Harnessing the power of analytics

Posted at June 27, 2009

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google_analytics You’d be surprised how many startups don’t see the value in their Web traffic data.

All too often the only statistics a site’s owner has on hand is a basic set of website logs from their web hosting company – logs which they rarely have analyzed or looked at in depth. Further, they often have few processes (if any) set up to track activity across the web.

That’s a critical mistake. Analytics are a window into the demographics and habits of both your customers and potential customers. Setting up analytics processes should be one of the first things you do as you launch your business.

Fortunately, this isn’t as hard as it might seem. There are several good website analytics packages available, including Google Analytics (formerly Urchin) and the Quantcast.

Initially there are two main analytics goals you should set:

First, you’ll want to establish a baseline of the traffic to your site. You’ll also want to be able to detect new traffic and observe how people use your site and applications.
Your second goal – learning how people use your site or service – could be the most valuable information you collect. Once you have traffic and users, start building up statistics on which links they follow (and which they don’t). What features of your application are they using? Where in the process of registering do they give up?

Whether the results are positive or negative is irrelevant. Either way, you’re better able to learn about your customers, their habits and what changes impact their behavior.

venturebeat.com

Harnessing the power of analytics

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