September 2nd, 2014

Choosing KPIs for Different Industries & Setting up Goal Tracking in Google Analytics

Lead Generation, Search Engine Optimization

Table of Contents
  1. Introduction
    1. What is a KPI?
    2. What Makes a KPI Different Than a Goal?
    3. What are Some Examples of KPIs?
    4. Setting Up KPIs as Goals in Google Analytics
  2. Resources

 

John Wanamaker, a notable merchant and marketing pioneer from the mid to late 1800s, made famous the quote: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” This quote epitomizes the pursuit that many a marketer goes through: trying to find out which marketing initiative is working to drive more business so you can stop wasting your effort on what isn’t working. This pursuit of efficiency and effectiveness is heavily dependent upon accurate data gathering which is why helpful tools like Google Analytics can be essential to making the best decisions in your internet marketing strategy.

To better understand the full cycle of a visitor’s interaction with your site, you may not find that all conversions are direct, but instead often occur through a series of several touch points. As a marketer, your goal is to not only track how successful you are at achieving your larger goals, but to also identify what drives customers to those goals so you can help nurture those leads towards completing your intended goal.

To maximize the effectiveness of your internet marketing campaigns, you need to be able to measure each step in the conversion process but this is often easier said than done. Unfortunately, since business is different, so too are the steps that lead to their conversions. Here’s a few ways that you can identify what KPIs work best for your industry and how you can go about tracking those results using good ol’ Google Analytics.

What is a KPI?


A KPI, or key performance indicator, is a type of performance measurement used to track the progress made towards specific goals. This means that you will need to identify what your goals are first before you can break down each step in the process towards completing that goal. As such, a KPI could be used for more than just sales and marketing; it can also be used for tracking operational processes, employee and customer satisfaction benchmarks and so much more.

No One-Size-Fits-All Solution


There are also a lot of different KPIs that can be measured within each industry as well. For internet marketing, there are many different optional KPIs like click-through-rates (whether this is based on PPC ad impressions or organic search impressions), email open rates, e-newsletter signups, social media referral rates and so much more. Depending upon the focus of your campaign(s), you may consider some of these KPIs relevant while others may not be. Since some of these KPIs are dependent upon the campaigns you are running, you won’t likely find a one-size-fits-all internet marketing KPI list either. You will, however, find a lot of commonly used metrics which are often used by default in some of the standard reports in Google Analytics. The benefit to using Google Analytics is that is “beginner friendly” but is also customizable for the more advanced users to suit their needs.

Stay the Course but Be Adaptable


You will need to take an in-depth introspective look at your company’s goals to really hone in on what metrics qualify as a good KPI but keep in mind that these have the potential to change through time. You may find that certain business goals aren’t as profitable as others and you may need to adjust your business model accordingly. When that happens, you should always take a look at your KPIs to make sure that they’re keeping up with changes to your company’s goals. Whether your business has to adapt to seasonal trends or if you’re trying to keep up with changes in search engine algorithms, adaption is necessary regardless of what size your company is.

What a KPI Is Not…


It’s really easy to try to track every metric under the sun and consider it a KPI but it’s important that you set only the highest priority performance indicators as KPIs in your reporting (that’s what the “key” to KPIs is). Jim Collins, a notable business consultant and author of the bestselling book Good to Great once said “If you have more than three priorities, then you don’t have any” which is a good representation of why you will need to commit to only a few KPIs at a time. It’s not to say that other metrics may not be insightful; indeed they might also provide relevant data pertaining to your business, but you need to keep your KPIs at a manageable level and if you’re tracking too many things, you may lose sight of what’s really important to your company’s success in the din of all that data. So, make sure to cut back on as much noise as possible so you can focus on the truly important data sets.

What makes a KPI different than a Goal?


It is also important to make the distinction between a goal and a KPI since the term “Goal Tracking” will be used later on in the Google Analytics setup section (more about that below). It’s important that you don’t confuse your goals with your KPIs as these should be measured differently and with different emphases. Since KPIs are considered steps in the overall Goal process, you might want to consider the KPIs as “micro goals” or “micro conversions”. That doesn’t make a KPI a goal per se, but they are good to set benchmarks for so you can monitor the successfulness of your efforts particularly when there are multiple touch points in your goal process.

