Why Analytics matters for your business? So you’ve launched your business and you’re wondering what’s next and how to take your business to another level.
Well in this episode I’ll share with you why analyzing your data is crucial!
hello, I’m your host Kaycinho, I’m a digital alchemist, and this episode, is episode number one of a module dedicated to “the after-launch phase” of starting your business.
And by the way, this module is the fifth and last module of a course dedicated to take you from the burning desire to become your own boss to actually launching your business.
So if you want access to the full course (videos will be added until the course is complete) by clicking here.
Why Analytics Matters: the first objective tool
The first objective tool to help you assess your new online business is the analysis of your Analytics.
So, while you may think this video only makes sense if you’ve already launched a business and have analytics data to analyze, you may still find valuable info in this video, even if you’ve just launched or maybe even only prepare to launch a new business online in the future.
Why Analytics Matters: Once upon a time…
To get started I’d like to share a story. One day a client came to me because he wanted his website redesigned and basically all his online identity to be redefined and polished. So far so good.
His website had been online for six years, and you could tell by the looks, but you know an old website can actually be like an old bottle of wine, not for its looks, but for the amount of data that has been gathered through the years.
So one of the first things I did, before I had access to the backend of the website was to check for the presence of a Google Analytics or similar code in the source code, but I didn’t. What’s more: the source code was not looking good: basically the website was powered by an obscure CMS that I had never heard of, and the code was not a piece of art.
So I asked my future client if they had ever implemented statistics on their website and he assured me he was pretty sure they did, up until the previous month when they stopped working with the guy that initially built their website. So he told me he’d get all the info for me but the info never came.
Fast forward till after the contract was signed and I had access to the backend, and to my surprise, I found out that the only statistics they had were a counter for the number of visitors since the website was published online!
So what could have been six years of insightful data turned into thin air. It’s a bit as if you refrained yourself from drinking a 20 year-old bottle of wine, but when you finally open it, you realize that it had turned into vinegar because it had not been stored in the proper conditions! Oops!
Now in my case, I was basically stripped of what could have turned into vital information for the redesign. Plus Google Analytics, one of the most used statistics web service comes in a free version so it’s just a matter of minutes to get it powering your website.
Why Analytics Matters: the power of Analytics
Now, I’m not a Google Analytics guru, and although it’s definitely a plus if you or someone in your team is such a guru, you don’t need to be one to be efficient. What you need is common sense and of course data.
Once you dive into it, the world of website analytics can become fascinating, well at least to me, and for some it can even become an obsession.
Now of course I’m not advising you to go that route, but where analytics can really help your business, is by letting you understand what’s working and what’s not working on your website.
Like: where your visitors come from, which language they speak, and whether they are surfing your website on a desktop or on a mobile, so basically what you are getting is a gold mine of information.
Because unless your website was made by your nine year-old nephew (and sorry for nine-year-olds that are great at website creation) it should have all the essentials to make your business run online.
So what you should really look for is the little details that, added to one another, will make a difference in the the long run.
– if you happen to notice that 70 percent of your customers come from Sweden, now may be the time to get your website multilingual and translated into Swedish
– or, if you notice that 76 percent of your website visitors surf on mobile and that 68% of those use an iPhone and mobile Safari, you may now understand why your sales have decreased drastically since the last iOS update introduced a bug on mobile Safari. Because this will allow you to take action immediately and focus on finding a tailored solution for mobile Safari users
– other example, if your metrics show that 70% of your customers are females between 25 and 39 year old, you may well spend less dollars on your next online campaigns but with a much higher Return On Investment since your targeting will now be laser-focused to that specific category of potential customers
– now building up on the following examples, just imagine that you spend the same amount of dollars in your next online campaign, but this time targeting 25 to 39 swedish females that surf from an iPhone, with an ad in the Swedish language…
See where I’m getting at?
But in my case, I had to start fresh from the beginning with my client, so we didn’t get to ad-target good looking swedish females.
But instead we had to start like rookies, and although they, of course had some internal metrics to help tailor the new website based on their known customer profiles, it was still a trial and error game when it could have been a laser-focused operation.
Why Analytics Matters: Other metrics you should look for:
Why Analytics Matters: Bounce rate
The bounce rate represents the percentage of visitors who enter your website and then leave rather than continuing to view other pages within the website.
High bounce rates can mean there is an issue on your website, but not always: it may also be the fact that the name of your business is similar to a popular search term and that visitors landing on your website immediately realize they’re in the wrong place.
Why Analytics Matters: Page views
A page view is a request to load a single web page by a visitor.
High page views may mean that your website is interesting to your visitors, but it may also mean that they have a hard time finding the info they’re looking for.
Why Analytics Matters: Source of incoming traffic
The sources from which the visitors of your website come from.
This can be broken down into direct visitors (those that type your website address in the browser), visitors that come from search engines, and visitors that come through the referral of other websites, blog articles, forums, video text descriptions on YouTube, online ads and so on.
Why Analytics Matters: New or unique visitor conversion
This is the percentage of new visitors who take a desired action: for example filling in a web form, subscribing to your newsletter or downloading a goodie.
Why Analytics Matters: Returning visitor conversion
This is the percentage of returning visitors who take a desired action.
Why Analytics Matters: Lead generation cost (cost per conversion)
The Lead generation cost metric measures how cost-effective your marketing campaigns are when it comes to generating new leads for your sales team.
Basically it is the price you are paying for a conversion.
So if you paid 100$ in ads, got 10 leads, and one conversion, it means that for that campaign, your Cost Per Conversion is 100$. SO your sale should generate more than 100$ for you to make a profit.
Why Analytics Matters: Interactions per visit
These metrics let you know how your visitors travel and interact through your website, thus helping you tailor your sales funnel to increase your conversion rates.
Why Analytics Matters: Average session
This is the duration that one of your website visitors spends on your website.
And just like for the Page Views metrics, high average sessions may mean that your website is interesting to your visitors, but it may also mean that they have a hard time finding the info they’re looking for.
Why Analytics Matters: Exit pages
As the name suggests, these are the pages from which your visitors exit your website.
For example a specific page that has a high bounce rate may mean something is wrong on that page.
It may also mean that your website is confusing OR that your main call to action is not easily findable OR that your sales funnel is too long.
So, I hope that this video helped you understand the importance of Analytics and the fact that you should implement it on your website from the very beginning or at least from today if you are watching this video and still don’t have statistics implemented on your website.
NOW do you monitor and analyze your website analytics and do you actually take action ? I’d really like to know so please let me know in the comments below.
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So, that’s it for this video, I hope to see you around here or on the Youtube channel, and in the meantime, don’t forget to invest in your success.