Brian Cliette

Mastering Google Analytics: How to Track and Analyze Average Order Value

If you’re running an online business, you’ve likely heard of Google Analytics. It’s a fantastic tool that provides a wealth of data about your website’s performance. But did you know it can also help you track your average order value (AOV)? This key metric can provide invaluable insights about your customers and their purchasing habits.

Knowing your AOV can help you make informed decisions about your marketing strategies, pricing, and product offerings. It’s not as tricky as it sounds, and I’m here to guide you through the process. In this article, we’ll be delving into the steps you need to take to track your average order value using Google Analytics. So, let’s get started.

What is Average Order Value (AOV)?

Average Order Value, or simply AOV, is a key metric in eCommerce. It’s a measure of how much your customers typically spend per order on your website. Essentially, knowing your AOV is like taking the pulse of your online business.

AOV is calculated by dividing the total revenue by the number of orders taken in a certain time frame. Let’s simplify that — if your online store earned $1000 in August, and there were 50 orders placed, your AOV for August would be $20.

This metric holds significant value for your business. It tells you a lot about your customers’ purchasing habits. A high AOV could mean that your customers are comfortable spending a larger amount with you. On the flip side, a lower AOV might say that shoppers are cautious, spending little and often.

The goal, of course, is to increase your AOV. If you can encourage customers to increase the amount they spend on each transaction, you’ll raise your revenue without the need for a huge increase in traffic or customer count. Achieving this might involve strategies like up-selling, cross-selling, and offering volume discounts.

The beauty of AOV is that it’s a flexible, real-time metric. It can be tracked and adjusted on a daily, weekly, or even hourly basis. This dynamic nature of AOV makes it an incredible asset in shaping and refining your marketing strategies.

Now that we know ‘what is AOV and its importance’, the next step is understanding how to track AOV. Tools like Google Analytics play a vital role here, helping us dive deeper into the sales data, giving us a better picture of our business health.

Let us see how to set up Google Analytics to track AOV in the next section.

Why is Tracking AOV Important?

Perhaps you’re wondering, “why bother?” This is the part where I unveil the magic of tracking AOV on Google Analytics.

Tracking AOV allows you to understand consumer behavior better. Knowing how much customers typically spend on each transaction, you can gauge their spending habits. It can reveal patterns and trends you might have missed otherwise.

It also gives you direct insights into revenue. If you’re able to increase your AOV, it points to a boost in revenue- and you don’t even need to attract more visitors or customers. A smart move, isn’t it?

Tracking AOV on Google Analytics is like having a flexible and real-time lens into your sales performance. You get to see important metrics and trends on-the-go. That means quicker decision-making, smart strategizing, and eventually, business growth.

Last but not least, it plays a key role in enhancing your marketing effectiveness. By understanding the average purchase values, you can adjust your promotional strategies to influence customers’ purchasing decisions.

Consider this:

Before Tracking AOV After Tracking AOV
Limited insights into customer purchasing habits Better understanding of consumer behavior
Less precise metrics Real-time, accurate metrics
Challenges in revenue forecasting Direct insights into revenue
Restrained marketing strategies Increased marketing effectiveness

Without tracking AOV, you’re essentially operating your online shop in the dark. With it, you shed light on consumer behavior, sales performance, revenue insights, and a whole lot more. To put it simply, tracking AOV takes your eCommerce game to a whole new level. Now, let’s explore how we can set up Google Analytics to track AOV.

Setting up Google Analytics for AOV Tracking

Setting up Google Analytics to track Average Order Value (AOV) is a straightforward process. It’s crucial because it gears businesses towards a smarter approach in understanding customer behavior and making informed decisions. Let’s walk through this process step by step.

First, access Google Analytics. From your dashboard, navigate to the tab labeled “Conversions”. This is where most of the eCommerce tracking in Google Analytics takes place. Click on “Ecommerce” and then “Overview”. Here, you’ll see a wealth of data relating to online transactions.

However, if you look closely, you’ll notice that AOV isn’t included in the default reports. So, we need to create a new custom report specifically for AOV.

Here are the steps:

  • Select ‘Customization’ from the main menu
  • Click on ‘Dashboards & Custom Reports’
  • Choose ‘Custom Reports’
  • Click on ‘New Custom Report’
  • Define your report by providing a title like AOV Tracking
  • In the ‘Metric Groups’, add these metrics: Revenue, Transactions
  • Make sure you select ‘Average Value’ for Transaction

Once you’ve done all this, click ‘Save’ and voila! Your custom report for Average Order Value (AOV) tracking is now set up in Google Analytics.

This process might feel a bit daunting at first. But, the level of detail and insight you gain from tracking AOV is worth every step. It isn’t something you want to miss out on as it amplifies the power of decision making and paves the way for successful marketing campaigns.
Though there’s much more to the realm of eCommerce metrics, taking the first step with AOV is an action that you’ll thank yourself for, time and again. I promise it’ll be beneficial for your eCommerce growth, and I support you along your journey of understanding Google Analytics.

