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Which marketing channel is the most profitable channel for your ecommerce business?

In the online marketing world – traffic and conversion is everything. It’s a game of numbers and you should know how much you’re spending and how much your sales are coming in.

 

With free tools like google analytics, you can already get ahead of your competition simply by identifying which marketing channels move the needle and which ones are not working so you can shift your advertising spend. 

 

Why read this article?

  • Why it’s important to track your ecommerce conversions

  • How to turn on ecommerce tracking on google analytics

  • Learn how to track your ecommerce metrics and identify which channels are working

 

Why its important to track your ecommerce conversions

Because your ecommerce business is an online store front, it’s difficult to imagine website traffic and a number as real people behind a screen.

 

Being able to track your conversions mean that success and sales can be identified so that as the business owner, you have control and understanding of how to grow the business effectively.

 

You don’t know whether you are reaching your goals if you can’t measure them.

 

Simple as that. 

 

How to install your google analytics tracking code on your website

You should ALREADY have installed your google analytics tracking tag on your Shopify or other platform ecommerce store. 

 

If you have not already done so,  first go into your google analytics account and press settings at the bottom left side of the screen.

Under property > tracking info, press tracking code.

Copy your global site tag on GA and go to your shopify dashboard. Head to the left side of the screen and the menu that says ‘online stores’, select it then click preferences.

 

Paste the google analytics script you copied into the appropriate field.

How to turn on ecommerce tracking on google analytics

 

Google analytics has a feature that allows you to turn on ecommerce tracking so that in addition to website visitors, GA can give you data on the purchase conversion value of your customers.

 

In the left side of your GA menu again go to the settings tab.

On the far right side, click ecommerce settings, then enable ecommerce set up and enhanced ecommerce reporting.

Then press save.

 

Now GA will start sending data from your website to your GA dashboard so you can start tracking conversions and purchases from your Shopify store.

 

Learn how to track your ecommerce metrics and identify which channels are working

 

Once you’ve done the step above and some data has come into your GA dashboard.

 

Go to the left side dashboard again, go into Acquisition > all traffic > Channels.

 

You can see the data from your shopify store populate into the sales dashboard. Go to the right hand side and in the header of the columns, press the header ‘Revenue’ and sort by highest revenue.

 

The channel that produced the most revenue will come on top and you can identify which channel is bringing in the most sales.

In this example, right here, google is quite biased in their reporting. We run google search and shopping ads on this account and found that Paid search accounted for 41,000$ in sales, making it the 2nd highest marketing channel.

 

This may be true in google’s eyes and make it seem like we should be spending more money on google ads.

 

However, keep in mind that google ads uses last click attribution to attribute their purchase conversion value, making it very skewed.

 

How to analyse the data and what to do with it

Obviously, 1st find out:

  • Which channel produces the most sales

  • Compare the conversion rates of different channels

  • Pump more money into the channel that you know is driving the most conversions (with exception of data skew explained above)


Repeat.

 

Go and make money.

Founder Stories Weekly.

We interview successful entrepreneurs and share the stories behind their success. In each story, we ask how they got started, how they grew, how they overcame obstacles, and any tips they’ll like to share

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