Analytics is used in the seo world to refer to the Google program. Google analytics is a free tool that lets you analise the traffic on your website. It works extremely well and we at seomagnifier used if from the start. At this point in time Google analytics is the standard in external traffic analise's tools. The tool uses a very pretty flash interface. And provides a lot of different reports. You can even define funnel paths and check how your users are using your page.
The basic analytics works really simple, all you need to do is apply for an account and take a bit of javascript code given during the application and put this in the head section of every web page. This should not take long. We did this by adding the javascript code to the canvas template of our site. After that you can validate that the script works.
Google analytics are processed on a daily basis and it might take up to 24 hours for you to be able to view you reports.