Many businesses understandably believe that web analytics solution only address the functionality of a website. However this is no longer true in most cases. Why? Because consumers and vendors alike rely on the web in the same manner as any other utility – electricity, water, television. Online has become the first place where people search for information, be it the products and services you offer to your business.
Analytics does impact revenue when analyze correctly. Google Analytics reported how Amari Hotels used mull-channel reports to increase revenue by 44%. Yet not every business invests in analytics well. An eConsultancy report in July 2013 indicated that 26% of surveyed firms did not have a dedicated person conducting the analysis .
Add this all up, and the end result is that a website becomes the face of a business and demand the proper investment to drive results.
As a further result a business must understand the benefits possible. Read about how those benefits affect the bottom line.
1. Analytics prevents deploying your online marketing too thinly
Marketing is an important activity for building customer awareness of products and services. But advertising on multiple networks can cost money and effort. Because when you only advertise a little bit on one media, a smidgeon on another, the message will have little chance of customers finding it. You end up paying a lot for advertising that will vary rarely pay off. Instead, you might want to consider focusing more of your efforts on a smaller number of communities and networks first and build core sources of traffic. Analytics can show which media are trending to warrant further investment.
2. Analytic results can guide the budget for your offline resources
When Ford introduced its subcompact car Fiesta, the automaker was able to shift its advertising budget to social media. This resulted in a 90% budget savings. Netflix used analytics to focus its movie delivery on its most profitable segments. Omniture (now part of Adobe) created a case study that indicates that Dave Ramsey site experienced a 55% increase in online sales and even a 20% increase in offline sales. All of these results were possible with an analytic process in place.
3. Analytics can prevent unnecessary website repairs
One activity that can end up costing you money is constantly trying to fix website features that may nit be the true cause of client dissatisfaction. To determine fixes many businesses uses a heatmap to understand what a visitor sees, then confirms the success of the change through A/B and multivariate testing. Monitoring your site performance can also give an overview to what steps .
4. Analytics prevent overspending through ignoring data
Ignoring data can also make you poor for the simple fact that the metrics contain valuable information about your business performance. The data trends indicate what internet marketing strategies are effective and what strategies are not working. Failing to act on the data you might misdirect the business on activities that are unrelated to business goals. A business can discover if an offering online is not effective simply by examining the conversion rate for the product page.
5. A data-based business drives a faster response to money-making activities
Another costly mistake that often puts internet marketers in the poor house is not creating points where customers can complete transactions faster. Creating faster transactions permits more revenue and recommendations to come into the business, creating more opportunities to focus on strategic opportunities.