If you are running an e-commerce business, then you have likely heard about e-commerce analytics. Unfortunately, most e-commerce business owners don’t recognize the power their customers have. Your clients have all the power.
Before making any purchases online, they go through your online reviews. They also compare the prices of different products online and decide which brand is best.
Customers are also armed with reliable reviews of your products from people they trust. These people include family members, friends, and favorite influencers.
Today, customers’ expectations are relatively high. Therefore, you need to offer your clients the best shopping experience. This may result in them engaging with your content and purchasing your products.
Many businesses today use e-commerce analytics to gather essential data. However, some companies don’t harness the full benefits of e-commerce analytics. Read on below to understand more about e-commerce analytics.
What Is E-commerce Analytics?
E-commerce analytics is the process of collecting data from all areas of your online business. You can use the data you collect to understand shifts in customer behavior. You can also use it to stay up-to-date with current market trends.
E-commerce analytics data will help you make informed decisions about your online business. This helps you increase sales and improve brand awareness.
E-commerce analytics helps you collect data related to your customers’ buying journey. The journey often includes brand discovery, acquisition, conversion, advocacy, and customer retention.
Why Should You Use E-commerce Analytics in Your Business?
Technological innovations and increased consumer demand are the two major factors that fuel growth in the e-commerce industry. According to research, millions of people will start buying products and services online, growing the e-commerce industry.
With an increasing client base, it’s essential to ensure your customers are satisfied. You can do this by offering them the best possible service. Below are reasons why you should consider using e-commerce analytics:
1. It Helps Increase Your Customer Satisfaction Rate
You can use e-commerce data to pinpoint gaps in your customer service delivery. Additionally, you can find out more about your customers and why they don’t buy your products. Once you determine the gaps, you can find a way to fill them. The best way to do this is by offering your customers a seamless shopping experience.
The primary goal of e-commerce analytics is to gather essential data to help you understand your customers. Once you know more about your customers, you will optimize your products and service delivery to meet their needs. Optimized products also exceed customers’ expectations.
2. It Helps You Maximize the Return on Investment (ROI)
For every dollar, minute, and effort you spend to market, your business must reap results. However, sometimes these resources don’t bear any fruit. Hence, making you feel like you’re trying to fill a leaking bucket
But, with marketing analytics, you can find out which marketing campaigns produce better results. You can also pinpoint which pages customers like visiting your website, and which products appeal to them.
Armed with this information, you will make an informed decision about where to refocus your resources to increase your leads. Instead of wasting resources on marketing campaigns that do not work, you will focus on what works best for your business.
This could be a social media platform, online ads, or even website blog content. In this way, e-commerce analytics will help you maximize your return on investment.
3. Helps You Improve Customer Experience
Good customer and user experience is the newest currency for online businesses today. To keep your customers engaged and interested, you also need to improve their experience with your brand. This is in addition to good-quality products and competitive pricing. And the best way to do this is by using e-commerce analytical data.
User data will help you know which pages on your site are most visited. It also helps you know what features capture target customers’ attention. This information will help you improve their engagement and user experience.
You can use inspirational content, and exciting announcements to create a frictionless user experience. Additionally, e-commerce analytics will also help you meet your consumer’s ever-changing demands.
4. It Will Assist You to Optimize Your Product Portfolio
Every e-commerce business has a product portfolio. Some companies’ portfolios are not as optimized as others. However, ignoring your product portfolio is a mistake that many online businesses make.
You can use e-commerce analytics to optimize your product portfolio. The best way to do this is to check out product analytics to understand better how well your products sell. What products are sold fastest? Which products don’t sell and why?
You can use product analytics to dig deeper and uncover why customers don’t like certain products. This is possible thanks to the insights gathered from the analytics. Therefore, helping you optimize your product portfolio.
5. Personalizing Customer Shopping Experience
You can’t apply the concept of “One size fits all” in e-commerce. That’s because customers prefer a personalized shopping experience rather than a general one.
According to a study, over 80% of online shoppers are more likely to buy a product or service from a brand that offers them a personalized shopping experience. Additionally, 90% of consumers stated that it is more appealing when brands offer them a more personalized experience.
Today, experience personalization is much more than just tailoring assortments and grouping products. You can use e-commerce analytics and transaction tracking to predict customers’ individual needs. This helps you make the relevant recommendation, hence personalizing their shopping experience.
Are You Ready to Improve Your E-commerce Business
Starting and effectively running an e-commerce business is not an easy task. You will need patience, hard work, great marketing, and e-commerce analytics.
Additionally, running an online business in today’s competitive digital world can also be quite challenging. However, with the right resources, you can reach your goals and run a successful online business.
Whether you’re just starting or you’re looking to boost your current e-commerce business, contact us today, and our professionals will help you best grow your brand. At eComm Boardroom, we offer bespoke consulting services to help business owners grow their e-commerce businesses.
