There are a lot of opinions out there about what Web Analytics is. Here is how we define it at Interactive Web Solutions:
Web analytics is the practice of measuring visitor behavior to gain insights for use in increasing conversions. Clickstream behavioral data and conversion funnel analysis, gives us an idea of what customers are doing. To understand why, we must also employ the use of testing, surveys and competitive analysis. Once we understand both what customers are doing and why they are doing it, we can make data driven decision that improve customer experience and ultimately increased ROI. We’ll define each of these items below.
This is a virtual breadcrumb trail a user leaves behind them as they click through a website.
Conversion Funnel Analysis
The conversion funnel is a process a visitor follows to complete a “transaction.” In these terms the transaction doesn’t necessarily involve the exchange of currency. These transactions are defined by business goals and include actions. The funnel analyzes where in this process the visitors drop off vs. completing the transaction. By understanding this data we can optimize to improve the results.
A/B/n testing is the best route to begin testing and find immediate lifts in conversion. With this method, we have a control and one or more test cases with one variation from the control. Inbound traffic will be sent to the control and test pages equally and the page that has the best conversion for the desired action wins.
Voice of Customer (Surveys)
All of the quantitative data we have regarding our users behavior on our site gives us a great idea of what happened. What’s missing is why. That is where surveys step in to provide us with more context on our customer’s attitudinal behaviors. By understanding the why, we can begin to make informed decision based on customer’s needs.
Competitive analysis is key in understanding marketplace and competitor information through extensive research. We will use this analysis to make more informed decisions in areas such as marketing and product development. Insights gained include competitor’s release cycles, product offerings, marketing messages and pricing strategies. Through this careful monitoring of our competitive marketplace, we will be the market leader.
Metrics that Matter
Metrics matter! At least the right metrics do. By continually working to provide an easy to access application containing Key Performance Indicators (KPI) for each function, we can set benchmarks and goals that we can begin to use. A Performance Dashboard can assist in communicating and refining strategy, increased visibility into the success and failure of programs, motivation and coordination. In addition they can help reduce costs, empower users and deliver actionable information.