Goal values allow you to assign monetary values to your non-transaction conversions in Google Analytics. Assigning a goal value is useful because it lets you put a number on conversions that bring in no direct revenue, but result in transactions later on.
These goals can be a variety of interactions with your site that Analytics tracks. You can set up goals for actions like placing pre-orders, creating an account, contacting your company, signing up for a newsletter, among other things. You can also set up custom goals tailored to your specific needs, like tracking phone calls over 5 minutes long.
Determining values for these goals can be difficult. Luckily there are a few general guidelines for setting up a goal value if you’re unsure how much your goals are worth.
First, take into account your average transaction revenue. Next, determine what percentage of leads turn into sales. By multiplying these two numbers, you get a rough estimate of the goal’s dollar value.
Goal value = (average transaction revenue) x (% of leads that turn into transactions)
If you are new to Analytics and don’t know either of these values, assign relative values to goals. For leads that you think will have more value, assign a higher amount. If you think that newsletter signups will result in more transactions than phone calls, assign newsletter signups a $4 value and give phone calls a $2 value.
These values can be changed easily, so set up preliminary goal values to get an idea of what your goals are worth. Once Google Analytics has gathered data on lead conversion rates and transaction revenues, adjust your goal value to reflect these numbers.