Customer is king and if you know what they need, you have a loyal customer right there!
That is why eCommerce analytics is used by all major eCommerce industries and is a key component of digital transformation of businesses.
It’s a process of gathering data about your customer based on varieties of metrics set by the industry.
- What is the customer looking for?
- What products is the customer usually interested in, at what point of time?
- Does the Wishlist or cart contain similar products or variety of products?
- Is the customer interested in paying cash or paying with card?
These are a few questions which can be answered – Exploratory analysis! Answering these questions can help in market segmentation which helps in targeting specific audience in groups such as demographics, interests, location or needs.
Importance of eCommerce Analytics
- Helps better manage in terms of inventory management, vendor management, pricing management to delivery management.
- Understand the customer expectations and needs, consumer demands, fraud detection, enhance marketing and enable business decision making.
- Recommendations you see in Amazon or Noon, is a predictive algorithm based on these findings that help a consumer find what they want in a shorter span of time.
Let’s talk statistics
- Deloitte survey shows 49% of respondents say that analytics helps them make better decisions. About 10% say it helps them improve relationships with both customers and business partners.
- Statista survey shows the number of people buying goods and services online is expected to reach 2.14 billion by the end of 2021. And in these Covid times, this is no surprise.
- Profitero mentions about the challenge faced in eCommerce industry – for 51% of brands, measuring and reporting on how eCommerce is performing as a distribution channel is a top challenge. However, data analytics is going to solve the problem soon with its advanced algorithms.
Implementation of analytics on eCommerce platforms
To start with, integrate google analytics into the website. Google analytics is a web analytics service offered by google to track the website traffic based on the demographics, industry, specific cities etc. It lets you measure your advertising ROI and tracks the social web applications and sites.
Google analytics helps in determining the channels which drives the traffic to the website, uncovers the data insights about the audience and provides a lot of information on them. Few metrics are age, gender, location, devices and interests.
Benefits of eCommerce Analytics
- Data driven insights helps in creating the right strategy for the organizations to generate ROI by uncovering the market trends, patterns and risks.
- Different demographics have different choices. Using the patterns, understanding the interaction of consumers with different types of brands in different demographics can help the organization alter the buying experience of the users.
- Forecasting models can be applied by analyzing the patterns or trends in the data with the highest-level of accuracy to ensure the right product is available at the right time to meet the consumer requirements.
- Running marketing campaigns, investments on marketing ads, informed holistic marketing programs can be much more effective using analytics on the eCommerce platforms.
- Organizations get a granular picture of what drives the prices at a particular segment, which in turn ensures maximizing the revenue.
If you are running an eCommerce business, these are a few pointers you should look into. Analytics is applied on every single data record to generate insights. Sign up to www.pangaeax.com today and find your choice of expert on eCommerce Analytics.