We continue our series of articles about the basics of Google Analytics.
The report we think matters most for business owners is the Conversion Report. The two most important things you will want to look at are in the Goals and Ecommerce sections, depending on your type of business.
This report shows data about the Goals you have set up in Google Analytics. Goals are the actions you want your visitors to take on the website. These can be contact form submissions, video views, online purchases, views of a specific page or other. If you have not set up goals yet – you should! But don’t get discouraged, most business owners we meet have not done so or set them up incorrectly.
Goal Completions – This shows all the completed goals for the chosen time period. If you have set up the right goals then this is a very meaningful metric for your business.
Goal Value – When setting up your goals you can assign a specific value for each. Usually this option is not used and is left blank, because it is hard to assign a specific monetary value for a contact form submission for example. If you have historical data you can calculate how many of the form submissions have resulted in new clients and what is these clients lifetime value to your business. This can give you a ballpark number which is very handy when you advertise and want to know if the budget you spent is paying off.
Goal Conversion Rate – This shows the total number of goal completions divided by the total number of sessions for the period. You can see what percentage of your sessions resulted in a completed goal. This metric is more useful when looked at for a specific goal, not as an average of all goals. The reason is that some goals are achieved easier than others. You can set up one goal which tracks all the visits to your contact page and another goal which tracks the form submissions on that contact page. If you look at their combined conversion rate it will not tell you much. But if you do it for each specific goal then the information is much more valuable and unskewed.
Total Abandonment Rate – This metric will not show data unless you have added a funnel when setting up your goals. You can think of a funnel as the steps your visitor needs to take before he completes a goal. A good example is Product Page > Add to Cart Page> Checkout Page > Order Complete Page. The total abandonment rate is the percentage of people who started this funnel but did not complete it to the last step. For some goals it does not make sense to make a funnel. If your goal is tracking clicks on a phone number and you have your number on all your pages then every page can be a conversion point so a funnel is not necessary.
This report is very useful if your business sells products online. It requires additional set up, but it is worth it. It contains a treasure trove of data that can help you improve your online business and advertising campaigns.
Revenue – This is the sales amount paid by your customers including tax and shipping. It may not match perfectly with the data from your website but it should be close. This is because some users block tracking codes from their browsers.
Ecommerce Conversion Rate – This represents the number of transactions divided by the number of sessions. The metric varies by industries and by product types. An average rate is somewhere between 2% and 5% but it depends on many things. Whatever yours is – you should always try to increase it.
Transactions – This is simply the number of orders placed in the time period. Again it might not be the same as what you see in your website’s CMS, but it should be close.
Avg. Order Value – Total revenue divided by the number of transactions. You can try to improve it by offering incentives such as quantity discounts, bundles or upsells.
The Ecommerce Overview when tagged properly can include a lot more data such as the transactions and revenue from your marketing campaigns, your coupon codes. You can track how all your products perform in terms of sales. It is definitely a must have and we highly recommend you have it enabled.
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