As businesses continue to invest more and more into their online presence, whether it is through website development or online marketing channels, the same question often comes up about assessing value. How much are these “conversions” worth to me? If you’re operating an e-commerce site the answer is obvious – revenue! But what about those lead generation sites that take their sales funnels offline? The answer requires a little more work but it is well worth the effort.
If the purpose of your site is to generate sales leads (of any type) then it is important that you monetize these conversions to truly understand the value. The first step is to have the tracking capabilities for this conversion setup, which requires a simple URL Destination Goal in Google Analytics. If you’re using a form that sends users to a Thank You page once they complete it – this is a piece of cake (see below for setup screen). If your site is a little more dynamic and the URL doesn’t change during the form process for some reason then things are a little more complicated but still very doable (I’ll explain these methods in my next post about Virtual Pageviews and Custom Events).
You’ll see a field during the Goal setup called “Goal Value – optional” (highlighted in the green box above). This is where Google Analytics allows you to assign a monetary value to these conversions. Once you put in a dollar amount Google Analytics will automatically start multiplying it across the number of Goal Completions. It seems simple enough, and it is, but for many lead generation sites this is something that is never implemented due to the lack of a direct value.
Here’s how we would recommend calculating this Goal value. The two variables that you need to figure out are the expected transaction value and the probability of a transaction from that form completion. So for example, let’s say I’m a company that sells commercial printers and I use my website to generate sales leads. I know that on average my company can close 25% of all leads that come in and those customers spend approximately $1,000 each. Therefore, if I multiply that $1,000 times the 25% I can assume that each lead (form completion) is worth $250. Now I just need to put that value in the Goal setup and Google Analytics will start evaluating my online success for me.
Even though this value does depend on averages, it is a data-based figure that helps you to better translate the success of your site and marketing programs to a language that everyone understands – money!Pin It
by +Dan Cardamone