How to Create Your Own Benchmarks in GA4 for Better Forecasting

In our previous post, “What is and How to Use Google Analytics 4 (GA4) Benchmarking Feature” we explained how GA4’s benchmarking tools compare your data to industry standards. But what if those industry benchmarks don’t reflect your specific business needs? That’s where custom benchmarks come in. In this post, we’ll show you how to create personalized benchmarks that align with your goals and use them to forecast future success.

What Are Custom Benchmarks?

Custom benchmarks are performance metrics tailored to your business, built using your own historical data and goals. Unlike generic benchmarks that compare you to industry averages, these focus on your unique audience, products, and strategies.

Why Are Custom Benchmarks Important?

• Relevance
  Unlike generic industry benchmarks, custom benchmarks are built around your business's unique context, such as your audience demographics, marketing channels, and product offerings. They provide a personalized view of performance, helping you focus on what matters most to your specific goals.
• Control
  With custom benchmarks, you decide which metrics are most meaningful for your business objectives. Whether it's tracking customer acquisition costs, return on ad spend, or engagement rates, you have the power to define success on your own terms.
• Actionability
  By aligning directly with your goals, custom benchmarks transform data into actionable insights. They allow you to pinpoint opportunities, address weaknesses, and make informed decisions that drive measurable outcomes. For example, a benchmarked drop in email open rates could signal the need for a refreshed subject line strategy.

How to Create Custom Benchmarks in GA4

Creating custom benchmarks may sound challenging, but with a structured approach, it becomes an invaluable tool for your business. Follow these steps to get started:

1. Identify Your Key Performance Indicators (KPIs)
   Begin by selecting metrics that align closely with your business objectives. Your KPIs will vary depending on your industry and goals:some text
   • For e-commerce businesses: Focus on metrics like:some text
     • Ecommerce Purchase Rate 
     • Average Purchase Revenue Per User (ARPU) 
     • Cart abandonment rates
     • Customer Lifetime Value (CLV)
   • For content-driven websites: Prioritize metrics such as some text
     • Average Engagement Time per User
     • Engagement Rate
     • Returning User Percentage
     • Events Per User
     • Conversion Rates for Goals
     • Demographics Metrics
     • User Stickiness Metrics (DAU/MAU)
2. Analyze Historical Data
   Dive into your GA4 data from the past 6–12 months to uncover trends, patterns, and anomalies based on the identified KPIs.This historical data forms the foundation of your benchmarks and provides a contextual understanding of your performance. Here's how to approach this step:some text
   • Look for seasonal fluctuations or consistent performance peaks.

• Spot Trends Over Time
  • Analyze consistent growth or decline in key metrics like conversion rates, engagement rates, or revenue.
  • Example: A steady increase in average order value could indicate effective upselling strategies, while a decline in returning visitor rates might signal retention challenges.
• Identify Outliers
  • Pinpoint unusual data points that deviate significantly from the norm, such as a sudden drop in traffic or an unexpected spike in bounce rates.
  • Decide whether to include or exclude these anomalies based on their relevance to long-term performance.
• Segment Historical Data for Deeper Insights
  • Break down metrics by dimensions such as traffic source, device type, or audience demographics to uncover granular patterns.
  • Example: Mobile users might have consistently lower engagement rates, highlighting an opportunity to optimize the mobile experience.
• Compare Against Business Milestones
  • Cross-reference historical data with major events like marketing campaigns, product launches, or website redesigns to understand their impact.
  • Example: A new ad campaign could explain a temporary increase in acquisition metrics.
• Evaluate Conversion Funnels
  • Map out user behavior across conversion funnels to identify drop-off points or inefficiencies in the customer journey.
  • Example: If cart abandonment rates are consistently high, focus on optimizing the checkout process.

2. Segment Your Data
   Enhance your benchmarks by breaking metrics into segments, such as:some text
   • Traffic source: Compare organic, paid, and referral traffic to see where your strongest performance lies.
   • Device type: Analyze performance differences between desktop and mobile users.

• Audience type: Assess new vs. returning visitors or demographic variations.
  Segmentation adds depth to your benchmarks, enabling you to make targeted improvements.

2. Document Your Benchmarks
   Record your benchmarks systematically to ensure easy access and regular tracking:some text
   • Use a spreadsheet to document your KPIs, historical metrics, and target benchmarks.
   • Alternatively, set up a custom GA4 dashboard to automate updates and monitor performance in real time.

