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Website Analytics

Website Analytics

Website analytics helps businesses understand how users interact with their website, measure website performance, identify areas for improvement, optimize marketing campaigns, and make data-driven decisions. By leveraging website analytics data, businesses can improve website performance, user experience, and marketing effectiveness.

What is website analytics?

Website analytics is the process of collecting, measuring, analyzing, and reporting website data to understand user behavior and website performance. It involves tracking user interactions on a website, such as page views, clicks, time spent on a page, bounce rate, and conversion rate. The goal of website analytics is to gain insights into user behavior and website performance to optimize the website and improve user experience.

Website analytics tools use various tracking methods, such as cookies, tracking pixels, and log files, to collect user data. This data is then processed and presented in the form of reports and dashboards that allow website owners and marketers to track and analyze website traffic, user behavior, and conversion rates.

Why is website analytics important?

Website analytics is important for several reasons:

  • Understanding user behavior: Website analytics helps businesses understand how users interact with their website. By analyzing user behavior, businesses can identify which pages and content are most popular, how users navigate the website, and where they drop off. This information can help businesses optimize their website and improve user experience.
  • Measuring website performance: Website analytics provides businesses with data on website performance, such as traffic, conversion rates, and bounce rates. By tracking these metrics, businesses can identify which pages and marketing campaigns are driving the most traffic and conversions, and make data-driven decisions to improve website performance.
  • Identifying opportunities for improvement: Website analytics data can help businesses identify areas for improvement, such as slow-loading pages, high bounce rates, or low conversion rates. By addressing these issues, businesses can improve user experience and increase conversions.
  • Optimizing marketing campaigns: Website analytics data can help businesses track the performance of their marketing campaigns, such as email campaigns, social media ads, and PPC ads. By analyzing this data, businesses can identify which campaigns are driving the most traffic and conversions, and optimize their marketing spend accordingly.
  • Making data-driven decisions: Website analytics provides businesses with data-driven insights that can help inform strategic decisions. By using data to guide decisions, businesses can reduce guesswork and make more informed decisions that lead to better outcomes.

Website KPIs (metrics)

Website KPIs, or key performance indicators, are metrics used to measure the success of a website in achieving its goals.

Website traffic KPIs:
Website traffic KPIs are metrics that are used to measure the amount of traffic that a website receives. These KPIs are important for evaluating the success of a website’s marketing and outreach efforts:

  1. Total website traffic
    This measures the total number of visits or sessions to a website. This KPI is an overall indicator of a website’s popularity and reach.
  2. Traffic by source
    This measures the sources of a website’s traffic, indicating where visitors are coming from. This KPI provides insights into a website’s overall performance and can help businesses determine which traffic sources are most effective for driving traffic and conversions:

    1. Organic Search Traffic: This measures the percentage of website traffic that comes from search engines like Google, Bing, and Yahoo. High organic search traffic can indicate effective search engine optimization (SEO) efforts.
    2. Paid Search Traffic: This measures the percentage of website traffic that comes from paid search campaigns like Google Ads and Bing Ads. High paid search traffic can indicate effective search engine marketing (SEM) efforts.
    3. Referral Traffic: This measures the percentage of website traffic that comes from other websites that link to a business’s website. High referral traffic can indicate strong relationships with other businesses or effective link-building efforts.
    4. Social Media Traffic: This measures the percentage of website traffic that comes from social media platforms like Facebook, Twitter, and Instagram. High social media traffic can indicate effective social media marketing efforts.
    5. Direct traffic: This measures the percentage of website traffic that comes from users who enter your website’s URL directly into their browser.
    6. Email marketing: This measures the percentage of website traffic that comes from email campaigns, such as newsletters or promotional emails.
    7. Display Advertising: This measures the percentage of website traffic that comes from display advertising, such as banner ads or pop-ups, on third-party websites.
  3. New vs. returning visitors
    This measures the percentage of website visitors who are visiting a website for the first time (new visitors) compared to those who have visited the website before (returning visitors). This KPI can help businesses determine how effective their marketing efforts are at attracting new visitors and retaining existing ones. It can also help businesses understand the engagement level of their audience and the overall performance of their website.

