Web Analytics, as the name suggests is the process of colleting, analyzing and interpreting the data about the activities of online users accessing your website. This has become an integral factor in almost all online businesses as it optimizes your business by providing meaningful data about how your site is being utilized.
Suppose I have a website that is an equivalent to exporter-importer yellow pages. A prospective buyer visits my website to see if he can find prospective sellers for his product. After every 2 search pages I ask him to register or login. He gets frustrated and leaves my website for another similar website which allows him to search prospective sellers at length and only asks for registration or login when he wants to see the contact info. I lose a customer, but with web analytics I can find out why my customers are leaving the site. Not just this! In addition to this behavior or design analysis, the analysis also includes detecting the personal preferences of customers who frequent one site and determining if a customer will repurchase the service or product you are offering. This detection and analysis is done by monitoring the amount of purchases in terms of money by a customer in the past, finding out the geographical locations from where you get the maximum or the least number of visitors or customers and finding out the number of visitors who actually turn customers of your service or product. Other metrics include predicting which products or services are most likely to be bought by your customers among many others.
Web analytics can also help you to determine the effectiveness of your marketing and advertising campaigns. Until then, play around with the analysis tools provided by your web hosting provider or you can even get started with Google analytics. Uncover hidden secrets of what your customer wants!