What are some examples of KPIs?

Industry Example Goal Example KPI
Online Marketing Generate Leads Completed Contact Forms
e-commerce Sales Completed Transactions Abandoned Shopping Carts
Investment/Finance Portfolio Profitability D/E Ratio
Web-Based Operations Service Continuity (Uptime) Average Repair Time (Downtime)
Project Management Average Project Duration Average Task Duration
Customer Satisfaction Customer Retention/Attrition Complaints Filed
Safety/Security Injury Prevention Warnings Issued
Baseball Runs Hits

Since there are many different types of goals that can be tracked for different business models and potentially several KPIs that could be tracked for each type of goal, the opportunities may seem endless. For the sake of (attempted) brevity, here are example of the 2 most common examples:

Lead Generation

Goal: Contact Form Fills

KPIs:

  • Contact Form Completion Rate
  • New (or Unique) Visitors to Contact Form
  • Return Visitors to Contact Page
  • Traffic Sources that Lead to Contact Form Fill
  • Incomplete/Abandoned Form Fills
  • Bounce Rate for Contact Page
  • Average Pages Per Visit (that lead to conversion)
  • Return on Investment (per traffic source)
  • Cost Per Lead (PPC)
  • Customer Lifetime Value

Ecommerce

Goal: Online Sales

KPI:

  • Transactions (Completed)
  • New (or Unique) Visitors to Checkout Page
  • Return Visitors to Checkout Page
  • Incomplete Transactions/Abandoned Carts
  • Bounce Rate for Shopping Cart Page
  • Average Order Value
  • Average Pages Per Visit (that lead to transaction)
  • Return on Investment (per traffic source)
  • Customer Lifetime Value


Unfortunately, not all of these KPIs are easy to accurately track such as Customer Lifetime Value or Return on Investment. Part of the obstacle of reporting accurately on these KPIs is that your data may be scattered across several locations making it more difficult to see things from a truly high-level bird’s eye view. Fortunately, Google Analytics does a pretty good job at reporting a lot of insightful metrics from your website (and/or web app should you have one) to still provide you with actionable data that you can put towards your internet marketing strategy. If you’re not sure what KPIs to track, you can find a good list of example KPIs by doing a Google search but KlipFolio provides a good list of example KPIs to get some inspiration from.

Correlation ≠ Causation


This may be an obvious point but it’s important to remember that despite high values associated with KPIs, that doesn’t always equate to higher goal completions. The Baseball example above illustrates how having a lot of hits in a given game won’t always lead to more runs (particularly if the opposing team is pulling a lot of double plays when runners on are base) and there is a potential to have a 1:1 run to hit ratio in the case with home runs. Nevertheless, the purpose towards establishing a KPI like runs is to identify the correlation with hits and runs (since these are often positively correlated).

Positive vs. Negative Correlations


Not all KPIs and goals will be positively correlated, however. For e-Commerce sales to result in a higher number of transactions, you’ll usually want to lower the amount of abandoned shopping carts. For Operations, having a shorter average downtime can often result in a higher average uptime thus indicating a negative correlation. In the Safety & Security example (depending on the environment in which injuries are prevalent) having fewer warnings issued could actually result in a higher injury rate (since those warnings are necessary to prevent injuries in the future). That is not to say that you want to be giving out warnings superfluously, but that trying to reduce the number of warnings issued (by simply not providing any warnings) could result in a higher injury rate. Being able to understand the correlation with the KPI and the goal that it leads to will help you to better understand the data that is being reported to you so that you can take the right (and most importantly, successful) action.

Trimming the Fat, Not the Meat


There will always be variables that may interfere (with the Operations example, frequency of downtime may cut into the average uptime values just as much as the average downtime amount) with your ability to accurately track the successfulness of your goal tracking so it is important to be mindful of all influences that have an impact on your goal completion. You may find as you’re establishing KPIs for your own business goals that some KPIs may not seem as directly responsible towards completing your goals but that doesn’t mean you shouldn’t track them. Having your data segmented into easily digestible, actionable parts can help you to better understand how your goals are being completed so you can try to repeat what’s working instead of favoring the methodologies that aren’t as effective.

