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Using Web Analytics and Goal Conversions to Show Your Contribution to the Bottom Line

"Using web analytics and goal conversions to show your contribution to the bottom line." Greg Jarboe presentation at Measurement Boot Camp May 12, 2020

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Using Web Analytics and Goal Conversions to Show Your Contribution to the Bottom Line

  1. 1. Using web analytics and goal conversions to show your contribution to the bottom line Greg Jarboe President and co-founder of SEO-PR Measurement Base Camp 2020 May 12, 2020 1
  2. 2. Just as history is written by the victors, story of web analytics is authored by the market leader • After acquiring Urchin, Google launched Google Analytics at Pubcon Las Vegas on Nov. 14, 2005. • I was there with a client, John Marshall, the CEO of ClickTracks Analytics, which cost $495, $1,195, or $3,495. • We heard Google Analytics was “free.” • Back then, the market for web analytics software was very fragmented. • Today, Google Analytics and Google Analytics 360 have an 85% share of the traffic analysis market. Source: “ClickTracks Ships Version 6 of Its Web Analytics Software,” Oct. 13, 2005 2
  3. 3. Google Analytics measures both sessions (fka visits) and users (fka visitors) on your website • Session (fka Visit): The period of time a user is active on your site or app. • By default, if a user is inactive for 30 minutes or more, any future activity is attributed to a new session. • User (fka Visitor): A person or, more accurately, a unique browser. • Visitor and user tend to be used interchangeably when talking about websites, but Google Analytics uses “user” in the interface but also “visitor” in the actual dimension. Sources: Google Analytics Help, Glossary, and “The difference between Sessions and Users in Analytics” 3
  4. 4. Segments are subsets of your Google Analytics data that help you to analyze sessions or users • Segment: A subset of sessions or users that share common attributes. • Segmentation allows you to isolate and analyze subsets of your data. • For example, you might segment your data by marketing channel so that you can see which channel is responsible for an increase in purchases. • Drilling down to look at segments of your data helps you understand what caused a change to your aggregated data. Sources: Google Analytics Help, Glossary, and “The new Segment Builder” 4
  5. 5. Goals measure how often users complete specific actions, which are called conversions • Goal: A configuration setting that allows you to track the valuable actions, or conversions, that happen on your site or mobile app. • Goals allow you to measure how well your site or app fulfills your target objectives. • You can set up individual Goals to track discrete actions, like transactions with a minimum purchase amount or the amount of time spent on a screen. • Each time a user completes a Goal, a conversion is logged in your Google Analytics account. Sources: Google Analytics Help, Glossary, and “How to set up Goals in Analytics (7:32)” 5
  6. 6. Conversions are completed activities that are important to the success of your organization • Conversion: A completed activity, online or offline, that is important to the success of your organization. • Examples include a completed sign-up for your email newsletter (a Goal conversion) and a purchase (a transaction, sometimes called an Ecommerce conversion). • A conversion can be a macro conversion or a micro conversion. • A macro conversion is typically a completed purchase transaction. • In contrast, a micro conversion is a completed activity, such as an email signup, that indicates that the user is moving towards a macro conversion. Sources: Google Analytics Help, Glossary, and “Goals” 6
  7. 7. Identify effective methods to establish your organization’s goals related to digital analytics • “HiPPOs” rule the world. • Highest Paid Person’s Opinion. • So, sit down with Senior Management and identify their hot buttons. • What is their bonus based on? • Generally, they focus on outcomes. • Increase revenue. • Trim costs. • Improve customer satisfaction. • Be an advocate of customer centricity. • Bring your customer’s voice to the table. Source: Avinash Kaushik, Occam’s Razor, “Seven Steps to Creating a Data Driven Decision Making Culture,” Oct. 23, 2006 7
  8. 8. Describe four common organizational goals related to digital analytics found in templates • Google Analytics has Goal templates to help you set actionable goals for standard organizational objectives. • You can edit any template field. • The 4 goal categories are: Revenue, Acquisition, Inquiry and Engagement. • Use them as an organization tool to think about the purpose of your goals. • Create at least one goal for each category to understand of how users interact with your content. • These categories don’t affect any data. Source: Google Analytics Help, Create, edit, and share goals 8
