Why Add Conversions to Google Analytics?
Very often, when a client shares access to their analytics accounts, we notice that the stats are not properly configured—even if the client was working with an agency.
Basically, we believe that a Google Analytics should monitor at least the following data points to calculate a certain return on investment:
- Call-to-action buttons and/or hyperlinks
- Visits to the contact page
- Emails sent
- Forms submitted
- Using the phone number
- Newsletter subscriptions
- Add to cart
- Sales
If these conversion targets are not createdit becomes impossible to analyze traffic ROI and make business decisions.
Understanding your traffic
"We received over 1,000 visits thanks to a Facebook campaign!" ... but how many of these 1,000 Internet users contacted you and/or purchased your products.
When Google Analytics is correctly configured, you'll be able to answer this question easily. You'll also be able to judge the effectiveness of your marketing campaigns.
Here’s an example of a table we use to quickly evaluate the efficiency and conversion rates of campaigns and different traffic sources.
Warning : This painting is a fine tool, but don't analyze data too quickly since conversions are typically attributed to the last interaction.
What is the first and last interaction?
Here's an example of a customer journey on your website: a consumer clicks on a Facebook ad to view your product, then returns 3 days later via a Google search (organic traffic) to complete its purchase.
Google Analytics will award the sale to the organic channel since the last interaction is carried out by Google. However, if the consumer had never seen the ad on Facebook, he might never have bought your product.
You can view and compare the statistics of the first and last interaction in Google Analytics., in the report: Conversions > Multichannel funnel > Model comparison tool
Calculate your return on investment
Once you've captured conversion statistics and put them into context, you'll be able to calculate the return on investment of your web marketing campaigns.
With an e-commerce site, it's relatively simple to calculate your return on investment, but when you're selling services that aren't necessarily purchased via an online store, you'll need to assign a monetary value to each of your objectives, based on what it means to achieve each goal.
Here's a concrete example to illustrate the technique.
In this case, the company sells professional services. Its website features an online form to capture the requirements of potential customers and offer them a personalized quote.
Each service sold generates an average of 1,000 $ of profit. Because you're a formidable salesperson, your The conversion rate from a quote to a sale for a completed form is 50%.
This means that each completed form is worth 500 $, i.e. 1,000 $ x 50%.
If, on the other hand convert to sales as 10% of the forms received, then a completed form will be worth 100 $, i.e. 1,000 $ x 10%.
If your advertising campaigns on Google or Facebook costs 10 $ per completed form (a component of Client Acquisition Cost), then you have just demonstrated that your campaigns are profitable.
You can then repeat the exercise for all your campaigns and objectives.
You can then add a degree of sophistication by increasing your visibility to increase the number of forms filled in, until one of two things happens:
- That the cost of a completed form = the profit generated by a sale (at which point it's no longer profitable to spend more on a campaign), or;
- That you can no longer keep up with demand!
Take your Google Ads campaigns to the next level
If you don'tdon't have conversion targets in place in Google Analytics, your Google Ads campaigns can't be optimal... because to make good use of Google's artificial intelligence, you need to import conversion results. Calibrating Google Ads' artificial intelligence requires only conversions are in place to separate good traffic from bad.
The more conversion points you have, the more high-quality traffic Google's artificial intelligence can bring you.
If, in 2023, you're still doing click-through campaigns (CPC), it's quite possible that they'll cost you a lot of money for little return.
Don't forget the Meta pixel
If you're running Facebook campaigns and don't have you haven't configured your conversion objectivesonce again, you don't use Meta's artificial intelligence. We strongly recommend that you configure this to increase the effectiveness of your campaigns.
In conclusion, it's crucial to add conversion objectives to your analytics tools to understand and analyze the traffic arriving at your website. This will enable you to calculate the return on investment of your advertising campaigns and improve them thanks to Google's artificial intelligence and Meta.
Without these conversion targets, it will be difficult, if not impossible, to measure the effectiveness of your marketing campaigns in order to make better business decisions.
And that's the point, after all, that all those investments in web marketing campaigns generate a positive return for your organization!
