Google Analytics is the most useful tool when looking after a website, not only does it tell you who has been on the site and where from, it can also tell you how the site is performing in terms of convesions.
Conversions are different for different sites but today I am looking at Ecommerce sites. Ecommerce websites rely heavily on converting traffic into sales, it is the whole point of the website and in some cases the only reveunue source for a business. By installling Google analytics tracking you can analyse your sites performance in terms of marketing as well as the creative and usability of the site.
Google analytics in it’s basic form can track who visits the site, which keywords brought them to the site, even down to the screen resolution of the computer they used. Not bad for a free package! However in an Ecommerce site you can get much more information. By installing Ecommerce tracking you can monitor the amount of money that goes through the shopping cart, and which marketing efforts bring the best ROI.
By having this information you can reverse engineer back to the source of the conversion. For example a customer may have spent £100 in one transaction, you can look back to see if this was a refering site or from a SEO or PPC (Adwords) campaign. By knowing which sources bring you the most valuable traffic you can make informed decisions on budget for these sources.