Tracking and Analytics in a Nutshell
Large scale, purely digital business, are going to take tracking, analytics, and data in general, to another level. They have to, because slight improvements in certain metrics, will mean millions of additional revenue.
However, for the regular small to medium sized business, going through a digital transformation, things can be kept much simpler.
What is essential for any type of website, is to have the capacity to measure the website traffic as well as the origin of that traffic.
This will allow to track the performance of the website over time, as an aggregate figure and split up by channels so that you have the means to regulate on how to allocate your digital marketing budget.
It is important to be able to understand what measures have brought what kind of result.
For businesses running digital advertising campaigns, it is also important to track the various ad campaigns to distinguish what works and what does not lead to desired outcomes such as conversion on the website for example.
Now for the most part this kind of setup will be more than sufficient. Unless you have a dedicated staff member only dealing with analytics and data, it may make sense to allocate your human capital towards other areas of the the business until you have reached the next maturity level.
Overanalysing data, especially if you are in a more traditional type of business, can be a waste of your resources. After a certain point you are better off, generating data rather than analyzing it.