Actually, Google Analytics can provide superior results and plenty of data to base decisions on. We have used it time after time to increase sales. The latest ... A site that we took from $0 in sales online and no web presence to over $350,000 in sales in just one year (11 months). It currently averages $50,000 in sales a month now and that continues to grow each month.
All decisions were based solely on data provided by Google Analytic reporting.
Installing analytics is one thing. Understanding and interpreting it is another. Many things are not clear cut in the analytic realm and some reports depend on data from others in order to show progress.
The e-commerce portion of Google Analytics is totally independent from Adwords tracking. You can operate it without ever running an Adwords campaign. You must have the e-commerce code in place (included in the module) and tracking codes in place as well for it to work.
To get Adwords data to work with Analytics, you must link the two together from within the Adwords interface or you will not get proper Adwords tracking when viewing Analytics.
No tracking system is perfect. I have used many (some that cost hundreds of dollars a month) and to be honest, all have some sort of data inconsistencies. It's unfortunate, but it's the nature of tracking on the internet.
Google Analytics is a free system that we have used with at least equal success to other "paying" tracking systems. And they continue to update it. Just recently (Oct. '07) they added even more reporting capabilities to help decision making.
In your case, I would check and compare what your analytics goal is set at vs. what you are calling a "conversion" in your Adwords campaign. I don't have access to that data, so I can't tell you one way or the other, but a comparison of those items that play into the conversion reporting may uncover what is causing the difference.
Just some thoughts. Hope they help!



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