Google Analytics Explained - Understanding Visitor Behavior
Do you know your conversion rate?
Web Analytics, also referred to as website traffic analysis, gives you information that you leverage not only to better understand how visitors are interacting with your website, but how you can dramatically increase your customer conversion rates. As important as it is for your offline marketing strategies to be flexible and quickly adaptable to suit changing customer needs and market conditions, you will agree that it is not so easy to make these changes as frequently as you should. The beauty of your online marketing strategies on the other hand, is that you can actually use the scientific data gathered through Web analytics to experiment with your website. Only the most profitable experiments then need to continue, while other less profitable ones can be done away with or improved upon to yield better results.
Web Analytics also helps you learn more about your visitors' identities - such as what country were they from, who is their Internet Service Provider, the date and time they visited your site, and information about their computer systems and Internet browser. All of this can enhance your efforts to funnel and narrow down information about which traffic is most likely to convert. You can then begin to focus your online marketing campaigns on areas that are more likely to deliver ROI and improve your website to convert more visitors.
Identifying Your Website's Prime Real Estate
Retailers have long practiced the art of store planning and monitoring traffic patterns to identify "prime 
real estate" or vantage points in their stores. Grocery stores are a prime example of successful store planning in action - it's no accident that staples such as milk are traditionally placed at the back of the store and impulse items are placed near the cash register. Regardless of the grocery store you walk into, the layout is typically the same everywhere. Why? Years of research and monitoring consumer behavior have identified these areas of profitable prime real estate based on the interaction of consumers with the store layout.
Experiment with Your Website
Once you've identified your most profitable online real estate you can now try testing different offers and promotions (also known as A/B testing or split-testing). In essence, this is one of the simplest and easiest methods for testing elements of your website - such as new product offerings or copy. With A/B testing you expose one group of customers to one offering, while the second group receives an alternate version where one element has been changed (such as price, copy, product placement). Then you track results to determine the winning combination that gives you the most conversions to sales at the lowest cost. This winning combination then becomes your "control" offer - the offer that out-performed all others tested, resulting in increased spending by visitors.
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