In a recent update to Google Analytics, Google silently introduced the “Page Value” metric. This is in fact the replacement for the “$ Index” metric that Google removed from their Analytics service some time ago.
The “page value” metric is calculated exactly the same way as the ”$ Index” value was. The value is calculated as shown below:
For this example, let’s assume that the website has three pages that are visited before making a purchase, these are called Page 1, Page 2 and Page 3.
User 1 visits the website and makes a purchase of £100. Before completing the purchase they visited all three pages above in order without viewing a single page more than once.
After this visit, each page gets assigned a value of £100 as the transaction revenue is £100 and each page received 1 unique page view.
After User 1’s visit User 2 visits the website and also browses Page 1, Page 2 and Page 3 in that order but in the end does not purchase anything.
After this visit, the page value will decrease to £50 as the total revenue is still £100 but they have received two unique page views each. Using the formula specified above: £100/2=£50.
After User 2’s visit, User 3 visits the website and makes another purchase worth £100, however they make the purchase after viewing Page 2 rather than viewing Page 3.
After this purchase, the page values will be as follows:
Page 1, Page 2 = £66.67 (Total Revenue: £200, Unique Page Views: 3)
Page 3 = £50 (Total Revenue: £100, Unique Page Views: 2)
What happens if a user visits pages multiple times before making their purchase as shown below:
Not taking into account the previous three examples, the value of each page above (Including Page 1 which is viewed twice) will be £100. This is because the “Page Value” metric only takes unique page views into account so viewing pages multiple times during the same visit will still only be counted as a single unique view.
Only page views that occurred before the transaction will have their value calculated, pages that are viewed after a transaction is completed will not be counted.