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Top 7 Fundamentals Of Web Analytics

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What is Web Analytics ?

It is the measurement, collection, analysis and reporting of Internet data for the purpose of understanding and optimizing Web usage.Web Analytics is the process of analyzing the behavior of visitors on a website.But before we jump into creating our Google Analytics (GA) account or any other analytics account we need to understand the fundamentals of Web Analytics.

“Digital analytics is the analysis of qualitative and quantitative data from your business and the competition to drive a continual improvement of the online experience that you customers and potential customers have which translates to your desired outcomes(both online and offline)” – Avinash Kaushik, Author, Digital Marketing Evangelist – Google

Below are the Top 7 Fundamentals Of Web Analytics:

To make it simple and understandable i am going to use an example of a business which i work in; it is related to Automobile Dealership. Using this example i am going to elaborate on the fundamentals of web analytics,Google Analytics(GA).

  1. Ask question to your self that What is the main Business Objective of your website.Now in case of an automobile dealership website the main objective should be to “generate sales leads”. One cannot sells an automobile over the internet right now where i live, but i can definitely get valuable leads through online marketing techniques and then convert them to successful sales. Hence if the business objective is clear with the web analytics team then they can analyse your website accordingly.

  2. Now that the Business Objective of the website is defined which is to “Generate Sales Leads ” The web analytics team must be aware of what are the Monthly,Quaterly, or Yearly Goals the business has set. So the Goals for this business website can be to increase Page views,increase Customer Average Time on site,increase Customer sign ups to request for Vehicle Quotation , Test Drive or download Product Information PDF.

  3. Once the goals are set now we need to define the Metrics i.e numbers.It gives answer to What should be counted to be shown in the analytics report.Every report in Google Analytics is made up of dimensions and metrics.The tables in most of these reports organize dimension values into rows, and metrics in columns as per below image.Metrics are quantitative measurements,here in this image the metric Sessions is the total number of sessions & Page/session is the average number of pages viewed per sessions. Having correct metrics gives correct information about the performance of the web site. To setup Metric Group in Google Analytics go to Customization Tab Click on create custom report then click add metric (it is similar to creating Dimension).

    Metrics In GA

    Metrics In GA

  4. Define your Web Analytics Key Performance Indicators (KPI)i.e set a Web analytics metric which is in accordance to your business objective,so here in this example the KPI can be Number of Customer sign ups monthly on the website to request for Vehicle Quotation , Test Drive or download Product Information PDF.These KPI’s are metrics which tell how many Sales Leads have generated in a month by the website.

  5. Set Targets to your KPI, This exercise needs you to study how much should be the target to your KPI. With reference to the example the Web Analytical team should get the target figure from Senior Management of the business and set it accordingly, which can be say 20 Nos. of Customer sign ups monthly because the historical data suggest that if more than 20 customers sign up , 10 Leads are actually converted into sales.Which contributes to a total of 120 vehicles of yearly target.

  6. Creating Dimensions is the crux of the analysis the web analytical team of your business would be doing.Dimensions are the attributes of the customer/visitor of your website and their activities on the website.In google analytics we can set many dimensions to find out from where the customer reached our site i.e. referring urls, campaigns, cities etc.As per the below image we can setup Dimension by selecting the Customization tab, then click New Custom Report & click add Dimension, Here we can create dimensions as per the type we want like Acquisition, Advertising, Behaviour, Custom Dimensions, Custom Variables, Ecommerce, Goal Conversions, Social,Time & User. In our example the best dimensions can be “Source” it enables the web analytics team to find out from where the customers have come and hence focus on promoting the website on that source.Like if the source is Google Search then invest in Google Paid Search(SEM).
    Dimensions in GA

    Dimensions in GA


     

  7. Last but not the least isolate and examine subsets of our data i.e Segment the data to only see the reports of relevant information.In Google Analytics by default we can see all the visitors to our website from all geographies which is irrelevant if we are selling our products or services only in selected places, so to solve this problem we can set Segments containing only the relevant country or city.We can also segment our Google Analytics data by users who purchase a particular line of products or who visit a specific part of our website.In Google Analytics we can create Segment by going into the Reporting tab and click Add Segment inside the Audience Overview page as per below image.

    segments in GA

    segments in GA

Following the above steps i could utilize the power of Google Analytics for the better. These are the few important fundamentals of web analytics,in my next blog i would give more information on Google Analytics and its process.

Reference:  Google,Kaushik.net

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