Google Analytics uses the Goal Value of each Conversion Goal to calculate the Return on Investment (ROI) metric, as well as other currency-oriented figures that you see almost every day. Often, the Goal Value – which is optional – is left blank, leaving over 40 different reports in GA without this very important piece of the puzzle.
The most common reason I hear regarding why this is done is “…because I am not an Ecommerce website, so my Goals don’t have a monetary value…”. In my opinion, this is exactly when you need to insert a Goal Value, so that you can attach some kind of Dollar, Euro, or other currency to the actions that you want your website’s visitors to take. For profiles in Google Analytics that have Ecommerce enabled, the Goal Value is automatically populated into the reports (if that Goal is where the Ecommerce code happens to be processed). For any non-Ecommerce goals, you’re going to have to enter the value in yourself.
“…but how do I know what my Goals are worth? How do I calculate my Goal Value?”
There are a few different ways that you can determine your Goal Value. First, there’s the common approach taken by most people with non-Ecommerce goals. For example, let’s say that you have an inquiry form on your website, and the “Thank You” page of that inquiry form is a non-Ecommerce goal. These leads get sent to your sales team, and your sales team can close 10% of those leads. Let’s also say that the average sale amount for each closed lead is $2,000. You can take $200 (10% of $2,000), and use that as your Goal Value (don’t worry, Google Analytics will do all of the math for you in its reports).
Another way that I’ve seen Goal Value being used is by taking the amount given to a customer on a coupon or promotion code. If you have a “Print this $50 off Coupon” page as Goal, you can use $50 as your Goal Value. You would just need to constantly remind yourself of how you came about using $50 as your Goal Value when looking at reports, so that ROI and Margin figures don’t appear to be ridiculously low (or high) for you.
Finally, you can even make up a number! Does $25 sound good to you? How about $82.15? Perhaps $150,000 works for you? If your website or your online business structure / purpose doesn’t allow the flexibility of calculating a monetary value for a Conversion Goal, then you can just make up your own, so that you can get the most comprehensive set of data to look at and analyze.
Knowing how valuable your Goals are can let you know where you stand, and whether or not they are performing well or worth your efforts. Honestly, it doesn’t matter whether your Goal Value was invented out of thin air, or if it was precisely calculated – as long as you have a number in there, you can begin to evaluate your Goals with a greater level of intelligence than you could before.