  9. 9. If you get Edit permission in Google Analytics, let me show you how easy it is to create Goals 9
  10. 10. Assigning a goal value is optional, but it helps you evaluate economic value of conversions • When you set up a goal, you have the option of assigning a monetary amount to the conversion. • Each time the goal is completed by a user, this amount is recorded and then added together and seen in your reports as the Goal Value. • Every action a user takes can be translated into a dollar amount. • One way to help determine what a goal value should be is to evaluate how often the users who complete the goal become customers. • For example, if your sales team can close 10% of people who sign up for a newsletter, and your average transaction is $500, you might assign $50 (i.e. 10% of $500) to your newsletter sign-up goal – a goal that users complete when they reach the final newsletter sign-up page. • In contrast, if only 1% of signups result in a visit to your clinic, then you might only assign $5 to your newsletter sign-up goal. • Although assigning a goal value is optional, it will help you to evaluate the economic value of your micro as well as your macro conversions. • If using a dollar amount as a goal value doesn't seem applicable to your site or app, just use a consistent numeric scale to weight and compare your conversions. Source: Google Analytics Help, About goals 10
  11. 11. Describe event tracking and how you can use it to achieve the best possible reporting of goals • Events are user interactions with content that can be measured independently from a web-page or screen load. • Downloads, link clicks, form submissions, and video plays are all examples of actions you might want to analyze as Events. • You need to add code to your site or app in order to see data in your Events reports. • Setup tags with Google Tag Manager. 11
  12. 12. Tag Manager uses trigger configurations to fire tags in response to Google Analytics events • Google Tag Manager is a tag management system (TMS) that allows you to quickly and easily update measurement codes and related code fragments collectively known as tags on your website or mobile app. • Once the small segment of Tag Manager code has been added to your project, you can safely and easily deploy analytics and measurement tag configurations from a web-based user interface. 12Source:
  13. 13. Google Campaign URL Builder tool allows you to easily track Custom Campaigns in Google Analytics • This tool allows you to easily add campaign parameters to URLs so you can track Custom Campaigns in Google Analytics. • Fill out the required fields (marked with *) in the form, and once complete the full campaign URL will be generated for you. • Convert the URL to a short link and use it in any promotional channels you want to be associated with this custom campaign. 13Source:
  14. 14. Differentiate metrics and KPIs using a personal story that Avinash tells in Web Analytics 2.0 • Avinash Kaushik tells the following story to differentiate metrics and KPIs: • I told my wife, “Honey, I’ll be writing for the next couple of hours.” • She said, “Go to bed; you need the rest.” • I said, “Did you know that in the past 30 days there were 79,631 visitors who came to my blog from 176 countries?” • She said, “That’s great; go to bed.” • Then I said, “You need to let me blog because in the past 30 days the blog created a total economic value of $26,210.” • Pause. • Then she responded, “Work harder.” • You don’t want metrics that measure marketing outputs. • You need KPIs that measure business outcomes to give your wife, who doesn’t care if you are world famous in Poland, a bottom-line reason to let you stay up late to do some blogging. Source: Avinash Kaushik, Web Analytics 2.0, Oct. 26, 2009 14
  15. 15. Select KPIs that align to your business success for your brand as well as your performance campaigns • Last year, Google audited the analyses being shared with their leadership by teams across marketing. • They discovered that, collectively, they were reporting on 70 different metrics globally. • How did they expect their CMO and VPs to make coherent decisions, to compare one campaign or strategy to another, when their teams weren’t speaking the same language? • So, they whittled down all those data points to just six metrics that matter. • Why that number? • Because they run 2 types of digital marketing campaigns: brand and performance. • Across those campaigns, they care about 3 things: whether their campaigns are capturing people’s attention, how people are behaving in response, and what the outcome is. • So now, rather than drowning in metrics, Google has just one KPI for each of the six things they’re interested in measuring. Source: Avinash Kaushik, Think with Google, “Advertising metrics for your bottom-line,” May 2019 15