Website engagement KPIs:
Website engagement KPIs are metrics that are used to measure the level of user interaction and engagement on a website. These KPIs are critical for evaluating the success of a website and identifying areas for improvement:

  1. Pageviews
    This measures the total number of pages viewed on a website. This KPI indicates how much content visitors are consuming on the website:

    1. Total Pageviews: This measures the total number of pages viewed on a website over a given period of time, providing an overall view of website traffic.
    2. Pageviews by Page: This measures the number of views for each page on a website, indicating which pages are most popular and engaging.
    3. Pageviews by Traffic Source: This measures the number of pageviews from different traffic sources, such as organic search, paid search, social media, or email marketing, indicating which sources are driving the most traffic and engagement.
  2. Pages per session
    This measures the average number of pages viewed per visit. A higher number of pages per session indicates that visitors are exploring the website and finding relevant content. This KPI provides insights into visitor engagement and how effectively a website is guiding visitors through their journey:

    1. Average Pages per Session: This measures the average number of pages viewed by a visitor during a single session on a website.
    2. Pages per Session by Channel: This measures the average number of pages viewed by visitors from different traffic sources, such as organic search, paid search, social media, or email marketing.
    3. Pages per Session by Device: This measures the average number of pages viewed by visitors on different devices, such as desktop, mobile, or tablet.
    4. Pages per Session by Content Type: This measures the average number of pages viewed by visitors on different types of content, such as blog posts, product pages, or landing pages.
  3. Average session duration
    This measures the average length of time visitors spend on a website during a single session. This KPI provides insights into visitor engagement and the overall user experience of the website:

    1. Average Session Duration: This measures the average length of time visitors spend on a website during a single session.
    2. Session Duration by Channel: This measures the average length of time visitors spend on a website during a single session from different traffic sources, such as organic search, paid search, social media, or email marketing.
    3. Session Duration by Device: This measures the average length of time visitors spend on a website during a single session on different devices, such as desktop, mobile, or tablet.
    4. Session Duration by Page: This measures the average length of time visitors spend on different pages of a website, indicating which pages are the most engaging and effective at keeping visitors on the site.
  4. Bounce rate
    This measures the percentage of visitors who land on a website and then leave without clicking on any other pages or taking any action. In other words, it’s a measure of how many visitors “bounce” off a website after viewing only one page. This KPI can gain insights into the engagement levels of their website’s visitors and make data-driven decisions to optimize their website’s content, user experience, and marketing efforts to reduce bounce rates and improve engagement and conversions:

    1. Overall Bounce Rate: This measures the percentage of visitors who leave a website after viewing only one page.
    2. Bounce Rate by Channel: This measures the percentage of visitors who leave a website after viewing only one page from different traffic sources, such as organic search, paid search, social media, or email marketing.
    3. Bounce Rate by Page: This measures the percentage of visitors who leave a website after viewing only one page on different pages of the website, indicating which pages may need to be improved to keep visitors engaged.
  5. Exit rate
    This measures the percentage of visitors who leave a website from a particular page. Unlike bounce rate, which only measures the percentage of visitors who leave after viewing only one page, exit rate measures the percentage of visitors who leave from a specific page, regardless of whether they viewed other pages on the site. This KPI can gain insights into the performance of their website’s pages and make data-driven decisions to optimize their website’s content, user experience, and marketing efforts to reduce exit rates and improve engagement and conversions:

    1. Overall Exit Rate: This measures the percentage of visitors who leave a website from any page on the site.
    2. Exit Rate by Page: This measures the percentage of visitors who leave a website from a specific page, indicating which pages may need to be improved to reduce exit rates and improve engagement and conversions.
    3. Exit Rate by Device: This measures the percentage of visitors who leave a website from a particular device, such as desktop, mobile, or tablet.
  6. Time on site
    This measures the amount of time a visitor spends on a website. This metric is useful for understanding how engaged visitors are with a website’s content, as well as how effective the website is at holding visitors’ attention. This KPI can gain insights into the engagement levels of their website’s visitors and make data-driven decisions to optimize their website’s content, user experience, and marketing efforts to improve engagement and conversions:

    1. Average Time on Site: This measures the average amount of time visitors spend on a website, providing a general understanding of how engaged visitors are with the content.
    2. Time on Site by Page: This measures the amount of time visitors spend on each page of a website, indicating which pages are most engaging and which may need improvement.
    3. Time on Site by Channel: This measures the amount of time visitors spend on a website from different traffic sources, such as organic search, paid search, social media, or email marketing.
  7. Click-through rate (CTR)
    This measures the ratio of clicks to impressions on a website or specific page. This KPI can be used to measure the performance of a specific page on a website:

