Imagine you know what your customers will buy and at what price you should sell the product to maximize profits well in advance. Want advanced insights about the issues that can crop up before your customers bring them to the customer service department? As an online business owner, all this information will warn you and help you find the best product mix, sales promotion, and marketing strategy. This is where E-commerce Data Analytics comes in.
Think of Data Analytics as a magic wand to help your business know the issues and gaps. It will also let you know what is working to make better decisions.
Now, let us first get to know more about what data analytics is before exploring it in the overall write-up.
What is Data Analytics?
E-commerce data analytics is assembling data on your e-commerce website comprising site visits, successful purchases, ROI, AOV, cart abandonment rates, and many more. The information informs the business owners about sales strategies or future market planning.
Data analysis is essential for e-commerce stores where 70% of visitors abandon the cart at the last minute. It can be because of several reasons such as website errors, poor return/exchange policy, or complicated checkout processes. Website data lets e-commerce stores find indirect feedback from the users about what they liked on the website and what all requires improvisation.
Why is Data Tracking Necessary?
Working in a highly competitive e-commerce market means money and time are valuable. There is no need for guesswork to grow marketing strategies and campaigns. Around 58% of business organizations make decisions based on ‘experience’ and ‘gut feeling’ rather than verifiable facts.
As an e-commerce business owner, you should make all data-driven business decisions. It will ensure that the e-mail marketing strategies are perfect for the future and that the online promotion tactics are according to the customer pain points.
Data Analytics provides business insights into two main areas-
- Industry Trends
Finding tendencies that affect your business as a whole will deliver a substantial indication of consumer behavior. Big Data technology in e-commerce provides a host of data on the latest approaches, customer preferences, and buying habits.
By operating within the e-commerce industry, your competitors leave behind a significant amount of data. Analyzing the data can help you know how other businesses in the e-commerce industry manage everything at an allotted time.
Therefore, to let your business grow, succeed, and maintain profits in challenging economic environments, it is necessary to get competitor’s data and know industry trends. A data-driven customer experience ensures that every user knows what they are being catered to and will boost AOVs.
Now, before moving forward, we have a question. Do you know how to go about doing this?
Read on the blog further for the desired information curated by our team of professional and skilled e-commerce web developers in New York who have been serving clients’ requirements for many years and turning their thoughts into reality.
How to Use Data Analytics Platforms to Perform E-commerce Data Analysis
Let us now understand free data analytics platforms to perform data analysis for your business industry and stay ahead of your competitors.
The E-commerce data analytics platform is the one-stop solution to get e-commerce business insights without considering the data literacy level. The tracking of key metrics like revenue average order value and conversion rate can help the e-commerce web development team get more information by
- Maximizing business sales through customer buying patterns and the latest trends
- Finding out tactics that are effective in boosting e-commerce customer engagement
- Analyze consumer behavior through marketing strategies and campaigns
- Revealing areas of improvement by benchmarking performance against competitors
Incorporate the insights discovered by the e-commerce data analytics platform with third-party data to get an accurate view of your website’s performance.
Why E-commerce Data Analytics is Essential to Help Business Achieve Success?
Understanding the importance of data analytics is the baseline for achieving business success.
Alfie Staples, the Global Insights Manager at Awin, discussed the value of data for retailers as
“There is no doubt that modern businesses are sitting on a goldmine. The data is not just numbers but also the prime opportunity to find those golden moments that give the upper hand across almost all aspects of your business. Firstly, it provides a competitive edge. Data analysis allows you to cultivate a deeper understanding of consumers and mitigate your own biases. It offers empathy and actions that are valuable and unique.”
From there, trends are monitored and optimized, risks mitigated and avoided, and help provide light when the situation may look bleak.
He also proposed that Mass data is not just a by-product of eCommerce but also the key to eCommerce success. When tapped into, listened to, and acted upon, it can reveal a treasure hidden in plain sight.
Let us know more about the importance of data analysis and how it helps e-commerce businesses run successfully.
1. Offer Product Performance Insights
Meeting the customer’s needs when outperforming competitors is necessary to maintain the business organization’s success in 2023. For this, it is essential to know the website’s performance, individual product performance, and product discovery process. Also, check whether a product is outperforming the others and get indications of why it is happening.
Here are some insights to help you get e-commerce business success-
Focus on product intelligence. Each product has data points that are the product’s physical attributes such as brand, color, category, material, size, and many more, and marketing data points such as CPC, CTR, conversion rate, search volume, and others. There are also commercial data points like margin and stock level with different competitive landscapes for each product.
