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Web & App DevBest 5 Google Analytics KPIs for Digital Marketers
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Average conversion rate.
This metric helps you determine the rate of visitors actually converting into customers. For example, if you obtain 1000 transactions from 300,000 website visits, your average conversion rate is 0.33%. If the average conversion rate is low, you can start assessing the quality of your customers as well as the effectiveness of your landing pages and website content.
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Average Order Value.
This metric shows the average product revenue. For instance, if you sell 10 units and generate $20, your average order value is $2. This value helps you assess the ROI of your transactions and see if the average order value is greater or lower than the average customer acquisition cost. If the average order value is less than the cost, you can boost the average spending by using pricing strategies such as product bundling or by targeting a more profitable consumer group.
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Average Per-Visit Value.
This metric shows the value of your consumers’ non-purchasing actions, such as downloading an eBook or registering for an event. It is important to measure these actions because they can be just as valuable as a sale. For instance, an eBook can help boost a company’s reputation when shared across social media. This in turn can help the company connect with more consumers and get more sales. To measure the average per-visit value, you have to first set actionable goals (such as the ones above) and assign a monetary value. An example would be assigning a monetary value of $1 to downloading an eBook.
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Average Return on Investment (ROI).
This metric tells you how much, as a percentage, you receive for every advertising dollar (Google AdWords) you spend on customer acquisition. To measure the average ROI, you have to divide the profit over the campaign cost. For example, if you spend $100 on AdWords ads and generate $110 in return, your ROI is 10%. This metric enables you to determine if you are generating gains from your marketing efforts.
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Customer on First Visit Index.
This index evaluates the amount, in percentage, of first-time visitors becoming buyers. This helps you determine the effectiveness of your AdWords ads and landing pages in pushing new visitors across the purchasing funnel. Moreover, this index helps you identify if you are targeting the right audience. To calculate the index, use this formula: percentage of transactions from new visitors/percentage of new visitors. For example, if 10% of your purchases are from new visitors and your website has 40% new visitor traffic, your customer on first visit index is 25%.
Smartt offers a 2-day Google Analytics Training Course designed to help corporate marketing teams bring ROI-oriented data and actionable insights into the boardroom. You can learn more about it on our digital marketing training page.
