Research by the Aberdeen Group for analytics specialist Site Intelligence has found that companies that use web analytics can increase online conversion rates from 2% to 7%.
The researchers also found that 76% of companies in the study improved year-on-year conversion rates with, on average, conversion and revenue per visit increasing by 3% each year and customer profitability increasing by 4%.
But the report warns that many executives find web analytics too hard to interpret, and that instead of raw data they need actionable information. This, suggests the authors, is the reason many best in class organisations use paid analytics solutions, either standalone or in combination with free products.
Other findings from the report show that best-in-class companies share common characteristics such as:
- 69% have a process for disseminating online data to key personnel
- 68% have defined performance metrics to measure online success
The key actions that come out of the report show that to become a best-in-class business companies must:
- Track ROI: 63% of best-in-class companies, compared to 31% of all others, track and measure the ROI from their web analytics solution. As is the case with any initiative, companies must ensure that they have a clear understanding of the benefits delivered before, during and after implementation.
- Solicit feedback from executive-level champions on the business value of web analytics. While the support of senior management is crucial to the success of an initiative, feedback regarding the value delivered is just as important. Companies should also link revenue or cost goals with metric reporting to help senior management understand the value of the analytics.
The 32-page report, Web Analytics: Actionable Insights for Unlocking the Hidden Potential of Online Data, can be downloaded free from the Site Intelligence website