Industry ≠ Business Model

A common misconception is that all business models (e.g. Lead Generation, e-Commerce, etc.) can setup the same standard set of KPIs. Unfortunately, not all industries are the same, even if they use the same business model (e.g.  lead generation) for their website. This goes back to the no-one-size-fits-all-solution example above. For example, a website that collects leads through a contact form that offers a service (e.g. Residential Plumbing) that people would be likely to recommend via their social networks (e.g. Facebook, Twitter) would be able to derive more insight from tracking some of their social-referred traffic and conversions than a website that is generating leads based upon a service that is less likely going to be shared across social networks (e.g. bankruptcy services).

Although both websites may utilize a contact form to obtain warm leads, a subject  that is as personal and private as one’s financial health (as in the case with bankruptcy services) may not be something that satisfied customers (turned referrers) would want to share across their social networks. This may seem a bit obvious but these types of limitations are important to keep in mind when determining suitable (and most importantly, successful) KPIs for your company’s/website’s goals.

Which Comes First, the Campaign or the KPI?

Your internet marketing campaigns should align with your business’ KPIs but not all businesses are fortunate enough to have the ability to accurately pinpoint what KPIs are the best for monitoring the success of their internet marketing efforts. And since KPIs can change over time, businesses should employ flexible campaigns to cater to the specific needs that apply to your business. This way you can maximize the effectiveness of the campaigns that you are running which will help to reduce wastefulness in your marketing efforts and help you run more efficiently.

If your company is new or you just don’t have the data to better determine what internet marketing KPIs are the most important to your company’s success, you’re in luck. Though there are a lot of paid tools that can help you sift through the data, one of the most helpful tools we use is free: Google Analytics. Here are some examples of how Google Analytics can be used to help you monitor your website’s KPIs…

Setting up KPIs as Goals in Google Analytics

Standard Goals

Google Analytics allows you to setup specific goals that are reported in your Conversions reports. Though you can also track e-Commerce performance through e-Commerce tracking, the setup is a bit more intensive for e-Commerce tracking which often requires a developer’s involvement. Though many e-Commerce platforms will provide out-of-the-box functionality that generates the specific e-Commerce tracking code, if you’re using a general Content Management System (CMS) or a static site which doesn’t have these types of features, you may want to consider either moving to an e-Commerce specific platform, hiring a developer to help with the implementation of the code or take a stab at using Google Tag Manager.

Due to the complicated nature of e-Commerce tracking setup, we won’t go into detail about that here but you can find resources from Google to guide you through the process. As for the non-e-Commerce goals that we can track, here are some examples of the main 4 types of goals that you can track in Google Analytics: Destination, Duration, Pages/Screens per Session and Event.

Destination

google-analytics-goal-setup-destination
Tracking Contact Form Completions as a Goal

For: Lead Generation

One of the most efficient and effective ways to track completed contact forms through Google Analytics is by tracking the visits to your Contact Form’s “Thank You” page (aka Confirmation Page). Since this “Thank You” page would ideally only be accessible once a visitor has successfully completed a contact form on your site, visits to this page should provide a quantifiable value to the success rate of your contact form. This can, in turn, also help you to determine your goal completion and abandonment rates since Google Analytics provides Goal Completion Rate as one of its standard metrics that are found not only in the Conversion reports but also within your standard Audience, Acquisition and Behavior reports as well. In order to setup the “Thank You” page as a goal:

    1. Under the Admin > (View Column) > Goals menu, select the “+ New Goal” button
    2. Click the “Custom” radio button (if presented) and hit the “Next Step” button or just skip to the next step,
    3. Give your goal a name (e.g. “Contact Form Fills”) and select the Destination type radio button
    4. In the destination field, type in the slug of your contact form’s “Thank You”page (this should NOT include the domain – e.g. /contact-thank-you). Depending upon how your “Thank You” pages are being tracked, you may want to change the match type from “Equals to” to “Begins with”. If you’re comfortable using regular expression, you can use the “Regular expression” option but that is not often necessary so stick with “Begins with” at first and adjust if necessary
    5. (OPTIONAL) If you want to assign a monetary value to this goal (e.g. you know that on average each contact form fill often results in a $100 sale), you can assign the goal value.
    6. (OPTIONAL) If you need to create funnels for this goal (which may be helpful if you have several forms that lead to the same “Thank You” page), you can specify the Funnels by:
      1. Turning on the Funnel button
      2. Giving your Funnel Step a name
      3. specifying the slug of your funnel page (e.g. if you want to make sure to only track the “Thank You” pageviews that come after someone has visited the Contact Us page at /contact-us, you’d include /contact-us in the Screen/Page field
      4. Setting the Required button to “Yes”
      5. (OPTIONAL) If you need to setup several funnels, just repeat a through d after hitting the “Add another step” button