There’s a ton more to learn about maximizing your Google Analytics reports. So, stay tuned in as I’ll be exploring how to augment this setup in our future discussions about eCommerce analytics.

Creating a Custom Metric for AOV

To begin with, we need to understand that AOV, or Average Order Value, is not a standard metric in Google Analytics. So, we have to create this custom metric ourselves. Don’t let that scare you though – I’ll be your guide through this, step by step.

Here, we’ll follow these steps:

  1. Sign in to Google Analytics.
  2. Click on the ‘Admin’ tab on the lower left-hand side.

From here, we’ll have to navigate to ‘Custom Definitions’, located under the ‘Property’ column. In ‘Custom Definitions’ you’ll find ‘Custom Metrics’. This is the place where we’ll create our new Custom Metric for AOV.

So, let’s talk about the process of creating this custom metric. It might seem intimidating at first, but it’s actually quite straightforward.

First, click on ‘+New Custom Metric’. At this stage, you need to fill out several fields:

  • Name: You can name it ‘Average Order Value’.
  • Scope: Choose ‘Hit’.
  • Formatting Type: Select ‘Currency (Decimal)’.

Make sure to save your new metric. From this point forward, it will be available for you to use in reporting. You’ve successfully created a custom metric in Google Analytics!

While creating these custom metrics may seem like a lot of work up front, it’s crucial to dig deeper into your eCommerce data. By learning to track AOV, you’re opening up a new way to understand your customers’ purchasing patterns.

Next up, I’ll be guiding you on how to interpret the data gathered via these custom reports. Applying this knowledge effectively can make a considerable impact on your eCommerce operation. It can help you to consolidate your successes, identify potential areas for improvement, and lay the foundation for future growth.

Analyzing AOV Data in Google Analytics

Once you’ve set up the custom metric for Average Order Value (AOV) in Google Analytics, the challenge doesn’t stop there. The next part of the process – arguably the most crucial – is analyzing the AOV data. You may find it tough to get started at first, especially without any background in data analysis. But don’t worry! By releasing the true power of Google Analytics, you’ll find it easier to use than you think.

Before you advance, you need to understand the importance of segmentation in Google Analytics. It’s crucial for detailed and precise data analysis. Segmentation permits you to view your AOV data in different contexts – by marketing channel, customer cohort, or any other relevant segment that matches your business profile. For instance, you could segment buyers by age or gender to see if there’s a particular demographic spending more than others. Useful, isn’t it?

Determining your AOV in Google Analytics is as simple as dividing your total revenue by the total number of orders. Let’s get down to some hard numbers:

Metrics Example Data
Total Revenue $12000
Total Orders 1200
Average Order Value (AOV) ${
12000 ÷ 1200 = 10}

So, if your total revenue for a particular period is $12000 and your total orders are 1200, your AOV is $10. This value can provide deep insights in tracking customer buying experience, and ultimately, optimizing your e-commerce operations.

Now you’re up to speed on settings, segments, and calculations. However, information overload can happen – don’t assume you should be using all these features at once! Start by applying one or two segments to your data and get a closer look at your AOV numbers. Then, begin to add more as needed. Addressing your data bit-by-bit will save you time and avoid confusion.

As we unfold more steps, you’ll get hands-on techniques to make this process even simpler. Remember, your journey in Google Analytics doesn’t end after setting up AOV. It’s a continuous process that evolves with your business. Providing you more information to make informed decisions. The trick lies in utilizing your AOV data effectively. So keep exploring, learning, and improving.

Conclusion

So there you have it. Tracking Average Order Value (AOV) on Google Analytics isn’t just about setting it up and letting it run. It’s a continuous process of exploration and learning. The more you dig into your data, the more insights you’ll uncover. Remember, it’s not just about the numbers. It’s about what those numbers tell you about your business. Start small with one or two segments, then gradually expand as you become more comfortable. The insights you gain could be the key to unlocking your business’s full potential. So don’t stop at setting up AOV. Keep exploring, keep learning, and most importantly, keep improving. Your business will thank you for it.

Frequently Asked Questions

What is the Average Order Value (AOV)?

The Average Order Value (AOV) is a metric calculated by dividing the total revenue by the number of orders. It represents the average amount spent each time a customer places an order.

Why is it important to analyze AOV data in Google Analytics?

Analyzing AOV in Google Analytics is crucial because it provides insights into customer buying behavior which can be used to strategize for increased profitability.

How can I view AOV data in different contexts?

To view AOV data in different contexts, you can use segmentation in Google Analytics. This lets you break down your data into smaller, more specific parts.

How should I start with segmentation?

Begin with one or two segments that are most relevant to your business needs. As you get more comfortable, gradually add more segments.

What should I do after setting up AOV in Google Analytics?

After setting up AOV, you should continue to explore, learn, and refine your approach. Google Analytics provides endless possibilities for understanding and utilizing your data.

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About me

My name is Brian Cliette; I help brands and entrepreneurs find sustainable paths to sales growth on the social internet.

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