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Winning Money Online With Web Analytics

Jan 14, 2008
Instead of looking at web analytics as a tool to make improvements to your web presence, you must look at web analytics as what it would cost your company if you ignored its significance. Would I have your attention, if with the use of web analytics it is possible that your next e-mail campaign would result in 50 percent more revenue than your last e-mail. Think of how much revenue your business is losing because you don't take advantage of web analytics.

Many companies don't realize the potential for positive impact that web analytics can have on their business. Often, our ignorance prevents us from acknowledging the potential of web analytics. Companies with defined analytics programs are realizing double-digit growth in new Web site visitors, returning visitor traffic and conversion rates.

With growing pressure to make your marketing efforts, more profitable web analytics is becoming more-and-more critical. Let's say you suspect that your website has to improve its usability. With web analytics, you can measure the effectiveness of your site usability. Then, based on the intelligence you gather, you can make the necessary changes. Due to the improvements you have made you may be able to improve your conversion substantially. As a result, you can measure the value of web analytics in terms of revenue.

The barriers to entry for adopting analytics technologies that can dramatically improve online businesses have never been lower. There are many inexpensive and even free options to start web analytics integrating into your business processes. Web analytics is not about technology. It is much more about people. Before you invest money in web analytics, you must invest in people. People within your organization must realize the importance of measuring your web presence.

Every business with a web presence must build a strategy around web analytics. Our goal is to get the highest possible value from KPIs. According to Forrester B2B, tech companies have realized 500-800% return on a 100K/yr in house analyst. Retail businesses realized 1000-3000% return on the same 100K/yr web analyst.

In the early days of online business, websites were built with ill-defined goals and very little consideration for ROI. If you want to succeed online today, you should not spend a dime without commercial benefit. Unless your decisions are based KPIs measure through your web analytics efforts, you are most likely to fail. You cannot compete without knowing exactly how effective your initiatives are. In every business, the focus is on the bottom line, and the same is true for web analytics.

Imagine how much more revenue you could be generating by analyzing the proper KPIs. Even better, imagine how much money your business is losing by not taking advantage of web analytics. Today, we have to necessary tools to make decisions based on data instead of intuition. We have to have a strategy to measure success and failure to maximize ROI. Always look at how much something costs. A bad business decision may cost loss of revenue. A business without web analytics will result in continuous bad decisions that is very likely will result in a failing business.
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