  1. If you’ve already have visits to your “Thank You” page (or whatever URL you’re using for this example), you can use the Verify this Goal tool to test out the setup of the goal based on the last 7 days of data. If you don’t have any data for the visits to that page (especially if it’s been newly created), you will see that the value will show up as 0% which is expected. However, if you get 0% when you should have some data, you may want to readjust the setup as this could be a sign that something wasn’t configured properly
  2. You’re ready to create that goal so hit the “Create Goal” button and standby for data to pour in

Duration

google-analytics-goal-setup-duration

Tracking Visit Duration as a Goal

For: Publishers, Content Curators, Advertisers, etc.

Visit duration is usually not considered an advisable metric to track as a goal for most sites that are intended for lead generation or e-Commerce. However, if your site is dependent upon ad revenue as may be the case with publishers, content curators and advertisers, this may be helpful (especially when trying to detect spikes or drops in overall visit duration site wide. The setup is actually very simple:

    1. Under the Admin > (View Column) > Goals menu, select the “+ New Goal” button
    2. Click the “Custom” radio button (if presented) and hit the “Next Step” button or just skip to the next step,
    3. Give your goal a name (e.g. “Visit Duration”) and select the Duration type radio button
    4. Denote the hours, minutes or seconds that you would like to track as your visit duration goal
    5. (OPTIONAL) If you want to assign a monetary value to this goal (e.g. you know that on average each contact form fill often results in $100 of ad revenue), you can assign the goal value

  1. If you’ve already some data to test this on, you can use the Verify this Goal tool to test out the setup of the goal based on the last 7 days of data. If you don’t have any data (especially if your Google Analytics account is newly created), you will see that the value will show up as 0% which is expected. However, if you get 0% when you should have some data, you may want to readjust the setup as this could be a sign that something wasn’t configured properly
  2. You’re ready to create that goal so hit the “Create Goal” button and standby for data to pour in.

Pages/Screens per Session

google-analytics-goal-setup-pages-per-session

Tracking Pages/Visit as a Goal

For: General Brand Awareness, Non-profit organizations, etc.

Much like tracking duration as a goal, this may not be suitable for all websites but it can still be helpful depending upon the business model. In the case that a website is for a non-profit organization that doesn’t sell products or generate leads, it may be more insightful to see how many pages visitors are viewing for each session. Also like the duration goal setup, this is pretty simple to setup as well:

    1. Under the Admin > (View Column) > Goals menu, select the “+ New Goal” button
    2. Click the “Custom” radio button (if presented) and hit the “Next Step” button or just skip to the next step,
    3. Give your goal a name (e.g. “Pages Per Visit”) and select the Pages/Screens per Session type radio button
    4. Denote the number of pages that you would like to track as your pages/session goal
    5. (OPTIONAL) If you want to assign a monetary value to this goal (e.g. you know that on average each contact form fill often results in a $100 donated), you can assign the goal value

  1. If you’ve already some data to test this on, you can use the Verify this Goal tool to test out the setup of the goal based on the last 7 days of data. If you don’t have any data (especially if your Google Analytics account is newly created), you will see that the value will show up as 0% which is expected. However, if you get 0% when you should have some data, you may want to readjust the setup as this could be a sign that something wasn’t configured properly
  2. You’re ready to create that goal so hit the “Create Goal” button and standby for data to pour in.

Event

google-analytics-goal-setup-event
Tracking Events as a Goal

For: General User Engagement, alternative for Destination tracking, etc.

