Shopify UTM Tracking - The Ultimate Guide

By Tim Green on Aug 4, 2024

Introduction

UTM tracking is a powerful tool for Shopify store owners looking for deeper insights into their marketing efforts.

This guide will walk you through everything you need to know about implementing and using UTM parameters to track orders and analyze your marketing campaigns effectively.

What are UTM Parameters?

UTM (Urchin Tracking Module) parameters get their name from Urchin, a company that was used in the early days of the internet to track website visitors.

In 2005 Urchin was acquired by Google and the product evolved into Google Analytics.

UTM parameters are tags added to the end of a URL to track the effectiveness of online marketing campaigns.

When someone visits a website using a link that contains UTM parameters, the website will make a note of these parameters.

If the visitor ends up taking an action on your site (e.g. purchasing a product) these tags are recorded and linked to the sale.

With certain tools you will be able to analyze this data and use it to determine where visitors are coming from which can help you make informed decisions about your business.

What are the different UTM parameters?

UTM paramers are standardised and consist of five main components:

Source (utm_source): Identifies the source of your traffic (e.g., google, newsletter, facebook)
Medium (utm_medium): Indicates the marketing medium (e.g., cpc, email, social)
Campaign (utm_campaign): Denotes the specific campaign name (e.g., spring_sale, product_launch)
Term (utm_term): Used for paid search to note the keywords (e.g., blue_shoes, summer_dresses)
Content (utm_content): Distinguishes between similar content or links (e.g., logolink, textlink)

Together these parameters allow you to track which specific marketing efforts are driving traffic and conversions to your Shopify store.

What does a UTM link look like?

An example link with UTM parameters might look like this:

example.com/?utm_source=facebook&utm_medium=cpc&utm_campaign=black-friday&utm_term=toys

Everything after the ? is additional information for the website and it does not change which page the visitor lands on. So to the visitor this is the same as just visiting example.com.

Why Use UTM Tracking for Your Shopify Store?

Implementing UTM tracking offers several benefits:

Precise attribution: Understand exactly which campaigns, ads, or posts are driving traffic and sales.
Data-driven decision making: Use concrete data to inform your marketing strategy and budget allocation.
ROI measurement: Accurately calculate the return on investment for each marketing channel and campaign.
Performance optimization: Identify top-performing content and channels to refine your marketing efforts.

By leveraging UTM tracking, you can make informed decisions that boost your Shopify store's performance and profitability.

Setting Up UTM Tracking in Shopify

To set up UTM tracking:

1. Set up Google Analytics 4

You'll need to sign up for Google Analytics and set up the web property. Learn more about how to do this here

2. Install the Google & YouTube app:

Go to Shopify admin > Online Store > Preferences

Scroll to Google Analytics and click "Set Up Google"

3. Connect Google Analytics to Shopify:

Create a Google Analytics account if you haven't already.

Get your Google Analytics tracking ID. Learn how to get your Google Tracking ID.

Enter the tracking ID in your Shopify admin.

4. Verify installation:

Use Google Tag Assistant or real-time reports in Google Analytics to confirm proper setup

Once set up, you're ready to start using UTM parameters to track your marketing efforts.

Creating UTM-tagged URLs

You could create UTM links manually by just typin them out. Some people also use spreadsheets and a few handy formulas the construct the URLs.

Another option is to use a tool to create and save your UTM URLs. The Shopify app Origin Tracking provides free tool to construct and save your URLs.

What are some best practices for creating UTM-tagged URLs?

Use lowercase letters and underscores instead of spaces e.g. use utm_source=personal-newsletter instead of utm_source=Personal Newsletter
Be consistent with naming conventions. This willl make it easier to analyze the data later on.
Keep parameters short but descriptive

Implementing UTM Tracking Across Different Marketing Channels

To effectively implement UTM tracking across various channels:

Social Media

Use the platform name as the source (e.g., utm_source=facebook, utm_source=instagram).

You could either use social (e.g. utm_medium=social) as the medium. If you want to be more granular you could use feed, story, and cpc (cost per click) as the medium to distinguish between the different types of content.

Email Marketing

Use your email service provider or newsletter as the source.

Use email as the medium and use the campaign parameter to differentiate between email types.

Paid Advertising

For PPC platforms, use the platform name as the source and cpc as the medium. Use the term parameter to track specific keywords.

Affiliate Marketing

Create unique UTM codes for each affiliate, using their name or ID as the source and affiliate as the medium.

Content Marketing and PR

Use the publishing platform as the source and content or pr as the medium.

It's important to maintain consistency in naming conventions across all channels. Consider creating a UTM parameter guideline document for your team to ensure uniformity when creating tagged URLs.

Analyzing UTM Data in Shopify

Access UTM Reports

Go to Shopify admin > Analytics > Reports. Look for "Sales by marketing campaign" or "Sessions by referrer" reports.

Key Metrics to Track

Traffic: Monitor sessions generated by each UTM-tagged link.
Conversions: Track orders or signups from each campaign.
Revenue: Analyze total sales generated by each campaign or channel.
Average Order Value (AOV): Compare AOV across different campaigns.
Conversion Rate: Calculate the percentage of visitors that make a purchase. If you find a source of traffic that has a higher conversion rate it could be worth doubling down on this.

Interpreting Data

Compare performance across different marketing channels.
Identify which campaigns drive the most traffic, conversions, and revenue.
Assess which types of content or ad creatives perform best.
Look for trends over time to understand campaign performance changes.
Map out typical customer journeys using UTM data.

Shopify does provide some useful reports for analyzing sales & revenue with UTM data but this can be limited.

A great tool you can use to get a lot of insights into your UTM data is the Shopify app Origin Tracking.

