Why should we use web analytics? Because it has a great importance in rising your revenue and knowing some great information about your visitors and future clients. It is a fact that big brands like Digg, MSN and big blogers use web analytics to get the highest paying ads or banners. That is because they need to know the age and sex, revenue, and other information that is very important, because so you can know what type of ads or banners to put on your website. So it is very important to invest time and money in software or scripts that help you with your web analytics (most are free such as google analytics).

K now here are ten reasons why you should invest in web analytcs :

1. You can identify which site referrers generate the most traffic and revenue. The site referrer, or referring page, is the URL of the previous Web page from which a link was followed. This is a good way to identify which Web site owners you should foster relationships with, and which ones you can afford to forget about.
2. You can determine what products have the highest browse-to-buy ratios. That way, you can get rid of products — or content, in the case of an informational portal — that has the lowest revenue-generating potential.
3. See which campaigns work — and which ones don’t. You can cut off promotional campaigns that aren’t working and beef up campaigns that bear fruit.
4. You can measure the impact of the online channel on your overall business. If your e-commerce Web site is generating more revenues than your bricks-and-mortar business, then it may be time to close up shop and concentrate all your efforts on the Web. If your Web site is generating more leads than other forms of advertising, then you may want to sink more into the former and less into the latter. By contrast, if your Web site is not making much of an impact on your business, then you need to consider some strategies to boost traffic or convert the traffic you already have. It could be poor design, poor content, or just poor marketing efforts. Your Web analytics program can give you some clues.
5. You can discover which visitor groups are most likely to become customers, subscribers, or members. Then you can adjust your marketing efforts accordingly.
6. You can analyze your visitor clickstreams. From this information, you can make changes to your site hierarchy (how you arrange your Web site) to improve your rate of conversion. Conversion occurs when you close the deal — when you convert a visitor to a buyer, subscriber, or member.
7. You can identify cross-selling opportunities. Use this information to increase sales to the same customer by introducing other similar or complementary products. Amazon has championed this concept in the online space as it uses massive stores of analytics data to identify and recommend related products.
8. You can determine the effect of adding new content to the site. If the new content you added causes visitors to stay on your site longer and/or increases your conversion rates, then your wordsmithing is to be congratulated. If the new content has the opposite effect, revert back to what you were doing — quick!
9. Track the keywords that visitors search for within your site. Then you can develop new product lines, services, or content based on those keywords.
10. Find errors in your site. With this information in hand, you can eradicate errors that could frustrate customers, such as broken links and pages that no longer exist.
Good luck with you analytics !

  • Nice list, you seemed to cover most of the bases there. But remember that you need to pick your web analytics tool wisely depending on the information you are looking for.

    For example #10 about finding errors in your site, this can only be done using log file analysis and not using Google Analytics as that uses page tags. However Google Analytics is great to get anyone started in this field.