Google Analytics


Creating a Measurement plan in Google Analytics

Most would think the first step would be to add the Google Analytics tracking code to begin your data tracking, that does need to happen but it is not the first step.

Your first step is to define a measurement plan. Digital Analytics is all about using data to drive change.

To get the most benefit from Google Analytics it needs to be tailored to your business needs.

Start with a measurement plan which identifies your business objectives.

Second, identify the strategies to support the objectives.

Third, choose the metrics that will be the key performance indicators.

Fourth, decide how you’ll need to segment your data.

Finally, choose what your targets will be for your key performance indicators.

Here is an example measurement planning process using a fictional Craft Supplies company.

Lets say we sell our Craft supplies on our website and in stores. This company also maintains a blog to engage customers in conversations about techniques and products for better crafting.

1. Document your business objectives

The first step to create our measurement plan is to define our business objective. We need to ask – why do we exist?

Lets say the business objective for our example business is:

“Help people to enjoy and cultivate their craft through innovative products and techniques”

2.Identify strategies and tactics

  • One strategy to support our mission would be to sell craft supplies. A tactic to support that strategy would be to sell online via a website. Another would be to sell items in store. A mobile shopping app could be developed as well.
  • We also have a physical store – so we might drive sales by giving our website visitors information that helps them to locate one of our stores. This would be another tactic of our website.
  • Another strategy would be to engage customer in conversations about craft through posts on social media or on our blog.

3.Choose key performance indicators (also referred to as KPIs)

These are measurements of your strategies and tactics and are the numbers you will look at day to day to understand how your business is performing.

For example – selling products – we are going to look at KPIs like how much revenue we are generating and the average order value for each transaction.

For the tactic of driving our physical street store visits, we can look at how many times the store locator on our site is used, or how many times users printed a coupon for in-store use.

To measure user engagement on our blog, we might look at recency and frequency metrics and whether or not users share our brand content on social networks.

4.Choose segments.

Once you have defined the KPIs, you need to document which segments of data are important to measure. We could segment by marketing channel, such as search, display, email and social to know how much value we are getting from those areas.

Since we have physical stores, we could look at the geography of our site visitors to see if certain stores are performing better then other locations.

The segments you choose can be different. It depends on what your business is doing and which strategies and tactics are being used to reach your objectives.

5.Choose targets.

You need to set targets for each of your KPIs. Adding targets to the measurement plan helps when you look at the data to understand if the business is doing well or not.

Once your measurement plan is complete then you are ready to create a basic implementation plan.

A few of the most common features used in a Google Analytics implementation plan for a website are –

Goal tracking and Ecommerce, you may want to use filters or campaign tracking.

You can use custom dashboards and custom reports to help save time.

The final step of measurement planning is to maintain and refine your plan as your business requirements can change over time.