Data analytics significantly impacts the eCommerce industry with 2.14 billion digital buyers, representing 27.8% of the global population! Imagine knowing beforehand what your customers like and then using that data to increase profit margins by accurately forecasting demand and inventory.
Did you know that only 4% of companies worldwide make proper use of their data analytics services?
As data is essential for the eCommerce industry, businesses today are interested in learning about their target audience, buying behaviors, and trends that help strategize, strengthen customer interactions and even improve logistics. With data analytics, online retailers, small businesses, and brands can determine marketing strategies and sales promotions to deliver a customized and user-friendly experience.
1. Track Shopper’s Buying Journey
From casual browsing to placing orders, the customer journey you create for your eCommerce business is how you create awareness about your product, service, or brand.
Businesses, through eCommerce analytics, can track their customer’s journey and map out motivation, identify customer needs, understand demand, and proactively improve the experience for new and existing customers.
A shopper’s journey begins once they become aware of your product, this could be a result of marketing or just luck. Creating an impact from the start to increase your buyer’s retention rate and working on feedback is how businesses can attract customers and convert them into online sales.
A shopper’s buying journey is a 5 step process
By using insights on shoppers’ information, businesses understand the preference of a particular customer, products they have viewed, time spent on each product, and understand what they like most, and this information can go to marketing for further processing.
2. Personalized Experience for Every Customer
With trends in the eCommerce industry shifting to becoming more customer-centric, businesses today depend highly on data to understand their customers. Today 87% of customers prefer stores offering a personalized experience, creating strategies to send customized emails, offering discounts or sharing discount codes and offers with repeating customers, and showing targeted ads to relevant people to generate revenue in a higher volume.
They can create a personalized experience for customers by following insights:
- Using methods to know their past and recent purchases for existing customers and through support calls and forms
- Use financial transactions of customers and their purchasing trends
- Social media behavior and ongoing activities of customers
- Data extracted from all external surveys
Analytics can greatly support seeing the behavior of new and existing users, where they spend the most time on, and what product they are viewing most to create a personalized experience and convert all potential customers.
With a personalized experience, they can retain customers using analytics and insights and recommend relevant products to customers based on current trends and shopping history.
3. Improved Buyer Sentiment Analysis
Covid-19 Pandemic has changed how businesses operate. Over 64% of companies have permanently changed their organization’s strategy seeing a shift in their buyer’s sentiments.
Sentiment analysis provides relevant, valuable information in decision-making for all eCommerce businesses. With a shift in how buyers respond and their online presence, eCommerce analytics can help know buyers’ sentiments on products, UI, and UX through their feedback, reviews, and ratings.
Understanding buyer sentiments is a key to making your business a success. According to experts’ estimates, eCommerce companies lose over $10 million every year as they fail to capitalize on data, including emails, chat, social media, reviews on Google, and other social platforms.
All tech-savvy companies embrace data to analyze their buyer sentiments. Understanding data helps companies improve buyer experience and get an edge over competitors through timely responses, enhanced services, buyer retention, and building an overall positive brand image.
Through eCommerce analytics, businesses can also stay updated with market trends and customer sentiments within the industry to improve their overall experience.
4. Better Customer Service
Have you ever liked a product online and contacted their customer support to find out if it is available? The sooner you find out, the faster you’ll click on “place your order.” With excellent customer service, you convert your customers into your brand ambassadors. Understanding how customers react to certain situations and products your business offers helps address and improve customer retention rates with better service.
Offering customers with better service is not exactly a hidden treasure. If done right, customer service can turn any lead into a conversion. eCommerce businesses can improve customer experience through survey forms and questionnaires and quickly address their customers’ queries.
5. Price Optimization
Pricing is another critical factor to drive your eCommerce business. Price optimization allows companies to find the right price for their products and services and make informed decisions using market data and customer insights. Analytics will enable businesses to see how customers react to a particular price change, their preferences, and qualitative data to see trends.
Like any other industry, an increase in demand plays a crucial role in determining prices for eCommerce businesses. Product availability and competitors are essential in optimizing costs like any other business. With predictive analysis, inflation rate, customer demand, you can analyze pricing trends and maximize profit accordingly. Price optimization also helps in increased sales on all levels of global eCommerce giants.
6. Demand Forecasting
Demand forecasting can benefit small and large-scale eCommerce businesses to plan stock and monitor future demand for your online products. In market forecasting, it is best to use historical data and previous trends to analyze the need for your products.
Big data can help eCommerce giants, and medium enterprises estimate future stock based on experience, see which month the sales are higher, and plan marketing campaigns and activities ahead of time.
As digital technologies transform, businesses can forecast demand using data to capitalize on early and win big time. Forecasting provides insights and confidence to companies to perform at their best. Enabling them to prepare a budget ahead, identify seasonal trends and social media trends, develop a pricing strategy and minimize dead stock to reduce storage cost and increase awareness on lesser product wastages.
7. Helps to build a robust supply chain
In these digital times where shopping has transformed, customers choose the quality at affordable prices and hassle-free experience, and online shopping offers these. Pandemic has led to the emergence of many eCommerce businesses globally. Building a robust supply chain is how you can ensure the success of your eCommerce business. You can even outsource this process to third-party supply chain facilitators.
When people choose contact-free timely deliveries, it is a crucial responsibility for businesses to offer feature options of Live Tracking of their products (warehouse to your doorstep) and stay updated about your product’s location anytime. The data can help generate insights into the overall customer experience. The robust supply chain can help in Last-Mile Delivery to customers where they can get their ordered products at an affordable price and at the desired time to create a smooth delivery experience.