    1. Overall Click-through Rate: This measures the percentage of clicks on all links or buttons on a website.
    2. Click-through Rate by Page: This measures the percentage of clicks on links or buttons on each page of a website, indicating which pages are most effective at driving engagement and conversions.
    3. Click-through Rate by Traffic Source: This measures the percentage of clicks on links or buttons from different traffic sources, such as organic search, paid search, social media, or email marketing.
  8. Engagement rate (likes, shares, comments)
    This measures the level of engagement that visitors have with a website’s content. This KPI can be used to evaluate the effectiveness of a website’s content and user experience:

    1. Overall Engagement Rate: This measures the percentage of visitors who engaged with the website in some way, such as by clicking on a link, sharing a page, or leaving a comment.
    2. Engagement Rate by Page: This measures the percentage of visitors who engaged with each page of a website, indicating which pages are most engaging and which may need improvement.
    3. Engagement Rate by Traffic Source: This measures the percentage of visitors who engaged with a website from different traffic sources, such as organic search, paid search, social media, or email marketing.

Website conversion KPIs:
Website conversion KPIs are metrics that are used to measure the effectiveness of a website in converting visitors into customers. These KPIs are critical for evaluating the success of a website’s sales and marketing efforts:

  1. Conversion rate
    This measures the percentage of visitors who complete a desired action, such as filling out a form or making a purchase. A higher conversion rate indicates that visitors are finding value in the website and are more likely to become customers. This KPI indicates how effective the website is at converting visitors into customers.
  2. Cart abandonment rate
    This measures the percentage of website visitors who add items to their cart but leave the website before completing the purchase. This KPI indicates how effective the website is at keeping visitors engaged and addressing any barriers to completing the purchase.
  3. Ecommerce conversion rate
    The percentage of users who make a purchase on your website within a given time period. This KPI indicates how effective the website is at converting visitors into customers.
  4. Lead Generation Rate
    This measures the percentage of website visitors who submit their contact information, such as filling out a form or subscribing to a newsletter. This KPI indicates how effectively the website is generating leads for the business.
  5. Revenue generated
    The total amount of revenue generated by your website within a given time period. This KPI is critical for businesses that rely on their website as a sales channel, such as e-commerce websites and online service providers:

    1. Total Revenue: This measures the total amount of revenue generated by a website over a specific period, such as a month or a quarter.
    2. Average Revenue Per User (ARPU): This measures the average amount of revenue generated by each website user over a specific period.
    3. Revenue by Product or Service: This measures the revenue generated by each product or service offered by a website.
    4. Revenue by Customer Segment: This measures the revenue generated by different customer segments, such as new customers, repeat customers, or high-value customers.
  6. Goal completions
    This measures the number of times visitors to a website complete a specific goal or conversion action, such as filling out a form, making a purchase, downloading a whitepaper, or signing up for a newsletter. Tracking website goal completions is essential for businesses that rely on their website to drive conversions and achieve business objectives, such as lead generation or e-commerce sales:

    1. Total Goal Completions: This measures the total number of times visitors complete a specific goal or conversion action on a website.
    2. Conversion Rate: This measures the percentage of website visitors who complete a specific goal or conversion action out of the total number of website visitors.
    3. Goal Completions by Channel: This measures the number of goal completions by different traffic sources, such as organic search, paid search, social media, or email marketing.
    4. Goal Completions by Page: This measures the number of goal completions on different pages of a website, indicating which pages are the most effective at driving conversions.
  7. Average order value
    This measures the average value of a customer’s purchase on the website. This KPI provides insight into how much customers are spending and how effectively the website is upselling or cross-selling.

