The Importance of Web Analytics for Local Business

Finding the budget for building a website can be a tough thing, but everyone agrees it's something you have to invest in. If you're going to invest in something you should get the numbers and Google Analytics is a free way to do that. Who is using your site? Where are they coming from? Where are they going? What did they do on the website? Did the ad I spent hundreds of dollars on lead to a sale? These are all important questions that the savvy businessman asks themselves, when determining if services purchased are an asset or a drag on profits.

What is Google Analytics?

It's free, online software, provided by Google, that tracks users that visit your website and compiles statistical reports on a variety of factors. All you have to do is have a Google Account, which you can get by signing up at Google.com. You may already have an account but if you're running a business create a separate account from your personal account. This way if you ever need to give access to this account to an outside vendor, or employee, you're not handing them personal email as well.

Installing it is a snap, just have the web designer/developer who created your site add the tiny snippet of code (provided by Google Analytics on sign-up) into the section of each of your web pages. For most websites this process only takes a few minutes to do and shouldn't cost you hardly anything at all (I've done it for free).

Now that I have it, what do I do with it?

Every business, not matter what the size, should have a goal(s) in mind when creating a website or launching an online marketing effort.

• Some goals are as simple as: I have widgets and I want to sell more widgets.
• Other goals have layers: I have widgets, my demographic are widget users of a certain age who tend to live in this area and enjoy this sort of activity. I would like to sell those people more widgets.

No matter how simple or complex the marketing campaign may be, they all end up on your website for one reason or another. Understanding why your user came to the website and then what they did there are critical to understanding how that marketing campaign has performed. Was placing my website on a billboard worth the investment? Did creating a QR code, for my product, lead to more sales? How many links am I getting from that online listing site, and are they turning into solid leads?

Sifting through a mountain of Data

The trouble with Google Analytics is that it's a bit too good at its job, because it presents you with a pile of data. What's important? What should you be on the look-out for month to month? How often should I be checking this data and trying to analyze it?

It's good practice to review your Data monthly and to do a deep dive every quarter. In some cases you'll want data immediately but keep in mind that the more data you have the better chance you'll have at spotting trends. Every business has it's 'seasons' and the online market has its own ebb and flow depending on your demographics. Don't rush into decisions on a week's worth of data, be patient and let the hard numbers roll in so that you're sure to make the right decisions.

As for what's important to analyze, it definitely depends on your business but I've put together a General Guide for this article. In it are definitions, sample strategies and some simplified analysis so that you can start analyzing your own data immediately.

Remember that a website is a dynamic form of advertising, treat it like your store front not like a print ad. People come in, look around, purchase or leave, it's up to you to turn all that digital foot traffic into sales.