  16. 16. Google used Avinash’s Impact Matrix to classify advertising metrics based on their business impact • Google classifies the tsunami of metrics using an impact matrix. • The x-axis indicates when a metric becomes useful. • Impressions are useful in real time. • Customer lifetime value takes months to be useful. • The y-axis indicates whether a metric is tactical or strategic. • Impressions are super tactical. • Customer lifetime value, on the other hand, is super strategic. Source: Avinash Kaushik, Think with Google, “Advertising metrics for your bottom-line,” May 2019 16
  17. 17. Choose KPIs with your business objectives in mind for your next brand-building marketing campaign • So, if a marketer is running a brand campaign, then Google awards the Gold to tracking how often an ad was audible and visible at completion (AVOC , since they know from testing that this is a better KPI of intent. • Tracking Viewability gets the Silver because it’s a good KPI of task completion rate. • And tracking on-target impressions gets the Bronze because it’s an okay KPI of Awareness. Source: Avinash Kaushik, Think with Google, “Advertising metrics for your bottom-line,” May 2019 17
  18. 18. Choose KPIs with your business objectives in mind for your next performance marketing campaign • But, if a marketer is running a performance campaign, then Google awards the Gold to tracking their competitive share because this is a better KPI of lifetime value. • Tracking click-through rate (CTR) gets the Silver because it’s a good KPI of gross profit in the short-term. • And tracking the percentage of new visits gets the Bronze because it’s an okay KPI of low cost per acquisition, which measures one-night stands. Source: Avinash Kaushik, Think with Google, “Advertising metrics for your bottom-line,” May 2019 18
  19. 19. Align your analytical output with each leader’s altitude vs a data dump of every metric available • Google has divided 46 metrics from their impact matrix based on who needs to take action on them. • Super tactical metrics in the bottom- left side are automated as far as possible. • Metrics from the middle, which need human contextual interpretation, are delivered to managers and directors. • Super strategic metrics in the top-right section are the ones they share with their VPs and CMO. Source: Avinash Kaushik, Occam’s Razor, “The Impact Matrix | A Digital Analytics Strategic Framework,” July 24, 2018 19
  20. 20. How communications professionals can use brand lift to do measurement right with a limited budget • Ask your target audience up to 10 questions before your PR campaign. • Unaided brand awareness: “When it comes to <category>, what brands come to mind?” • Consideration: “How likely are you to consider [brand] when making your next <category> purchase? • Purchase intent: “How likely are you to purchase [brand]?” • Favorability: How likely is it that you would recommend <brand> to a friend or colleague? • Ask your target audience the same questions after your PR campaign. • We did this in 2019 for Rutgers University and pre- and post-surveys cost <$2,000. 20
  21. 21. More ineffective vs effective KPIs: ‘Time on Site’ is the evil twin of the better angel ‘Task Completion’ • “Time on Site” can’t measure: • Time spent on the site if a user only sees one page. • Time spent on the last page of the visit. • A free “Task Completion” survey asks: • Overall, how satisfied are you with this website? • What, if anything, do you find frustrating or unappealing about this website? • What is your main reason for visiting this website today? • Did you successfully complete your main reason for visiting this website today? Source: Avinash Kaushik, Occam’s Razor, “You Are What You Measure, So Choose Your KPIs (Incentives) Wisely!,” April 23, 2012
  22. 22. Metrics and KPIs tend to come in pairs: ‘Revenue’ is the evil twin of the better angel ‘Economic Value’ • Ecommerce/lead gen websites have a deep obsession with “Revenue.” • Their “buy now” buttons make that clear. • So, if 98% of visitors do not convert in their first session, then their visits are marked as failures! • A better KPI is “Economic Value.” • Economic Value is the sum of Revenue plus the value created by all of the micro- conversions on your website. • So, when someone visits your site and signs up to receive your email newsletter, that is not a failure. Source: Avinash Kaushik, Occam’s Razor, “You Are What You Measure, So Choose Your KPIs (Incentives) Wisely!,” April 23, 2012
  23. 23. Measure your Return On Marketing Investment (OPEX), not your Return On Investment (CAPEX) • [Incremental revenue attributable to marketing ($) * contribution margin (%) – marketing spending ($)] / marketing spending ($) = ROMI. • For example, if the Rutgers Business School Executive Education (RBSEE) program spent $2,323 on a mash-up of influencers and PR and the program delivered $29,970 in incremental revenue in 90 days, and the contribution margin was, say, 70%, then the ROMI was ($29,970 * 70% - $2,323 / $2,323), or 8.0. • So, every $1 spent on influencers and PR generated $8 of profit for RBSEE. Source: Greg Jarboe, VidCon, “How an unexpected mash up of influencers and PR delivers ROMI to brands,” June 23, 2017
