This article is exclusively for you if you are running an e-commerce business!
To get more sales than ever before!
For e-commerce businesses, analytics is an integral part of understanding their customer and products. When you have the correct data to analyze, you can make better decisions regarding your business.
In this post, we’ll dive into the growing field of e-commerce analytics and discuss how merchants can implement analytics into their business to serve their customers better and optimize their operations.
Let’s uncover the most critical aspects of e-commerce analytics.
WHAT ARE ANALYTICS FOR E-COMMERCE?
Analytics for e-commerce is the process of analyzing different business activities, strategies, and data to measure, manage, and improve the overall performance of your e-commerce store.
It is a powerful tool to help you understand the flaws you have in your business.
It can help you measure success and improve your customer retention by giving an overview of the different logical tools and effectively using them.
WHY ARE E-COMMERCE ANALYTICS IMPORTANT?
Today’s consumers are more informed and educated than ever before. They’re armed with a wealth of knowledge about products, services, and brands. They know how to make informed decisions on what to buy and where to buy it from.
These are all reasons why eCommerce analytics is essential to your eCommerce business.
AREAS OF E-COMMERCE METRICS
In eCommerce, there are many metrics that companies should pay attention to. However, it can be overwhelming to know which ones matter. Many people think it’s a good idea to make decisions based on intuition, but you need a broader perspective.
Essential metrics include gathering visits, e-commerce conversions, and customer satisfaction. Clearing out the clutter, looking at the big picture is necessary.
- Visitors Acquisition
To attract customers to your store; you first need to know who they are and where they can be found. Once you know your target demographic, you can create personas and tailor your marketing to their needs.
The acquisition is critical: You need to know how many consumers visit your store and the cost of getting them there. Google Analytics offers a complete overview of different channels’ performance and goal conversion rates.
- Conversion and Retention
Conversion is one of the most significant metrics in the world of e-commerce. If you’re not paying attention to your conversion analytics, then you’re wasting your time.
When do online users convert into customers?
Why do they convert?
These are the questions you must keep in mind when considering conversion. The smarter you are with your marketing, the more success you will have. An eCommerce business is only as good as the customers it keeps. Building loyalty pays off in the long run.
- Branding through Customer Retention
When customers reach the “promoter” stage, they’re just as important as a brand ambassador. They’re telling their friends and families about your business, and they love the products.
When they reach this stage, it’s essential not to overlook them. The metrics for this stage make the difference between an average e-commerce business and a successful one.
2 ESSENTIAL E-COMMERCE ANALYTICAL TOOLS
Google Analytics is an analytics tool with many features and a name you can trust. Free, relatively easy to use, and a Google product, it’s considered one of the best tools for understanding your customers. With a well-rounded analytics experience, it covers everything from website performance to content and products.
Search Console is the ultimate solution with real-time analytics that reveals which searches generate traffic to your site and alerts for what needs tweaking. Google Search Console’s tools help you measure website traffic and performance so that your site is at its best when it comes to the search results.
BEST PRACTICES OF E-COMMERCE ANALYTICS
- Collecting scattered data across all platforms
In this era of digital business, having all your data scattered across platforms can be a nuisance. It isn’t easy to know where to find your Facebook ads data, Google Analytics data, and Salesforce data. Even a simple thing like a CSV can take work hours, but it doesn’t have to be that way.
There are plenty of connectors for all the different data silos that will allow you to put all that information into one place. It saves time and, therefore, money.
- Understand the numbers and act accordingly
Numbers don’t mean anything without the context of consumer behavior. Retailers need to know what is and isn’t working and how to react quickly. Alerts on products, categories, and campaigns that are trending well or not so well will help businesses be on top of their eCommerce game.
Businesses must react to trends in the market and their customers’ behaviors by actively monitoring the numbers. A timely response will always be the key to success.
- Dashboard automation and insight analysis
Once you are done gathering data, you can automate the tasks associated with reporting. Avoid mistakes by setting your reports to refresh automatically.
A data-driven culture means less time on reporting and more time on the analysis and insights that benefit your consumers.
Business owners can use analytics to determine flaws in their eCommerce initiatives to make incremental adjustments to their marketing strategies. Understanding key metrics and how they correlate to sales performance allows an online merchant to make the necessary changes.
Suppose you are running a business that does not involve face-to-face interactions between the company and the customers. In that case, you need to use analytics to learn about your customers’ behavior on your website.