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You can have a 1000 visitors, but if no one purchases your product, signs up or asks for more information - you are not achieving your goal. To figure out your success rate take your sales or whatever you want your visitors to do and divide it by number of visitors. This will give you a percentage of visitors that are "buying" what you are "selling".** Your goal is to increase this percentage.
2. Pages - Find out which pages people are visiting and which ones they are not. If they are not visiting a particular page - could it be because your visitors are not interested? Perhaps, you just need to fix your navigation to that page. You may want to rename link to page. Perhaps title is not attracting right attention.
3. Referrals - Keep track of your advertising campaigns, reciprocal links and search engine referrals. How many referrals are your advertising campaigns or links giving you? If this number is low, there could be a number of factors affecting your success. It could be that this is wrong place to advertise or perhaps your ad copy needs a bit of tweaking.
4. Keywords - This is an invaluable resource. This tells you how people are finding your site on search engines. It helps you find keywords you score high on so that you can maximize on them.
I recommend taking keywords listed in your stats and checking your ranking on them at sitesolutions.com free rank checking service at http://www.sitesolutions.com
Capitalize on these keywords. Make sure they appear in titles of your relevant pages and that they are in text body of these pages. Also ensure these keywords are in your meta tags.
In end, don't take your statistics too literally. However, do take time to read through them and analyze general trends they are showing you. They can provide an invaluable resource for you in development of your site and business.
Alice Seba is the creator of http://www.internetbasedmoms.com, the online home-based resource center for work at home moms. Receive great tips on building your Internet Business right into your email inbox by sending a blank email to mailto:firstname.lastname@example.org