The Importance of Setting GOALS! (and lots of them)

In Paid Search, Uncategorizedby Jack Felstead

By goals, I don’t mean kicking a ball between two posts (as we already know this is extremely difficult for England). In this case I am referring to Goals set within Analytics and Adwords (as well as other 3rd party programmes), which are triggered when someone carries out a specific action within a website. This can be a visit to a key page, a newsletter sign-up, account registration, completing a transaction or even visiting a specific product/service page. Each and every one of these actions (or Goals) has a specific set of statistics, conversion rates, click through rates, bounce rates and ultimately monetary value to the advertiser.

Goal_Setting

It is essential that we identify these goals and structure our advertising campaigns around these goals accordingly. For example, a website that sells electrical appliances may have the following main Goals within its website:

 

1-Direct Purchase/Sale
2-E-mail Enquiry
3-Enquiry From Enquiry
4-Phone Call Enquiry
5-Live Chat Enquiry
6-Visits to High Street Store

 

Each of the above goals will generate a different number of enquiries, sales and ultimately revenue. Below is an example of how this might actually look in real life:

 

Goal Enquiries Enquiry/Conv. Rate
1-Direct Purchase/Sale 200 200 100.00%
2-E-mail Enquiry 1300 288 22.15%
3-Enquiry From Enquiry 800 176 22.00%
4-Phone Call Enquiry 1100 216 19.64%
5-Live Chat Enquiry 970 201 20.72%
6-Visits to High Street Store 600 88 14.67%

 

If we are able to assign an average order value to each one of these converted goals, as well as the average amount it costs to generate each converted goal, we can allocate values to these goals, as follows:

 

Goal Enquiries Enquiry/Conv. Rate Avg. Value Per Conversion Avg. Cost Per Conversion Total Goal Value Total Cost (Of All Enquiries)
1-Direct Purchase/Sale 200 200 100.00% £200.00 £22.60 £40,000.00 £4,520.00
2-E-mail Enquiry 1300 288 22.15% £440.00 £5.60 £126,720.00 £7,280.00
3-Enquiry From Enquiry 800 176 22.00% £340.00 £17.00 £59,840.00 £13,600.00
4-Phone Call Enquiry 1100 216 19.64% £600.00 £7.80 £129,600.00 £8,580.00
5-Live Chat Enquiry 970 201 20.72% £420.00 £7.90 £84,420.00 £7,663.00
6-Visits to High Street Store 600 88 14.67% £800.00 £6.00 £70,400.00 £3,600.00

 

If we then apply a simple ROI calculation (Revenue/Cost) to the “Total Goal Value” and “Total Cost (Of All Enquiries)” we can allocate a ROI value to each goal, as follows:

 

Goal Enquiries Enquiry/Conv. Rate Avg. Value Per Conversion Avg. Cost Per Conversion Total Goal Value Total Cost (Of All Enquiries) ROI
1-Direct Purchase/Sale 200 200 100.00% £200.00 £22.60 £40,000.00 £4,520.00 8.85
2-E-mail Enquiry 1300 288 22.15% £440.00 £5.60 £126,720.00 £7,280.00 17.41
3-Enquiry From Enquiry 800 176 22.00% £340.00 £17.00 £59,840.00 £13,600.00 4.40
4-Phone Call Enquiry 1100 216 19.64% £600.00 £7.80 £129,600.00 £8,580.00 15.10
5-Live Chat Enquiry 970 201 20.72% £420.00 £7.90 £84,420.00 £7,663.00 11.02
6-Visits to High Street Store 600 88 14.67% £800.00 £6.00 £70,400.00 £3,600.00 19.56

 

From the above graph we can immediately identify that:

-The “Goal” that generated the most revenue is “4-Phone Call Enquiry”. This may be due to an excellent sales team who deal with all phone enquiries, and customers feeling more confident when speaking to a professional sales person by telephone.

-The “Goal” that generated the highest ROI (Return-On-Investment) is “6-Visits to High Street Store”, which may be due to customers feeling more satisfied when visiting the nearest bricks and mortar store and seeing the products in real life.

-The “Goal” that had the highest cost and lowest ROI is “3-Enquiry From Enquiry”, which may be due to the enquiry form being too brief or generic.

Google has now made it easier than ever to track and monitor different Goals, you can read more information on this here.

At MediaVision we like Goals, and we know how to score them! So please feel free to contact us for more information on how we can make your team perform to the very best of their ability and beat the competition!

About the Author

Jack Felstead

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