Origin provides an intuitive interface which allows you to get the bigger picture around your sales and drill down to specific orders, customers or ad campaigns when necessary.

Demystify your marketing data today

Analyze your UTM data with an insightful, intuitive dashboard.

Try now for free

Product photo of a sneaker generated with Snapshot's AI model

Common UTM Tracking Mistakes and How to Avoid Them

While UTM tracking is a powerful tool for Shopify store owners, it's easy to make mistakes that can compromise your data quality and insights. Here are some common pitfalls and how to avoid them:

1. Inconsistent naming conventions

One of the biggest mistakes in UTM tracking is using inconsistent naming conventions. This can lead to fragmented data and make it difficult to analyze your marketing efforts effectively.

How to avoid:

Create a standardized naming convention for all your UTM parameters.
Use lowercase letters consistently (UTM parameters are case-sensitive)
Avoid special characters and spaces (/, ( ), !, @ etc.); use underscores or hyphens instead
Document your naming conventions and share them with your team

Example: Instead of mixing "Facebook_post", "facebook-ad", and "FB_story", stick to a consistent format like "facebook_post", "facebook_ad", and "facebook_story".

2. Not tracking all campaigns

Another common mistake is failing to track all your marketing campaigns. This leaves gaps in your data and prevents you from getting a complete picture of your marketing performance.

How to avoid:

Create UTM codes for every marketing campaign, no matter how small
Use UTM parameters for both online and offline campaigns
- Hint: for offline campaigns, you might find a URL shortener useful. For example if you post an add in the news paper provide the link as bit.ly/mystore-sweater-summer, this URL should then redirect to a longer URL which includes your UTM parameters. This way you don't have to rely on customers typing the UTM parameters themselves.
Don't forget to track email marketing, social media posts, and partner referrals
Implement a process to ensure all team members use UTM tracking consistently

3. Overcomplicating UTM structures

While it's tempting to add as much detail as possible to your UTM parameters, overly complex structures can lead to confusion and errors.

How to avoid:

Stick to the five standard UTM parameters (utm_source, utm_medium, utm_campaign, utm_term, and utm_content)
Use clear, concise terms that are easy to understand and analyze
Avoid nesting too much information within a single parameter
Focus on capturing the most important information for analysis

Example: Instead of utm_campaign=summer_sale_2023_email_series_week2_product_category_shoes, simplify it to utm_campaign=summer_sale_2023 and use other parameters like utm_content to add more specific details.

Remember, the goal is to create a system that is both comprehensive and easy to maintain over time.

Integrating UTM Data with Other Shopify Apps

Integrating your UTM tracking data with other Shopify apps can significantly enhance your marketing efforts and provide a more comprehensive view of your customer journey.

CRM Integration

Connecting your UTM data with your Customer Relationship Management (CRM) system can provide valuable insights into customer acquisition and behavior.

Benefits:

Track the entire customer journey from first click to purchase
Segment customers based on acquisition source
Personalize follow-up communications based on initial touchpoints

Some examples of CMRs that integrate closely with Shopify are:

Email Marketing Platform Integration

Incorporating UTM data into your email marketing efforts can help you create more targeted and effective campaigns.

Benefits:

Segment your email list based on acquisition source
Tailor email content to match the original campaign that attracted the subscriber
Measure the effectiveness of email campaigns in driving website traffic and conversions

Some examples of email marketing platforms that integrate closely with Shopify are:

Remarketing and Retargeting

UTM data can significantly improve your remarketing and retargeting efforts by allowing you to create more specific and relevant ads.

Benefits:

Create highly targeted remarketing audiences based on initial acquisition source
Tailor ad content to match the original campaign that brought the user to your site
Improve ROI by focusing retargeting efforts on the most promising channels

Some examples of retargeting apps that integrate closely with Shopify are:

Nabu

By integrating UTM data with these various Shopify apps and platforms, you can create a more cohesive and effective marketing strategy. This integration allows you to provide a personalized experience for your customers across multiple touchpoints, ultimately leading to higher engagement and conversion rates.

Remember to regularly analyze the data from these integrated systems to identify trends, optimize your campaigns, and make data-driven decisions for your Shopify store's growth.

UTM Tracking Best Practices for Shopify Stores

Set up automated reports

Use Google Analytics or your preferred analytics tool to set up regular automated reports.

You could, for example, get a weekly report emailed to you detailing the breakdown of your marketing effors.

This keeps the visibility high and reduces the work needed for you to regularly check up on your campaigns.

Create custom dashboards

Build dashboards that display your most important UTM-based metrics at a glance.

Many tools will let you do this and this can give you a personalized information for your business.

Analyze data at multiple levels

Look at overall channel performance, but also dive into specific campaigns and ad content.

Compare periods

Analyze how performance changes over time. For example:

Channel	Q1 Revenue	Q2 Revenue	% Change
Facebook	$10,000	$12,500	+25%
Google	$15,000	$16,000	+6.7%
Email	$5,000	$7,500	+50%

This can give you an idea of how your marketing campaigns have affected your business.

Conclusion

UTM tracking is a powerful tool that can significantly enhance your Shopify store's marketing efforts. Let's recap the key points we've covered:

Implementing UTM tracking may seem daunting at first, but the insights you'll gain are invaluable.

By understanding where your traffic and conversions are coming from, you can make data-driven decisions to optimize your marketing spend and improve your ROI.

We encourage you to start implementing UTM tracking for your Shopify store today.

Start small if needed, perhaps with your main marketing channels, and gradually expand your tracking as you become more comfortable with the process.

Remember, the key to success is consistency and regular analysis.