How Do You Measure Visitor Engagement?

What’s the most important metric when it comes to determining the health of your site? It’s not really a fair question since no one metric tells the entire story, but for a long time page views have been considered one of the most important metrics. Page views don’t tell the whole story of course. Does someone look at a lot of your pages because they like your content or because they can’t find what they’re looking for? And with the rise of Ajax applications how meaningful is to to measure when your entire application is on one page? Recently there’s been a movement toward time spent as a measure of engagement with your site, though that has it’s share of problems too. So how is one to measure visitor engagement with your site.
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