Web analytics apart from measuring number of visitors in a certain period of time also aids companies in business and market research.It is also a tool to determine how much should a company spend on advertising.
For example, if an online business sells hand crafted chocolates at $35 per piece and the web-based company is incurring an expenditure of 350$ a month on advertisement, through the use of web analytics one can determine if the monthly expenditure is suitable or not. This can be ascertained simply by measuring the number of visits through the ad per month and then by calculating how many of these visitors out of the total buy the chocolate. Even if 12 visitors in a month are buying through the advertisement the expenditure is beneficial.
Hence we can say that with the help of web analysis tools one can easily identify the number of visitors, whether or not the visitors make any purchases, if the expenditure that is being made is beneficial. One can also know who the visitors were, how they found you, which websites they looked at and other crucial information that is required to do good and efficient business.
For a single person it is difficult to do all the work by himself, hence it is always better to outsource web analysis services and employ the knowledge of a trained web analytics consultant. It is highly recommended that you should use the Web analytics services that are easily available nowadays. These services apart from providing website traffic reports also asses certain things which are difficult for a layman to understand like profile of the visitor, path analysis, log file analysis, return on investment analysis, URL analysis, meta tags analysis and a lot more. This would help you to focus on your core competencies as well.
