Assigning values to goals in Google Analytics provides you with a better understanding of the performance of your marketing. For this article, we’re going to show you the process we use for assigning values in Google Analytics so that you can optimise your performance based on revenue.
Most marketers report on the success of their marketing based on leads and conversions in Google Analytics.
Assigning goal values in Google Analytics is a great way to keep track of your conversions on your site and allows you to focus on the areas of marketing that have the potential to drive more valuable leads.
For this article, we’ll discuss:
- What a Goal Value is in Google Analytics
- How to setup Goal Value in Google
- Things to consider about Goal Values
- How to calculate Goal Values.
What is a Goal Value?
Google Analytics allows you to assign goal values so that you can measure the performance of your marketing based on revenue and not just conversion data.
Goal Value refers to the value given to it inside of the admin section where you create your goals and is a simple way to keep track of goal conversions on your site that are not eCommerce or revenue-based but significant to your overall business growth.
In short, Goal Values can help you make much better marketing decisions which can impact your ROI.
How to assign Goal Values in Google Analytics?
Let’s look at how to assign Google Values in Google Analytics.
The setup is straightforward, and all you need to do is follow these four simple steps:
Step 1: Go to your Google Analytics standard reports.
Step 2: Click on the “Settings” in the bottom left.
Step 3: Select “Goals”.
Step 4: If you’re creating a new Goal then click “+ Goal”. Or, for an existing goal, click on edit.
Step 5: Select your Goal type and fill out any relevant descriptions.
Step 6: In Goal details, switch on Value and add in your desired amount.
Things to consider setting up Goal Values in Google Analytics
Before you apply any values in Google Analytics, there are a few things you need to consider first.
Goal Values aren’t dynamic
Goal Values in Google Analytics are static. So, let’s say you add £10 to the Value. Every time somebody completes a goal, Google Analytics will assign that amount.
In most cases, different sources generate unique revenue and lifetime values. Also, it’s important to remember that Goals in Google Analytics are not actual sales.
Goal Values are permanent
The values you assign in Google Analytics are permanent. They do not update dynamically or change proactively based on adjustments you make to your website.
So, if you upload the wrong value and someone completes that goal, then that value will remain locked within Google Analytics reports as there’s no way to remove it.
But why does this matter?
Uploading the wrong value will lead you to the wrong conclusions about the performance of your marketing, and you could end up making decisions that will harm your revenue growth.
Not suitable for eCommerce websites
Goals Values aren’t suitable for eCommerce websites.
Google Analytics offers eCommerce tracking and provides much better insights about your products, transactions and how long it takes your customer to complete a purchase.
So, if you sell products online, you should stay clear of Goal Values when it comes to tracking your revenue.
How to calculate goal values?
Assigning values is much easier for businesses that accept payments online.
For example, let’s say you’re using digital marketing to promote an offline event but take payments online.
People can go onto your website, book and pay for their ticket, and you can use the total cost to assign this as a value in Google Analytics.
Sounds easy, but what if you don’t accept payments online?
What if you’re a marketing agency which generates leads online but convert sales offline, or have a SaaS product and rely on metrics such as monthly recurring revenue?
This is where things get a little tricky.
Fortunately, there are a few methods you can use to help calculate and assign values to Goals in Google Analytics.
Closed-loop marketing attribution
While setting up goals is technically straightforward, calculating your numbers and assigning values in Google Analytics is a different kettle of fish.
Google Analytics assumes that marketers have the information they need to assign values to goals, but that usually isn’t the case.
When a visitor converts into a lead, whether that be a form completion or phone call, that data is passed onto the sales team. This information is typically locked away in CRM systems leaving marketing in the dark on which activities are leading to actual revenue.
To accurately calculate your Goal Values, you need a solution that can connect your conversion and revenue data so that you can determine which specific marketing activities are most effective in driving sales.
And, Ruler Analytics can help.
Ruler Analytics is a closed-marketing attribution solution which aligns revenue from your CRM with marketing data in Google Analytics, allowing you to track your visitor’s multiple touchpoints to measure and attribute value accurately across the entire sales cycle.
It tracks anonymous visitors across all website visits, collecting information on what campaigns and content those visitors interact with at each visit.
Once a visitor becomes a lead, that marketing data is passed along to the CRM, allowing conversions to be attributed back to the marketing campaigns that drove the sale.
You can download our eBook on closed-loop marketing attribution if you’d like to learn more on how to connect online and offline revenue to your marketing activities.
It’s worth mentioning, Ruler Analytics is an official Google Analytics partner. In other words, Ruler Analytics can integrate revenue data straight into your Google reporting tools, allowing you to track values for all of your online or offline goals.
Calculate an estimated value
Now, if you’re looking for more of an estimated figure, then you can use the following formula to calculate and assign values to your Goals in Google Analytics.
Let’s say you generate ten leads via a contact form on your website.
Out of all these leads, you manage to convert one into a £1,000 sale.
You divide the total of £1,000 by ten leads, and this leaves you with £100.
You’re not receiving £100 of each person, but you know that you have a 10% close rate. So, you can assign £100 value for each lead coming through your contact form.
This method isn’t a reliable way to measure the value of your goals, but it can provide you with some clues on where your revenue is coming from.
Add a symbolic value
If you’re struggling to calculate your value to your goal, then you can go ahead and assign a symbolic value.
To assign a symbolic value, you should start with a guesstimate of what each conversion is worth to you.
This method is particularly common for businesses trying to figure out the value of their eBook downloads or marketing newsletters.
This is a guesstimate, so isn’t the most reliable method to measure the value of your marketing.
When you have a monetary value associated with your goals, it’s much easier to calculate the ROI of your marketing performance and optimise campaigns based on their ability to drive more revenue.
With Ruler Analytics, you have a single source of truth of where your leads are coming from, which allows you to calculate and assign accurate Goal Values.