SEO / SEM - Lesson 4 - Google analytics and Shopify analytics
What is analysis? Google says: detailed examination of the elements or structure of something..
In E-commerce it is often about interpreting different statistics, and making decision based on that.
Shopify has built in analytics which overlaps to some degree with what Google analytics offers.
Key numbers and what they entail
In Shopify this is defined as “Net sales (gross sales minus discounts and returns) plus taxes and shipping. Includes orders from all sales channels.”
It is important to do an apple to apple comparison, total sales in July should for many businesses be less than in October/November.
Comparing sales by product is important to know which products to discontinue, or that needs to be advertised more.
If a product is selling bad, it is not necessarily a bad product:
- Are the product photos good?
- Do we have enough social proof? (reviews)
- Is the product hidden / hard to find on the website?
- Have we promoted it on social channels / emails
- Is it put in the correct categories and linked on the website?
Online store sessions
“Number of sessions on your online store. A session is a period of continuous activity from a visitor.”
- Sessions has increased due to an ongoing campaign
- Sessions has increased due to SEO efforts increasing organic traffic
- Sesssions decrease due to vacations
Sessions by traffic, location, device type and social source
- Traffic source: It can be “direct”, someone going directly to famme.no, by search, or from a social platform
- Location: We mostly have traffic from Norway, when entering a new country, we should monitor the total sessions by location
- Device type: If more people browse on mobile, we should prioritize the website design to be mobile first. Mobile is dominant when it comes to purchases and traffic on famme.no
- Social source: We are getting most from Facebook, instagram and snapchat. Facebook is probably because we run ads on Facebook, while “organic” social traffic is probably more from instagram.
Driving traffic to your site is useless, if the traffic does not convert.
Things that might affect conversion rate:
- Site speed
- Site UX, the site should be easy to use
- Free shipping
- Design, product photos and content on the website
- Information: size guides, model heigh and size, product data like if bras are padded or not
- USP visibility: Things like free shipping should be clearly visible
- Brand awareness
A low conversion rate either means you drive irrelevant traffic or your site is bad.
Returning customer rate
- Too high is not good, since that means you are not acquiring new customers
- Too low is bad, customers are not buying again and customer lifetime value is low
- If you run ads aggressively for some period, it should go down
- Sending an email to existing customer base increases the returning customer rate
Returning customer rate is thus related to customer lifetime value, which is an extremely important metric.
Average order value
- The average order value might “lie” since free influencer orders and “non-real” orders are baked in
- A low average order value might be due to missing upsells on the website
- Things that might increase AOV: free shipping threshold, upsells at different stages. PDP, cart, checkout
- AOV is also crucial to make estimates for how much you can pay for a sale.
Lifetime value of customer
The lifetime value of customer is harder to calculate and will always be a “guess” / estimate. Together with AOV it is important to keep these two metrics in mind before deciding how much to spend on advertising.
- Often the landing page is the front page
- Using the front page as the landing page for ads is most likely a waste of money. The likelihood of the front page being the most converting page for a targeted ad is unlikely
- Using collection and product pages as landing pages is probably more relevant
- Dedicated landing pages for specific campaigns will often make sense
- Dedicated landing pages for ads makes it easier to differentiate between paid and unpaid traffic
- Landing page with high bounce rate either means it is bad, or your are getting the wrong people to click on it
- Per sale, it is possible to calculate almost exactly the profit:
Ordervalue * 0.8 - shipping cost - cost of goods = profit
0.8 is to remove the VAT.
All the above statistics can be found in Shopify analytics, so what is Google analytics good for?
Google analytics has more tools to look at the data more in depth and integrations other Google apps like search console and Google ads. For example finding out which Google search or shopping campaign is converting into sales cannot be done without Google analytics.
Views in Google analytics
If you envision all Google analytics data to be a big table with information, a view is a filter on this table. Just like an Airtable view where some records have been filtered.