UTM Best Practices to Measure Real Revenue (Not Just Clicks)
What Are UTM Parameters?
UTM (Urchin Tracking Module) parameters are small snippets of text you add to URLs to track the effectiveness of online campaigns. They help you understand where your visitors come from, but their real power emerges when linked directly to revenue.
Why Clicks Alone Aren't Enough
Focusing only on clicks can lead to misguided decisions:
- High clicks don't necessarily mean high revenue.
- Some channels generate fewer clicks but higher-paying customers.
- Without revenue attribution, your marketing investments could be misallocated.
Best Practices for Revenue-Focused UTM Tracking
1. Standardize Your UTM Structure
Consistently format your UTMs across channels:
utm_source: e.g., Facebook, Google, newsletterutm_medium: e.g., CPC, social, emailutm_campaign: clearly label your campaign for easy recognition
Example: yourwebsite.com?utm_source=twitter&utm_medium=social&utm_campaign=launchday
2. Connect UTM Tags to Revenue
Use analytics tools like TheBizness.ai to automatically match UTM-tagged clicks with revenue data from Stripe. This setup clearly shows which campaigns generate paying customers.
3. Analyze Revenue, Not Just Traffic
Check your attribution dashboard regularly. Focus on:
- Campaigns generating the most revenue.
- Channels with the highest revenue-per-click.
- Identifying channels with poor ROI despite high traffic.
Real-World Example
Imagine two campaigns:
- Campaign A: 1,000 clicks, $500 revenue.
- Campaign B: 200 clicks, $1,500 revenue.
Clicks alone would favor Campaign A. However, revenue attribution clearly identifies Campaign B as far superior.
Common Mistakes to Avoid
- Inconsistent Tagging: Stick to a clear naming convention.
- Ignoring Revenue Metrics: Always prioritize revenue over click volume.
- Not Regularly Reviewing: Periodically check performance to optimize.
Make Better Marketing Decisions
Proper UTM practices enable clear, actionable insights, ensuring your budget focuses on revenue-generating activities rather than vanity metrics.
Ready to track real revenue effortlessly?