Web analytics can boost business, report says

Site Intelligence has released a study that reveals that web analytics can boost business significantly but only if companies can stop themselves drowning in the vast amount of customer data.

The research, conducted by Aberdeen Group, suggested that companies investing in web analytics can increase online conversion rates from two per cent to seven per cent.

It also highlights 76 per cent improved year-on-year conversion rates; with on average, conversion and revenue per visit increasing by three per cent each year and customer profitability increasing by four per cent.

Other findings from the report show that best-in-class companies share common characteristics.

It showed that 69 per cent of leading companies have a process for disseminating online data to key personnel in the organisation.

In addition, 68 per cent have defined performance metrics to measure online success.

The key actions that come out of the report show that in order to become a best-in-class business companies must track return-on-investment (ROI) and solicit feedback from executive-level champions on the business value of web analytics.

According to the report, 63 per cent of best-in-class companies, compared with 31 per cent of all others, track and measure the ROI from their web-analytics solution.

As is the case with any initiative, companies must ensure that they have a clear understanding of the benefits delivered before, during and after implementation.

While the support of senior management is crucial to the success of an initiative, feedback regarding the value delivered is just as important.

Companies should also link revenue or cost goals with metric reporting to help senior management understand the value of the analytics.

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