Category : Ecommerce
How to increase the product click-through rate
According to W3Techs, Google Analytics is being used by 52.9 percent of all websites on the internet, more than 10 times the next most popular analytics option, Yandex Metrics. But how do we really use the information in Google Analytics so we can increase our revenue? BuiltWith says that 69.5 percent of Quantcast’s Top 10,000 sites (based on traffic) are using Google Analytics, and 54.6 percent of the top million websites are those that it tracks. Most of the large websites use the information in Google Analytics to make strategic decisions about the product or information posted online. Ecommerce websites, in particular, have the possibility to improve their performance looking at ecommerce data available in Google Analytics. The Enhanced ecommerce tracking from Google Analytics is a complete revamp of the traditional ecommerce tracking in the sense that, it provides many more ways to collect and analyse ecommerce data. Enhanced e-commerce provides deep insight into e-commerce engagement of your users. You can read more on Google Support about what is possible with Enhance Ecommerce data. We will try to show you how you can optimise product listings using Enhance Ecommerce - the non-technical way. We assume that you already have the full ecommerce setup for Analytics in place and you already have access to data like this in your account: If you don't, it's worth going through this blog post: Set up Ecommerce tracking with Google Tag Manager. Also, before moving forward, you should generate the product listing performance reports based on the first part of this blog post: Use Enhanced Ecommerce to optimise product listings. As you've seen in the blog post mentioned above, having enhanced ecommerce data, gives you unlimited ways to react to the customer's behaviour. Starting with this graphic above, let's make a strategy to improve product listing and increase the website conversion rate. We have 3 situations First, we have the non-starters product category. These products never get clicked on within the list. Either there are incorrectly categorised, or the thumbnail / title doesn’t appeal to the audience. They need to be amended or removed. Second, we have the lucky products: quick sellers: these had an excellent add-to-cart rate, but did not get enough list clicks. Many of them were 'upsell items', and should be promoted as ‘you may also like this’. And last, poor converters: these had high click-through rates, but did not get added to cart. Either the product imaging, description or features need adjusting. We will focus on the non-starters and poor converters ones and give you a list of things to do. Non-starters As we mentioned before these products are never clicked. For these kinds of products, you should check and improve the following. Are they in the correct category? If not put adjust them! Does this product have the correct position on the category page? If is a product is important to you, don't leave it at the end of the category listing on page 100. Does this product have a picture? If yes, change it as it is clearly not performing. Is this product easy to find in the category when filters are applied? Is this product easy to find using the internal search of the website? Is this product part of an upsell or cross-sell strategy? Poor Convertors Are the pictures of this product clear and from all relevant angles? If this product is an expensive one, does it have a video showing the benefits? On this product page are there sufficient details about the product, their benefits, age limit, and so on? If this is an assembled type of product do you have the assembly e-book or mention that they will receive it with the package? Do you mention, on a scale, how hard it is to assemble this product? Do you have reviews from previous customers that describe this product? Do you make all the costs of this product clear, including VAT, shipping, and other taxes? Is your add-to-cart button on this page working? Is the flow from add-to-cart to check out a smooth one, with no errors, and no "out of stock" notice? Do you use retargeting if the client sees a product multiple times but doesn't seem to add it to the basket? If you have other suggestions for the list above fell free to send us your ideas and we will update it. If you are interested in setting up Enhanced Ecommerce to get this kind of data or need help with marketing analytics then please get in touch! Get Social! Follow us on LinkedIn, Twitter, and Facebook and keep up-to-date with our Google Analytics insights.
