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Google Analytics - What the Numbers Mean

We all know that it is important to generate site traffic. Most people also understand the value of knowing how many people visit/have visited their sites. The 1990s even added a whole new definition for the word hit to the dictionary. What about the deeper questions, though? Who are these invisible site visitors, and where are they coming from? What path do they take, once on the site? What is keeping them there, and when are they leaving? Most importantly, are your current methods working?