Website customer KPIs:
Website customer KPIs are metrics that are used to measure the satisfaction and loyalty of a website’s customers. These KPIs are important for evaluating the success of a website’s customer service and support efforts:

  1. Customer Satisfaction (CSAT)
    This measures the level of satisfaction that customers have with their experience on the website. This KPI can be measured through surveys or feedback forms on the website.
  2. Customer acquisition cost (CAC)
    Measures the cost of acquiring a new customer, including marketing and advertising costs. This KPI can be used to determine the effectiveness of marketing campaigns across different channels and to optimize marketing spend.
  3. Customer lifetime value (CLV)
    This measures the total value of a customer’s purchases over the course of their relationship with the business. This KPI provides insight into the long-term value of a customer and how effectively the website is retaining customers over time.
  4. Customer Retention Rate (CRR)
    This measures the percentage of customers who return to the website for repeat purchases. This KPI indicates how effective the website is at building customer loyalty and repeat business.
  5. Revenue per Visitor
    Measures the amount of revenue generated by each website visitor on average. This KPI can help businesses identify which marketing channels or campaigns are most effective in driving revenue.
  6. Average Response Time
    This measures the average amount of time it takes for the website’s customer service or support team to respond to customer inquiries or issues. This KPI indicates how effective the website is at addressing customer needs in a timely manner.
  7. Churn rate
    Calculated by dividing the number of customers who cancel or unsubscribe during a specific time period by the total number of customers at the beginning of that same period. It is a critical KPI for any business that relies on recurring revenue or subscription models.
  8. Net promoter score (NPS)
    This measures the likelihood that customers would recommend the website to others. This KPI can be measured through surveys or feedback forms on the website.

Website Search Engine Optimization (SEO) KPIs:
Website Search Engine Optimization KPIs are metrics that measure the effectiveness of a website’s optimization for search engines. SEO is the practice of improving a website’s visibility and ranking in search engine results pages (SERPs) through various techniques, including keyword research, content optimization, link building, and technical optimization:

  1. Organic search traffic
    This measures the number of visitors that come to a website through organic search results. Increasing organic traffic is a key goal of SEO efforts.
  2. Click-Through Rate (CTR)
    This measures the percentage of users who click on a website’s link in search engine results pages. Improving CTR is important because it can lead to more traffic and higher rankings.
  3. Backlinks
    This measures the number and quality of external websites that link back to a website. Backlinks are important because they signal to search engines that a website is trustworthy and authoritative.
  4. Keyword ranking
    This measures a website’s position in search engine results pages (SERPs) for specific keywords or phrases. It is a critical KPI for any business that wants to improve its online visibility and attract more traffic from search engines.
  5. Keyword analysis
    This measures the effectiveness of a website’s keyword strategy. Keyword analysis involves researching, selecting, and targeting specific keywords and phrases that potential customers might use to search for products or services related to a website’s offerings. These KPIs can help businesses identify the most relevant and valuable keywords to target, optimize their website’s content and structure for those keywords, and track their progress over time:

    1. Keyword Search Volume: This measures the number of searches that are conducted for a specific keyword or phrase each month. Higher search volumes generally indicate higher potential traffic and visibility for a website.
    2. Keyword Competition Level: This measures the level of competition for a specific keyword or phrase, based on the number and quality of other websites that are also targeting that keyword. Lower competition levels can make it easier to rank for a particular keyword.
    3. Keyword Relevance: This measures how relevant a specific keyword or phrase is to a website’s offerings and target audience. Targeting relevant keywords can improve the quality and relevance of traffic to a website.
  6. Page speed
    This measures how quickly a website’s pages load. It is a critical KPI for any business that wants to provide a good user experience to their website visitors and improve their website’s performance in search engine results pages (SERPs):

    1. Page Load Time: This measures the time it takes for a website’s pages to fully load. Ideally, a page should load in under three seconds.
    2. Time to First Byte (TTFB): This measures the time it takes for a web server to respond to a request from a user’s browser. A TTFB of under 200 milliseconds is considered good.
    3. Page Size: This measures the total size of a website’s pages in bytes. Smaller page sizes load faster and provide a better user experience.

Website analytics tools

There are many web analytics tools available, ranging from free to paid options. Here are some of the most popular web analytics tools:

  • Google Analytics: This is a free web analytics tool offered by Google. It provides businesses with a range of metrics and reports to help them understand website traffic and user behavior.
  • Adobe Analytics: This is a paid web analytics tool offered by Adobe. It provides businesses with advanced analytics capabilities, including predictive analytics and real-time data visualization.
  • Matomo: This is a free, open-source web analytics tool that provides businesses with comprehensive data and insights about their website visitors.
  • Mixpanel: This is a paid web analytics tool that focuses on tracking user behavior, such as button clicks and form submissions, and providing insights into user engagement.
  • Kissmetrics: This is a paid web analytics tool that focuses on tracking user behavior and providing insights into user engagement and customer retention.
  • Hotjar: This is a paid web analytics tool that provides businesses with heatmaps, visitor recordings, and other tools to help them optimize the user experience.
  • Crazy Egg: This is a paid web analytics tool that provides businesses with heatmaps, scrollmaps, and other tools to help them understand user behavior and optimize their website.
  • Clicky: A paid web analytics tool that provides real-time website traffic data and heatmaps to help businesses understand user behavior and optimize website performance.
  • Datadog: A paid web analytics tool that provides real-time insights into website performance, usage analytics and monitoring

