As a business owner, you want to know that your marketing efforts are leading to an improvement in sales and customer outreach. You may not be sure how to most effectively track your return on investment from online marketing. Luckily, there are several ways you can tell the percentage of visits that lead to sales through tracking on your website.
Setting up conversion tracking
There are two main types of websites you may have as a business owner: an e-commerce site where you sell and ship products directly to your customers or a lead-generation site to capture the contact information of customers who would like to utilize your services. The process for setting up conversion tracking is slightly different for each type of site.
Lead Generation Websites
Since your business does not deal directly with monetary transactions online, you will need to determine which actions on your website can be taken to count as a lead. The most common actions that can be assigned as conversions are calling the website by hitting a clickable phone number or filling out a contact form for more information or to schedule an appointment. If you allow users to sign up for your company newsletter directly on the site, you can also consider that a conversion. Once you have created forms and made your numbers clickable, enter them into the Goals panel within your Google Analytics dashboard. The easiest way to track form conversions is by having each form redirect to a Thank You page upon completion, with different confirmations for each form.
Regardless of the type of SEO campaign you are running, conversion tracking for your e-commerce websites will help you determine how much product you are selling, broken down by SKU and transaction. You’ll be able to tell the average amount of money spent per order, as well as the most popular products you sell. Unlike with lead generation, you’ll be able to put an exact dollar amount on each conversion, while also setting up tracking on your phone number and contact forms.
Analyzing Your Conversions to Determine ROI
Your Google Analytics dashboard will be able to provide you with a full breakdown of conversions set up as goals, including traffic and referral sources and the amount of money your website made in a given period. By comparing the total money earned through conversions (which can be calculated by the average price per service if you have a lead-generating website) to amount spent on your marketing efforts, you’ll be able to calculate the return on your investment. For example, if you spent $500 on search engine optimization in a month and made $10,000 from leads and products, your return on investment is $9,500.