How Google Analytics 4 Will Impact Your eCommerce Business

Google Analytics 4 is a major change when it comes to analysing how users interact with your eCommerce. Find out all about GA4 in this article.

Privacy

In terms of privacy, we also find significant differences between the two tools. This is precisely due to the changes in global policies and regulations regarding the privacy of data collected by companies on the Internet.

Here are some of the main privacy differences between GA4 and UA:

Anonymous IP addresses: GA4 anonymises IP addresses by default, while UA does not. This means that from now on Google does not store the full IP address.
Data storage time: GA4 allows data to be stored for up to 14 months, while UA allows data to be stored for up to 5 years.
Personally Identifiable Information (PII): GA4 never collects PII by default, while UA can if you enable it.
Google Consent Mode: GA4 supports Google Consent Mode, a tool that allows users' privacy to be respected in accordance with the General Data Protection Regulation (GDPR) without losing access to some data.

In short, Google Analytics 4 is an improved and more advanced version of Google's web analytics tool. Allows users more accurate data tracking, a better understanding of the user on the web or app and is adapted to the latest online privacy trends. So why does everyone throw their hands up in the air when they hear about GA4?

This is the most important update to the platform in the last 10 years and for most people, this means relearning how to use a tool that they were already familiar with. But while it is not just a matter of practice, there is one factor that is worrying everyone, the end of third party cookies as we know them today.

GA4 has been designed to gather user information and data without relying on cookies. This new platform makes it possible to collect and track data on user behaviour anonymously, eliminating the necessity of explicit permission. By eliminating the need for users to respond to cookie consent inquiries, it effectively reduces friction and mitigates the current rates of abandonment.

With this in mind, Google plans to permanently eliminate cookies by 2024, aligning with the security and privacy protocols that have been globally established in recent years.

eCommerce Tracking

GA4 offers a simplified approach to eCommerce tracking compared to Universal Analytics. In UA, there are two types of tracking available: standard and enhanced, while in GA4 there is only one type of tracking, similar to UA's enhanced tracking.

In UA, it is only possible to track specific events, such as product impressions, product clicks and conversions (purchases), limited to the order and confirmation pages. However, with GA4, you can track a wider range of events and, most importantly, you can track user behaviour across multiple platforms.

For example, with GA4 you can identify whether a user comes to your website via a blog post, downloads the mobile app and ultimately ends up making a purchase through it. This cross-platform tracking capability provides a more complete view of the user journey and will help you better understand your customers' sales funnel and their interactions across different channels at each stage of the funnel.

Personalised Reports and Machine Learning

You'll first notice how the UA and GA4 reporting interfaces are very different and, as mentioned above, you'll probably miss many terms that you were used to. You will also notice that there are far fewer reports in GA4. This is because reports will be generated as you identify and start measuring your events on the platform, a more manual process.

Of course, you will have to learn how to use the new GA4 reporting interface and get used to the new metrics. But it's not all downsides, once you've mastered these reports, here are some of the benefits you'll experience:

More flexibility and control over your data: you will be able to create new audiences and data flows that allow you to have more control over your data. You can create customised reports according to specific event groups or user groups.
More integrated view of your customers' behaviour: thanks to the data-driven attribution model, you can see how the different channels a customer has been exposed to have influenced the completion of the conversion. This will give you a more holistic view of your customer journey and allow you to optimise your marketing campaigns accordingly.
Multi-platform tracking: although we have already mentioned this throughout the article, here is another point that you will be able to identify and analyse in the reports in GA4. You can see which devices users have used to interact with your brand.
Projections and Insights: thanks to the use of artificial intelligence, the platform offers predictions and projections through the identification of patterns in user interaction data and habits that can help you improve your sales strategies.

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