"This particular “why” question has two claims that are implicit. First, that we know Web analytics IS and second, that it does, in fact, work. I’m going to say that we do know what Web analytics is – it’s the study of actual behavior on a Web site with the purpose of first understanding and then optimizing the use of that Web site and the broader online channel. There are, of course, many different methods for doing this type of study, and it’s obviously going to be the case that some methods work better than others and some don’t work at all. However, I think that all Web analytics techniques are based on a single, simple pair of methods and that these methods, properly applied and endlessly extended, do work.
When we do Web analytics, the essential behavior we see is a trail of where a visitor went in the virtual space of a single site. You can think of a Web site as a series of places – each connected by pathways that vary in size."
For more details read this - How Web Analytics Works - SemAngel:
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