Increasing Profitability with Google Analytics

Thanks ThinkHouse Collective!

Mike LinvilleOwner/Chief Project Manager

Black Dog StudiosBlack Dog Education

*Self Employed Business Owner for 13 Years

What is Web Analytics?

The measurement, collection, and reportingof Internet data for the

purpose of understanding

and optimizing web usage.

Web Analytics Association

Huh?

The key takeaway is that analytics is a

process focusing on trends, not absolutes.

The Analytics Process

Measure

LearnAction

The goal is to get closer to a perfect process.

The Tools

Why Google Analytics?

• FREE!!!• Powerful• Works well with other

Google tools• Adwords, Adsense,

Website Optimizer• Awesome reporting• Simple installation

What about Profitability?


“Widget X” = $100Production + Fulfillment => $60

Marketing + Profit => $40

[PPC = $0.50 / click]


2% conversion[1 sale in 50

clicks]



[PPC = $0.50 / click]



clicks]$40-$25 = $15 Profit



[PPC = $0.50 / click]





clicks]



[PPC = $0.50 / click]





clicks]$40-$16.50 = $23.50 Profit



[PPC = $0.50 / click]


3% conversion[1 sale in 33 clicks]

1% Increase in Conversion Rate = 57% Increase in Profit!



[PPC = $0.50 / click]


To Increase Profits…

Increase Conversions

!

3 Main Goals for a Website

• Make Sales• Generate Leads• Build Your Brand

Analytics works for all three!

Crawl > Walk > Run

Leveraging analytics for your business is a 3 step process…

Basic Usage

Goals

Sales Funnels

I. Basic Usage: Visitors

Demographics:•Location, Language

Behavoir:•Frequency, Engagement

Technology:•Browsers, Operating Systems

I. Basic Usage: Traffic Sources

• Where the traffic to your site is coming from.

• The keywords being used to find you.

• Adwords statistics.

I. Basic Usage: Content

• Site Content • Site Speed• Site Search

I. Basic Usage: Events

• Track a document download.

• AJAX newsletter sign up.

• Video Interaction.

I. Basic Usage

Visitors | Traffic Sources | Content

• These basic reports are like a physical for the health of your website.

• Great for pinpointing the problem areas.

• You’ll want to know more.

II. Goals

• Though basic usage delivers great analytics, it isn’t customizable.

• Next step is customization and defining what your goal is.

II. Goals

Easy Setup:

•Name•Type•Value [Forecasting]

* Max. of 20 goals per profile [4 groups of 5].

II. Goals

3 Types of Goals:

•URL Goal•Engagement Goals•Event Goals

Example #1URL Goal = Increase Newsletter Sign Ups

Sign Up ForOur

Newsletter

Example #1URL Goal = Increase Newsletter Sign Ups

Sign Up ForOur

Newsletter

Thank You and

Welcome!

Example #2Engagement Goal = Video Page

Landscapers, Inc.Problem:

Even though the page load gets tracked Google Analytics can’t tell anything about the video.

Example #2Event Goal = Video Page

Landscapers, Inc. Solution:

Create a series of events that relate to the video.

•Player Load•Video Start•Video Completion

Why Goals Are Good

• Gives you a deeper level of understanding of how users are using your website.

• Packages the results up into easy-to-read reporting.

Example #3E-Commerce Stores

Using PPC, you notice you’re paying for 1000 clicks, but are only making 100 sales.

Example #3E-Commerce Stores

To see where the other 900 clicks are going, you need to look at the entire sales process.

III. Goals Funnels / Sales Funnels

A funnel is a series of pages that lead up to an actual goal.

•Broader look at the process before the sale.•Can have up to 10 steps.




After you’ve set up the steps of your goal,

Google will create a Funnel Visualization

Report.

III. Goals Funnels / Sales FunnelsThis graphical breakdown of the entire process will tell you exactly where your issues are.

•It is up to you to figure out how to fix them.•Default to best practices and test.

Website Optimizer

• How you “fix” the errors you find using Google Analytics.

• Allows to easily perform A/B testing.

Website OptimizerA/B Testing

vs.

AOriginal


vs.

A BOriginal New


Install the code and Google will…

•Split traffic between the pages.•Tell which page is the winner [min. 200 conversions].•The winner becomes your new baseline, and you test again!

AB

The Wrap

• Feeling overwhelmed?

• We covered A LOT, because there’s a lot to Google Analytics.

• The key is that you don’t have to do it ALL; jump in and get started!

The Wrap

Remember: a 1% increase in conversion resulted in a 57% increase in profits!

•What would a 57% increase in profits mean to you, RIGHT NOW?

The Wrap

With that extra money:

•Could you hire an employee?•Save money for a vacation?•Have a date night with your spouse?•Take a day off?

Any Questions?