If you are using Google Analytics then you might have seen this New vs Returning Report in Google Analytics.
Google tracks user behavior with cookies. Google creates a unique ID and tracks a user in Google Analytics.
When a new user comes to your website new ID is generated for that user and it is counted as a new user.
You might be thinking what If you visited from your computer then from your smartphone. Google Analytics will count you as a new user, even if you switch the browser or clear the cookies.
New vs Returning Report in Google Analytics
Step 1: Go to google analytics and navigate to Audience → Behavior section → New vs Returning
Step 2: Make sure you have selected date range from last 2 or 3 months.
Step 3: Click on the Ecommerce tab in the report section.
Step 4: You can sort the ‘Revenue’ metrics in the table.
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When you are in ‘New vs Returning‘ report you can see there is a huge number of ‘New Visitors’ who came to the site but the revenue generated from the ‘New Visitor’ is less as compare to ‘Returning Visitor’ (e.g., the 26% of users who are returning visitor account for 74% of total Revenue in that Date Range).
How to calculate worth of both the users?
New Visitor to website worth : ₹5,399,537 / 244733 = ₹22.06
Returning Visitor to website worth : ₹15,525,727 / 86,635 = ₹179.20
That means the returning visitors are giving me 8x times more profit than the new visitors.
You have to send more traffic to your lower funnel to generate more revenue for your business.
Use the New vs Returning Report to understand the user’s behaviors from User Flow and make strategies for your business to gain more profit. Keep analyzing the data and make the most out of Google Analytics.