I have been creating a calculated metric in Google Analytics accounts lately, called “Profitable Conversion Rate.”
It is very straightforward. For an ad account, such as Google Ads, you will see a goal conversion rate or e-commerce conversion rate metric in your Google Analytics data. Most companies, especially small businesses, don’t actually know what conversion rate they need in order to know if their advertising is bringing in any profit. This is why I’ve created the profitable conversion rate metric. It allows you to compare your actual account conversion rate to a benchmark in order to determine whether you are successful or not.
If your conversion rate is GREATER THAN the profitable conversion rate, then you are making money on your ad spend.
If your conversion rate is LESS THAN the profitable conversion rate, then you are losing money on your ad spend. It’s time to analyze the data and find out what you need to change.
This metric makes it possible to achieve your goals, and it puts a reality check on all of your data. Without benchmarks, all of your metrics exist in a vacuum. It’s hard to say what is good or bad. Now, we’ve got a pointer in the right direction. This should take you far.
If you want to create the profitable conversion rate metric in your Google Ads, get in touch and I’ll walk you through it.