Web Analytics 101


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Web Analytics 101

  1. 1. Web Analytics 101
  2. 2. INTERNET USAGE DATA WORLDWIDE (2007) World Regions Population % Population Internet Usage Population Penetration Usage %(Worldwide) Usage Growth(2000-07) Africa 941,249,130 14.20% 44,361,940 4.70% 3.40% 882.70% Asia 3,733,783,474 56.50% 510,478,743 13.70% 38.70% 346.60% Europe 801,821,187 12.10% 348,125,847 43.40% 26.40% 231.20% Middle East 192,755,045 2.90% 33,510,500 17.40% 2.50% 920.20% North America 334,659,631 5.10% 238,015,529 71.10% 18.00% 120.20% Latin America/Caribbean 569,133,474 8.60% 126,203,714 22.20% 9.60% 598.50% Oceania / Australia 33,569,718 0.50% 19,175,836 57.10% 1.50% 151.60% WORLD TOTAL 6,606,971,659 100.00% 1,319,872,109 20.00% 100.00% 265.60%
  3. 3. Internet Usage Figures
  4. 4. GOD MADE THE INTERNET SO THAT BUSINESSES COULD FAIL EASILY Survival Rates of E-commerce companies within first 2 years of formation
  5. 5. WEB ANALYTICS 101 <ul><li>Web Analytics is about gathering data for collecting clues that helps in analyzing visitor activities on a Web site </li></ul><ul><li>There are two sides to your Web analytics story; the software and the human element: </li></ul><ul><ul><li>Web analytics software collects data on Web site users’ behavior. </li></ul></ul><ul><ul><li>The human element involves sifting through data about a visitor’s online experience to determine which site changes could improve that experience. </li></ul></ul>Where did all the guests go
  6. 6. BRIEF HISTORY OF WEB ANALYTICS <ul><li>1995 – 2000: Rapid Market Growth </li></ul><ul><li>1. Click Stream Analysis by WebTrends using Web Logs. </li></ul><ul><li> 2. WebSiteStory used browser tags. </li></ul><ul><li>3. In 1999, the Web analytics market was $141 million, and growing at 200%; in 2000, it reached $400 million. Major players: Accrue, NetGenesis, and WebTrends </li></ul><ul><li>2001 – 2003: Market Consolidation and Product Standardization </li></ul><ul><li>1. The Web analytics market shrank by 7% in 2001, dropping to $342 million </li></ul><ul><li>2. The approximately 60 suppliers in the sector shrank down to around 35 within the next several years. </li></ul><ul><li>3. Finally, in 2003, all of the major vendors began working to reach feature parity. Features that had been unique to a specific vendor — A/B reporting (WebCriteria), for example — had become ubiquitous within the market by early 2004. </li></ul><ul><li>2004 – Current: Becoming Part of a Process Ecosystem </li></ul><ul><li>As of 2004, the major ASPs(Application Service Provider) — Coremetrics, Omniture, WebSideStory, and WebTrends — now have the marketing buzz </li></ul>
  7. 7. HOW PAGE TRACKING WORKS <ul><li>The tracking code is a JavaScript that runs each time the page is loaded in a user’s browser. </li></ul><ul><li>When the script runs, it requests for a 1X1 transparent image pixel from the ASPs server. This request is an HTTP request. </li></ul><ul><li>While making the image request, the script sends all the parameters being tracked by the website as a “query string” </li></ul><ul><li>For Example: Target.com Books Beta Super cat page request sends the following image request: </li></ul><ul><li>http://vs.target.com/mktag.gif? Log=1 & REFERRER=http://www.target.com/b?node=1259488011 & screenwidth=1280&screenheight=996&screenres=1280x996 & title=Books%20BETA%20%3A%20Target & dlocation=http%3A//www.target.com/Books-BETA-MMB/b/ref%3Dsc_fe_l_6/178-3545033-1870860%3Fie%3DUTF8%26node%3D1259490011&cachedefeat=1250488762838 </li></ul><ul><li>This request is registered by the server logs of the ASPs which is further processed by their BI application </li></ul><ul><li>The end users get the final tracking output using the Web Interface provided by the ASPs. </li></ul>
  8. 9. HOW USER TRACKING WORKS <ul><li>A cookie (also tracking cookie , browser cookie , and HTTP cookie ) is a small piece of text stored on a user's computer by a web browser </li></ul><ul><li>A cookie consists of one or more name-value pairs containing bits of information such as user preferences, shopping cart contents, the identifier for a server-based session, or other data used by websites. </li></ul><ul><li>It is sent as an HTTP header by a web server to a web browser and then sent back unchanged by the browser each time it accesses that server. A cookie can be used for authenticating, session tracking (state maintenance), and remembering specific information about users, such as site preferences or the contents of their electronic shopping carts </li></ul><ul><li>Third Party cookies: These cookies are called third-party cookies if the server sending them is located outside the domain of the Web site. </li></ul>GET THIS COOKIE OFF ME
