Impact of web analytics on e-commerce
Introduction
It
is not only enough to build an e-commerce engine and support it with search
engines but also extremely important that to ensure that it is effectively
complimented with web analytic tools. Experts in the industry are of the view
that in order to curb online fraud and to ensure the success of the organization
online wise, it is efficient that web analytics are incorporated. Different
vendors using the system have been reported to tout their benefits in addition
citing that the metrics are important in the reduction of click fraud, mainly
perpetrated by scrupulous competitors and discontented former employees of the
company. It is therefore vey essential that a business incorporates this tool
in order to ascertain the how ell the business is doing in relation to numbers (Burby
& Atchinson 2007). The aim of this essay in therefore centered to determine
the importance of web analytics in the aspects of information technology, to
the management and to the organization at large and how they help to improve
the ecommerce function of the business.
Analysis
Web
analytics is the process where internet data is measured, collected, analyzed
and reported in order to understand the usage of the web and to be able o
optimize its functions. This tool can be used in a variety of ways especially
in ecommerce in the sense that it can be applied in business in order to
conduct market research, through assessing the contents of its websites so as
to improve their effectiveness. Web analytics is categorized into offsite and
onsite web (Burby & Atchinson 2007). The offsite web analytics majorly
deals with the analysis and measurement of the web content regardless of
whether one has a website and whether they effectively maintain it. This is
done through the measurement of a website’s likely viewers, voice sharing and
the comments as displayed on the internet.
In
on site web analytics, the behavior of a visitor to the company’s website is
monitored and analyzed. This is through the assessment of the driving pages and
the conversion pages of the website. By this we mean he process through which
one page is related to the purchases of the company’s products. This means that
the web tool helps in analyzing the position of the company in the commercial markets
(Burby & Atchinson 2007). Most of the data derived from this source is
helpful majorly in the process of determining the key performance indicators of
a company and later assimilated to improve on the content of the website and to
who the marketing strategy should be directed, preferably, in determining the
target market. An example of the most widely used web analytic tool is the Google
analytics on site web tool. Other tools like the heat maps and session replay
are also just emerging in the industry to aid in the provision of more
information.
On
site web analytics technologies are divided into two main areas. The web server
log files analysis and the page tagging tool. The web server log file analysis
is appropriate in the sense that it helps to provide information stating the
most popular sites on the web. In this aspect of web analysis, the amount of
human activity on a web page is what is majorly measured, in regards to the
page views and the number of the sessions by a client /customer. Page tagging
on the other and was designed in order to help in rating the accuracy of the
log file analysis, with the desire to out source the service. In this case when
a user enters the web, they are assigned a cookie (Burby & Atchinson 2007).
This cookie is what helps to identify them when they visit the site from other
clients.
Web
analytics are extremely important in ecommerce since they help in the proper sustenance
of the business in many aspects like management, information technology and
many more. The tool is extremely important to the management of accompany sine
it help to them to compare the collective efforts of the Public relations in
regards to the marketing function (Burby & Atchinson 2007). This is because
it slows the traffic rates, conversion rates and other metrics to be collected
from all the sources that can later be referred to like the paid searches, the
advertisement industry, the earned media and the unpaid searches. In this case therefore,
the management is able to easily measure the level of output achieved from the
public relations perspective and from the advertising angle and determine the
area with the most profound changes, in regards to the impact they have on the
business (Burby & Atchinson 2007).
In
the same aspect therefore, the management of the company is able to come up
with the best strategies for the company since they mostly rely on the
empirical evidence gathered from the performance displayed by the web tools
that have been put in place. This is majorly so because the web analytics are
able to rely on information regarding which type of media in terms of the
traditional ones and the social Medias are helpful in assuring that the targets
set by the organization are being met. Analysis and strategies are therefore implemented
basing on facts and not just mere intuition and assumptions (Burby &
Atchinson 2007). In this aspect therefore, the organization stands a better
chance of effectively assign questions like whether to use corporate twitter to
get customers to download white papers, whether to shift the attention of resources
to cover the traditional or the social media, who are the online targets of the
company and how are they responding to the media in effecting their purchase? These
and many other questions that may affect the performance of the organization
are effectively handled and solutions effectively arrived at. This way the management
can be able to use the web analytic tools to be able to focus on derivation of
the goals that have been set by the business (Burby & Atchinson 2007).
