Web analytics exist because resources are scarce.  It is a constant struggle to generate the maximum return out of limited resources, especially time and money.  The point of web analytics, or the practice of website analysis, is to provide a forecast of the potential returns based on dedicating X amount of resources to Internet marketing.

Accounting for Ad Spend

If you advertise in a magazine today, one of the first things that you check with the publisher is circulation numbers.  You want to know how many readers the magazine has every month, as that will be an indicator of the potential number of readers your ad can reach.  You will want to know the demographics of the readers and if they fall within your target group.  After the ad has been published you will try to track the response to it, maybe in the form of a cut-out coupon or monitoring sales levels.  After the whole exercise, you will decide if the ad has generated a return and whether it is worthwhile to continue advertising (in effect, utilizing limited resources).

Web Analytics = Accounting for Websites

Most websites in Singapore are not designed for accountability, simply because business owners are not aware of web analytics and the benefits it offers.  This results in websites built on purely aesthetic factors for the purpose of having an online presence.  Since no form of analysis is carried out on such websites, it is not possible to gather information on visitors, their preferences and their online behavior.  This leads to 2 undesirable outcomes.

1) You do not know what you are doing wrong on your website.  Are certain elements on your website causing you to lose potential customers?  Are you directing your resources at elements that do not perform? To be able to rectify any problems, we first have to recognize them.

2) You do not know which elements are converting visitors to customers.  Maybe visitors are coming back for your weekly column, maybe because of the promotion through your newsletter, maybe..  By identifying (instead of guessing) the factors that contribute to your success, you can allocate more resources to it and replicate its success consistently.

A Brief Web Analytics Walkthrough

1) We start by providing clients with an idea of the demand of their services online.  Like the readership of a magazine, we find out the number of potential customers our Internet marketing efforts can reach.  This is also reflective of the number of searches performed in a month for a particular service or product.

2) An initial analysis of the website will show us how it compares to its peers, its standing in the industry, and its online market share.

3) Based on the initial analysis, an Internet marketing plan is drafted and targets are set in actual numbers (number of repeat visitors, search ranking etc).

4) Modifications are made according to the marketing plan.

5) Weekly/monthly reports are generated and used to determine if targets have been met.  Using Key Perfomance Indicators (KPIs), we are able to tell why targets were met/not met.

6) We update the marketing plan according to our latest findings and set new targets.  Improvements are made to the website, giving visitors more of what they like.  Elements that are affecting performance are removed or rectified. Keeping visitors happy eventually turn them into paying customers.

7) Repeat

Start tracking the performance of not just your website, but all of your Internet marketing initiatives today and you will be amazed by the amount of insights it can offer.  In a world of homogenized products, business intelligence is the key factor to beating the competition!

Want to gain a competitive edge?  Read more about our web analytics solutions.