Traditional marketing is shifting towards online and mobile platforms due to technological evolution. According to news report, mobile Internet use nearly 50% and the household Internet access occupies a significant percentage (Shown in Fig.1) as well. Besides, mobile Internet use rose fastest among 16 to 24-year-olds (BBC News, 2011). The statistics indicate the trend of Internet usage and alert business; especially those online businesses will face great challenges while having optimistic business opportunities at the same time.
Due to booming of using digital media including Facebook, Twitter, forum, etc, consumers are now more informative through interacting with friends and gather comments easily before making any purchase decisions. Since Internet is actually quite intangible and virtual, company requires digital analytical tool to evaluate the performance of its online business. For example, web analytics assists company to identify the number of times in which consumers have come across the company site before making any orders. Moreover, visitor flow (Fig.2) within the site can help company to evaluate the bottleneck of the site and make improvements. Of course, web analytics gives a figure on what kinds of products or services have better sales, which in allows management to forecast future sales growth and in advance setting corresponding KPI instantly for measuring the conversion rate. By the way, we have discussed the purpose and the relationship between digital analytics and understanding consumer behavior in previous chapter, web analytic is useful in tracking which channels customers direct into your site.
Thus, these data are essential for managers to establish a standard to define business goal and marketing strategies, measure the effectiveness of the online campaign and optimize business performance in Internet. Now, you may recognize the importance of applying web analytics, it is one of the tools for management to have an in-depth knowledge about the current situation of the company.
- Mobile internet use nearing 50%. (2011). BBC News. Retrieved from http://www.bbc.co.uk/news/technology-14731757