Think of analytics as your new best friends because that’s exactly what they are. From your business’ social media channels to your website landing pages, hundreds and thousands of data points are being collected every single day — all of which can be used to improve your marketing strategies and business as a whole.
These data points enable you to maximize conversions while bringing down cost. As long as you take these data points and apply them correctly and accordingly, they can yield huge benefits to your bottom line.
But those new to the game might wonder how you get access to this data and what you do with it afterward. We’ve got the scoop on using Google Analytics metrics to boost your return on investment (ROI).
Every metric under the “acquisition” category within Google Analytics is excellent data to track, but pay particular attention to your cost analysis. This metric allows you to determine the cost per click, as well as return on advertising spend (ROAS), for various types of marketing campaigns, such as social media ads, affiliate campaigns, email campaigns, Bing ads, display ads, etc.
In order for this metric to work, you do need to import cost data into Google Analytics. Once you’ve done that, the data is put together into a report, which you can filter to find specific data relating to specific marketing campaigns or attribution models.
Making adjustments to campaigns with this data is vital. In order to analyze these points, you need to make sure that enough impressions and clicks have been recorded; otherwise, your data will not be rich enough to make an educated decision.
Cost Per Acquisition
Despite the title of “acquisition,” this Google Analytics metric can be found under the “conversations” tab. It allows you to determine how much it costs to get a specific action. The unique thing with this metric is that you’re able to determine the cost per acquisition (CPA) for different attributions, such as non-direct clicks, data-driven clicks, AdWords clicks and even custom attribution models of your choice.
One thing to be wary of is that change in CPA can come from external or internal sources. An example of an external CPA influencer would be if three businesses similar to yours opened and started advertising. This would drive up competition for ad space, which, in turn, would increase your CPA, as you would be spending more for every click.
Determining the path that your customers take to make a purchase may not seem like a vital metric for your ROI, but don’t be mistaken. The user flow can help you understand what is driving sales, and, more importantly, when compared to less successful routes, you can see what’s driving potential sales away.
Using this data allows you to prioritize products or services that perform well across select channels and reduce wasteful advertising spend while increasing ROI.
The affinity metric in Google Analytics will help you understand your customers better, so you can then tailor your marketing campaigns to suit their needs. By analyzing the data in this section, you can determine what your customers like and dislike, what their browsing and buying behaviors are, and much more. As a result, you can create better ads that are more likely to appeal to your target audience.
Affinity is broken down into several categories to further help you identify where the disconnect is between your ad and the end consumer. The more refined the ad is and the higher the affinity, the greater the chance of that user converting.
Similar to affinity, the behaviors section in Google Analytics is full of valuable information that can tell you exactly who your customers are. By learning your customers’ behaviors, demographics, lifestyles, spending habits, appeal to deals, etc., you can customize all of your marketing campaigns to precisely match the interests of past and potential customers.
One important metric for us is age. Age can be a major factor, as it can dictate the preferred times to display your add. If, for example, your product is primarily purchased by youth ages 12 to 16, we would optimize ads to be delivered after school hours and on placements most likely to reach a younger audience (e.g., YouTube versus the BBC).
Your traffic source may seem like a trivial metric in comparison to all of the options available within Google Analytics, but it can be the key to optimal engagement with your target audience. By understanding where your customers are coming from, you can tailor your efforts to the specific sources that are more likely to provide results.
In other words, if 95% of your traffic is coming from Facebook and only 5% from search engine results, you may want to dedicate more time to Facebook, since this is a highly beneficial traffic source. You may also want to adjust your content marketing strategy in an effort to increase your SEO ranking and raise that 5%.
At first, Google Analytics can seem like a complicated tool, especially if you’re looking at all the metrics at once. However, by dedicating your attention to these top metrics for ROI, you can make data-driven decisions that cater to your specific goals.