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Lesson 8d: Driving Improvements with Analytics Data

Improving Revenue and Profit



   
Improving Revenue and Profit « Previous Topic       Next Topic  »

Objective: Learn to use the reports in the Ecommerce Analysis section to identify opportunities to increase revenue and profit.

Evaluating Overall Revenue Back to Top

A pharmacy takes orders online and via phone. Often online traffic will lead to phone sales. To determine when online traffic is creating offline sales, the marketing manager charts spikes of phone sales against online traffic to the Order by Phone page using the Content Drilldown report (in the Content section). He then determines the source of the referrals to the Order by Phone page and targets his campaigns accordingly.

Recall that a source is the web page from which your visitor was referred to your site. You can use the All Traffic Sources report to find out how effectively each source drives ecommerce revenue. The Ecommerce tab tells you:

  • The total revenue that resulted from the source
  • The number of transactions from each source
  • The average value of each transaction from each source

Use the Referring Sites report to identify your top e-commerce drivers, and build on your success on these sites. For example, by sorting on the Average Value column, you might identify a source that contributes a small percentage of your total revenue, but shows a high average value per transaction. Knowing this, you may want to increase your ad buys on this site. If it's a ratings site, you might want to ask your best customers to write a review on this site.

Use the Map Overlay in the Visitors section and click the Ecommerce tab to see which cities your revenue comes from. As with the Referring Sites report, you may wish to identify high 'Average Value' cities and increase your advertising targeted to those cities.

Identifying Revenue-Driving Keywords Back to Top

The online pharmacy loves to be able to directly track online sales back to the specific keywords on Google. To do this, they use the Search Engines report in the Traffic Sources section. From this report, they can select 'Google' from the table to get a report that shows all keywords from Google. The Ecommerce tab shows how much each keyword contributed to overall online sales.

Evaluating the Performance of Specific Products Back to Top

The Product Performance reports in the Ecommerce section are designed to help you understand and explore how each product contributes to your online sales. There are three reports: Product Overview, Product SKUs, and Categories. From these reports, you can click on any entry (product, SKU, or category) to see:

  • Items: Total number of units sold
  • Transactions: Total number of e-commerce transactions that included a purchase of this product
  • Product Revenue: Revenue earned from sales of this product
  • Average Price: Average price of the units sold
  • Average QTY: Average number of units sold per transaction

Optimizing Regional Marketing for Products Back to Top

The online pharmacy uses the Product Performance reports in the Ecommerce section to target ads to regional markets. These reports lend a compelling argument for local campaigns.

You can focus your product marketing by looking at the regions where each product does best. To to this, use the Product Overview report (under Product Performance, in the Ecommerce section). Click on one of the products shown in the report and you will see a Product Detail report for that product. Then, from the Segment menu, select 'Country/Territory,' 'Region,' or 'City.' The resulting report lists the geographic areas of where the buyers of that product originated.

Optimizing Product Advertising Back to Top

The online pharmacy also uses the Product Overview report to find out which keywords result in sales of its top performing brands of medication. By clicking on one of the products shown in the report, they can see a Product Detail report for that product. Then, from the Segment menu, they select 'Keyword.' The resulting report shows which keywords resulted in sales of the product.

This technique can be useful if you are trying to sell more of a specific product. You can find out which keywords resulted in the most sales of the product and then increase your spend on those keywords.

Other Important Information Back to Top

While Google Analytics can track the vast majority of visitors to your site, it is not able to track 100% of visitors. Please be advised that financial information should not be used for accounting purposes, but rather used as a measure to track and analyze trends.

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