Web analytics refers to the collection and analysis of data which are captured by web analytics software. Web site administrators use the reports which are generated in order to determine the weaknesses and strengths of their websites and to improve the overall performance.

Most of the data collected can be categorized under the headings traffic data and transactional data which measures the outcome of the visit and the revenue received.

Traffic data indicates the popularity of web sites or pages and includes information such as the number of visitors to the site, the average duration of the visit, the average number of page views by a visitor, the most popular pages, the most popular viewing times and which sites are directing the most visitors to the pages. Transactional data measures the conversion rates.

The two methods of data collection commonly used are page tags and log files.

Probably the most confusing aspect of web analytics for a beginner is trying to decipher the unfamiliar terminology. So here to help you make sense of the concept is a list of the most frequently used terms in alphabetical order.

Terminology:

• Abandonment: When a visitor leaves a website during the conversion process and does not return.
• Attrition rate: The percentage of visitors who abandon the process without making a purchase.
• Click through: The selection of an advertisement by a user by clicking on it.
• Conversion: The completion of an online activity such as signing up for a newsletter, downloading a file or making a purchase.
• Conversion funnel: The steps a visitor takes towards completing a process such as making an order or signing up for registration.
• Conversion rate: The number of visitors who follow the process through to the desired conclusion.
• Cookie: A text file which sends information including a tracking ID to a data collection facility which is used to identify returning visitors.
• Frequency: The number of times a visitor visits a site during a reporting period.
• Hit: The retrieval of any file from a web server.
• Log file: A file which contains all the information regarding the activity on a web server.
• Loyalty: Refers to the number of times a visitor has returned to your website.
• Page tag: A piece of JavaScript which is embedded on a web page to be accessed by the browser when the page is viewed. Arguably the most accurate way of accessing web information.
• Page view: The viewing of a webpage by one visitor.
• Reach: The number or percentage of visitors reading, viewing or interacting with a webpage during a given period of time.
• Recency: The number of days since a visitor’s last visit during a reporting period.
• Referrals: The location, such as the previous page, website link or search engine that a visitor came from.
• Traffic: The amount of data sent and received by visitors to a website.
• Unique visitor: A visitor who returns to a website more than once within a given period.