A business needs strong strategies and careful planning to achieve growth. The sign of a good business is learning from past efforts and testing the future ideas for creating a bright future. Everything boils down to e-commerce data analytics. Analytics help a business go deep into the facts and figures, historical data, and future forecasting. It helps in making intelligent and informed business decisions.
Today’s blog will enlighten you in the same regard. We will deep dive into the core principles of eCommerce and how data analytics is an integral part of it. So, let’s begin.
What is Data Analytics in E-commerce?
E-commerce data analytics is the process of collecting data from all areas which have an impact on the online store. This data should then be used for comprehending the changes in the consumer behavior and online buying trends. It enables a business to make strategic decisions based on the data. It results in increased online sales.
E-commerce data analytics consists of a wide array of metrics related to the complete customer journey such as:
Benefits of Data Analytics in E-commerce
1. Measure Effectiveness of Sales and Marketing
E-commerce analytics can help companies measure the success of their marketing campaigns and improve the decision-making. It helps gain omnichannel traction and in creating informed holistic marketing campaigns. Gone are the days when it was a one-shoe-fits-all approach. You have to make customized efforts to deal with each and every customer segment you target. WebDataGuru’s data analytics tools are the best in the existing market.
2. Evaluate Trends in Data for Forecasting
Ecommerce analytics offers the power to gain a better understanding of how the business is performing at present and how it is likely to perform in the future. This forecast gives an idea about hiring goals and sales goals. It makes sure that the right products are accessible at the right time so the buyer’s expectations can be met.
3. Optimize the Pricing
With e-commerce data analytics one can benefit from a clear picture of what is driving the price for all customer segments. This insight can help decide the best price points for each product. It will lead to optimal revenue generation.
4. Use Customer Data to Personalize Experience
Understanding how the customers engage and interact with a business is essential. It will help make decisions to appeal to and attract the target demographics. E-commerce data analytics will help in optimally positioning the product to improve the purchasing journey of the buyers. The eCommerce world keeps customer at its core and user experience is everything. And that’s where data analytics comes into the picture. As it can reveal pain points in your website’s navigation, highlight areas for improvement, and help you create a seamless shopping journey. The end result is of course, happier customers who are more likely to return and refer others.
5. Data-driven Insights
Data analytics will help make informed decisions and strategies. It will give an insight on what is happening in the business and within the industry. You will be able to figure out vital market trends.
Types of E-commerce Data Analytics
There are different types of e-commerce data analytics which can be used for creating an informed marketing strategy and making sure that your business is a step ahead of the competition.
When you begin data analytics, audience is the first step. It offers detailed insight into regarding the demographics of the audience such as age, income, gender, occupation, location, language, etc. It also provides data about the device the audience is using so that you can target them accordingly.
Audience data offers e-commerce company owners an opportunity to change the shipping options and advertisements on the basis of the location of the audience. You will get an idea on how to alter the marketing content displayed on the device.
Yet another type of e-commerce analytics is related to customer acquisition. It will help you learn about how the visitors found your business online and how they reached the website. While using the acquisition data, you will get to know more about the marketing channels that bring the majority of the visitors to the website.
You will get an idea about the channels bringing more sales and conversions. The data will help understand the business to determine where the resources should be focused.
Consumer behavior is yet another aspect to be considered for e-commerce data analytics. It will give an insight into how customers behave after landing on your website.
- What products do customers buy?
- What pages do they click first?
- What marketing content do they click on?
- Which products generate more interest but lesser sales?
All this offers a complete idea of how the website is being used. It will also help in making the necessary changes to engage the visitors.
Conversion is yet another aspect of data analytics. It will offer an insight into when the online users convert into actual customers and how they convert into customers. Conversion analytics should not be ignored as it will provide deeper insights such as how long typical users take to convert if they tend to convert once a year or multiple times. Are customers making repeat purchases and how many customers abandon the shopping cart instead of converting?
5. Paid Marketing Activities
Apart from the above-mentioned analytics, another area of analytics is paid marketing activities. It helps figure out the exact return on investment for various campaigns. You will get an idea of how much revenue is generated from social media advertisements, how much revenue is generated from pay-per-click ads and what about the email marketing campaigns. This analysis will ensure that you don’t spend money on marketing campaigns that don’t help the bottom line.
How to use E-commerce Data to Upscale Your Business?
- The first step is to gather marketing data across all the channels and platforms for data analytics in e-commerce. You will be able to gather data from eCommerce stores, email providers, Google Analytics, Google Ads, and Facebook Ads.
- It is essential to make the most out of the data. Looking at data in isolation won’t offer a complete picture. It leads to wrong decisions. When the marketing gets bigger, the data should be in one place to create a clear picture of customer behavior and figure out areas of improvement.
- Businesses should adjust their data based on trends and seasonality and it should not be ignored by the online stores.
- With e-commerce data analytics a business must focus on several key areas related to shopping behavior flow. If there is a reduction in flow, it is an indication of a problem with the checkout process. Analysis and monitoring of the flow is important.
- A business must track the product categories and individual products as it is important for both marketing and sales viewpoints. It will give insight into what customers are interested in and which products need more love.
Gain Momentum with Ecommerce Data Analytics
Now, you know the workings of data analytics and its significance. Every retail business can use data analytics as it reveals what products customers are interested in, when they’re most active, and how they navigate your site. And that’s gold mine information for a retail business which has only or part online presence. It’s about making informed decisions, understanding your customers, and staying ahead of market trends. So, what are you waiting for? Book a free demo today and uncover the power of eCommerce data analytics.