The Impact of Web Analytics on E-CommerceIntroductionAs the world grows to a global village, e-commerce has become more important now that ever. It has been identified by organizations as a vehicle through which they can generate revenues, strengthen customer relations and brands as well as a vehicle for ideas and information trade. Increased use of internet and improved IT infrastructure has been a major driving force in the adoption of e-commerce. The application of e-commerce by business is not only important but a necessity as well. Bearing the importance of e-commerce in the current business world, web analytics has not been without impact.
Web analytics is defined as the measurement or assessment of website usage by the visitors and customers of that website with the aim of identifying the general visitor experience for the purpose of identifying the extent to which an organization’s objectives for setting up the website have been achieved (Peterson, p.12). Web analytics is also applied in the measure of the extent to which a company’s website complements its designed strategy. The information applied in the assessment is collected by following scientific procedures inclusive of testing, experimentation and measurement.
When accurately determined and applied, such information is important in enhancing the achievement of organizational objectives and business goals (Peterson, p.14). The ultimate goal of web analytics is enhancing optimization of business success factors as indicated by generated results rather than the mere analysis of websites. This can only be achiever through the alignment of analysis and metrics with business vision and the strategic goals of the organization. Increasing importance of e-commerce in the current business world calls for organizations to seek for best measures to ensure that their application of e-Commerce is not only efficient, but relevant to target customers as well.
This paper addresses the impact of web analytics from three perspectives namely; management, technological and organizational perspectives. The impact of web analytics from a management perspectiveEvidently, change is constant in many web applications. This creates the need to develop proper management of these applications so as to keep up with the changes. Research shows that they are numerous impacts on the use of web analytics on e-commerce with focus on a management perspective.
According to Desbarats (P. 3), the constant use of web analytics in e-commerce has forced many organizations to improve on their management background so as to lower operational costs involved while at the same time increasing revenue. Today, it is quite evident that web application management environment is complex due to web and content services being delivered to customers browsers from different sources. Cappel (P. 117) maintain that, while various components are being delivered to end users data center, there are also delivered from “the cloud” and third parties which includes components such as ads, delivery network, new feeds e-commerce platforms and bill payment which require effectiveness within the management field.
The use of web analytics on e-commerce have changed the face of management whereby companies are forced to acquire knowledge of whether the applications will; perform and render fully across different browsers, provide quality web experiences to all end users as well as scale under real word load and finally, whether the web analytic on e-commerce will meet all the set company performance benchmark objectives.
Cappel (P. 120) suggest that, the use of web analytics on e-commerce requires companies’ management to find as well as fix problems across the complete web application delivery chain prior to production and launching so as to have a successful web application. This largely requires establishing an “outside-in” approach that will ensure managers are able to get real tests result from an end user perspective across peak loads, end users browsers as well as locations.