The world has dramatically changed within the past few years. Currently, more than 2.14 billion online shoppers across the globe depend on the e-commerce sector to run their daily operations.
Considering this figure, e-commerce website owners are responsible for ensuring that they offer exceptional customer service to consumers across the globe.
However, the number of e-commerce sites is huge and still growing, increasing the industry’s competition rate. The market situation has forced business owners to acquire different business approaches to secure customers from different localities.
This has called for implementing different tactics to make the dreams of most business owners come true.
Among all the available tactics within the industry, eCommerce analytics has proved to be the most outstanding and reliable approach you can use and get better results in the end.
Most successful companies focus their decisions on analytics to help them operate on clear grounds that guide them on every step they make in business. The challenge is that most companies cannot access quantitative metrics to help them in decision-making.
The main thing that has contributed significantly to this circumstance is the fact that some business stakeholders do not understand data analysis and how it can impact business growth.
Approximately 66% of marketers strongly agree that eCommerce analytics is the way to go, while others lack a clear picture of what is happening.
Let’s not forget the fact that you need to integrate eCommerce analytics into your eCommerce strategy for your business to run smoothly.
This guide offers detailed information on integrating the two and making them operate in the right direction to enable you to get good returns. Check out how this can be made possible!
What is Ecommerce Analytics?
Ecommerce analytics refers to the process of uncovering, interpreting, and communicating data patterns and trends related to the kind of online business you are running.
The process aids in determining user behavior, return on investment, and performance trends. Marketers mainly use this technique to determine the return on investment that the business records and use the information to make decisions that increase productivity.
To integrate eCommerce analytics into your eCommerce strategy, you should begin by centralizing all your operations. In an eCommerce business environment, data comes from different corners, calling for you to bring it together to attain a common goal.
The data collected from the business is available in a raw format which is difficult to read and understand.
The data should be organized into definite groups that you can easily analyze and understand. Ecommerce analytics offers a simple way that you can use to analyze the raw data and make it communicate a clear message when reading.
Keep in mind that analytics is more about art and science. The final data report you compose should be able to tell lots of stories regarding the clicks, visits, bounces, and conversions that have taken place. Use analytics tools for saas to measure your conversion rate.
Data points can help you identify the total number of visitors who have visited your site within a particular duration. You need to get simple stories, such as 50% of the visitors enjoying viewing the website and spending several minutes viewing it.
Half of the visitors made a purchase, while 10% got frustrated and left. This is the kind of story you need to generate to give you more freedom on how you can evaluate your business.
It’s good to ensure you know the whole story to enable you to change the ending and create a fresh start before it goes to the point where you’ll consider selling your eCommerce business. When you can understand how visitors behave once they enter your site, you can easily react accordingly and make the required changes to streamline operations.
After understanding the art of eCommerce analytics, it becomes pretty simple to integrate all the two aspects and enable them to work as a single entity.
Importance of Ecommerce Analytics
After understanding what eCommerce analytics involves, let’s outline some of the importance of eCommerce analytics to your business success.
1. Discover Trends and Patterns
The eCommerce analytics system evaluates data as an interconnected system to give you a chance to discover any available trends and patterns within the industry you can use excel charts to perform this task.
In addition, it enables you to understand your business’s current and future performance. To depict trends in your data, you should be capable of condensing it in a format that easily understands the message it conveys.
Besides, eCommerce analytics can help you evaluate the number of visitors who enter your site through the marketing campaigns you have launched and by referrals from your long-term customers.
You can also detect the actions visitors take upon entering your site, the top visited pages, and the type of devices customers use to visit your site.
2. Optimize the Pricing System
The mode you use to do price placement on your products greatly impacts the amount of profit you are likely to get in the end. By involving various price management initiatives, you can easily skyrocket the company’s profit margin. When you work on your pricing model appropriately, you will likely record an average return on investment of about 200%.
For every product or service you sell, you need to have an optimal price range that customers are willing to pay to acquire the product for example:
If you are running a E-commerce business in USA you have to sell product with the price higher then what price E-commerce in India selling the same product because there is a difference in customers willing to pay.
Make sure to send them the online invoice for details of the pricing you have used. Marketers’ analytics helps you understand how your pricing model will likely affect your customers’ purchasing behavior.
By understanding what the pricing plan can attain, you will automatically come up with a unique means that will enable you to increase the number of sales recorded.
3. Aids in Understanding Marketing Data
When you have a reliable marketing analytics tool, it will keep all your data at one point to make it easily accessible and helps you to create a perfect marketing plan. By accessing your business data simultaneously, you can closely keep tabs on how your campaigns perform with different audiences. You can easily monitor all essential aspects, from marketing campaigns to social ads.
In addition, you can easily identify the real-time stats of whatever is happening within your target market. As a result, it is easier to identify what is working for you and what is not.
Analytics helps you to understand how you can use the data you generate from your marketing activities to tailor strategies that will contribute to the success of your business.
After measuring the performance of your marketing efforts, you can now make decisions based on how you want your business to perform. Which will eventually help you improve overall churn rate and customer retention rate in your organization.
4. Application of Customer Data
The beauty of eCommerce data analytics is the ability to collect and use customer data in business operations. Customers react differently after entering your store.
Ecommerce analytics collects this information to help you understand what happens behind closed doors. Engagement, revenue, and growth report enable you to understand customer behavior and provide them best customer service.
By considering the customer report closely, you will be able to identify the areas where your site falls short and why some of the customers left along the way.
To gather deep insights you can create a customer journey visualization such as a Sankey diagram in excel to make better decisions in future strategy. At the end of the process, you will get it easy to generate content that aligns with the desire of your customers.
Ecommerce analytics plays a huge role in the smooth running of any eCommerce business. When running a business, it’s vital to ensure that you understand how high are the exact customers you intend to serve in the industry.
Also, you should ensure that you have a clear picture of the needs and concerns of your customers to ensure that you are offering services and products specifically tailored for a specific market audience.
If you incorporate eCommerce analytics in your operations, it becomes easier to match it with your eCommerce strategy and enhance the success of your business.