How to use Littledata's software to monitor ecommerce performance
Littledata provides daily insights in your inbox. These include alerts on significant changes to your web traffic, tips on better tracking, and longer term trends in a daily summary email. All this, along with advice on how to act, will improve your ecommerce performance. Key performance indicators (KPIs) are the milestones to online success of an ecommerce store. Monitoring them will help ecommerce entrepreneurs identify problems and find solutions for better sales, marketing, and customer service goals. Once you have set goals and selected KPIs, monitoring those indicators should become an everyday exercise. And most importantly: performance should inform business decisions, and you should use KPIs to drive actions. Here are the most used reports in our Littledata software that monitor ecommerce performance: Sales Key Performance Indicators Hourly, daily, weekly, monthly Our web app generates reports, based on your traffic volume, on a daily, weekly, monthly or hourly schedule. This helps you keep up to pace with your campaign changes, your developer's releases, and your new interface changes. This way, you can react fast to changes. If your campaign is performing badly, you can see it at once and change it. If your developers release something and it breaks a page or the tracking code, you will see it fast and can correct it. Conversions The efficacy of conversion marketing is measured by the conversion rate, i.e. the number of customers who have completed a transaction divided by the total number of website visitors. The conversion rate is influenced by multiple factors. We track the conversion performance with reports like: Performance of the mobile devices Find out if you have errors on particular devices and check how the user can progress through the checkout flow on these devices. You may have some blocking steps on these particular phones or tablets like coding incompatibilities or a bad user interface. Campaign performance Find out how your new campaign is doing compared with the benchmark. We compare your campaign performance across all campaigns of its kind from your own website and others so you will know where to improve the moment the information is vital. Goal and purchases evolution across time Find out what days are the best for your sale and what days are the worst and schedule your budgets and actions accordingly. Read more about setting up goals in: 'Setting up a destination goal funnel' or find out about using Enhanced Ecommerce to optimise product listings. Marketing Key Performance Indicators: Site traffic In ecommerce, part of the conversion rate equation is the site traffic, which makes monitoring the amount of people that get on a website a big thing. We monitor the performance of the website traffic in multiple reports divided by other segments. The segments monitored can be turned on and off in the Control Panel section of each account under segments. The segments currently available are Direct, Paid Search, Organic Search, Referral, Email, Mobile and Tablet. Segmentation of your traffic puts light on what channels fluctuate at some point in time so you can correct it. Page views per visit Average page views per visit are an excellent indicator of how compelling and easily navigated your content is. The formula is the total number of page views divided by the total number of visits during the same timeframe. Sophisticated users may also want to calculate average page views per visit for different visitor segments. We track the page views per visit across your website and compare them with your benchmark so you can see if the customer journey can be more easy and compelling. Traffic source We track each channel that brings you traffic and spot when traffic sources drop or spike. We have a smart reporting system that calculates traffic sources from different segments so you can see each traffic source fluctuations, giving you the opportunity to react promptly. Have any questions about these reports? Just contact us and ask! Further reading: Auditing web analytics ecommerce tracking Attributing goals and conversions to marketing channels Why do you need cross domain tracking
Vital Google Analytics custom reports and dashboards for ecommerce
Standard reports are useful to an extent. Custom reports and dashboards, on the other hand, allow you to compile metrics that give you much more useful insights of how your online shop is performing. Monitoring and reviewing the right data is essential for deciding which tactics or initiatives you should try, or marketing platforms to focus on, to help you sell more. If you are very familiar with how Google Analytics (GA) works, then you would set up some custom reports and dashboards to quickly access your key metrics. But if you are not as knowledgeable about the quirks and inner workings of GA then you should take advantage of the many custom reports and dashboards available for import. We can also help you build custom dashboards. There is a huge number of reports available in Google Analytics Solutions Gallery; used, created and shared by experts. They’re all done from scratch and designed to maximise your use of Google Analytics, but the huge amount of solutions from dashboards and channel groupings to segments and custom reports do require some time to find what’s right for your needs. From our experience setting up ecommerce tracking and reports for companies like MADE.com, British Red Cross Training, Pensions and Lifetime Savings Association, these reports and dashboards are valuable when analysing purchase data. Don't lose sight of your conversion rate Keep an eye on your ecommerce conversion rate across five different tabs covering channels, keyword, mobile devices, cities and campaigns. Focussed on high traffic sources, each section shows where it's not up to scratch and needs your attention and tweaking. Get ecommerce conversion rate performance custom report. Find duplicate transactions Duplicate transactions can greatly skew your numbers and affect your reporting, making you doubt the accuracy of your data. Duplicate order data is sent to Google Analytics typically because the page containing such information has been loaded twice. This can happen when the page is refreshed or loaded again. To find whether your data contains duplicate transactions, add our custom report to the view you want to check. Get a custom report to check for duplicate transactions. If you have more than 1 transaction in any row (or per an individual transaction ID), that means you have duplicate transactions stored in your data. It’s worth checking the report on a regular basis, eg monthly, to make sure that there are no duplicates or they’re kept to the minimum. Lunametrics blog has a number of suggestions for how to fix duplicate transactions. Overview of ecommerce performance This overview dashboard brings important top level metrics into one place, so you don’t have to go searching for them in multiple reports. You will quickly see which of your campaigns, channels, and sources are bringing in the most revenue, whilst comparing conversion rates across each. Get ecommerce overview dashboard. How is your store content performing See how your customers are engaging with your site, content and product (or page, depending on the setup) categories. You'll get information on what they search for, and which categories and landing pages bring in the most revenue. Get ecommerce content performance dashboard. Looking for improving your ecommerce tracking and reporting? Get in touch with our qualified experts. Further reading: Take your ecommerce website to the next level Attributing goals and conversions to marketing channels Tips to optimise your ecommerce landing pages Image credit: Image courtesy of Juralmin at Pixabay
Why do I need ecommerce tracking?
