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Congratulations! You have decided to set up your Google Analytics according to best practice for eCommerce businesses. You are soon going to be able to achieve rich insights from your Google Analytics data.
But before you can get the insights that can help you to earn more revenue from your online store, you need to have your analytics set up correctly. This book has been put together to help you to achieve just that.
Just in case you need a little motivation, here are ten reasons why your eCommerce business needs to have Google Analytics set up correctly, and how you will benefit when you are done.
1. You need to have your revenue set up correctly in order to measure the financial outcomes of your marketing efforts.
If you don’t have eCommerce revenue captured in Google Analytics, or at the very least transactions, then you can’t optimize your online business activity towards achieving sales. If you want to be able to pinpoint your best marketing campaigns and best next opportunities then you need to be able to tie marketing with business outcomes. When you have sales data recorded you can choose to invest in campaigns that you know will work.
2. Ecommerce businesses typically have a higher volume of data – you need your analytics to be set up in a way that makes your job easy or you won’t use it.
Because you sell products on your website, you need high volumes of traffic to turn a profit. All that traffic means a lot of data – in fact you might even feel like you’re swamped with data. If that data is impossible to read or use (because it’s just too detailed or there is just too much of it!) then you need to reduce complexity. You need an analytics system that you can use! That high volume of data is actually your biggest asset as it allows you to optimise, so if you set it up right from the beginning then you will find that you can do more than you realise.
3. Your Google Analytics data is a real asset – it has tangible value when you sell your business or if you look for an investor.
If you want to sell your business or attract investors you will need to present your data effectively to them so that they can see what a great business opportunity you have. If you have the data already and its set up correctly and working then that is a business asset with tangible value. If you are not collecting data or you are collecting data but its not set up properly then an investor may value your business lower. You can take insights directly out of your data to show your potential investors and they will know you’ve been managing your business well.
4. Once your Google Analytics account is set up properly you can do Conversion Rate Optimisation.
Conversion Rate Optimisation (CRO) is all about increasing your sales without spending more on marketing. It is a systematic process of using data to find opportunities. It’s not possible to optimise your conversion rate unless you know what it is and what influences it to go up or down. Without data you are just Conversion Rate Guessing. Once you have data you can use it to improve both your marketing and your website and see your sales conversion rate compound over time.
5. Your data may provide backup and fraud protection.
Not the topic we want to think about, but if your staff were embezzling from you, wouldn’t you be happy that you had all the sales data to back up your claim in an external system? Similarly, if you set up your data correctly you will have a backup of the raw data in case you ever lose your primary data source.
6. You can use your data to investigate customer issues.
Is your customer claiming that they made a transaction on your website but you never shipped the goods? If you can’t find the transaction in your records you can also check Google Analytics. As another example, if users report a bug on your website you can go in and see exactly what they did, in what order they did it and then reproduce their steps.
7. You can use your data to find out where and why your website is not earning as much income as you would like.
We all want to earn more income, and there are some times when your business might not do as well as you hoped. Your Google Analytics data can help you turn the situation around by identifying the weaknesses in your marketing and website. Find out where and why people are abandoning the sales process so that you can resolve these issues for your customers.
8. Your data can quantify your business outcomes so that you can make projections.
If you have a consistent conversion rate for a particular marketing channel then you can make more accurate sales projections when scaling via more marketing through that channel.
9. An accurate Google Analytics setup enables you to share valuable reports with your team.
Your team wants your business to succeed. Sharing results with your team enables everyone to feel like what they do matters to the bottom line. When your analytics is set up well you can choose what you want to report and tell your story the way you want it.
10. An accurate Google Analytics setup enables marketing agencies and internal marketing staff to get better marketing results.
Whether you hire an internal marketing team, an external agency, or freelance marketing help, you want them to get great results. Google Analytics is a central data repository that all your team members and external consultants can access once you grant them permission. With eCommerce analytics, everyone on your marketing team will be on the same mission to improve your sales results.
So there you go. 10 reasons why you should set up your Google Analytics well if you are running an eCommerce store. Now, as you move through this book I’ll teach you how to do just that.