In today’s era where e-commerce businesses are growing rapidly, having tools that effectively analyze and evaluate website performance is crucial for business operations. Today, we’d like to introduce what Google Analytics is, how it helps us understand user behavior, and how in-depth data analysis can help entrepreneurs make more accurate decisions while running their business. Do these capabilities truly increase sales opportunities and generate more revenue? Let’s find the answers together.
What is Google Analytics?
Google Analytics is a tool from Google that helps businesses gain deeper insights into website visitors, user behavior, and the effectiveness of various marketing campaigns. Google Analytics is designed to help you analyze conversion data in detail.
Currently, Google Analytics has been upgraded to the latest version, Google Analytics 4 or GA4, which was developed to accommodate changes in the digital world and evolving consumer behaviors. The new features of GA4 help entrepreneurs analyze e-commerce data more deeply and efficiently as follows:
Predictive Metrics
GA4 uses AI to predict future user behavior, such as:
Purchase Probability – the likelihood that users will purchase products within 7 days
Churn Probability – the likelihood that users won’t return to the website within 7 days
Revenue Prediction – the expected revenue from users within the next 28 days.
New Engagement Metrics
Instead of using the traditional Bounce Rate, GA4 uses Engagement Rate which measures genuine user engagement by considering time spent on the website exceeding 10 seconds, viewing more than 1 page, and the occurrence of Conversion Events.
Funnel Analysis
Google Analytics is capable of creating and analyzing custom funnels to see where users drop off during the purchasing process. With Funnel Analysis, you can check where customers exit the purchase flow, such as at the shipping address page, allowing you to improve that page for easier use and increase successful purchase rates.
Path Analysis
Analyzes user navigation paths, showing where users come from and which pages they visit next.
Segment Builder
Create detailed user groups based on behaviors or characteristics, such as “customers who purchased more than once in the past month.”
User-ID
Better track users across devices and platforms, providing a comprehensive view of the Customer Journey.
BigQuery Export
Export raw data to BigQuery for advanced analysis or connection with other systems (available for free in the free version of GA4).
Why Do E-commerce Businesses Need Google Analytics?
- Understand customer behavior: Google Analytics is instrumental in helping you know who visits your website and what they do on it, or where they come from. This information helps you customize content and design your website to precisely meet customer needs, enhancing user experience and increasing sales effectively.
- Measure marketing campaign results: You can analyze the effectiveness of various marketing campaigns including SEO, Google Ads, or social media. This information helps you determine which channels to invest more or less in, making your marketing budget more efficient.
- Improve user experience: Google Analytics is a powerful tool that provides information about your website’s technical performance in many areas, such as page loading speed and bounce rate. This information helps you identify technical issues and improve the user experience.
- Help increase Conversion Rate: Google Analytics is essential for setting goals, such as membership registration, document downloads, or product purchases. This information will show you how successful your website is in getting users to take the actions you want.
How is Conversion Tracking Related to Google Analytics
While Google Analytics is a tool that helps many e-commerce businesses succeed through in-depth data, another important tool that enhances the analysis of e-commerce business results is Conversion Tracking, which works in conjunction with Google Analytics. Simply put, we cannot use Google Analytics alone; we need to use other tools along with it, such as Facebook Pixel, LinkedIn Insight Tag, and Google Ads Conversion Tracking. Measuring these conversions will support what we get from customers. This includes order information, new customer lists, and the number of people who sign up or register through forms. It enables us to track the payment process from start to finish. We can identify where customers leave the ordering process, and this helps us improve the payment experience for a smoother flow.
What is Conversion Tracking?
Another important tool alongside Google Analytics is Conversion Tracking, which helps website owners track and measure activities users perform after seeing an advertisement. The data collected is sent to advertising platforms such as Facebook, Google, or LINE, helping to analyze and optimize advertising strategies for greater effectiveness.
How Conversion Tracking Works
- Installation: Install code on your website or application to identify users and track their behavior on various pages.
- Tracking: When a conversion occurs, the code records the data and sends it to the analytics system.
- Processing: The analytics system processes the data to create reports and improve ad content going forward.
Installing Conversion Tracking
Before starting conversion advertising, website owners must install the Conversion Tracking system. This can be done by adding code from the desired advertising platform to the website. This system helps collect information about customer behavior and various activities occurring on the website for processing. LnwShop Pro platform users can easily install Conversion Tracking without writing additional code, as the system has already prepared the code for support.
Furthermore, if we implement tracking comprehensively, Google Analytics is able to show the total revenue and which channels it comes from, whether SEO, Google Ads, Social, etc. But if many people still don’t understand or don’t want to spend time analyzing it themselves, they can consult with the Convert Digital team. We specialize in marketing, managing advertising campaigns, and making websites SEO-friendly, with experience helping leading businesses achieve their expected goals. Google Analytics is one of the many tools we expertly utilize to drive your business forward.
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