Attributing goals and conversions to marketing channels
On most websites, the conversion journey involves many different routes and across many sessions: few customers buy from the first advert. You may have heard of the ‘rule of 7’. In reality, it varies from maybe 2 or 3 touches for a $20 purchase and definitely more than 10 for an enterprise business service. Your company is buying prospects (or traffic) from a number of online channels, and in many cases, it will be the same potential customer coming from different sources. To be able to report on this in Google Analytics, we need to get the basic setup correct. Tagging campaigns for attribution The first step is to make sure that the different traffic sources can be compared in a multi-channel report are consistent and have complete inbound link tagging. Be sure to tag your campaign correct with our URL Builder. Some tools (such as Bing or Mailchimp) have options to turn on link tagging for GA - although it's buried in the settings. With many others, you will have to add the necessary ‘UTM’ parameters onto the link. Without this tagging, many sources will be misattributed. For example, affiliate networks could send referrals from any of thousands of websites which will appear under the ‘referrals’ channel by default. Facebook ads, since the majority come from the Facebook’s app, will appear under the ‘direct’ (or ‘unknown’) channel. From when full tagging is in effect, the channels report will start to reflect your genuine traffic acquisition source. But don’t expect a 100% match with other tracking tools – see our article on Facebook – GA discrepancies. Importing cost data The cost for any Google AdWords campaigns can be imported automatically, by linking the accounts, but for any third party campaigns, you will need to upload a spreadsheet with your costs on. The benefit is that now you can see the return on investment calculation update in real-time in the multi-channel reports. Model attribution The final step is to decide how you will attribute the value of a campaign if it forms part of a longer conversion pathway. The default for Google Analytics (and most others) is ‘last non-direct click’. That means that the most recent TAGGED campaign gets all the credit for the sale. If the user clicks on 5 Facebook ads, and then eventually buys after an abandoned basket email reminder, that email reminder will get all the sales (not Facebook). This attribution is what you’ll see in all the standard campaign and acquisition reports. You may feel that it is unfair on all the work done by the earlier campaigns, so ‘linear’ (sale equally credited to all tagged campaigns) or ‘time decay’ (more recent campaigns get more credit) may be a better fit with your businesses’ goals. Conclusion Multi-channel marketing performance attribution is not a luxury for the largest companies. It’s available to you now, with the free version of Google Analytics. It will require some setup effort to get meaningful reports (as with any measurement tool) but it has the power to transform how you allocate budget across a range of online marketing platforms. But if this still is not working for you then you may have a problem with cross domain tracking. Need a bit more advice or have any questions? Get in touch with our experts or leave a comment below! Get Social! Follow us on LinkedIn, Twitter, and Facebook and keep up-to-date with our Google Analytics insights.