  9. 10. WEB ANALYTICS: WHY BOTHER? <ul><li>The goal of monitoring your Web analytics is to make improvements to both your promotional initiatives and your Web site design </li></ul><ul><li>The bottom line is this: The easier it is for visitors to find your site — and the more comfortable they feel while they cruise around it — the better your chances to convert that traffic into paying customers and repeat visitors. </li></ul><ul><li>Understanding Web analytics can unlock business strategies that pay dividends </li></ul><ul><li>Consider the following questions to determine whether you should invest in Web analytics software: </li></ul><ul><ul><li>Is my Web site a channel for revenue generation? </li></ul></ul><ul><ul><li>Do I have high traffic counts but low conversions? </li></ul></ul><ul><ul><li>Am I investing in paid-search campaigns through Google, Yahoo!, or some other search engine? </li></ul></ul><ul><ul><li>Am I actively pursuing link building campaigns and link exchanges? </li></ul></ul><ul><ul><li>Do I engage in e-mail marketing? </li></ul></ul><ul><ul><li>Am I planning a site redesign? </li></ul></ul>
  10. 11. KEY TERMINOLOGIES USED IN WEB ANALYTICS <ul><li>Hits : A hit, or impression, is created when your Web server delivers a file to a visitor’s browser . A request for a page with five images would count as six hits: one hit for the page itself plus one hit for each of the five images. </li></ul><ul><li>Pageviews : A pageview is recorded each time a visitor views a Web page on your site </li></ul><ul><li>Visits : Sometimes called a session or user session, a visit describes the activity of an individual user on your site </li></ul><ul><li>Unique visitors : The unique visitors metric represents the number of individual people who visit your Web site. Each individual is counted only once, so if a person visits your site five times in the reporting period, that behavior might count as five sessions but only as one unique visitor </li></ul><ul><li>Site Referrers : The site referrer, or referring page, is the URL of the previous Web page from which a link was followed. A referrer could be a search engine, a blog, a banner ad, an e-mail, an affiliate marketer, a Web ring, a link partner, or some </li></ul><ul><li>other Web site. Your Web analytics program will record the exact URL of the site that referred traffic so you that can measure the success of your various traffic-building initiatives. </li></ul><ul><li>Keywords and key phrases : Keywords and key phrases are appropriately named because they hold the key to potentially significant traffic. People use these words to search for products,services, and information on the Web. You can pay search engines to display your advertisement in the results of a user’s search based on the keywords and keyphrases you choose </li></ul>
  11. 12. SIX WEB METRICS/KPIS TO DIE FOR <ul><li>Key Performance Indicators (KPI) are financial and non-financial metrics used to help an organization define and measure progress toward organizational goals </li></ul><ul><li>Measures that help you understand how you are doing against your objectives . </li></ul><ul><li>The Six Pack: </li></ul><ul><li>Conversion Rate: </li></ul><ul><li>Average Order Value (AOV): Conversion Rate could be through the roof and yet revenue could be down, your first clues for this will be in understand AOV. </li></ul><ul><li>Days & Visits To “Purchase”: They measure the true customer behavior on your website, how long it takes someone to complete an Outcome on your website. </li></ul><ul><li>Visitor Loyalty & Visitor Recency. </li></ul><ul><li>Task Completion Rate.( It is measured using Surveys, in session interrupted or via on exit surveys ) </li></ul><ul><li>Share of Search. </li></ul>
  12. 13. WHAT YOU CAN EXPECT FROM WEB ANALYTICS <ul><li>Web Analytics answers the following questions regarding the visitors: </li></ul><ul><li>Who : Nationality, language </li></ul><ul><li>What : the visitor did during his time on your site </li></ul><ul><li>When: when visitors traveled across your website </li></ul><ul><li>Where: tells you where the visitor came from (s ite referrers: search engines, Web ring partners, link partners, affiliate marketers, etc) </li></ul><ul><li>Why: what drew them to your sit. From Keywords and Key phrases that Visitors used to find you in the search engines </li></ul>
  13. 14. WHY YOU SHOULD USE WEB ANALYTICS <ul><li>You can identify which site referrers generate the most traffic and revenue </li></ul><ul><li>You can identify which site referrers generate the most traffic and revenue </li></ul><ul><li>See which campaigns work — and which ones don’t </li></ul><ul><li>You can measure the impact of the online channel on your overall business. </li></ul><ul><li>You can analyze your visitor click streams </li></ul><ul><li>You can identify cross-selling opportunities </li></ul><ul><li>You can determine the effect of adding new content to the site </li></ul><ul><li>Track the keywords that visitors search for within your site </li></ul><ul><li>Find errors in your site </li></ul>