log file analysis based tools could be adequate. When enquiring about services, the supplier should be asked what type of system is to be provided. To obtain a website analytics tool, the first step would be to contact the current website developer or hosting company as it is likely that this is already provided but access will need to be granted. If developing a website, website analytics should be requested as a deliverable of the development. The supplied tool should be assessed to determine its suitability for the business need and how easy to it is use. If it is not suitable, an improved tool should be requested. Page tagging based tools such as Google Analytics (see resources for details and alternatives) can be signed up to simply and used free of charge. A good website developer should be able to simply set-up a website to use one of these tools as all that is required is for the script to be added to the footer of the website s template (less than 1 hours labour). Support from a website developer or marketing consultant could be required to help monitor and analyse the results. Using Analytics Once a system is set-up, it is essential that it is regularly and effectively used to analyse the impact of the website and electronic marketing. The first place to begin is the dashboard. Most tools have a dashboard feature and as standard they provide an overview of the key metrics, including: Visitors The number of visitors to the website. Page views Number of pages viewed in total. Pages/visit The average number of pages viewed per visit. Bounce rate Number of visitors who viewed one page then went somewhere else. This is important to analyse the stickiness of pages (how good the content is at keeping visitors on the website) and the quality / relevant of visitors attracted to the website. Average time on site How long the average visitor spends on the site. Content overview This describes the pages and content were most visited and how many visitors entered and existed through these pages. New visits How many visitors are new, as opposed to returning visitors to the website. Visitor overview This usually has statistics on the number of visitors over a time period in a graphical form. 1

3 Traffic sources overview This will provide information of where traffic to the website is sourced from. Typically it will be a mixture of referring websites, search engines, advertising and other sources. Origin The country where users originate. It is usually possible to customise the dashboard to provide the required information. Many small businesses will only initially use the dashboard but there is the ability to click on parts of the dashboard in order to drill down into further information. As well as the dash board, analytics tools also provide reports and analysis of information such as: Traffic Sources How visitors arrive at the website. This is important for evaluating the impact of current traffic generating activities (marketing of the website). Typically analytics tools will report on: o Direct traffic Visitors typing in the URL (website address), accessing it from their favourites or an etc. Numbers will be provided for these users. o Referring sites How may visitors originate at the website from links on third party websites. Statistics will be provided on the total number and list the amount of visitors for individual sites / pages. More detailed information is also available. o Search engines This will provide an analysis on what search engines visitors use and keywords that users use to search. o Pay per click analysis Many analytics tools can monitor paid for advertising campaigns on the search engines. Monitoring the performance of campaigns, keywords and cost. Content This relates to how visitors use the content on the website which includes, pages, images and downloads. Typically analytics tools will report on: o Top content This describes the content and pages which are most accessed. This can provide intelligence on customer s requirements and website design / content performance. o Content by title This will provides an overview of the number of visitors to all website content. o Top landing pages Landing pages are the pages that visitors enter the website on. Not all users will enter the website on the home page, it is important to understand which other pages users enter the website on and why. o Top exit pages Exit pages are the pages of the website which users leave from. This is important for considering the effectiveness of the content and how the website is used. o Site overlay Many statistics tools have a facility to show the statistics overlaid on the actual website being analysed. This can be useful for visualising the data. Visitors This section of analytics will provide core information about users. It can help provide more information about customers, inform 2

4 new content development and traffic generating activity. Typically analytics tools will report on: o Benchmarking Many statistics tools provide the facility to benchmark visitor statistics against industry standards. o Map Many statistics will be able to provide a map of where visitors to the website are geographically located. o New vs. returning This provides an overview of the breakdown of returning visitors vs. new visitors to the site. o Languages What is the users preferred language o Visitor trending This provides information about how and when visitors use the website. In depth information about unique visitors, page views, time on site and bounce rate is usually provided. o Visitor loyalty This explains how long users spend on the website and how many return to the site. This section usually provides information on loyalty, recency (when visitors return), length of Visit and depth of visit (how many pages accessed). Most businesses will only require the above information but many analytics tools will allow customised reports of information. This can be useful if there are specific areas that are important to the business. A growing area that many businesses are exploring is goals. An analytics tool can be used to measure how well a website achieves a business objective. A goal is a website page which a visitor reaches once they have made a purchase or completed another desired action; such sent an enquiry, registration or download. Usually help from a website developer or e-marketing consultant is needed to set-up goals analysis but it is one of the only true measures of success. It also allows the cost of a conversion to be calculated, channels can be compared in order to analyse return on investment and future decisions can be informed. It is possible for businesses to use the above information themselves or work with a professional (such as website developer or marketing consultant) to help provide analysis and identify future changes. Using analytics to make decisions Analytics provide some of the information to make core business decisions such as product viability, new product development and strategic marketing decisions. It is more typically used to make website related decisions about traffic generation activity (the actions required to get visitors to the website such as search engine optimisation, advertising also know as marketing the website) decisions regarding website design and website content. When making decisions or changes related to how traffic is generated, website design or content, it is important that it is undertaken as part of a controlled process. The diagram below highlights a typical process that could be followed from monitoring/evaluating current performance, identifying changes, planning the new changes, implementing them, then starting the process again by monitoring or evaluating the change in performance. 3

5 Plan Identify Do/ Carry out Monitor/ Evaluate Website analytics is a critical part of this process as it provides the ability to monitor and evaluate impact. In order to begin the above process, it is important to ensure that there is a baseline for any statistics. When first adding or monitoring analytics it is advisable not to make any changes for a set time period (minimum period 2-8 weeks). This enables a picture of website use to be built-up and allows any new actions to be measured against past results. Once a baseline has been developed the above process should be followed for all changes to the website. It is possible for businesses to use the above information themselves or work with a professional (such as a website developer or marketing consultant) to help provide analysis and identify future changes. What are the disadvantages of website analytics / statistics tools? There are few disadvantages to using website analysis tools to analyse performance, they include: Website performance Some page tagging analytics packages can slow the loading time of the webpage or require the user s web browser to perform additional functions. This can be mitigated by placing the JavaScript at the base of the page and other techniques all of which can be implemented by a good website developer. Privacy Page tagging systems typically use cookies which track users when they are using the website. Some visitors will not like the privacy implications of this and some users disable cookies, therefore not all information is available for analysis. Incorrect analysis It is possible to make incorrect interpretations of analysis provided by statistics / analytics tools. Advice from a professional can limit the impact of this. Information overload Many businesses can be bombarded by the information that is provided by many of these tools. It is therefore advisable to start using packages slowly and concentrate only a small number of metrics to begin with. Working with a professional who provides advice would also be very beneficial. 4

6 Resources Examples of analytics tools: Google Analytics This is a free in-depth analytics service. It can be over complicated for some businesses but there are options for simplifying results. For more information see: OneStat.com provides scaled packages dependant on the type of website. Cost for a typical e-commerce website is 20 per month. For more details see: VisitorLogs.com - Website analysis tools and statistic logging, free to use. For more details see: 5

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