Why Analyse Data in Web Analytics

In this segment, you will learn why data needs to be analysed and understand how analysing data helps in making better business decisions.

As you learnt in the video, since every business has a diverse set of customers, it would be easier to decode their behaviour by dividing them into segments. Understanding the consumer group that is interested in your product or business can lead to a higher rate of conversions.

Two of the common ways of segmenting your audience are as follows:

• Based on demographics (age, gender, etc.): a brand might be more appealing to a certain age group or a particular gender.
• Based on user interest: users might be interested in a particular category of products, for example,users might be interested in shopping, tech, news, etc.

However, just an external analysis of your target audience is not enough. It is important to analyse your business units/lines and understand the methods that work in your favour. Some of the tools and ways to do this are as follows:

• Benchmarking essentially looks at your business KPIs and brings them to industry standards. This gives you a fair idea about the gaps in your business.
• Device strategy is understanding which device your consumers are using to access your business (website/mobile). This also includes looking at whether they access it on Android or iOS.
• Keeping a track of daily, weekly and monthly active users, and engagement rates.
• To continue attracting new users, you must look at your acquisition channels, which could be paid (adwords, search ads, etc), organic (SEO) or custom.

In the next segment, you will understand a measurement framework.