Tips to optimise your ecommerce landing pages
Are your ecommerce landing pages suffering from poor conversion rate because people aren't engaging? First impressions are everything, and more so online, so your task is to figure out which on-site improvements will help you towards your goals. Once you start optimising, it's a continuous process of reviewing, changing, testing and refining - aiming to find out what is most appealing to your customers, what they like and care about, what makes them trust you, what encourages them to purchase. There is always room for refinements so here are some tips on what you should consider when reviewing your pages. What are you trying to achieve? Before starting testing and implementing the changes on your landing pages, you have to be clear about what you want to accomplish. Whilst the end goal for an online store is to increase sales, at times you might also want to get more sign ups, or improve views of or engagement with product pages. Think about what success will look like as that will help with planning your optimisation tests. How are you going to measure it? If you are clear about what you are trying to achieve, it will be easier to set measurable targets. Are you looking to increase your sales by 10% or pageviews of products by 15%? Or maybe you want your potential customers to browse further and spend more time reading content? Further engagement can also be demonstrated by the site visitor scrolling down the page if you have long product or category pages. In which case you'll want to track how far down the page they get to. I believe in keeping reporting straightforward so when testing focus on tracking important metrics only. Ideally just one if you can, or a few if you have to, but that will help focus on measuring what is most important for your business at the time. Assuming you are using Google Analytics, like most of people looking after digital performance, set up goals to monitor how customers are converting. Our web-based software also makes it easy to keep track of on-site changes are by reporting on changes in trends, goals, pages. Who are you targeting? User-focussed content is more effective at engaging your customers and improving your conversion rates. So you should write up your customer personas to be clear about who you are targeting with landing pages. This also applies to general look and feel of your ecommerce site. Most importantly, include with personas what problems your customers are trying to solve or what they are trying to achieve. Once your team knows who your ideal or typical customers are, then it will be easier to focus on creating more relevant and engaging content on those pages. Do you have a clear value proposition? Value proposition explains why you’re better than or different from your competitors, and what you can deliver that they can’t. When writing it up, focus on benefits not features. It’s not always about the product looking top notch (unless you’re the industry or company where that matters of course) so it is more about how you can alleviate their problem. Check out how to write your value proposition by following Geoffrey Moore’s model. Does your copy reflect your value proposition? Once you have your customer personas and value proposition, review existing content on the site against how you describe what your clients are looking for. Check if it fits with what they are looking for, explains how you can solve their problems or fulfill their desires. The copy on your site has to reflect how you can improve your potential customers lives through what you offer. A great copy informs, compels, captivates, reflects what people search for and promotes key benefits. Econsultancy have compiled a great set of advice from experts on writing copy for product pages. Also, check out Copyblogger Demian Farnworth’s articles for superb advice on writing copy. Have you found your winning call to action? This is very important – test your call to action until you find the best performing one. Your call to action is like a visual sign that guides the buyer towards a specific action you want them to complete. Different things work for different sites. Start off with trying simple changes like different text, colour, shape, size or placement of the button to figure out what is most effective for your page. If small changes aren’t helping, then try a more drastic change of the button or page. Do your pages load fast? This is pretty self-explanatory. Slow page loading speed might drive your potential customers away from your online shop, so you should regularly check whether they can view your products within 3 seconds (Source: Radware). If you’re using Google Analytics, you can use Site Speed reports to check how you’re performing and get advice on where to improve. If you don’t have Google Analytics, you can use their online tool PageSpeed Insights. Other tool worth checking out is GTMetrix where you can grade your site's speed performance and get a list of recommendations. Do you need to optimise for mobile? It’s a very common fact that more and more people are using mobile devices to browse and buy online. But unless you have unlimited budget for ensuring that your ecommerce site is optimised for mobile, it is best to check in Google Analytics first whether you need to do it now. If you go to Google Analytics > Audience > Mobile > Overview report, you will get a breakdown of device categories that buyers are using to visit your online store. Here you can see that the majority of customers, almost 93% are using desktop so in this case (assuming you have a limited budget) you might want to make sure you have a responsive site at the very minimum, and leave a full optimisation for mobile device for later when there is a sufficient need. Now, if results were different and let’s say you had 60% of people visiting your site via mobile devices, then you would want to ensure that they’re getting the best experience on their device and don’t leave the site to buy from a competitor instead. Are your test results statistically significant? Evaluating your AB test results isn't quite as simple as looking at the highest conversion rate for each test, which would be an incorrect way to interpret the outcome. You want to be confident that results are conclusive and changes you tested will indeed improve your conversion rates (or not, depending on the outcome of testing). That's where statistical significance comes in. It gives you assurance about the results of your tests whilst taking into consideration your sample size and how confident you want to be about the importance of the results. By reaching over 95% statistical confidence in testing results, you can be sure that the winning variation performed better due to actually being an improved version, and not simply due to change. You can easily find a calculator online that tells you if your AB testing results were statistically significant and you should conclude the test or not - for example, try the calculator by Kissmetrics or Peakconversion. There is no one winning formula for how to make your pages more effective, but you have to be pro-active to figure out what they are - so keep testing until you do. Have any questions? Leave a comment below or get in touch with our experts! Image Credit: Stocksnap.io
