Simple ROI: Google Analytics

by Joe Schaefer No Comments February 14, 2010

If you’re a business owner or simply want to know how your efforts for driving traffic are paying off, literally, set goals in Google Analytics and actually see it. Here’s how.

I don’t see enough of this: Determining the value of search traffic in terms of monetary growth. Instead of only watching traffic numbers increase and looking at a not-so-fancy graph, let’s get down to the numbers game, the money numbers game.

This small technique can be made more massive, but start small and grow with it as your knowledge grows.

A small disclaimer: this basic technique is “lifted” straight from Google’s own help section, so there’s a wealth of knowledge there if you’re willing to take the time. Plus, grab a copy of Avinash Kaushik’s book Analytics: An Hour a Day for even more easy to understand insight.

Let’s set up the more traditional scenario:

(a) Let’s say for all visitors who lands on your contact page that you are able to ‘convert’ 10% of them into paying customers.

(b) The average transaction per ‘customer’ is $100

Now let’s get the math right:

(a) Find 10% of $100

(b) Your the mathematically challenged, that’s $10

Set a Goal in Analytics

(a) On the right hand side of the Google Analytics interface you can go into ‘Goals’ and set your goal value to $10 per contact page visit.

Now, when you view your traffic in analytics you can let the Google Analytics magic do the work and essentially see the potential value of your traffic. If you view your goal from the perspective of search traffic, you can then compare SEO costs to visitor value, thus coming up with a simplified ROI (return on your investment) value.

Get it? Got it? Good. Now, please send autographed $10 bills to me and you’ll be greatly rewarded with an honest Thank you. Joking. Unless of course, you have an excess of $10 bills and so on and so forth.

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