Web Analytics: A User's Guide, Part 1

Web Analytics: A User's Guide, Part 1:
"Web analytics is an umbrella term that refers to the tracking of many different indicators: total site usage, which products are selling (and which aren't), trends in usage, type of visitors (age, income, location), where visitors come from, and other factors. Web analytics data guides site managers as they improve their site, and their bottom line.

Running a Web site without such data is like steering a ship without reliable indicators of wind level and sun position: there's no way to find your direction.

Inherent in Web analytics are two key concepts: First, that a site manager examines her data on a regular basis, perhaps weekly or even daily. Second, that a site manager changes her site based on that data, then continues to track that data over time to watch the effect of those decisions. If the new data indicates the change was profitable, stick with it; if not, try a different direction.

The central idea is to trust the data more than your preconceived notions of shopper opinion, or what other sites are doing, or the ego of the CEO. In short, the numbers don't lie. And only by truly following the numbers can a site's revenue be maximized. "

http://www.ecommerce-guide.com/solutions/customer_relations/article.php/3416791