Google Analytics - Goal Value Report
Posted 10 years ago by Internetrix
2 Minute(s) to read
The Goal Value report is a significant report as it can help you calculate the ROI you are generating from your site. The report allows site owners to do this through allowing them to assign a value to each goal within the profile settings screen. The amount of revenue generated is then calculated by multiplying the number of goal conversions by the value that has been assigned to each goal.
One of the best ways to attribute a value to a goal is to work out how many visitors that reach the goal become customers. An example of this can be seen in the following scenario where if you estimate that 20% of visitors that request a quote become customers and the average transaction for these customers is $1,800, you may assign the value of the related goal to be $360 (i.e 20% of $1,800). Site owners must be careful when setting goal values as inaccurate estimations may result in skewed revenue figures.
The value of this report is immense for marketing purposes as it provides site owners with an insight into the worth of the site to their business. This quantitative data can then be used to justify web projects and improvements as companies have an enhanced perspective of the value in having an online presence.
- When setting goal values users should be wary when setting dynamic goal values as this may result in inaccuracies in the “Total Goal Value” metric (i.e value is equal to 5% of the current goal conversion rate). Static values should be set as they are more reliable
- Users need to take care when assigning values to goals as it may lead to revenue inflation
Benefits for Different Business Sectors
- Large multi-national corporations can set different values for goals based on their performance in different geographic markets (i.e a company may convert 20% of goals achieved into revenue in Australia, where as they may convert only 5% of goals achieved into revenue in the U.S.A)
Membership Based Organisations
- Membership based organization can use this report to obtain a detailed understanding of the revenue generated through member signups