Question

Define and discuss the following elements of web analytics: Goals, events, and key performance indicators (KPI). Provide a couple examples of each. Do some research on Google Analytics and describe how companies are utilizing analytics to increase business and retain customers. Finally, offer a critical evaluation of where you see this reliance on data going in the future.

Answer 1

Web analytics-

Goal- Analytics Tool Goals directly measure a business’ objectives or goals. Example- increase in persistent reach, as it is a drill down of a business objective.

Key performance indicators (KPI's) are metrics to understand/ measure how you are doing against your objectives. Example- knowing Average Order Size

Events- user interactions with content that can be tracked independently from a web page or a screen load. Example- mobile ad clicks

Google analytics to increase business and retain customers:

• It enable to compare your traffic stats with your competition
• Provides stats like average time consumers spend on website, you can work on improvement factors on specific pages/ links/ content/ info, as per customer liking           
• You can drill down to the better demographics data- city level / income based, to assess incoming traffic and strategise your sales and marketing accordingly
• use cookies or referrer information to track returning visitor count and chase for loyalty schemes/ discounts
• one can start a pay per click campaign with search keywords
• know of visitors’ like and dislike, you can offer them new things, as per preferences, increase new sales and retain old customers
• get the idea what people don’t like about your website and improvise

Future use- Analytics is going to be a very important part in achieving a competitive advantage for many businesses. All these metrics related to business can come with up weekly, monthly, and annual reports , helping one to analyse in depth and build micro tactics to macro strategies.