in data science, machine learning

Web Analytics 101: My Top 3 Favorite Insights

Web analytics can be intimidating. Lots of data and we often don’t know where to start. That’s the case especially when we take on a new project.

However, web data analysis is essential. It’s how we track our success (or failure) and spot opportunities. The numbers also guide us in making informed decisions. But how do we get the most of the data and make such decisions? Here are my favorite insights that I keep reminding myself:

1. Look at the website first

Numbers do provide a lot of useful information. But let’s not forget about the qualitative side.

It’s easier to get clear insights if we know what we’re dealing with. If we look at the website first and figure out the customer experience, these will provide valuable insights that could change how we see the data.

We can employ advanced analytical techniques on why a page only has a 1% conversion rate. But if the landing page just looks terrible (and the prospect finds it hard to find the Buy button), that readily gives a clue.

2. Pay attention to the conversion rate

If you have 0.003% conversion rate and your traffic is in the millions per month, does that massive amount of traffic really matter?

Having millions of website visitors is a good thing, at least on the surface. The numbers look good but look at your sales. Maybe you’re having negative profits because the revenue isn’t just enough.

We’re focusing on the wrong thing. Where we should focus on right now is the conversion rate (given that we’re already attracting a decent amount of traffic). Maybe we’re attracting a lot of “unqualified” traffic (those that have no desire or no capability to buy our products). Or maybe the landing page isn’t good enough (same case as above).

If we focus on improving our conversion rate, we’ll get more results. Instead of attracting millions more visitors, it’s good to spend some time on the conversion rate so we can increase our sales.

3. Use the data to make decisions

Looking at graphs and numbers can be addictive. Those cool data visualizations and lots of Excel columns can take our whole day.

However, what’s the purpose of all those numbers? It’s to make a decision about your business. It’s not all about producing fancy reports and spending countless hours staring at those numbers. The goal is to make an informed decision based on data, not to gather and analyze data for its own sake.

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Web analytics is essential to tracking results and striving for progress. I always remind myself that whenever I look at data. Why should I analyze the data? Will this help me make a good decision?