Do you want to understand the relative value of your pages on your site? From a business perspective, not every page on your site is created equal. To understand how much each page is worth for your business, it is imperative to know the relative value of your pages, also known as page value in Google Analytics.
In this article, we’ll explain what page value is in Google Analytics and why it is important for your business.
What Is Page Value in Google Analytics?
Page value is the average value for a page that a user visited before completing a conversion or an eCommerce transaction. By allotting a value for important pages on your site, you get an idea of which page contributes the most revenue.
Once you know the page value of different pages, you can extensively promote those pages with low traffic volume and high page value to boost your conversion rate.
Mathematically, here’s how page value in Google Analytics is calculated.
Page value = (Total page value + Transaction revenue) / Total unique pageviews
Before you dive into your Google Analytics reports to review the page value for different pages, you need to ensure that you’ve assigned a monetary value to every Analytics conversion.
Not every Google Analytics conversion is created equal. By assigning a monetary goal value, you can identify which conversion is more valuable for your business.
The rule of thumb is to assign a higher dollar value to conversions that are critical for your business. For example, you can assign $5 to newsletter signups and $10 to every new account registration on your site.
Now that you’ve got an idea about assigning a monetary goal value to every conversion, it’s time to calculate the page value for every important page on your site that your visitors navigated through on their way to conversion.
How to Calculate Page Value for a Page
Let’s take a look at how goal value for a page is calculated by looking at the example of an eCommerce transaction below.
Homepage » Category Page 1 » Product Page 1 (goal value: $10) » Receipt Page (eCommerce transaction: $100)
Let’s say that you want to calculate the page value for the category page 1 in the above example.
We know the following details already:
Goal value for the Product Page 1 = $10 (This value is assigned while setting up the Google Analytics goal.)
Unique Pageview for the Category Page 1= 1
Actual eCommerce transaction value = $100
The page value for the category page is calculated as follows:
Page value for the category page 1 = ($10 + $100)/1 = $110.
To find the page value for different pages, navigate to Behavior » Site Content » All Pages.
Applying the Goal Value Insights in Your Marketing
Once you can see the goal value metric in your Google Analytics report, you can apply the insights in your marketing campaigns to optimize your conversion and generate more revenue.
For instance, you can discover the pages with high page values with low traffic volume. By driving more quality traffic to those pages, you can likely boost the overall conversion rate.
Similarly, find out the pages that receive high traffic volume with low page values. To boost conversions, you might optimize the content and usability on these pages.
We hope this article gave you an idea about calculating page value in Google Analytics and how it can boost your bottom line.
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