8. Analyze Information to Detect Fraud
The level of Fraud comes in every business. In eCommerce, according to statistics, companies were expected to lose 20 billion US dollars to online payment frauds in 2021. With emerging as a new distribution channel for consumers to shop, the risk increases gradually and is a significant concern for businesses worldwide. With third-party sellers and vendors, the chance of getting wrong items delivered and receiving low-quality or damaged products is a big turn-off for consumer giants. With analytics, the algorithms can look out for any repetitive behavior by customers and vendors and take immediate action to avoid the risk of Fraud.
9. Forecast inventory for the next season
Planning is one of the essential factors in forecasting inventory. Many eCommerce giants address this by accurately predicting upcoming market demand for the next season.
Knowing what customers need and keeping inventory checked helps create accuracy and fulfill customer demand. Data aids in creating demand for existing products, and it is difficult to predict and forecast inventory with new products. Inventory forecasting tools help in automation for reordering, knowing which set of customers are buying a particular product multiple times during discounts and sales, and using this information to group one or more products to create demand for slow-moving items in your store.
If your forecasting is precise, you have an added advantage in:
- manufacturing lead time for your high demand products ahead of time
- improving turnaround time to fulfill orders
- ability to cater to increased demands on special occasions (Christmas, Eid, Black Fridays)
In the eCommerce industry, analytics become helpful in determining which stock items should continue and what can go on sale after the season ends.
10. Ensure your marketing is laser-focused
Data analytics tools can provide eCommerce companies with measuring their marketing campaigns’ success. Looking at data and numbers, they can improve their decision-making process, gain omnichannel traction, and create holistic and customized marketing campaigns for businesses to build and generate sales.
Analytics can provide businesses information with:
- customer niche for marketing
- strategy for advertisement
- budget planning for specific products
- engagement time of customers on the website
- ROI on paid, and owned channels
- promotional effectiveness on all digital channels
Consumers are the drive of any business’s success. Deloitte International’s research shows that marketing data helps companies improve their effectiveness by 49% and make better decisions. When it comes to eCommerce, measuring and reporting performance is a challenge. Still, with insights, you can measure the effectiveness of campaigns and how eCommerce is performing as a channel itself. These can help businesses tailor their marketing strategy to attain optimum results. Ascend analytics drive data from your marketing results and share practical ways to increase your profits and business performance. These business intelligence solutions create a unique experience for all customers.
What is eCommerce Analytics?
In a world where consumers have the power, eCommerce analytics helps process relevant information for your eCommerce store’s audience. eCommerce analytics helps businesses understand sales, customer service, marketing, behavioral, and shopping trends. Companies can analyze and take action on extensive data collected to create actionable results.
Using the relevant insights from this data, you can forecast product needs, increase sales and use the information for business decisions and marketing campaigns.
Importance of eCommerce Analytics
Did you know that 40% of online shoppers begin their online shopping experience by an online search? Imagine getting insights into what your customers like and how you can make their experience better is how businesses thrive in current times.
Today, businesses are aware of the importance of eCommerce analytics. The insights on customers help them create a unique experience to become more agile and customer-centric.
Businesses can use big-data insights on analytics to predict market trends and deliver customized products to their relevant market.
eCommerce Analytics – Frequently Asked Questions
1. Why is analytics important in eCommerce?
If you want to compete online, you need to ensure your website is optimized for today’s shoppers.
Imagine a shopper coming to your site and not finding the product they were looking for. Or imagine if when the shopper does find their desired product, the product costs more than advertised. That one mistake could have caused a frustrated customer and potential customer alike.
But when you have access to data analytics tools, all of these problems become solvable without losing money on guessing or trial and error with changing configurations. Ascend Analytics Ecommerce Analytics solution will provide crucial insights on every page of your site so that you’re never left guessing how your website is performing or what might be holding it back from success.
2. Is Data Analytics suitable for eCommerce?
Complex data should back every marketing decision you make; otherwise, how do you know if it is effective or not?
So, how do you measure the effectiveness of your marketing campaigns when there are hundreds of possible metrics to track? That is where data analytics comes in. Data analytics software can provide a broader perspective on the efficacy of your marketing strategies.
Ascend Analytics is an award-winning data analytics solutions company that focuses on providing practical answers to your data questions and gives marketers insight that leads to improved performance. Built with simplicity in mind, Ascend Analytics utilizes powerful artificial intelligence algorithms and friendly user interfaces to help marketers learn more about their online presence – and take actionable steps forward.
3. What are eCommerce Metrics?
eCommerce metrics, data analytics, and visualizations are hard to come by.
Most eCommerce stores rely on Google Analytics alone to understand their customers. This causes inaccuracy because sometimes things can be tracked by Google Analytics, but not all the time. There is no opportunity for personalization either.
Ascend Analytics offers enterprise-level analysis with data visualization tools that give you insight into every part of your eCommerce store — traffic sources, social media posts, conversion rates, and more. Their comprehensive data analytics suite can help you answer questions like: Where are my customers coming from? What are they trying to search? How many orders do I get from each keyword I advertise on Facebook?
eCommerce is a rapidly growing business segment. With the increasing global trend of online shopping, businesses must emphasize data and use effective means to optimize data sources to create a quality and meaningful customer experience. Ascend offers result-oriented, data-driven solutions with end-to-end implementations, including data & analytics frameworks and strategic consultancy.