Google Analytics for Beginners: Creating a Measurement Plan

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Last updated on September 14th, 2017 at 10:44 pm

Last week we learned how to properly set up our analytics account to get clean and ready to analyze data, read the article here if you haven’t read it yet. In this article, we will explain how to create a measurement plan, and why it is super important to create one before doing anything else with analytics.

Creating a measurement plan for Google Analytics is often forgotten, but it will help you in tracking your website. Before creating a measurement plan, you must double check if your website is aligned with your business objectives. If this is not the case, it is impossible to create a measurement plan. This also accounts for the most basic websites – Website objectives include goals for people filling out a contact form, signing up for a newsletter, or when someone clicks on one of your videos.

Let’s say you are a travel agent – you have a physical store in New York that is specialized in selling all inclusive trips to Europe. However, you soon realized that people preferred to book their trips online instead of offline. You responded quickly to the market demand and built a beautiful and functional website, but now you don’t know how your website is performing and where you could improve. Let’s create you a measurement plan!

The fundamentals of a business plan are:

  • your business website objectives
  • the strategies and tactics that support your objectives
  • the Key Performance Indicators (KPI) that measure the success of your implemented strategies
  • segments to help you understand what drives success, and
  • targets for each KPI to understand if your business is reaching its goals in your set amount of time.
  1. Business Website Objectives

One of your business objectives could be:

Continuously provide memorable and enjoyable all-inclusive trips to Europe.

  1. Strategy:

In order to obtain your business objective, your strategy could be to:

Sell completely organized, comfortable, and informative trips that will ensure that customers are fully satisfied at the end of their trip

  1. Web tactic

One of your web tactics could be:

Sell travel packages through the website

Since you also have a physical office, you could have another web tactic such as:

Drive web visitors to the physical store

  1. Key Performance Indicators

KPIs are used to measure the success of our web tactics and strategy. In this example, we will only be focusing on the KPIs of our first web tactic, “Sell travel packages through the website.” , in order to keep it short and sweet but to quickly help you understand the concept of KPIs.

KPI 1: Revenue

Calculate the total money your company makes from selling any travel packages through the website.

website objectives

KPI 2:  Average Order Value

The average value for each package sold through the website.

website objectives

KPI 3: Revenue per customer

This KPI measures the average revenue made per customer. This will most likely be similar to the average order value, assuming that people do not buy two travel packages at once.

KPI 4: Newsletter Signup

The membership signup shows how many people signed up for the newsletter, in which discounts and deals are offered to participants.

  1. Segments

You can use segments to gain information about the different types of customers that drive sales. It is normal to have multiple segments within a business.

Segment 1: Traffic Sources

In order to measure how different marketing campaigns perform, you can use traffic source segments. By playing around a bit in your Google Analytics account, you will quickly learn that each referral to your website has an “origin”, a source. Sources include:

  • The name of a search engine, such as “google”
  • The name of a referral site such as “facebook”
  • The name of one of your newsletters “February Discounts” or
  • “Direct”. Direct sources are those users who directly typed your URL into their browser.

website objectives

Segment 2: Product Category

By segmenting product categories you can measure how well specific categories and individual products perform. Maybe your travel packages in France are selling like hotcakes, but your travel packages to Germany are stuck in a rut. Based on that information, you can try and improve your sales through tweaking your content and campaigns.

To check this segment, go to: Conversions > E-commerce > Product Performance and click Product Category (Enhanced E-commerce). You can only see this data when you are utilizing Enhanced E-commerce.

 Segment 3: Audience Demographics

Let’s assume for a bit that you are selling low-end and high-end travel packages – it could be that your low-end packages are selling to a different demographical group than your high-end packages. This is interesting information, as it will help you adapt your campaigns specifically to the right audience. In future articles, we will explain to you how to retrieve this data.

We hope by now that you have a basic understanding of how to create a Measurement Plan for your Google Analytics account. We really encourage you to create a measurement plan, as you cannot start analyzing your data before you understand with what strategies and tactics you support your business objectives. As you have seen, your Measurement Plan doesn’t have to be a complicated, 20-page long report.  It’s easy, and you could probably create one while sitting outside enjoying the sun. Good luck creating yours!


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