5 Common Data Analytics Terms Every Online Business Should Know

Having an online store has many benefits that allow you to succeed with fewer costs than a physical store. But that success doesn’t come easily – you have to make your store stand out among thousands and thousands of other competing stores. 

You might have a solid marketing strategy to reach your buyers but how do you make sure this strategy is working? It’s simple, you track the results through your metrics. Whether you’re looking at the metrics for your website or for the results of an ad you launched, you will come across a few terms that might seem foreign the first time you read them. Here are a few analytics terms you should know:

Bounce Rate

Your bounce rate is the percentage of people who come to your landing page and leave without browsing further or clicking on anything else on your website. An optimal bounce rate is from 26% to 40%; meanwhile 41% to 55% is an average bounce rate, Anything above that is considered high, which means you need to tweak your landing pages to decrease the bounce rate.

Conversion Rate

Conversion rate is calculated when users take the particular action you want them to take, whether that means they have to sign up, fill out a form, or click a specific link or a call-to-action. 

Conversion rate is what you will be measuring and optimizing to deliver the best customer experience possible, especially if your campaign or landing page is targeting customers that might be lower in your sales funnel.


You might have seen this term often when you visit a website when it asks you to accept or not accept the cookies of that specific website.  A Cookie refers to a small file that is stored on a user’s browser or computer when they visit a website. One of the main reasons you would want those cookies on your visitor’s browsers is to allow you to track your customer’s behaviors whenever they visit your website.  In this way, you can market to them more effectively and more specifically.

Direct Traffic

Direct traffic is anyone who comes to your website by typing your website’s URL directly into the browser or through clicking a bookmark they made on their browser.

Unique Visitors

Unique visitors can be anyone who comes to your website at least once; they are usually tracked by a cookie that is placed on their IP address. They continue to be tracked every time they come back as the same unique visitor unless they clear their cookies or visit from a different browser – then they will be counted as 2 unique visitors.

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