4 Steps for E-Commerce Businesses to skyrocket revenue using Google Analytics
Google Analytics is a must for all businesses, especially for E-Commerce businesses to track webshop’s performance. However, this doesn’t mean the growth in revenue for any business automatically.
Google Analytics provides the platform to utilize the following optimization framework, which ultimately results in revenue growth (if followed diligently).
Our Google Analytics Expert, Ketnapha Wilaiprasitporn (Nan) shared her knowledge about this subject with us. P'Nan is working at Heroleads as a Senior Web Analytics at Heroleads.
"The objective of this optimization framework is to ensure that businesses act on data and not on gut-feeling on luck."
And the best part is that this 4-step framework can be easily executed in day-to-day marketing activities as well.
Let’s review the framework in detail now:
Step 1: Analyze
Analysis of the data is crucial for any campaign success since it provides you the flexibility to adapt the strategy to meet the KPI’s. Based on the E-Commerce data in Google Analytics, a Web Analyst can deliver insights.
Step 2: Insights
The insights collected from the data analysis will help in coming up with an action plan. It allows marketers to answer questions like, What is my best performing marketing campaign? Which products are purchased the most? Where do my visitors cancel their purchase?
Step 3: Action
Once marketers are able to figure out the answers to the above questions, it’s easy to find the recommendations and implement the action plan. For example, some recommendations can shift your marketing budget from the low performing to a better performing channel.
Step 4: Change
Out of several recommendations, marketers can choose the best-recommended actions they want to implement. And after the change is implemented, Google Analytics analyzes what impact the change had on the sales and revenue. Based on this, the cycle starts again.
Top 4 recommendations to increase the revenue
To save you some time, we are presenting some of the most common recommendations which are applicable to most webshops.
These recommendations are based on our vast experience of working on different campaigns with different types of clients.
1. Increase your revenue by increasing Average Order Value (AOV)
If you calculate the AOV, you can offer free shipping for a price that is slightly higher than AOV.
For example, if AOV is 642 Baht, then try out free shipping for 700 Baht up
2. Save money by optimizing marketing budget
Always compare your paid traffic channels (campaigns). Calculate the Return on Ad Spend (ROAS) for each campaign (Revenue / Cost = ROAS) and accordingly reduce your marketing budget on campaigns with a low ROAS. Spend that money into campaigns with high ROAS
3. Increase orders with cheap remarketing
When you use Enhanced Ecommerce Tracking, you can see exactly where in the purchase process most people drop out. In Google Analytics you can just click on that dropout and create an Audience.
This audience can be imported into Google Ads and you can use this Audience for a Remarketing Campaign. Remarketing campaigns are cheaper than regular campaigns and the number of orders can be increased if you offer a 5% coupon in the banner of this ad.
4. Increasing online marketing performance by using Dynamic Remarketing
Have you ever noticed how Lazada will show you exactly the same product you have been searching for? That’s Dynamic Remarketing. If done right, it can be cheaper and more effective than normal marketing campaigns and normal remarketing.
The difference is, that Dynamic Remarketing will only show the products that the visitor is really interested in. This increases the chance of the visitor to purchase and such campaigns have much lower Cost per Conversion.
The end result is usually a decrease in marketing costs and an increase in the number of sales.
There are a lot of insights that can be derived from Enhanced Ecommerce in Google Analytics. Finding those and giving you actions that benefit your business is the main purpose of Heroleads. The Web Analysts at Heroleads are glad to help you if you need help setting up Google Analytics with Enhanced Ecommerce Tracking for your shop.
Heroleads is a data-driven performance marketing agency dedicated to empower your online marketing strategy using "state-of-the-art" technology and a professional team.