How to use Google Analytics' hidden features
Google Analytics is a powerful tool when you know how to use it. In this article, we will show you how to use some of the hidden features of Google Analytics and how to empower the use of data in your business. It's often said that the only constant in life is change. Humans are build up to resist change and this resistance to change is now more important than ever. Napoleon once said, "You must change tactics every 10 years if you wish to maintain superiority." In today's society, the pace of change is immensely faster, and it will only continue to accelerate. We know our children are growing up in a technological age, but the ability they show in mastering the new and smart devices is truly amazing. The new age is coming, and online stores must be prepared to meet these kids’ expectations. If you have a website then answer these questions before continuing: Are you attributing new and returning customers to marketing campaigns? How do you make that data accessible, accurate and comprehensive? Do you understand how your customers are using multiple devices through numerous touch points? Are you prepared to measure this type of behaviour as shown in the video below? [embed]https://www.youtube.com/embed/qn7RfQU1MJg[/embed] Stats on ecommerce websites The Internet Retailer Top 500 Guide, published in 2016, mentions that the online sales for 39 publicly trading retail chains ranked at 10.4% while comparable-store sales growth was only 1.4%. Online customers are predicted to spend $414 billion by 2018. That’s more than 57% revenue growth since 2013, according to InternetRetailer.com. Shoppers are flocking to retailer websites with good content: annual product video views increased by 42% in 2015, according to a survey of retailer clients by Invodo Inc., an online video marketing firm. And shoppers who watch a video are 1.7 times more likely to buy something than those who don’t - but videos must be relevant, and those depicting how to assemble or use a product get the best results. If the video has a higher rating, then the consumers are more likely to purchase that product, Invodo found. A five-star rating correlates to a 3.76% conversion rate, while a one-star rating yields a 1% conversion rate only. And do your KPIs consider how the customer feels; does your website do better than this video? [embed]https://youtu.be/3Sk7cOqB9Dk?list=RDN5WurXNec7E[/embed] How can you collect data about your customers? Many powerful analytics tools, such as Google Analytics, are free and can help you analyse where your traffic comes from, what your site visitors search for to find you, and what your potential customers do once they get to your site. You can track visitor interactions with your site at a very detailed level, such as traffic sources associated with revenue and keywords associated with revenue amounts. Tracking your website activity will make sure that the efforts in the above categories, such as changes you’ve made to your website’s appearance and order process, product presentation, incentives and social media, are paying off. If these efforts are paying off, by how much, and which is the best performer? As you probably know, there are hundreds (if not thousands) of ways to drive traffic to your online store. The problem is that many of them are expensive and many of them do not convert. Before you test any type of traffic and spend even a dime on driving traffic to your site, it is imperative that you set up conversion tracking. This way you know exactly which sources are converting for your store and know where to reinvest advertising budget to bring in more sales. How can you use that data? Let me start off with showing you how you can centralise all your digital performance in one place: Google Analytics. If you use a variety of systems and tools to run your business, you can use Google Analytics to join and analyse that data in one place. For example, you can turn separate CRM data, ecommerce data, and Google Analytics data into a single comprehensive view of your business. Each business system you use generates its own data store. Your CRM might contain information like customer loyalty ratings, lifetime value and product preferences. If you are a web publisher, your content management tool probably stores the author name and article category. If you have an ecommerce business, you might create catalogues that describe your products according to prices, style, size, etc. And, since you're reading this, you most likely use Google Analytics to track traffic and performance for your websites, mobile apps or appliances. Typically this data exists in its own 'information silo,' unaffected and uninformed by the data in other silos. But with the data import function, you can merge the data generated by your offline business systems with the online data collected by Google Analytics. This can help you organise, analyse and act upon this unified data view in ways that are better aligned with your specific and unique business needs. For example, as a web publisher, you could unite the web hits collected by Google Analytics with the data dimensions exported from your CMS and CRM systems to analyse the relative contributions of authors to your site. You can use the Google Analytics API and Google Apps Script to access your Google Analytics data from Google Sheets. This is a powerful tool because it allows you to utilise all the great features of Google Sheets with your analytics data, such as easy sharing, collaboration, charting and visualisation tools. Not everyone has the ability to read the Google Analytics reports but with the right implementation and the right declaration of your KPI’s you can generate easy to read, comprehensive and reliable reports on your business. What if you could have a single place to enter and see at a glance what you are interested in? All your business KPI’s brought to you on a plate and with fresh data every day? You can view the most viewed product this week to see if you can supply accordingly, or view your goal funnel and see where your customers abandon the site and much more. Segmenting your clients Use the data to improve. You have a bunch of customers on your website every month. They are all the same but still so different. Do not communicate with them in the same