  24. 24. A very effective and persistent segmentation strategy is often the missing key to success • Absolutely nothing is more important in digital analytics than segmentation. • Different types of visitors come to your website. • And they all come with different intentions, with different problems, and with different personas. • Yet most web analytics reporting and analysis happens at an aggregate level. • Avinash Kaushik says, “Insights arrive faster with segmentation,” and he adds, “All data in aggregate is crap.” Sources: Avinash Kaushik, Web Analytics 2.0, Oct. 26, 2009, and Occam’s Razor, and “Google Analytics Visitor Segmentation: Users, Sequences, Cohorts,” Sept. 9, 2013 24
  25. 25. Define a digital analytics segment: It is a subset of your entire set of website users, sessions, and hits • A segment is a subset of your Google Analytics data. • For example, 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 analyze 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 your online services, then you can see if a competitor is offering the same types of online services at lower prices. • You can also use segments as the basis for creating audiences. • For example, you might create a segment of users who visit the family and visitor guides on your site, and then target just those users (your audience) with a remarketing campaign focused on sending flowers, gifts, or a greeting card. Source: Google Analytics Help, About segments 25
  26. 26. List four default segments currently provided in today’s more popular digital analytics tools • A segment is made up of one or more non-destructive filters that do not alter the underlying data. • Those filters isolate subsets of: • Users: for example, users who have previously purchased; users who added items to their shopping carts, but didn’t complete a purchase. • Sessions: for example, all sessions originating from Campaign A; all sessions during which a purchase occurred. • Hits: for example, all hits in which revenue was greater than $10. • Combination: You can also include filters for users, sessions, and hits in the same segment. Source: Google Analytics Help, About segments 26
  27. 27. For example, Google Analytics currently provides 22 predefined system segments that you can use • All users. • Bounced sessions. • Converters. • Direct traffic. • Made a purchase. • Mobile and tablet traffic. • Mobile traffic. • Multi-session users. • New users. • Non-bounce sessions. • Non-converters. • Organic traffic. • Paid traffic. • Performed site search. • Referral traffic. • Returning users. • Search traffic. • Sessions with conversions. • Sessions with transactions. • Single session users. • Tablet and desktop traffic. • Tablet traffic. 27
  28. 28. Did 10 press releases for Rutgers generate 1,139 visits and 77 leads, or 4,062 visits and 266 leads? • Using Google’s Campaign URL Builder, we tracked 1,139 visits and 77 leads back to 10 press releases in Q3 2011. • But, we also saw 1,459 incremental visits and 102 incremental leads from organic search quarter-over-quarter. • And, we saw 928 incremental visits and 60 incremental leads from direct traffic quarter-over-quarter. • Plus, we saw 536 incremental visits and 27 incremental leads from referrals quarter-over-quarter. 28Source: Linking Press Release Output to Outcomes
  29. 29. Build a segment of new users to your site during a date range as the result of a specific campaign • You can build segments to identify cohorts, • For example, new users to your site during a specific date range who arrived as the result of a specific campaign. • Use filters like the following: • Date of First Session: The date range of your campaign. • Traffic Sources: Campaign exactly matches name of your campaign. • With cohorts, you can follow the behavior of the same set of users over time. • For example, you can create cohorts based on campaigns, and follow those users over a period of weeks or months to see how quickly and to what extent those users converted. • If there’s a regularity to the lift and drop off, then you can use that information to start your new campaigns as the effects of the previous ones start to subside. • You can also make direct comparisons of campaigns to see which of them are more effective in terms of overall conversions and revenue. Source: Google Analytics Help, Analyze data with segments 29
  30. 30. Learn how to incorporate Google Analytics into your measurement program in 4.3 hours • I’m an Online Marketing Certified Professional (OMCP) certified trainer. • To teach all 8 courses that are considered core to the Online Marketing Certified Associate (OMCA) exam takes a minimum of 34.4 hours. • The minimum didactic training time for just the OMCA-Approved Digital Analytics course is 4.3 hours. • Although, the average didactic time is currently 4.8 hours. • So in 90 minutes, I was only able to cover 31-35% of what you really need to learn. 30