Google Analytics is probably the most popular web analytics software worldwide. It gives relevant information that helps marketers and entrepreneurs develop conversion rate optimization strategies. Besides this, it’s a free tool.

Google Analytics has great features that you might not know about because there’s a bit of learning to do before starting to play with this tool. In order to use it at it’s maximum potential, invest some time to discover the secret paths of Google Analytics and watch some tutorials, help videos and Google Analytics beginners guide. But, in this accelerated and busy world, who has time to do this?

With the sole purpose of helping you, in this article, I’ll present three useful things that can be measured with Google Analytics. All this tips were discovered after working with our clients, and they might help you understand traffic flow, traffic sources, conversion rate and average order value.

Not tracking statistics provided by a web analytics software and not analyzing the data in order to identify the strengths and weaknesses of the e-commerce website, will slow down your business.

When looking into analytics, you’ll see tons of numbers and statistics that might be a bit confusing. So, the key solution is to know where to look, select what to investigate and start making correlations. You’ll be surprised to see the things you can find out, by simply connecting the dots. In other words, analytics is vital for generating testing ideas that improve your website and increase conversions.

1.Traffic penetration index.

What is this? The traffic penetration index refers to how many conversions come from a certain country/city/region reported to the population number. We’ve discovered that it’s important to investigate this metric, because it shows how your website is performing in a specific area. According to the results, discover unknown paths, potential customers, new traffic segments to explore and new opportunities to grow the business.

Here’s how you can calculate it:

Traffic penetration = Number of Searches from City or Country / Population Number  

It is very useful to compare conversion rate for paid traffic vs. organic traffic from a city or country. Why? Because it helps you to adjust your traffic acquisition policy . If you pay for traffic, analyze the opportunity cost of  investing efforts into attracting organic traffic. Why spend tons of money on paid traffic, when you can use several tactics such as content marketing or conversion rate optimization to increase organic traffic? Or more important, to think of something that could become viral and get ready to welcome more and more people to your website?

How to check the numbers from each city, divided on paid and organic traffic? It’s easy. Log into your Google Analytics account and go to “Geo” and select “Location”:

Google Analytics  Tutorial

The following window will appear and select the segments “Organic Traffic” and “Paid Traffic”, excluding the “All segments”.

google analytics most visited pages

Once the segments are selected, click “Apply” and choose if you want to see the sessions from a Country/Territory, City, Continent or Subcontinent Region such as in the image below. In the situation below, for 2 weeks of analysis, there are significantly more organic traffic coming from the United States, which is a good thing for the website.

features of google analytics

 

Another important benefit of analyzing these segments is that you might observe high differences in numbers in a specific period. In order to explain the variations, think of what kind of promotions, changes, strategies you have implemented on that certain period. If your numbers are up, it means the tactics you’ve applied had a positive impact on conversions. Create the same experiment in other cities/countries and see the results. In case you observe poor results, something’s not working so well in that city and you need to change or to adjust something ASAP.

2. Behavioral segments with high conversions

Spending at least an hour looking into data, might help you discover new potential traffic segments. Explore each type of  characteristics you can think of and identify a pattern from the large range segments available on Google Analytics.

Investigate the traffic flow to see how customers are using the website, look for connections between the on-site behavior and high converting segments. Once you’ve sensed an opportunity on your website, explore it and get the maximum potential for that particular segments.

Here’s a great example that might help you understand the impact of searching for statistical data analysis in Google Analytics.

Investigating the visitor’s history, traffic flow and on-site behavior for TinaR, one of the biggest online fashion shops from Romania, we have discovered that visitors using search filters score a higher conversion rate that those who do not use it. Why? Probably because people using search filters already know what they want to purchase, they go directly to product category and order faster.

So, we have decided to explore the following behavioral segment: visitors who did not use the filters and saw over two pages. Displaying an exit pop-up, we have reminded visitors to use the search filters, by communicating them the available sizes.

The results? Conversion rate increased by 57,87%! Read more about the TinaR – Case Study.

tina_r_exemplu

Applying the same method at WatchShop, also resulted in higher revenue. By adding a prince range search filter in a pop-up increased the conversion rate by 65,15%.

watchshop casio pop-up

3. Keep track of important key performance indicators in e-commerce

Whether it’s an online or an offline business, monitoring the right key performance indicators will help marketers to keep track of  performance, identifying the weaknesses and strengths and make the best of the opportunities on the market.

  • Customer lifetime value (CLV or LTV) is the total earnings coming from a customers in his entire experience on your website.

Lifetime value formula: CLV= (Average Order Value) x (Number of Repeat Sales) x (Average Retention Time).

LTV is one of the most important KPI, because of its power in the segmentation process. It is helpful for making long term decisions and drawing a line between good & valuable customers and customers who are not worth the investment and might not be the best target to focus.

  • Revenue and transactions for each segment of traffic

Revenue and transactions are directly linked to the customer lifetime value. They both provide insights on where to drive your attention and how to divide customers into high converting and less converting customers.

For example, lets say we have two main traffic sources : X and Y. From X you have 10 transactions and a 2000$ revenue and from Y you have 5 transactions worth 2000$. Which is more profitable? Spending time and money on maintaining a relationship with customers with low value orders or focusing attention on the higher orders?

  • Year Over Year Growth Rate

Tracking the YoY Growth helps you oversee the company’s performance, comparing a time period with the same period last year. The year over year growth rate can be analyzed only by companies with at least two years of activity on the market.

The year over year formula is:

YOY= revenue (t-1) / revenue (t)

Here’s an example of a year over year growth rate calculation.

Regardless the size of your online businesses, you must always make sure that you start with data analysis any marketing campaign. Moreover, if you want to become successful, don’t wait for others to tell you what to do do, but act. Start looking both  for anomalies and for things that are already working on your website and then improve.

 

 

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