Some Useful information here about Using Google to monitor visitor - this is taken from a free Newsletter - it makes excellent reading

Ending the Struggle with Web Analytics

WebProNews had something of a Q&A session with a couple of web analytics experts about what businesses can do to improve their implementation. We spoke with Brian Clifton, author of the book Advanced Web Metrics with Google Analytics, and E-Nor President Feras Alhlou, who Google itself has even had as a guest author on the Official Google Analytics Blog.

Do you struggle to get the most out of your web analytics efforts?

WebProNews: Why do you think so many organizations struggle to go beyond the basic metrics like visitor counts and pageviews?

Brian Clifton: Simply put, its a lack of resources i.e. staff and expertise. All organisations recognise the importance of measurement, but there is a dearth of expertise of knowing what to do next. Remember web analytics is still a nascent industry around 10 years old - similar to search engine marketing. But unlike SEM, web analytics is maturing at a slower pace - so there is less expertise out there to hire or recruit.

The result is that for many a business owner and marketer, web analytics is simply considered a "hit counter". That is, keeping track of past activity. However savvy organisations who are investing in this area, are exploiting web analytics as a way of looking forward i.e. optimising the user experience and planning future marketing efforts.

WebProNews: How can they become motivated to go further?

Brian Clifton: Free is a good motivator and the use of free products such as Google Analytics and Yahoo Analytics has gone a long way in this regard. Money that was once required to collect data can now be used in analysing and understanding the reports and therefore instigating website change i.e. improvement.

Following the obvious benefit of using a free system, sit down with a consultant and perform an analysis on what benefits are achievable. For example, often the result of website changes can be dramatic for the bottom line. One travel client was able to increase online holiday bookings four fold just by optimising their checkout system which consisted of 7 pages. That's a dramatic change that generated millions of additional revenue. However, to get started ask the question, if our conversion rate was to increase by 1 percent how much extra revenue (or sales leads) would that bring in? Use that number as your first year target and investment cost. From year two onwards, that additional revenue becomes pure profit and you can move on to the next optimisation project.

WebProNews: What is the most common mistake you see organizations making with regards to web analytics implementation?

Brian Clifton: Not configuring goals. Defining goals i.e. pageviews or actions that are more valuable to you than others, is the single most important configuration step you can do. A goal can be many things, both e-commerce and non-transactional such as downloading a catalogue.pdf, completing a subscription/registration form, viewing the special offers page, providing feedback, adding a blog comment, or even clicking on a mailto link. Where possible, these should also be monetized.

WebProNews: How can this mistake be corrected?

Feras Alhlou: Fundamentally all businesses establish short and long term goals for business success. The same planning process needs to be applied to the organization's website. Why does the website exist, what does the organization expect to achieve with the website, what are the website goals? These questions, while core business questions, are often overlooked in planning for the website. The days of only having an online presence are over, website business planning has to be integrated into overall business planning. Education is how to correct this mistake. Education of the value of establishing website goals showing the bottom line investment results. Or even start with some baby steps. For example, and for lead generation type websites, set up a goal for number of whitepaper downloads or number of "contact us" form submissions, and show this data to those in charge of lead generation, get that internal conversation started.

WebProNews: Can you give an example or two of how an organization can use analytical data to plan for new campaigns?

Feras Alhlou: This is a very good question Chris! A lot of times this question is an after-thought, "oh, we just launched the XYZ campaign, how did we do?" We want to bring the measurement discussion to the campaign planning phase and proactively identify the campaign success metrics. Then ensure you have your website, analytics tool and reports are properly configured to support measuring these metrics.

Let's take campaigns as an example. Your email solution provider typically provides a lot of stats about open rate, click-through rates, number of unsubscribers, etc. In addition to these important metrics, we would want to have post-click visibility. Are email visitors coming to the site and bouncing off right away? Are they engaged? Are they buying? These important questions can be answered and acted upon with Google Analytics (and other analytics tools as well). In order to get these insights, you want to ensure that the clicks from your email campaigns are identified as "email" traffic and show accordingly in the analytics report. There is a process of "tagging" the links in your email campaign with parameters so that your analytics tools can place this traffic in the "email" segment.

Another example is measuring lift in traffic off branding or awareness campaigns. You might want to look for a bump in your direct traffic (people who typed your URL directly in their browsers). In addition, you can look at your organic or natural search traffic. A lot of us these days don't type the URL in the browser, we get lazy :), and we just type the company name or the product name in the Google search box. Google Analytics captures the keywords that searchers type in the search box. You can now, on the fly, segment this data into two groups, branded and non-branded keywords. If you start seeing a significant lift in traffic from your branded keywords, it's definitely a strong signal, and your branding folks deserve a pat on the back!