way: segment your customer list. Google Analytics includes predefined segments (system segments) that you can use as provided, or that you can copy and edit to create new custom segments. You can also build your own segments from scratch. In addition, you can import segments from the Analytics Solutions Gallery, a free marketplace where Google Analytics users share segments and other solutions they’ve developed. A segment is a subset of your analytics data. For example, of your entire set of users, one segment might be users from a particular country or city. Another segment might be users who purchase a particular line of products or who visit a specific part of your site. Segments let you isolate and analyse those subsets of data so you can examine and respond to the component trends in your business. For example, if you find that users from a particular geographic region are no longer purchasing a line of products in the same volume as they normally have, you can see whether a competing business is offering the same types of products at lower prices. If that turned out to be the case, you could respond by offering a loyalty discount to those users that undercut your competitor's prices. You can also use segments as the basis for audiences. For example, you might create a segment of users who visit your menswear pages, and then target just those users (your audience) with a remarketing campaign that is focused on the new items that you are adding to those pages. Are your CTAs clickable and your PDFs downloadable? Event tracking is one of the best ways to understand the user actions on your website such as how many times a button was clicked, a form was submitted, or documents were downloaded. You can measure interactions on your site by either implementing the Google Tag Manager Data Layer Event code or leveraging Google Tag Manager's Auto-Event Tracking functionality. With Auto-Event Tracking in Google Tag Manager, capturing these actions is easy. You can create event tags directly within the Google Tag Manager interface and fire them with triggers based on predefined variables or on custom variables that you can build within the Google Tag Manager. Now it’s easy and you have no excuse to see if your business plans are on the right track. If you know what actions your clients do on your website, you have the ability to take actions in the right direction. Stop guessing and start counting numbers and actions. We've written a blog post previously on how to set up event tracking in Google Tag Manager. Track your social buttons I expect you already have social share buttons on your website, but do you track them? Like with the call to action buttons, the social media buttons can be tracked and you can find out the impact of your social presence. There’s a lot of value in both implementing these social buttons in a good and fast way and measuring all these interactions. Seeing which sort of social buttons work for which types of traffic can really help you find what you should be optimising how. Track your campaigns If you are running marketing campaigns on social media you can increase the value and quantity of the insight even on you social media platforms. The standard Facebook pixel is caching the conversion, but by adding some lines of code on the Facebook pixel with the Google Tag Manager you can track the value of a purchase, what searches were made on the website, how many times did the campaign result in items being added to cart and wishlist, how many clients started checkout, content views, adding payment info or completing a registration. Your social campaign will have more relevance and will be more documented when you will merge the force of your data with the data from your social media platforms. To take the problem from the other end, you can build your social campaign in a way that will be shown in Google Analytics in very detailed way. Littledata provides a template to build powerful URL’s that can be used in your social campaigns. The role of this URL is to tag your traffic with the campaign information. The URL builder makes it easy to tag your campaigns and track them in Google Analytics. Simply enter your campaign details, and it will generate a tagged uplink for you in 'Final campaign URL' field. All upper-case characters are converted to lowercase to avoid using a combination of both, which results in same campaigns showing up in different categories in Google Analytics. Download the Littledata campaign tracking sheet with a URL builder. We have detailed this before in this article on the Littledata blog: Why should you tag your campaigns? There’s always room for growth. You can track a client that enters the store, adds to cart, sees the delivery cost and exits; you can retarget a client that bought a product from you with additional products and can set personalisation of the store based on the customer’s behaviour. So when you think you’re done developing that, rethink and start again! Interested in getting help with any of these features? Get in touch with our experts and we'd be happy to help! Get Social! Follow us on LinkedIn, Twitter, and Facebook and keep up-to-date with our Google Analytics insights.
How to calculate your marketing ROI
Are you running campaigns in AdWords, Facebook or on another advertising platform? Do you know whether your marketing efforts are paying off and which channels you should keep investing in to increase your product sales? As marketers face more and more pressure to demonstrate that their activities are contributing towards the profit, there is a bigger need for you to be able to show your decisions yield positive results. But if a particular channel or campaign is doing the opposite and causing your business losses, then the sooner you figure that out, the quicker you'll be able to adjust your further marketing plans. That’s where calculating and tracking your ROI becomes important. By being able to figure out how much you make from investing into a particular campaign or channel, you can figure out where to focus your budget. Whilst it’s difficult to compare the performance of specific marketing tactics across every single industry and company, there are interesting conclusions that have come out from market research. As reported by Web Strategies Inc., the top 3 channels that generated the best ROI were email marketing, SEO / organic search and content marketing. Email marketing has also been reported elsewhere to give the best ROI (source: Campaign Monitor), but you should focus on figuring out the correct ROI for your marketing activities and, based on that, decide which ones work for you best. Further reading: What is CRO, conversion optimisation, for ecommerce? Image Credit: Image courtesy of Maialisa at Pixabay
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