Do you need analytics for your website? In a word, heck yes. Okay, that was two words, but you get my point. Analytics are must for every site. They are able to tell you exactly what your customers are doing on your site, where they are coming from, what they are consuming, and where they are bailing. You can then use this information to improve your site to increase ROI, duration, bounce rates, conversions, or whatever your goals are.
“What analytics solution is the best?”
It all depends on your situation. If you are a small company or an individual with a blog, Google Analytics is a great solution because it is free, offers robust reporting capabilities, and has a large support base.
If you are a larger corporation, you may want to start with Google Analytics just to get people used to the metrics and the reporting cycle. It is a good way to get everybody’s feet wet and get a full understanding of what data is available, how the data can be used, and what is most important from the top executives down to individual departments. Then, start a full-scale analytics solution provider search where you test out and understand what Omniture, Webtrends, etc. provide. Knowing what you want and need can help you see through the sales pitch and get down to brass tax. Keep in mind the vendor is typically very expensive, so it is an important decision to make. Spend the time necessary finding the solution that is best for you.
“When should I start using analytics?”
Immediately. If you have a site now with no analysis software, find something now.
If you are in the planning stages, plan to have a solution up and running the second your site goes into production. Lost time is lost revenue.
“But, aren’t analytics hard?”
Sure, they can be hard, especially if you let them be hard. Keep your goals in mind when doing metrics and try to stick with a few key metrics that tell you if you are meeting your goals. As you get increasingly comfortable with analytics, branch out and find those long tail nuggets that could help boost ROI, customer engagement, whatever your goals demand. For the larger corporations, it is best to invest in smart people to do the analytics for you. The investment will pay off in the short and long term.
As you can see analytics are a must and it is highly advisable to get a solution up and running as soon as possible. Delaying can cost money, customers, or a chance to build community.

