Google Analytics Conversion Rate – Reporting and Analysis

 

How many of us take action on the basis of conversion rate reported by Google Analytics? If we don’t take any anction then there is no need to look into the Google Analytics reports and waste time. Seriously. Analytics is all about tacking actions. You looked at the data and you do something useful on the basis of the data you analyzed. If you are just looking at it and not doing anything then you are not optimizing. It is as simple as that.

The goal conversion rate of a website is 73.43%.

Ok good. But what insight I can get from it and what action i can take? The short and sweet answer is ‘nothing’. Google Analytics add the conversion rate of each individual Goal and then report the sum as the overall conversion rate of the website.  So if you have set up 5 goals for your website and the conversion rate of each goal turned out to be 20%, then Google Analytics will report 100% conversion rate for your website.

So technically you have reached marketing nirvana. Go home, play video games or do whatever you like because your website can’t perform any better. But the reality is that your website can perform much better. You can have Goal conversion rate of 125%, you can have a goal conversion rate of 500% and you can still be massively underperforming.

This is because in aggregate form you will never know which goal has contributed the most to your overall site conversion rate and whether the biggest contributor really has the biggest impact on your bottom-line. For example, consider the following scenario:

Goal-1: Visit to the ‘Newsletter’ page

Goal-2: Visit to the ‘About Us’ Page

Goal-3: Visit to the ‘thank-you’ Page.

 

Goal-1 Conversion Rate: 30.49%

Goal-2 Conversion Rate: 42.19%

Goal-3 Conversion Rate: 0.74%

In many industries, the Goal which will have biggest impact on your bottom-line is the visit to the ‘thank you’ page (the page which is shown to a visitor when he/she completes a transaction).  The conversion rate of this goal is 0.74%. If you ignore this conversion rate and instead take the overall site conversion rate into account (which is 73.43%) then you will never know how your website is really performing.  So it is very important that you segment your overall Goal Conversion Rate and report conversion rate of each goal.

 

Report and Analyze Conversion Rate of each Goal

To see the conversion rate of each Goal, go to ‘Goals Overview’ report and then select the Goal whose conversion rate you want to analyze from the ‘All Goals’ drop down menu.

But it is still sub-optimal way of analyzing conversion rates as you can’t take any action from such data. Therefore you need to segment this conversion rate further.

 Related Post: Common Google Analytics Mistakes that kill your Reporting 

 

Report and Analyze Conversion Rate of each Traffic Source for each Goal

Go to ‘All Traffic’ reports and then click on the ‘Goal’ tab. You will see a report similar to the report below:

You now get the better picture of your website performance. The questions that you should be asking now are:

1. What is the conversion rate of organic search for my goal named ‘user engagement’ and is there any improvement in this conversion rate in the last one month? In other words you are determining how the traffic through organic search has impacted the user engagement on your website. If the user engagement has gone down with the increase in organic traffic then maybe you are not targeting the right keywords.

2. What is the conversion rate of my email campaigns for my goal named ‘orders’ and is there any improvement in this conversion rate in the last one month? In other words you are determining how the traffic through email campaign has impacted the number of orders on your website. If orders have gone down with the increase in email traffic then maybe you are not targeting the right people.

So instead of analyzing and monitoring the overall conversion rate of the website, you are now analyzing and monitoring the conversion rate of each traffic source for each goal. If you do this then you are in a much better position to take action from the conversion data and optimize your campaigns accordingly. This may sound obvious to some of you but how many of us really segment conversion rate to such granular level and then take actions.

Congratulations. You are now looking at the data much better than majority of marketers out there. But unfortunately this is still sub-optimal way of analyzing conversion rate at least for an analytics ninja.

 

Report and Analyze Conversion Rate of each Traffic Source for each Goal in each target market

Many of us run marketing campaigns on national and international level. So it becomes very important for us to know how each main geo location (it can be our primary city, state or country) is performing. So the questions here to ask can be:

1.  What is the conversion rate of organic search for my goal named ‘user engagement’ in the New York City and is there any improvement in this conversion rate in the last one month? This can be an important question if your client serves people only in the New York City.

 Consequently you won’t be interested in knowing what people from other parts of the country are doing on your website as they are not your target market. To know the city performance, your conversion rate should be geo-centric.

Google Analytics by default take each visitor to your website into account while computing the conversion rate.So

Goal conversion rate = Total goal completions/total visits to your website

Now problem with such type of computation is that, we take every person on the planet into account while calculating conversion rate. The website in question serves people only in the ‘New York City’ but get visits from whole of the US and also from other countries because of solid SEO and huge social media presence.

Since people from other cities/countries won’t/can’t buy, you can’t hold them responsible for your conversions. Can you? But Google Analytics consider every person who has visited your website as your potential client and hence put everyone in the conversion funnel while calculating conversion rate. Consequently the conversion rate reported by default doesn’t reflect the true conversion rate. The true conversion rate is calculated as:

True conversion rate = Total Goal Completions/visits from your target market

In order to calculate your true conversion rate you need to create and apply an advanced segment like ‘Traffic from New York City’ before your analyze and interpret the Goal conversion rate of each traffic source for each type of goal. Then only you can get the true picture of your website performance.

You are now looking at the conversion rate of each traffic source for New York City. If your target market is only this city then you should be optimizing your campaigns on the basis of ‘New York City Conversion Rate’  because this is all what that really matters.

2. What is the conversion rate of organic search for my goal named ‘orders’ in US, UK, Australia and Canada. You need to know this in case you are running marketing campaigns on international level.

 

Please share your views on how you take action on the basis of conversion rate data.

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  • http://www.irisholidays.com Iris Holidays

    I am sure that you have a goal to measure user engagement from various countries :) for all your posts in wordpress?. Can you share some of the goals that you are tracking for this wordpress blog and the granularity level?

    • http://www.seotakeaways.com/ Himanshu

      Sure. I track goals like pages/visit, avg. time on site, blog subscriptions etc. I check the conversion rate of top 10 cities, countries and other traffic sources for each goal via several custom reports.

  • http://www.seoidiots.info/ shiv

    hi himashu,
    Again i have to really appreciate your blog, What you write is totally practical,usable and compels us to think in that way.Thanx a lot…

    • http://www.seotakeaways.com/ Himanshu

      Thank you for the kind words Shiv.

  • http://www.facebook.com/harish.choudhari Harish B Choudhari

    Can anybody give me an info about how to set up e-commerce transaction set up in Google analytic? I am a beginner. Thanks in advance