Why do businesses need their website visitors’ behaviour analysed? There are several reasons. These range from understanding your customers’ needs, increasing your business revenue and profits, optimizing your marketing, to turning unknowns into real numbers that can be used by your business to both find insights and to measure the outcome of key strategies.
By analysing the behaviours of your website visitors, you can find out more about your customers. For example, you can find out which actions on your website correlate with visitors buying or signing up for your promotional offers, and which actions on your website correlate with visitors choosing not to buy from you.
When you know more about the behaviours of your website visitors you can encourage your visitors to do more of the things that contribute to sales and less of the things that distract or deter them. You will be able to learn what visitors to your website are looking for and answer specific questions about how visitors use your website and buy your products.
With today’s standard website analysis technologies, you can even categorize visitors into different buckets (based on say gender, age, web pages or products viewed, choice of email opt-ins or any other category that makes sense for your business) and then find out how each group interacts differently with your website, the behaviours they perform on your website and which categories are most likely to buy specific products.
All this has the benefit of increased revenue and lifetime value from your website visitors.
Website behaviour analysis can be used to optimise your website content and offerings. You can use it to decrease elements that cause confusion or misinformation, increase the website content and elements that lead to sales, and optimise marketing messages based upon the data regarding which content assists with sales. Analysis gives you the knowledge from which you can make informed decisions about improving your website.
It is possible to find out if your website visitors are actively engaged with your website content, and to use your website visitor behaviour data to find ways to increase engagement. Engaged visitors are also more likely to share your website with their friends and colleagues.
You can also use website behaviour analysis to find out if you have two or more distinct groups of visitors who require different content and marketing. This can greatly assist your business if you are faced with the prospect of personalising the experience for different groups of buyers, or splitting functions of your existing website across more than one website in order to capture the needs of different groups of buyers.
Website behaviour analysis can be used to optimize your marketing messages. You will be able to find out which acquisition sources are bringing in the right target markets for your website, which landing pages are most effective at getting these visitors to engage further with your website, and which calls to action are the most effective at moving targeted customers into your sales funnel.
What could website behaviour analysis mean for your bottom line?
If you were able to increase revenue per sale or increase your conversion rate then you would be able to increase your gross sales revenue without needing to purchase more traffic. This would reduce the cost per sale for traffic acquisition. The difference between the current acquisition cost per sale and a reduced acquisition cost per sale could be invested into business profit, dominating certain keywords and/or branching out into more expensive acquisition channels. In short, investing in website visitor behaviour analysis leads you towards a path of achieving market dominance in your industry or niche.
Website behaviour analysis can also lead to long-term gains if you are able to decrease the number of potential customers that abandon your website rather than engaging, and if you understand the factors that assist immediate sales versus the factors that facilitate visitors to come back again and potentially have increased sales over time.
At the end of the day, website behaviour analysis takes a difficult to conceptualise issue (how your visitors interact with your website) and converts it into quantitative business data. It enables your business to make calculated decisions based on numerical data, and enables you to measure and improve against KPIs. You are able to measure your conversion rates for both macro conversions (such as sales) and also micro conversions (interactions on your website that correlate with sales) in order to find out where the website needs to improve. Once you have these numerical objectives in place you will be able to test whether a change to your website increases your conversion rate, and/or pinpoint the cause of any drops in sales revenue or conversion rate if a problem occurs in the future.
Website behaviour analysis is an asset if you ever want to sell your business or website or if you want to attract investors, financiers, franchisees or shareholders. These partners in your business will be able to see specific reports that show that you understand your website visitors and that you are actively pursuing a strategy of increasing your conversion rate over time.
Does your business need an analyst?
The more revenue you earn from your website the greater the need for data. With any size of business however, the more your business’ sales processes are replaced with anonymous website sales the greater the need for website visitor behaviour data. Agile businesses are able to make use of website behaviour analysis to improve their profitability.
Getting a website analyst onto your team can be an excellent investment for your business. Your analyst will suggest improvements based upon your website behaviour data and will know what patterns to look for in the data.
It may be hard to work out how much to spend on website behaviour analysis, but there are a few rules of thumb:
- If you could increase your conversion rate by just 1% over the course of a year, what would that be worth in dollars that year? If you spent that sum on an analyst and it repaid itself in the first year, what would the return on investment be as you continue to reap the rewards in subsequent years? Invest as much money in analysis and improvements as you expect to get back in one year; after that the profits are yours to keep.
- If you spend at least $10,000 a year in online marketing, then 5-10% of your budget should be allocated towards the analysis of the data. This analysis should be performed by a party who does not directly benefit by any particular marketing allocation.
- There is no need for an in-house analyst if your online marketing budget is less than $100,000 per annum. Instead, you can hire the skills you need on a freelance, part-time or ad-hoc basis.