Google Analytics is a free Google service which allows administrators to monitor traffic, page use and sales conversions.Why bother setting up Google Analytics? Here's why...
1) You can see which pages get most views on your site and the highest bounce rates, so you can work out which are in desperate need of a redesigned.
2) Look at a fully graphical diagram of exactly where people are clicking-through, and where people are leaving your site.
3) Advertisers can review landing page quality and conversions so you can adjust your ads and prices for the highest performance.
4) You can grant others access to the admin panel but with restricted reports or full access depending on what's needed.
Magneto supports two types of Analytics tracking: page view tracking which shows where your web store visitors came from, and e-commerce tracking that shows the customers and purchase information.
Once you've signed up at: http://www.google.com/analytics/sign_up.html - you'll receive a Google Analytics account number which Magento requires.To set-up Google Analytics in Magento go to System > Configuration, and then navigate to the Sales tab and click on Google API.
Then you'll see this screen:Select 'Yes' from the drop-down menu in the Enable field and enter the Google Analytics account number in the 'Account Number' field, and click 'Save Config'.
The correct code will be added to all necessary pages on the Magento website, allowing full tracking and analysis.To view your Google Analytics page, login at: http://www.google.com/analytics/ and select your website – multiple websites can be listed and viewed under one account.