Website competitors

Gain valuable insights into your competitors’ digital marketing strategies and use this information to optimize your own strategy by follow these steps:

  • Identify the company’s main competitors: Determine which companies are competing with your business and operate in the same market niche.
  • Evaluate the competitors’ websites: Visit each competitor’s website and evaluate the design, navigation, user experience, content quality, and other features. You can use tools like SimilarWeb to get insights into website traffic, bounce rate, engagement rate, and other metrics.
  • Analyze the competitors’ website analytics tools: Determine which website analytics tools the competitors are using and compare their features, capabilities, pricing, and data accuracy. You can also evaluate how well the analytics tools integrate with other platforms and how user-friendly they are.
  • Compare the competitors’ digital marketing strategies: Look at how each competitor is using digital marketing channels, such as SEO, PPC, email marketing, social media, and content marketing. Evaluate which channels are working best for each competitor and how they are leveraging them.
  • Identify strengths and weaknesses: Analyze the data and insights gathered from your competitor research to identify each competitor’s strengths and weaknesses. Determine which areas your business can improve to gain a competitive advantage.

Next Gen website analytics

The next generation of website analytics refers to the use of advanced analytics tools and technologies to gain deeper insights into website performance, user behavior, and customer experience. These tools go beyond traditional website analytics that only provide basic information such as page views, bounce rates, and time on site.

Some examples of next-generation website analytics tools and technologies include:

  • Machine Learning and Artificial Intelligence (AI): These tools can analyze vast amounts of website data to identify patterns and trends in user behavior and provide personalized experiences based on user preferences.
  • Predictive Analytics: This technology uses statistical algorithms and machine learning techniques to identify patterns in user behavior and predict future user actions.
  • User Journey Mapping: This tool helps businesses to visualize and understand the customer journey on their website, including touchpoints, pain points, and opportunities for improvement.
  • Voice Analytics: With the increasing use of voice assistants, voice analytics tools can help businesses to understand how users are interacting with their website through voice search.
  • Real-time Analytics: This technology provides up-to-the-minute insights into website performance, allowing businesses to respond quickly to changing user behavior and optimize their website in real-time.

More Information

Photo by Agence Olloweb on Unsplash

Proven professional with 25+ years of experience in the digital marketing and creative marketing. 20 years of corporate experience as Creative Director, Head of Web, Graphic & Brand at Rezidor SAS Hospitality, Head of Web and Graphic at Saxo Bank, Online Senior Manager at Menu A/S, Online Marketing Manager at Milestone Systems and Creative Director at Napatech. 5 years as a marketing account manager and 13 years as a creative director in agencies. 12 years leadership experience combined with a master in economics, University of Copenhagen, Denmark and a master in internet marketing, advanced social media certificate, University of San Francisco, and UX Design Professional Certificate.

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Proven professional with 25+ years of experience in digital marketing and creative marketing. 20 years of corporate experience as Creative Director, Head of Web, Graphic & Brand at Rezidor SAS Hospitality, Head of Web and Graphic at Saxo Bank, Online Senior Manager at Menu A/S, Online Marketing Manager at Milestone Systems and Creative Director at Napatech. 5 years as a marketing account manager and 13 years as a creative director in agencies. 12 years leadership experience combined with a master in economics, University of Copenhagen, Denmark, a master in internet marketing and advanced social media certificate, University of San Francisco, and UX Design Professional Certificate.

Publich articles and ebooks with the aim to help people utilize the internet. Sharing online topics, latest trends, tools, tips and tricks from advice on web presence optimization and improvements, digital marketing strategies, traffic generation tactics, email marketing, mobile marketing, search engine marketing, ecommerce, social media to creative development of websites, web banners, landing pages and newsletters.

Connect with me on LinkedIn or email me at lbp[@]larsbjorn.com. You can also call me directly on +45 40686862.

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