Through
the use of web analytics, the organization is able to come up with an
appropriate marketing mix model. Initially before the discovery of the system,
many organizations relied on the tracking of the activities covered by the media
so as to be able to measure the effect of the public relations department on
the profitability of the company (Burby & Atchinson 2007). However, since
the discovery of the web analytic tools, it is no longer necessary to track the
media for long period of hours and time in order to derive the metrics
associated with the attainment of the organizational goals. In initially, it
was very expensive for the organizations to effectively measure the behavior of
the customers due to the large volume of information that was required in
relation to statistical expertise. Additionally, through the use of the web analytics
tool, it has become increasingly simple to effectively determine the behavioral
patterns of the consumers in regards to traditional and social media (Burby
& Atchinson 2007). Through the tools of the system, it is possible for the management
of an organization to take in to consideration the needs of the market and
customer.
In
regards to aiding the functions of information technology, it is relatively
easy for a business to conduct ecommerce functions since the tools help in the
summation of valuable customer information. This is because the tools aid collection
of a wide range of data in regard to the demographic information and the common
sites that are referring their customers to the web site of their organization
(Burby & Atchinson 2007). They are also able to obtain information about
which posts are attracting people to view their organization profile and thus
creating positive traffic. Through the use of web analytic tools it has become
increasingly easy for organizations to be able to download the list of major
sites that have helped in building up the organization’s traffic. Through the
use of the web analytics options it is easy for the user to be able to download
the necessary reports on the all the sites, therefore helping an organization
to retrieve valuable information that can be relevant in aiding the e-commerce
function through advertisement and popularization of their sites in order to
gain more traffic (Burby & Atchinson 2007).
In
another aspect altogether, since there are software’s in web analytics option that
allow the users to be able to download the referring sites at the domain levels,
and also at the URL levels. A good example is the post story of techcrunch.com.
Through making this function of information technology easier for most of the
users assessing the websites, the company is able to get an insight on what types
of stories or information to post regarding their company in order to ensure that
online customers are thoroughly engaged and that the level of traffic builds up
on their site is immensely increased. In regards to e-commerce, for instance,
through the use of the URL to post commodity updates and revised price lists of
the company’s product, it makes it easy for the company to attain higher
revenues and sales volume and also increase the number of transactions for
their site. This also makes them more visible.
Web
analytics has been extremely important in developing the commercial base of an
organization especially in relation to other organizations. Companies that have
integrated the use of this tool into their system can finally integrate it as a
discipline to carrying out even more business in regards to developing their
data processing entities (Burby & Atchinson 2007). Through the use of such
log file functions, a company can develop brand of being the best vendors in
regards to the provision of solutions through the analysis of a large number of
data. In organizations today, many companies experience overwhelming stress in
trying to sort out company data and information in order to improve on its functions.
Through being a provider of such services a company can increase its e commerce
profile and thus be able to expend its revenue base through diversification.
Companies that have been able to do this are like Accrue, web trends and web
side story (Burby & Atchinson 2007).
When
a company chooses to use the unpaid media option as a web analytic tool then
they can preferably be able to customize In order to be able to gain asses to the
number of the new visitors they were able to produce in the day, the total sales
that they have attained so far and also the conversion rates at which they have
been able to operate (Burby & Atchinson 2007). This is possible through the
use of a .CSV file whose function helps to aid in the purposes that have been mentioned.
In this aspect therefore, it makes it easier for the company to integrate this
information in their database applications. In e commerce the ability to determine
the number of new customers for the day n the number of sales is particularly important.
This is because the company can be able to determine what is selling and when
it is selling. This way, they can be able to make more of what is selling and
maximize in the periods as displayed in their CSV files (Burby & Atchinson
2007).
