Managing e-commerce and ensuring the profitability of your online business is not easy at all, so we advise you to use tools that can make your life easier! Are you looking for a solution to monitor your site’s functioning and intervene in critical issues to improve performance and optimize your budget? You are just in the right place! Appetizer answers your questions and tells you all about how to use Google Analytics and the benefits of using this solution.
What Is Google Analytics Tracking?
Google Analytics is a free web analytics software provided as a service (SaaS, Software as a Service) by Google, accessible from both computers and mobile devices. GA tracks and logs web traffic and provides comprehensive statistics on:
- the time spent by users;
- how they interact with your website/app;
- the number of users connecting to your site;
- from which countries users connect;
- the pages consulted.
This way, you can get more information about your target audience. Furthermore, you can measure the ROI of all the marketing activities implemented.
How Does Google Analytics Work?
If you still need an account, you’ll need to create one first. To do this, here are the steps to take:
- Click on “create an account”;
- Enter “personal data” (Name, Surname, Username, Password, Date of birth, Gender, Mobile phone, Current email address, and Country);
- Click on “next step”;
- Click on “Continue.”
After creating your account, you must click “start using Google Analytics” and “register your website.” Next, go to the “account setup” section and give your account a name. The maximum number of sites that a single account can contain is 50.
Since you can manage multiple sites from the same account, we recommend dividing them into categories if you need to manage more than one site. Once the configuration is complete, set the property, that is, enter the name and the URL in the relevant fields. Finally, you will have to choose the appropriate category.
The last step you will have to do is to select “Italy” in the drop-down menu under the heading “Report time zone” and choose whether you want to allow the sharing of Google Analytics data: to do this, you will need to activate the check next to “Google products and services,” “benchmarking,” “technical assistance” and “account expert” and press the “get tracking ID” button. Finally, read the Google Analytics terms of service and click the “I accept” button to complete the registration.
What Are The Benefits Of Google Analytics Ecommerce Tracking?
If you activate the tracking code on Google Analytics, you will have the data relating to the performance of your e-commerce available. Among these advantages, we find:
- the turnover generated by each product;
- the total turnover;
- the total of products sold;
- the quantity of each product sold;
- the conversion rate;
- The number of visits to the site made before the purchase decision;
- the average order value.
This data can be consulted thanks to the reports provided by Google Analytics, and to be able to see them, you will need to:
- access your Analytics account;
- go on your sight;
- open Reports;
- select Conversions and then E-commerce.
What Is Conversion Tracking?
Tracking includes several elements: first of all, the completion of an action by the user after the customer has interacted with your ads, for example, if he makes a purchase or registers for the newsletter. When the action completed by the customer is profitable, then it is referred to as a conversion. You’ll first need to create a conversion action in your Google Ads account to track conversions.
Ecommerce Tracking: How It Works And Why It Matters
E-commerce tracking allows Google Analytics reports to be enriched with metrics capable of analyzing specific data on the entire sales funnel. Monitoring all the transactions carried out not only allows you to have a complete view of your turnover but also allows you to forecast the future economic situation of your e-commerce.
Thanks to e-commerce tracking, you will not only have an overall overview of everything that is happening in your e-commerce, Ecommerce tracking, in addition to guaranteeing a comprehensive overview of everything that happens on your e-commerce, also allows you to analyze purchasing behavior and payment behavior.
Why Is It Necessary To Have Tools To Measure The Audience?
The strength of Analytics is that it gives you an overview of the users who visit your e-commerce and their behavior on the site. Thanks to Analytics, you will be able to understand the degree of loyalty of your customers: if your customers return to your site, they are satisfied. Analytics will allow you to understand which aspects you need to improve and which are your strengths.
Google Analytics is helpful for this and other aspects as you can obtain other information such as age, origin, device used, and much more. All this information can be helpful to improve the site’s user experience to reflect on your marketing strategy and adapt it to your target.
Improving your e-commerce doesn’t necessarily lead to conversion; for this reason, using Analytics will allow you to take actions based on user behavior. The realization of a given action, the object of the objective, is precisely a conversion.
Which Ecommerce KPIs Should Be Tracked In Google Analytics?
The indicators provided by Google Analytics allow you to analyze your website’s traffic and your audience. This is why it is essential to know the leading performance indicators (KPI) to measure the effectiveness of your actions. Among these, we find:
Conversion Rate Or Conversion rate
This indicator shows the relationship between the number of visitors and the number of goals achieved. For example, if out of 300 people who visit your contact page, only 30 people fill it out, your conversion rate will be 10%. If your conversion rate increases after making some changes, then there has been an improvement. Otherwise, you will have to review your strategy to increase users’ conversion percentage.
Click Through Rate Or Click Through Rate
The Click Through Rate, also called CTR, is mainly used to evaluate the effectiveness of advertising campaigns. CTR is the number of clicks your ad gets divided by the number of times your ad is viewed: clicks ÷ impressions = CTR. For example, if you have 20 clicks and 100 impressions, then your CTR is 20%
Customer Acquisition Cost
This indicator measures the effectiveness of marketing efforts undertaken and determines the number of leads that can be acquired to purchase in a given period. Here, you can calculate the cost of acquiring a customer with your website. One of the strategies that are commonly used to reduce acquisition costs is to optimize the Landing Page.
The abandonment rate is the percentage of people who abandon a process before finishing it. The formula for calculating the dropout rate is as follows: Abandonment rate = (number of people who didn’t complete the goal) / (number of people who started the process) * (100).
Customer Lifetime Value (CLV)
This metric lets you know the value of a customer for as long as they remain your customer. If you have a customer on your e-commerce website who has stayed for three years and buys a product that costs 50 euros, his CLV is 150 euros.
Thanks to this metric, you can know the total purchases a particular customer makes in a year. This metric is prevalent on e-commerce sites.
Return On Investment (ROI)
In concrete terms, the latter makes it possible to compare investments taking into account the sums invested and the gain (or loss). It allows you to direct your investment choices to choose the most profitable one.
ROI offers the ability to evaluate the performance of a past or current investment or the return that future investment will provide over a given period. Return on investment (ROI)= (investment gain or loss – the cost of investment) / cost of investment.
How To Leverage E-commerce Analytics To Increase Sales
Analyzing from the moment visitors arrive on your site until they pay, the entire journey says a lot about their behavior. This way, you will be able to understand the elements that most interest them to improve the user experience. Thanks to e-commerce Analytics, you can identify the products that most interest your audience and show them in the foreground.
You will also be able to understand if the quantity of sales of a particular product is the same in all months of the year. In addition to what has been said above, in this way, you will be able to implement Data-Driven Marketing to increase the performance of your e-commerce: you will be able to analyze the data of the entire e-commerce or a single page or pop-up.
As you have seen, doing e-commerce Analytics is very useful for several aspects. Remember to analyze the payment page. In this way, you can parameterize the causes that prevent the conversion: the lack of payment options, limited shipping options, or problems applying promotional offers on the payment page. All these are causes that can drive a buyer away from your e-commerce. You must get to work and take advantage of this tool to improve your strategy. Good luck!