How to Use this Custom Benchmarks for Forecasting

‍Once your benchmarks are established, they become a powerful foundation for planning and forecasting. Here’s how to use them effectively:

1. Align Benchmarks with Goals
   Benchmarks help you connect your current performance to your future aspirations.some text
   • For example, if your goal is to increase website traffic by 20%, analyze your benchmarks to determine where to focus your efforts. Should you allocate more resources to SEO, boost your paid advertising budget, or invest in social media campaigns?
   • This alignment ensures your actions are data-driven and targeted, maximizing your chances of success.
     
2. Analyze Trends
   Your historical benchmarks can reveal valuable trends to inform your forecasts:some text
   • Identify seasonal patterns, such as traffic spikes during holiday shopping periods or slower months for engagement.
   • Look at the results of past campaigns to anticipate what might work again in the future or what needs adjusting.
     
3. Set Realistic Projections
   Use your benchmarks to set achievable targets:some text
   • If your current conversion rate is 2%, setting a goal to reach 2.5% is both ambitious and realistic. However, aiming for 5% might be overly optimistic and set you up for disappointment.
   • Break down long-term goals into smaller, manageable milestones to keep progress measurable and motivating.

By using benchmarks to align with goals, analyze trends, and set realistic projections, you can create a clear, actionable roadmap for future growth. This approach ensures your forecasts are not only grounded in data but also designed for success.

‍Benchmarking and Forecasting for 2025 Framework

‍To make your 2025 forecasting process even easier, we’ve created a comprehensive Google Sheets template designed to help you calculate, visualize, and track your benchmarks and forecasts. This template incorporates essential features like historical data analysis, monthly forecasting based on growth rates, and seasonal adjustments, all of which are crucial for setting realistic goals and achieving measurable success in the year ahead.How to Use the Template

1. Download the Template
   Click the link below to download the 2025 Benchmarking and Forecasting Template:
   Download the Template 
2. Input Your Data
   Once you’ve opened the template, start by entering your 2023 and 2024 data in the Historical Data section. This data will automatically populate the YoY Growth Rate calculation.
3. Customize the Forecasting Parameters
   Set your growth rate based on the YoY growth rate or enter your own projected growth rate for 2025. You can also adjust for seasonality by modifying the seasonal factors in the template. This step allows you to refine your projections based on expected changes or events.
4. Review Your Monthly Forecasts
   The template will generate monthly forecasts for 2025, giving you a clear view of how your performance is expected to evolve over the year. You’ll be able to see your projected revenue, traffic, or any other key metrics you’ve selected.
5. Monitor Progress & Adjust as Needed
   As the year progresses, you can update your actual performance data into the template to compare with your forecast. This allows you to track your progress toward your 2025 goals and make necessary adjustments in real-time.

Frequently Asked Questions (FAQs)

Why should I use custom benchmarks instead of relying on industry benchmarks?

Custom benchmarks are more relevant, controllable, and actionable:

• Relevance: They reflect your specific business context, audience, and goals.
• Control: You define which metrics matter most to your objectives.
• Actionability: They provide insights directly aligned with your goals, helping you make informed decisions.

Why is segmenting data important when creating benchmarks?

Segmentation adds depth to your analysis by highlighting performance differences across categories like traffic sources, device types, and audience demographics. This helps you make more targeted improvements.

Can I use custom benchmarks to evaluate specific marketing channels?

Absolutely! Segment your benchmarks by traffic source (organic, paid, referral, etc.) to evaluate the performance of each channel. This helps you allocate resources effectively to maximize ROI.

Final Words

Custom benchmarks are a practical and powerful way to turn raw data into actionable insights that drive growth. Unlike generic benchmarks, custom benchmarks allow you to focus on the metrics that matter most to your business. Whether it’s tracking conversion rates, bounce rates, or customer lifetime value, these benchmarks are tailored to align with your unique goals and strategies.

By creating and using custom benchmarks in GA4, you gain more control over your performance metrics. They help you identify trends, uncover opportunities, and address challenges with precision. With this data-driven approach, you can set realistic goals, track measurable progress, and make informed forecasts that lead to smarter decisions.

Have questions about getting started or tips to share? Drop them in the feedback form—we’d love to hear your thoughts and help you succeed!

Thank you for reading!

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