How to Analyze Conversion Rates and Return on Investment in Detail

Posted on by in Analytics

There are various ways in which you can go about analyzing your conversion rates for various keywords or a particular PPC campaign. Most companies do a general analysis. They note the conversion percentage rate, note customers’ geographical location and then leave it at that. While such an analysis is good, it is by no means complete. The more you find out about your customers, the better the chances you have of being able to meet their needs and thus gain even more customers. Following are some tips on how you can do an in-depth analysis of your conversion rates and improve them.

Test Various Keywords

It is never a good idea to mess with a keyword if you are getting a decent Google ranking for the keyword in question. However, with a bit of experimentation, it is possible to tweak your keyword usage and make it even better.

Google Analytics will show data that not only notes which keywords earn you the most traffic but the average length of time that a person stays on the site after having found it using a particular keyword. Use this data to create separate posts for variations of successful keywords and then compare the results to your previous statistics.

In Depth Analysis of Customer Behavior

Some people will make a purchase the first time they visit your site. Others will visit your site four, six or even a dozen times before buying anything from you. Using the Converters by Count of Visit Google Analytics segment will help you get a glimpse of what your customers are looking for on your site, which will enable you to better meet the needs of reluctant buyers.

You can also use Analytics to track how much customers are spending on your products. If, for instance, you have five customers who regularly spend over $500 a month per person on your site, you will want to look at their behavior to see what is motivating them to be such good buyers. This information can help you better select a target audience. It can also help you better promote your products both online and offline.

Analyzing "Cart Abandonment"

Cart abandoners are people who start buying things on your site but never complete the purchase. Using Google Analytics, you can find out more about such people – their geographical location, how they came to your site, how long they stayed on your site, what they were intending to buy and, more importantly, at what stage of the purchase they chose to leave your site. You can then use this information to see why people are abandoning their shopping part way through and remedy any problems that may be contributing to this behavior.

Consider the Language Factor

Many products have an international appeal and are likely to be purchased by people from all walks of life. As was noted above, many webmasters check their analytics to see where visitors are coming from and doing so is a good idea. However, it is unwise to assume that, for example, a visitor coming from Los Angeles is American. He or she may in fact be Chinese, Indian, Mexican or Japanese.

Check the language factor when analyzing your site stats. Google Analytics will show not only country of origin but also the Google language used (i.e. Google.cl, Google.fr, Google.mx, etc). Another good way to find out this information is by looking through your customer records. If you find that particular niche audience makes up a large percentage of your buyers, see what you can do to appeal to them and others like them.

Learning as much as possible about your customers will enable you to serve them better. In turn, you will generate more customer loyalty and increase the chances of not only making more sales but also getting more referrals.

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