Web Analytics..How Do We Use Them?

Web Analytics are a great resource for companies to collect and analyze Internet data. This can help companies further understand how to get the most out of their web sites. With the collection of this data, companies can even gather information on whether their newest advertising campaign is effective. For example, M & M's new advertising campaign encourages users to visit their website to "vote" on their favorite color of M&M. (http://www.mms.com/us/vote/). There are a few suggested steps that we could use to help is in using web analytics effectively.

The first one is to collect your data. Using a web analytics tool such as Google analytics is a great free resource to help you with collecting data.

The second step is to transform the data. Most of the information collected may be confusing. It is suggested to transform the data into something that is easier for you to review and understand.

Third, you should begin to analyze the data. The most important part of this step is to have a set of questions in mind that you are looking to be answered with this newly collected data. For example, what is the average time each reader stays on a page? Do most people visit at specific times? or Which pages are most popular? Do most people exit your site at the home page?

After this step it is key to now translate those insights. This means developing a plan to improve everything found through your research. For example, you can revamp your homepage if you realize that most people exit your website after just a few seconds.

You should then try to inspire your readers, giving them a reason to visit your page frequently looking for fun, new updates.

Lastly, you need to collect your data again. This process is ongoing, you will always need to find ways to stay above your competition. It is also key to constantly monitor your customers and find out how they are changing so you may change with them as well!

Source: http://webdesign.about.com/od/loganalysis/a/web_analytics.htm