Everybody knows that Conversion Tracking is an excellent way to judge the individual performance of keywords in your PPC Advertising accounts and their ability to cause an action on your website, however as an E-Commerce business owner you may want more detailed information regarding the ROI from your various marketing campaigns. Google Analytics E-Commerce Reporting might be just the tool you need.
Google Analytics E-Commerce Reporting goes beyond regular analytics reports and can actually import sales data from your customers completed shopping cart transactions. Since Google Analytics already imports the data from your Google AdWords account, it can combine the shopping cart sales data with AdWords data to give you a very clear picture as to the ROI generated from your various campaigns, AdGroups, and keywords.
For example, while AdWords Conversion Tracking might report that the keyword “blue widget” converted 5% of the time for an average cost of $12/each, Google Analytics E-Commerce Reporting can tell you the E-Commerce Conversion Rate, Total Number of Transactions, Average Order Value, Purchased Products, Revenue Generated, Per Visit Value, and more. So, you might find out that the keyword “blue widget” generated 5,308 clicks however only 4,102 visits, with an average CPC of $0.22, converted 5% of the time, for 227 different transactions, with an average order value of $192.81, generating $43,768 in revenue, making the per visit value $10.67. It will even show an ROI of 6,796.13%, and an RPC (Revenue-per-click) of $15.37. Now that is data that you can use to really evaluate bidding and budgeting.
Google E-Commerce Reporting will show data for all sources of traffic including; Yahoo, MSN, Comparison Shopping, Direct Traffic, Referring Sites, you name it, it will track it. You won’t see cost data from these sources like you do when tracking AdWords campaigns, although you still see all of the other great data, which in my opinion is still more than enough.
Unfortunately, enabling E-Commerce Reporting in your Google Analytics isn’t as easy as flipping a switch in the settings, although that is exactly how you begin. First, you must go into the Analytics Settings/Profile Settings, and in the main website profile area you will need to click “Yes, an E-Commerce Site”, and then click save. This activates the functionality in the account, however two more things must be done before it will actually track sales data. First, a tracking code must be included in the receipt page, and then below the tracking code you will need to have your webmaster insert some customized calls that import the data from the shopping cart. If that sounds confusing, your right, it is, and it has caused many a webmaster to pull his hair out trying to get this code to work.
While the implementation of this Free Google Analytics feature is a little tricky, the reward at the end is well worth the effort for any business owner looking to see a more detailed picture regarding the ROI from his various online marketing efforts.