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Customer analytics versus web analytics: Know the difference

Analytics is part of every marketing strategy today — so much so that it’s hard to imagine a decision-making process which doesn’t involve analytics. With changes in the digital landscape, the interaction of customer and business has taken a new form. Businesses are trying to offer the best customer service and data is what helps them know what’s best.

Among such various analysis methods fall two important analytical methods: Customer Analytics & Web Analytics. To be a better digital marketer you need to know the difference between the two and the importance of each.

Let’s understand each of these analytics individually and then the difference between the two and how they are used in digital marketing for building effective strategies.

What are customer analytics?

Customer analytics, also known as customer data analytics, is the process of studying and understanding the key metrics of available customer data which will help curate a strategy or develop products best suitable for their customer’s needs. It helps you retain your most profitable customers and attract similar ones.

Customer analytics forms the foundation for many marketing activities like segmentation, data visualization, and predictive modelling.

The objective of customer analysis is to gather and analyze data to understand your customer and approach them with product or services they are most interested in. The information is obtained and circulated among groups who are directly responsible for customer-related decisions. A business-related manager or a digital marketer can then develop best practices to retain new customers and attract new ones.

What is the importance of customer analytics?

Customer analytics is important for both small and big scale industries. A customer today has more power when it comes to buying a product or service. They have the power to choose from where to buy, what to buy, what mode of transaction do they prefer and which platform they use to interact with the business.

This is making businesses and online marketers to study deeply about customer behavior, their buying motives and help them respond to their customer’s need deeply. The better you understand your customer the more helpful it will be for you to devise a customer-oriented strategy.     

How can customer analysis help your business?

The process of performing a customer analysis is beneficial for online marketers, business analysts, customer service, product managers and many other business domains. Customer analytics provides the following advantages for your business.

  • Saves time and money by helping you deal with the right set of customers, which increases your conversion rate, which in turn improves your ROI
  • Helps you earn long-time customer loyalty
  • Significantly reduces marketing costs since your efforts are only focused on people who are interested in your project or service
  • Lets you design campaigns to actively engage your customers
  • Helps you deliver a tailored message addressing the specific needs of your targeted customer.

Types of customer analysis

Customer analysis is important for any business to acquire, retain, nurture and engage their customers effectively. The type of customer analysis a digital marketing manager and business development manager should know include:

  • Customer satisfaction analysis
  • Customer lifetime value
  • Sales channel analytics
  • Customer segmentation analysis
  • Customer engagement analytics
  • Social media analytics
  • Customer churn analytics
  • Customer acquisition analytics

Tools used in customer analysis

With the rise in customer analytics, online marketing managers were looking for tools to help them capture the essential customer data and aid them in developing effective business strategies. The popular customer analysis tools include:

  • Intercom
  • Hootsuite
  • KISSmetrics
  • Agile CRM
  • Cloud Cherry
  • Salesforce Sales Cloud

What are web analytics?

Advanced Web analytics is the science through which we can gauge an organization’s efficiency and performance. Website analytics help online marketers study your digital infrastructure and understand the aspects that are working and eliminate or modify the elements which hamper your efficiency.

Today web analytics is an inherent part of all the digital marketing plans. It helps you gather and analyze web data in order to maximize the effective use of your web properties. This primarily includes page loading speed, bounce rate, click-through-rate, average time spent by users and many other factors.

It helps you optimize your SEO projects, Google ads campaigns, social media strategy etc. In short, web analytics helps you understand who is visiting your website, how they are interacting with your site, how they landed on the landing page, where did they travel from your website?

web analytics dashboard

What is the importance of web analytics?

Web analytics is extremely important for a business due to many reasons. The primary reason includes the study of website visitors and how they engage with your site. You can use the data available to optimize your website to provide your customers with better customer experience. This is how website analytics can help your business:

  • Web analytics helps you point out the broken technical things on your website
  • It effectively tracks the path taken by a user to reach your website
  • Website analytics help you optimize your online marketing campaigns and attract more customers to your website and boost conversion rate
  • It helps you track the data required for your marketing campaigns
  • Web analytics help you find the platform best suitable for your customer needs

How can web analysis help your business?

Website analytics provides data about your users and web properties. Web analytics tools will give you the following information

  • Number of website visitors
  • Percentage of new vs. returning visitors
  • Demographic information like age, gender, location
  • Technical information like device used, browser, screen resolution, service operators
  • Website analytics help you analyze the popular and unpopular pages from your website
  • The bounce rate of your website and individual pages
  • The average time spent on your website or individual pages
  • Which marketing campaigns were more successful?
  • What keywords were used by the user to find your website

Types of web analysis

Web analytics is an important tool known by many digital marketers. Many know web analytics bundle but there are various types of web analytics performed by online marketers which includes:

  • User analytics
  • Traffic source analytics
  • Behavioral analytics
  • Acquisition analytics
  • Funnel analytics
  • Onsite engagement analytics
  • Marketing analytics

Tools used in web analysis

Each business has its own needs and metrics to track. It is impossible for one tool to integrate all the features. Even though some come close to it, it is advised to use tools which can deliver you the best result. Some popular tools include:


Both website analysis and customer analysis are important for businesses today. A good digital marketer understands the importance of each and uses proper tools to deliver the best performance.

Customer analysis will help you optimize the physical interaction with your customer and web analytics helps you gauge the online behavior. In short, both are necessary for the success of a business.

Janvi Arora is a Web Analyst and Conversion Rate Expert at Radon Media.

The post Customer analytics versus web analytics: Know the difference appeared first on ClickZ.

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