Web
analytic is very important also to the functional process of an organization in
relation to e-commerce. With the use of the IP geo-location, it is easy for an
organization to be able to track the location of both visitors and the loyal
customers in their business. This way they can be easily tracked in their city,
region or even the country that they are based. Through IP intelligence, the
organization can be able to manage the internet catalogues and the IP address
of the customer in regards to where they have been located (Burby &
Atchinson 2007). The information derived from this system can be used by the
business to carry out online segmentation of the audiences when they want to
carry out functions such as advertising, localization of content, behavioral
targeting and even personalization. In the case of e-commerce this aids the
business in the context that while designing their products; they can be able
to determine which market locality to advertise in or to target. In the case of
online fraud, incase the company is ever confronted with the problem of im-personification
or any aspects of online crime; it is very easy to apply the software to detect
and report even the exact locations of where the fraud took place (Burby &
Atchinson 2007). This therefore makes ecommerce a very safe option for the
company and helps to eliminate major risks associated in this mode of
conducting business.
Through
the use if a function under web analytics called the click analytics, it is
very easy for a company to be able to keep track of the performance of the
company’s site and thus determine the necessary actions/steps to implement for
better results. This mode of web analytics is majorly focused on the number of
clicks that the company’s website has received for the day or for the period stated
(Burby & Atchinson 2007). The company’s editor can later review the clicks
to determine the performance of the company. The company can then use their
front page editors to optimize the content of their data in order to attract
more clicks. This function is also important for the stakeholders, designers
and editors involved in the company since they can be able to analyze the
number of clicks in assessing the performance of the organization in regards to
the various functions (Burby & Atchinson 2007).
Through
the use of the customer lifecycle analytics, it can be easy for the
organization to be able to monitor the number of the customers in relation to
the services provide by the organization. This way, the data collected in
regards o the API calls, and access to the third party’s services can be used
to offer insight to the behaviors of the customers. This way the company can be
able to strengthen its marketing function and also be able to align to the
needs of the customers or the changes that are taking place at the market place.
This therefore helps to keep an organization on board and updated about issues
that are taking place in the environment in which it operates (Burby &
Atchinson 2007).Through the development of web analytic tools, the organization
can be able to develop customer relationship management and also open dialogue
with new customers especially through the use of the IP intelligence option
that is able to identify the locations of their customers, regions and locations.
It is also through the same mode that the organization can be able to associate
itself with other organizations through affiliate marketing, through promotion
of joint ventures in order to co-promote their services and their products to
the online customers (Burby & Atchinson 2007). In this aspect therefore,
the organization is able to reduce on the cost that it would have incurred
thanks to the abilities of the web tools that allow for interaction and global
networking.
Through
the use of web analytic tools the organization is able to eliminate the use of intermediaries
and therefore effectively integrated first hand service in their line of business.
This is because they are able to view the traffic on their sites and thus can
asses the number of customers that they are generally appealing to. Secondly
they are able to determine the content that is attracting more customers or
more traffic on their page and thus base on that to improve the web structure
of their organization even better (Burby & Atchinson 2007). Through
analysis of the customer trends and regional location they are able to
effectively determine the appropriate advertisements or promotional means to
use in order to attract an even bigger market share thus be able to transact even
more on their online site. Through all these mentioned functions, it has been
determined that there is no need for intermediaries on behalf of the organistaion.It
simple terms, all that the organization would require to know and implement
would be portrayed in the data retrieved from their web page (Burby &
Atchinson 2007).
Conclusion:
Though
the idea of web analytics is a relatively new phenomenon, it is rapidly gaining
ground and more companies and professionals are adopting its usage especially
due to the high degree of effectiveness associated with it. Due to the relevant
information relayed in the tools through the analysis of the page views,
traffic degree and the number of clicks among other issues, it is becoming very
easy for organizations that have implemented on its usage to optimize the
usability of their sites and to boost the company sales. It should b goal of
every driven organization to come up with a web site that attracts new visitors,
retains the old ones and optimizes the sales of the company. The tools will not
only aid in reducing case of fraud but will also boost the image of the company
in regards to security, efficiency and effectiveness.
Reference
Burby, J& Atchinson,S
2007.Actionable web Analytics: Using data to make smart Business Decisions, New York, John Wiley
&sons.
A brief introduction about web analytics and how it affects an e commerce website is given. I find this information interesting as well as useful as a web designer. Keep posting more information about it.
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