Analytics describes the collection and interpretation of data in order to determine patterns that are of use to a business or organization. Online retailers use analytics primarily to determine customer behavior and observe trends on their website.
Why are Analytics Important for Online Businesses?
Website analytics are of particular importance as they help determine how successful websites are in attracting visitors and achieving conversions that result in sales. They help the site owner identify problems that could be inhibiting SEO rankings or negatively affecting customer interactions on the pages within a site.
Analytics of general customer and market trends is as old as business itself. Today, the use of “big data” has made this a complex information base—the data is so huge and varied that it can only be interpreted using large amounts of computing power. Computerized market analytics has become crucial to the survival of many businesses, particularly in fast-moving industries like IT.