Google offers a great free tool for measuring your website traffic success – Google Analytics. Go to www.google.com/analytics, set up an account, add a special code to the web pages you want to track and start a great adventure of monitoring your website performance.
Google Analytics gives you handy reports on the following issues:
Among these tools you will find an answer to every question regarding your website performance. I would recommend that you create monthly reports in Excel spreadsheets (as described below) which will enable you to compare the results over time.
Specifically, you should keep an eye on these data:
Average Time on Site
Bounce Rate – how many people left immediately after they came to the page
% New Visits
Google Page Rank – you can see this on you Google Toolbar
Goal Conversions Total
Keywords – what keywords were our website visitors looking for?
Traffic Sources – where did visitors came from?
However, the ultimate statistics talk about the VALUE all your website optimization efforts and online advertising have brought to your company.