So you have implemented a website analytics tool – Yay! 
Maybe you have implemented more than one (I have 3 running on this site at the moment!)?
That was the easy part. As long as you have ensured that things are set up properly, you are now “cooking with gas”.
Key assumptions:
- You have implemented your Analytics application (Google Analytics, Clicky, Woopra, etc..) properly.
- You have blocked traffic from your organization and competitors using Filters.
- You have no distractions (Web analytics cannot be done while watching Saturday night hockey).
Now the fun part. Data! Reams and reams of data!
Hence my analogy of:
Forest of Data
Versus
The tree(s) you are Looking for
The organizations that create these website traffic measurement and analysis tools are in a pitched battle for mind and market share. It is a vicious cycle of one upsmanship. If Woopra brings out a nifty new feature, Clicky is right on their heals. This bodes well for you inasmuch as there is competition out there which will result in: innovation, more freebies… and confusion.
Website Analytics Vendor (pick one)
This is probably a good juncture for me to jump back in time (so to speak) and ask a question or two. You have come all this way: setup a nifty website, toiled for hours on content, struggled with SEO…. All for what? To my point. Why is your website here in the first place? What is it’s purpose? What are you trying to accomplish? If you don’t have a clue to answering questions like this, then you will have no way of setting goals and determining Key Performance Indicators (Analytics Ninjas like Avinash Kausik drone on about this point).
Note to self (yourself):
- Determine why my website is on the Internet.
- (After answering # 1 above). What will my measurements of success be?
Answer # 1 honestly….. Then sit back with a glass of your favorite beverage and work on number 2
Example: In the past I have mentioned that I also have a blog about everything cycling.
My Goals (some of them — in no order of importance):
- Write (yes simply to write)
- Share our cycling experiences with friends & family (plus anyone else who will read my posts)
- Learn WordPress inside & out (not measurable by Analytics)
- Gain readers from outside of Canada
There! I have opened up my world! And, yes you can change your goals at any time. Just make sure that they are always aligned with your KPIs.
From my goals came one of my main KPIs: month over month geographic traffic. Yes I measure traffic (by country) every month. BTW, it is amazing how much my traffic from Ottawa & Montreal drops in February! Get it?
So, for instance, if you run an eCommerce site, you are clearly online to sell your wares. What would be one of your KPIs? How about “How many people came to my site and bought something”? No, that is too long. Hmmm, let’s call this a “Conversion“. You converted them into a customer! 
Next Note: Don’t expect a very high number when you start measuring this one. Online shopping is really about… shopping. A good online shop’s conversion rate will be a single digit ( a low one in most cases).
Homework: Set your website goals. Feel good about them. Validate them. Poke & prod them. Then work on KPIs to be measured in conjunction with whatever analytics program you have chosen. And this is how you begin to find those trees in that dense dark forest!