Event tracking is a little bit trickier than the previous examples and often requires more work on the development side of things as special event tracking code needs to be implemented on the site in order for this to pull into Google Analytics correctly. Also, this is sometimes used when technical roadblocks prevent websites from creating a “Thank You” page for completed forms to be redirected to. In a situation like this, events are sometimes used in lieu of separate destination tracking but it is still better to reserve this type of reporting for actual event-related engagement on your site (e.g. media buttons clicks on self-hosted videos, digital media downloads like PDFs, music, etc.). Though we won’t go into elaboration into Event Tracking Setup in Google Analytics, if you’ve already setup event tracking (which can be viewed in the Behavior > Events > Overview reports), here’s how you’d go about setting up an event (or multiple events) as a goal:

    1. Under the Admin > (View Column) > Goals menu, select the “+ New Goal” button
    2. Click the “Custom” radio button (if presented) and hit the “Next Step” button or just skip to the next step,
    3. Give your goal a name (e.g. “PDF Downloads”) and select the Event type radio button
    4. In the corresponding Category, Action and Label fields, type in the values that match up with the event tracking code on your site. By default, Google will use the value that is denoted in the event tracking code, however you can override this in the following step. You don’t have to fill in all of the fields but it will help you to differentiate different events in the case that some events utilize the same Category, Action or Label values.
    5. (OPTIONAL) If you want to override the value in the event tracking code and assign a static monetary value to this goal (e.g. you know that on average each PDF download often results in a $100 sale), you can assign the goal value

  • If you’ve already have data populating in Google Analytics for the event(s) you setup, you can use the Verify this Goal tool to test out the setup of the goal based on the last 7 days of data. If you don’t have any data for events (especially if it’s been newly created/implemented), you will see that the value will show up as 0% which is expected. However, if you get 0% when you should have some data, you may want to readjust the setup as this could be a sign that something wasn’t configured properly
  • You’re ready to create that goal so hit the “Create Goal” button and standby for data to pour in.

Custom Dashboards and Reporting


In many cases, just tracking contact form fills and e-Commerce transactions isn’t enough information to help you make better decisions for your internet marketing campaign. Since Google Analytics limits the standard Goal reporting to the aforementioned 4 types of goals, you can create your own custom reports to help put better context to your conversion data. There are 2 common ways to go about this: using Custom Dashboards for high-level overview of KPIs of your choosing, or you can create custom reports. Here’s how you’d go about doing both:

Custom Dashboards


Creating Custom Dashboards in Google Analytics is actually quite simple once you’ve become familiar with the setup process. In a nutshell, you can create multiple dashboards that contain multiple widgets (which are miniature reports for lack of a better description) so you can view a high-level summary of the KPIs that you deem necessary to your business’ online marketing success. There are two types of Custom Dashboards that you can setup: Blank Canvas or Starter Dashboard. The latter is a pre-populated dashboard that you can use right out of the box. It may not suit your business’ specific needs so you may decide that starting off on a blank slate, or in this case using the Blank Canvas option, is the best option for you.

Creating a Starter Dashboard
google-analytics-create-custom-dashboard-starter-dashboard

    1. Go to the Dashboards menu in the left sidebar
    2. Click the “+ New Dashboard” link
    3. Select “Starter Dashboard”, give your dashboard a name and hit the “Create Dashboard” button

  1. If you want to remove a widget, hover your cursor over the top right corner and click on the pencil icon. You can modify the widget or hit the “Delete widget” link at the bottom right to remove the widget
  2. You can also add another widget if you’d like by hitting the “+ Add Widget” button at the top left corner of the dashboard

Creating a (Blank Canvas) Custom Dashboard from Scratch
google-analytics-create-custom-dashboard-blank-canvas

  1. Go to the Dashboards menu in the left sidebar
  2. Click the “+ New Dashboard” link
  3. Select “Blank Canvas”, give your dashboard a name and hit the “Create Dashboard” button
  4. If you want to edit or remove a widget, hover your cursor over the top right corner and click on the pencil icon. You can modify the widget or hit the “Delete widget” link at the bottom right to remove the widget
  5. You can also add another widget if you’d like by hitting the “+ Add Widget” button at the top left corner of the dashboard

