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June 08., 2022·6m 26s

5 Major Reasons Why Website Analytics Matter

Website analytics are the key to growth for any business with online presence. In this article we will be going over how exactly analytics provide valuable feedback, and why that is so fundamental for improvement.
Levente Ludvig
Levente LudvigPRO
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With technology spreading its wings and the internet shaping our lives on an even deeper and deeper level, website analytics is becoming all the more critical. Businesses that are transiting digitally need to not only know what metrics represent but also understand their importance.

As most business owners are not entrepreneurs, they barely have any know-how of the tech world work. Usually, they are too busy running operations that they barely have any time to figure out analytics. Thus they easily get overwhelmed when presented with infographics and data.

However, they cannot ignore all these numbers and graphs as they mean a lot to their business’s success. From traffic to conversion rate and average duration, website analytics are super valuable for all businesses. Be it a small agency, a bootstrapped company, or a mega organization, everyone needs to know why these numbers matter!

So, to make the most out of their digital journey, website owners have to pay attention to them. This is why we have compiled a list that focuses solely on 'why metrics matter the most’. Please have a quick look at these 5 benefits of website analytics to understand how you can use them to transform your business.

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1. Attracting More Users by Looking at Traffic

As we all know, traffic is a critical metric when it comes to analyzing websites. Not only does it reflect the effectiveness of your marketing efforts, but it also gives you valuable insight into your users’ behavior.

By looking at its growth, you can learn whether your site is attracting more visitors or not. Through this, you will be able to gauge the performance of both your organic and paid reach and thus improve it. For example, here is a month-to-month comparison of visitor traffic produced by a web analytic tool.

By looking at it, you can see that the graph is going up, which is a good sign. This shows that the business is getting better at driving traffic. On the other hand, If the graph slides down, it signals that the marketing strategy needs to be worked upon.

2. Retaining More Users by Looking at the Bounce Rate

Web analytics not only matter because they tell you about growth but also because they reflect quality. For example, metrics like bounce rate help you understand whether people are staying on your site or not.

The bounce rate shows you the number of visitors who immediately leave your site after clicking on it once. This metric is handy because it lets you judge whether your site is retaining viewers.

So if your analytics tool is showing a 50% bounce rate, it means that for every two people who visit the site, one leaves without clicking another internal link. Thus, if your bounce rate is high compared to industry standard, it is a red alert. It means that you are attracting the wrong type of traffic, which is the least interested in your product or service, and you need to work on it as soon as possible

3. Improving Site Engagement by Using Average Duration

Another important metric is the average duration which shows you the time people spend on your web pages. This is very beneficial as it helps you figure out whether people are sticking around for long enough or not.

For example, if your average time on a page is less than a minute, it signals that you cannot engage viewers. While if it is more than 2 minutes, it means your strategy for driving visitors to your site is working well.

Combined, Average Duration and bounce rate can help you comprehend what people are doing on your site. For example, if the total average time was 2 minutes and the bounce rate is 60%, and then it improves to 3 minutes and 30%, respectively, this shows that visitors are sticking around longer.

So by knowing these metrics, you can ensure that users stay on your site and interact with your content. This, in turn, can help your business grow and increase your site engagement!

4. Enhancing your User Experience by Looking at User Characteristics

Another reason why web analytics is essential is that they let you drill down on your users. When making big (or small) business decisions, it is vital to ensure that they revolve around your users. It never hurts to categorize your users’ behavior. Instead, it helps you understand them better, and you can use this information to enhance their user experience and your search engine visibility, or even your conversion rate.

For example, let us consider some popular ways in which analytic tools break down your users and how this can help you improve their overall user experience.

  • Source breakdown: By using UTM tags, you can find out which online platform is referring users to your site. Knowing the source of your viewers can help you understand their interests better.
  • Device breakdown: This breaks down your audience based on the device they use to reach you. So if you see that a large section of your viewers uses mobile devices to check your site, this indicates that you need to make it as mobile-friendly as possible.
  • Language and location: web analytics can also show where most of your viewers are located and what languages they prefer. Bearing this in mind, you can better cater to their translational and cultural needs.
  • Age and Interest: There is a breakdown according to age as well. Through it, you can see what the ideal age of your audience is and how you can twerk your site to engage more with them.
  • User journey: This shows the path your user takes across your site to reach their final decision. By analyzing their path, you can see where they are the most interested and when they lose interest. This helps you gauge the efficiency of your content and how user-friendly your site is!

So by knowing who your visitors are and recognizing their characteristics, such as age, location, gender, interest, pinpoint etc., you can take measures to customize your site and make it more useful for them. Doing so, you can turn your viewers into paying customers. This also helps in SEO strategies and enables you to crawl up in search engine rankings.

5. Increasing Conversions by Focusing on Best Content Generation

Your site can be user-friendly and engaging, yet it may still fail to generate revenue if your viewer fails to covert. To convert means to get the user to take the desired action, such as buying a product, opting for a service, or signing up.

Web analytics such as conversion rates and time on page can help you analyze how your content is performing. If these are less than satisfactory, you will immediately know that your content is below par, and you need to optimize it for more conversions.

For example, if your traffic is high but, in the end, users are not completing the tasks you want them to do, it reflects that there is something wrong with your content. By looking at the low conversion rate, you will understand this and finally revamp your content to give it a fresher and updated look. So by adding more call to action (CTA) buttons, improving your site interface, increasing internal linking, SEO, etc., you will boost conversions and generate more revenue!.

To end it all on a high note, the best part about reading into analytics numbers is that it doesn't have to be a full-time job. By looking at it once a week, you get a strong signal of what your users are up to and whether your advertising efforts are paying off or not.

So what are you waiting for? Get an analytics tool now and crunch the numbers to get your website juices running strong!

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