Web analytics is the study of the behavior of website visitors. In a commercial context, web analytics especially refers to the use of data collected from a web site to determine which aspects of the website work towards the business objectives; for example, which landing pages encourage people to make a purchase on an ecommerce website.
Tracking code is added to all of the pages of a website that require analysis. This code then tracks the user's behavior. Experienced web marketers will track conversions of a desired action that occurs on a web page (form submission, product purchase etc.) In addition to tracking user activity, analytics software also provides detailed logging of a website visitor's geographic location, time on site, internet connection and more.
Here is an example of analytics dashboard:
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