One of the most critical aspects of running an online business is having proper records of how your business is going on. These records can only be achieved through comprehensive analytics which derives data which is relevant to your business and can guide you on how to shape up its future. The three major players in analytics are the platform on which the business runs – usually a website – the products or services being offered, and the customers or subscribers of your website. These three entities are what mainly run an online business, usually in a kind of loop. The website attracts traffic, which means people visit the site to view your product or service. The product is either purchased or added to wish lists (services can be subscribed to). The customers are those who purchase products or subscribe to your services, keeping the business alive. This cycle is what keeps an online business running.
For an online business to run successfully, these entities must always be monitored and kept at maximum functioning levels and this is where website analytics come into play. The traffic and the subscribers – along with the revenue generated – are what make up the major business analytics. However, there is data which lies between these entities, and this is the data which business analytics must pay attention to the most. Here are some of the items that must be carefully monitored.
Conversion Rate
The conversion rate of an online business refers to the rate at which visitors of your website sign up or subscribe to other services. These services may include newsletters or alerts depending on the nature of the business. The conversion rate is essential for online businesses because one of the top priorities of a business owner is to keep their visitors coming back. The goal is to capture the attention of the visitors such that they will either purchase your products or subscribe to your business and keep track of what it offers. Conversion rates can be kept high in many ways; they include signup forms with detail on the value of signing up for a newsletter and creative website design which will keep visitors interested.
Bounce Rate
The bounce rate of a website is the rate at which new visitors to your site leave after the first page. It is a statistic that should be closely monitored because it can pinpoint the problem areas of your website. While these problems are not usually as evident, some common ones include a bad website design and content relevance. Reviewing these two items could lower the bounce rate of a website significantly. Other ways to reduce bounce rate is through breadcrumbs (showing visitors their location in their website), provision of related material such as products or articles, and calls to action which prompt users to visit other materials they may be interested in within your website.
Landing Pages
Landing pages are those which generate the most traffic to your website. Sometimes, a website may be full of information yet only a small percentage of that information is attracting visitors, subscribers, and potential customers. Tracking of landing pages is an effective way to make better marketing strategies for your business. A great way to make use of the landing pages is to evaluate what kind of information they provide and how users react to such information. Business owners can adopt strategies such as placing the call to action commands and newsletter signups on such pages to ensure that their traffic is always high. One can also note the keywords used in such web pages and optimize them in other provided content.
Traffic Sources
Traffic sources refer to the places which your website traffic originates. These are usually in the form of organic web searches (traffic received from search engines), social media (which social media sites are garnering most traffic for you), direct links (typed-in links) or referrals (visitors from all places except organic searches). Through the evaluation of this information, business owners can learn to optimize the sources which bring in most traffic so they can continue doing so, for instance, high-performing organic searches may lead to optimization of keywords so that the business can reap maximum traffic. They can also learn how to improve on low performing traffic sources so that they will gather more traffic than they are.
Users
As earlier mentioned, users form a significant part of your business analytics. This is because it is the users who determine how well your business is doing. Furthermore, most of the other data – such as bounce rate and conversion rate – is dependent on the number of users your website is gathering. Monitoring the number of users in your website can help in deducing which parts of your business are not performing well and may also help you to find ways of boosting these elements so that you will achieve maximum traffic.
Session Duration
The average session duration of a website refers to how long the visitors to your site stay on it. It is an efficient way of evaluating whether or not your business is fulfilling the visitors’ expectations. Through this metric, business owners can determine how to shape up their content for their sites to receive more traffic. Furthermore, they will be able to optimize their content in a way which keeps users on the website at all times.