Website traffic reports only tell you who is showing up at your site. There are now tools that tell you more valuable information - how people react to your site and what they do while there.
There are full-blown eyetracking systems and there are the cheaper alternatives.
Heatmaps
- MapSurface.com - Based on his orginal AJAX Link Tracker, Glenn Jones' service overlays graphical click data on top of your site. You simply press "Alt-X" and up pops your data. MapSurface.com is the hosted service, but there is also a free download.
- CrazyEgg.com - does essentially the same thing as MapSurface, but the overlays look a little more polished.
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Mouse Movements"
- OpenCube.com - OpenCube has been known for it's nice DHTML/JavaScript/CSS widgets and menus, but it has also developed a product that goes beyond a heatmap and actually tracks the mouse movements of users. Requirements: IE to view the data. $119 per site. ASP on server.
- ClickTale.com - Right now, this looks to be the most powerful tool for mouse tracking.
Free
- MIT Labs - MIT's Media Lab has released a PHP-based tool that does some pretty powerful mouse tracking. It creates an overlay with arrows of differnt sizes and colors indicating the speed and direction of the mouse. They have a sort of hosted service as well as a download package. (usability study PDF)