Bonus: Import from Gallery

One of the benefits to being part of the Google Analytics community is that you can share and access custom dashboards and reports from other GA users. Using a shared dashboard or custom report gives you the benefit of saving time by not having to create a custom dashboard or report from scratch, but also finding a suitable option that best matches your reporting needs.The data from the reports isn’t transferred but the structure of the dashboards and/or reporting format is, so you don’t have to worry about someone else having access to your own site’s data. To access the Gallery of shared Dashboards:

    1. Go to the Dashboards menu in the left sidebar
    2. Click the “+ New Dashboard” link
    3. Select the “Import from Gallery” button
    4. Peruse the Solutions Gallery listings and when you’ve found a dashboard that you like, select the “Import” button corresponding to that dashboard
    5. Select the Segments, Custom Reports and Dashboards that you want to include
    6. If you’d like to change the name of your dashboard, specify this in the Dashboard field
    7. Once you’ve selected the options and specified the names that you desire, hit the “Create” button

  1. If you want to remove a widget in your dashboard, hover your cursor over the top right corner and click on the pencil icon. You can modify the widget or hit the “Delete widget” link at the bottom right to remove the widget
  2. You can also add another widget if you’d like by hitting the “+ Add Widget” button at the top left corner of the dashboard

Custom Reports

google-analytics-create-custom-reportMuch like with the Custom Dashboards, the Custom Reports allows you to create and save reports with the same metrics and filters to better suit your business’ needs. The benefit to Custom Reports is that you can dive deeper into the data that would otherwise be truncated in the Custom Dashboards. Though you won’t be able to merge together several reports into one screen, like you can with the reporting widgets in the Custom Dashboards, you do have the ability to link your Custom Dashboard reporting widgets to individual custom reports. This gives you the best of both worlds: high-level overview from the Dashboard level, with deep-diving capabilities through the Custom Reports. Here’s a basic overview on the setup:

  1. Click on the “Customization” link at the top of the page
  2. Click the “+ New Custom Report” button
  3. Give your Custom Report a name in the “Title” field
  4. Give your individual reports a name (which can be helpful if you wish to create several tabs within the same report)
  5. Select the Type of report you want (i.e. Explorer, Flat Table or Map Overlay)
  6. Select your Metrics, Dimensions and Add your Filters
  7. Choose which View you want the report to be accessible from and click the “Save” button

In case you were wondering which type to choose, this greatly depends on what data you want to view and how you wish to view it. For standard report, the Explorer type should be sufficient. However, if you would like a non-linear representation of geo-specific data, the Map Overlay report may be a better choice for you. Though you may not think that you’d find much use for the Flat Table report (considering that it doesn’t include a linear timeline graph), the benefit to using the Flat Table is that you can select 2 dimensions simultaneously (primary and secondary) whereas you are limited to 1 dimension for the Explorer report type. This can be really helpful when comparing two dimensions such as Source / Medium and Landing Page.

Bonus: Import from Gallery

Just like with the Custom Dashboards, you can access pre-made Custom Reports in the Google Analytics Solutions Gallery that are developed by other members of the GA community. All you have to do is select the “Import from Gallery” button instead of “+ New Custom Report”, select the report you wish to add and click the “Import” button. Just like with the Custom Dashboard example, you’ll be able to choose which Segments, Custom Reports and Dashboards to import and when you’re ready, just hit the “Create” button.

As you can see, setting up insightful, actionable reporting can be a bit complicated because there are so many options but once you’ve identified what works best for your business, you may find that Google Analytics is a great tool to help you develop a good internet marketing strategy. Sometimes the exercise in setting up your reporting to include KPIs can help act a refresher for your business goals and may even open your mind to new opportunities that might be worth trying out. Don’t be afraid to experiment, and of course if you get overwhelmed and need to hire some professional help, we’re just a contact form or phone call away. Best of luck and happy reporting!

Resources:

KPI Definition: http://en.wikipedia.org/wiki/Key_performance_indicator
KPIs for Marketing: http://www.klipfolio.com/resources/kpi-examples/marketing
KPI List: http://kpilibrary.com/
Google Analytics Solutions Gallery – https://www.google.com/analytics/gallery/#landing/start/
Custom Google Analytics Reports Sharing: http://www.customreportsharing.com/
Ecommerce Tracking Setup: https://support.google.com/analytics/answer/1009612?hl=en

Comments

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