How To Calculate Marketing ROI Using Google Analytics

Does this sound familiar?

Your business invests money in online marketing but you aren't sure if that marketing is generating revenue. Everyone tells you that clicks mean success, but what your business really needs is more customers. At the end of the day, you just want your online marketing to do what it is supposed to do and grow your business!

Google Analytics is free and easy to install. It provides a wealth of information about what is hot and what is not on your website pages, BUT how can you find out your Marketing ROI?

Step 1

Set goals in Google Analytics

To set a goal in Google Analytics is pretty easy. Choose events that lead to revenue generation. It can be as simple as Quotes Submitted, particular Downloads or number of Downloads, Specific Time On Page or Watching a Video.

[Click here to see what Google says about setting goals.]

Here are some examples of goals that lead to revenue generation.

It takes an understanding of your business processes to select the correct goals. When selecting goals it is best practice to involve all those involved in the sales process so proper attribution can be assigned. 

 Step 2

Add a dollar value to the goals

Your gut reaction might be to assign Total Sale Value as the monetary value of the goal. The problem is you have not accounted for all costs.  We recommend that you download our ebook Marketing Metrics Your Boss Really Cares About for the methodology of calculating ROI on marketing.

Download
The Marketing Metrics Your Boss Really Cares About

Consider using some percentage of the profit after accounting for all costs. You must reach a consensus agreement with everyone involved in the process. Once you have agreement on the profit piece, the really hard part is next.

You must identify the sales that were generated by your website. This could include visitor downloads before they called for a quote or Simple Form Submission. This requires meticulous attention to detail in record keeping and the patience to gather historical data. Segregate existing customers from new customers to present a solid case so you don't hear "They were already a customer so we would have gotten that business anyway."

We like to use HubSpot with our clients as it makes tracking and attribution simple.

• Collect Data over a Specified Time Range - 30 days is OK, but 90 days is better.
• Reevaluate your goals to make sure you did not miss any "key" revenue generating activity.
• Determine the monetary value from website generated revenue based on goal completions.
• Assign Monetary value in Google Analytics.

Now you will see the results of your efforts in Google Analytics reports.

 There are no participation trophies in business. You need to know if your digital marketing is generating revenue.

Have more questions?

Schedule A Time To Talk

You don't sell a product directly on your website. There is no shopping cart. How do you know if your website is actually helping people buy your product or service? Now let's complicate it further by asking what role social media played in bringing buyers to your website?

These are complicated questions and you would think you need a complex solution to answer them. Do you need to purchase special 3rd party software? Would it be better to pay a developer to write a custom program for your unique business situation?

There is a simple solution to this complex problem.

Did we mention it is free?

It is Google Analytics.

It is likely that you already have Google Analytics on your website. If not, it is free and is simple to install.  You do not need any special coding skills. Follow these simple steps to install Google Analytics. Once Google Analytics is installed you are ready to measure the impact of social media in the buying process.

How To Calculate The ROI From Social Media

Set a Goal in Google Analytics

 Choosing a goal in Google Analytics is simple. Choose events that lead to revenue generation. It can be as simple as Quotes Submitted, particular Downloads or number of Downloads, Specific Time On Page or Watching a Video.

Click here to see what Google says about setting goals.

Here are some examples of goals that lead to revenue generation.

It takes an understanding of your business processes to select the correct goals. When selecting goals it is best practice to involve all those involved in the sales process so proper attribution can be assigned.

ProTip- Create a Thank You page for all completed activities that are related to revenue generation.  Make the Thank You page the goal.

Assign A Dollar Value To The Goal

Your gut reaction might be to assign Total Sale Value as the monetary value of the goal. The problem is you have not accounted for all costs.  We recommend that you download our ebook Marketing Metrics Your Boss Really Cares About for the methodology of calculating ROI on marketing. Consider using some percentage of the profit after accounting for all costs.

Download
The Marketing Metrics Your Boss Really Cares About

You are almost there. Here are the next steps:

1. Collect Data over a Specified Time Range - 30 days is OK, but 90 days is better.

2. Reevaluate your goals to make sure you did not miss any "key" revenue generating activity.

3. Determine the monetary value from website generated revenue based on goal completions.

4. Assign Monetary value in Google Analytics.

Measure the impact from Social Media

In Google Analytics, click Conversions.

You can now drill down to see what social media channels were involved on goal conversion.

In  Overview, you can simply click Source/Medium and you will see which social media platforms contributed to conversions.

You can also click Goal Flow and see how visitors entered from social media and what path they took to arrive at the goal.

Now take a look at Multi-Channel Funnels.

This provides a holistic overview of  how they reached the goal.

You can then look at Assisted Conversions and see the monetary impact of  social media .

You can now calculate the ROI from social media. This is also a gut check. Google Analytics has no emotions so you are going to see what is really going on with your marketing. The winners and losers.  If your social media is not having the revenue generation impact you had hoped, maybe we should talk.

Schedule A Time To Talk