Generating these data points is the start of e-commerce success. You should use product intelligence data for overall customer acquisition and business channels for a competitive advantage. Learning about the customer’s buying behavior and favorite products through data analytics is essential to find areas of improvement and implement a Product Intelligence strategy.
2. Keep Updated with the Trends
Online e-commerce requires business owners to keep up with the latest trends and technologies. Social media platforms define the new trend cycles and dictate what customers buy. However, keeping up with the coming and going social media trends is not easy. It is tough to know which trend is effective with your business strategy and to stay ahead of the competitors. Social media also impacts the product discovery process causing more business challenges.
It lets us use real-time data analytics tools to search for business fluctuations and know emerging trends before they hit the market. The information provided by the data analysis tool allows you to position your business ahead of the competitors and adapt to the latest business trends and approaches.
Use the data analytics tool to track month-on-month data to check the trends affecting your business at a certain point. Also, if you wish to explore new industry trends, you can use revenue tracking metrics to get insights about trends. These trends have a positive and negative impact on the business decision-making process.
3. Put the Business Ahead of the Competitors
There are 12 to 24 million e-commerce websites in the online market with many in process. It allows various businesses to look for unique and innovative ways to get a competitive advantage in the e-commerce industry. Regular competition analysis makes you aware of where you are lagging in the market. If you notice your competitors doing something that drives more sales, you can follow the same or better.
By continuously analyzing e-commerce data, you can optimize areas of your business website to ensure that your clients receive a good e-commerce experience.
Want to know how your e-commerce business can benefit from e-commerce data analytics? Feel free to contact the e-commerce developers at Indglobal and enquire about our e-commerce web development services suitable for your business organization.
Benefits of E-commerce Data Analytics
Here are the top benefits of using e-commerce data analytics to know about your business effectively-
1. Analyze Data to Detect Fraudulent Activity
Analytics play an essential role in detecting fraudulent activities. Analytics can find patterns based on customer behavior to warn you when there is a detection of an irrelevant transaction. As an online business firm, we send a notification to the customers asking if they are conducting online transactions and wait for their response.
2. Build a Robust Supply Chain
Customers buy products online for better prices and convenience. Therefore, the business supply chain should be robust. Find out whether the products advertised on the website are added in an adequate quantity to the inventory. If not, it will result in a low delivery process and customer satisfaction.
Also, if there is a large number of product items in the inventory, it will increase the business costs. So, it is essential to strike a balance between demand and supply.
3. Forecast Inventory for the Future
As a business owner, you should know whether adding a product to the website is worth the cost of maintaining your inventory. E-commerce data analytics determine the sales volume of a product, predict future sales, and find the customer satisfaction rate.
E-commerce data analysis also determines the products that need to be stocked back in the inventory and what you might not consider for future sales.
4. Customize the Client’s Shopping Experience
Different customers visit e-commerce websites differently. Some constantly check the deals, while others look for a particular product such as a book or cosmetic, and go straight to the page without looking at the homepage. So, when a user first visits your online store, what is the first thing you show them?
Here, you can take the help of e-commerce data analytics to study the client’s behavior and determine the website structure according to their preferences. Let your product landing page engage the visitors and convert them into potential customers.
5. Optimize Product Pricing
The product’s demand and availability determine the product price in an e-commerce business store. Use the predictive analysis method to analyze new pricing trends and find the desired price of the product to maximize profit. For instance- Amazon is an online shopping platform that uses predictive pricing analysis to determine a product’s price.
Free Tools for E-commerce Data Analytics
One of the best things about e-commerce data analytics is that it includes multiple free tools available for businesses to run successfully. Here are some free-of-cost data analytics tools that business firms can use to get desired profits.
1. Google Analytics
Google Analytics is a free and popular web analytics tool that lets business organizations track their website traffic and gain insights into user behavior. The Google Analytics tool provides data such as page views, number of visitors, and website bounce rates.
OpenRefine is a free e-commerce data cleaning and transformation tool that allows businesses to clean up messy errors, identify unwanted data, and transform left-out data into usable content.
3. Tableau Public
Tableau Public is a free data visualization tool that allows business owners to create interactive graphs and charts. The Tableau Public tool also presents data in an appealing way to make it easier for people to understand.
E-commerce data analytics is a powerful tool for business organizations to help them make informed decisions, identify new growth opportunities, and improve efficiency. Businesses can also get a competitive advantage and stay in advance of the business curve by focusing on the potential of data analytics. With various e-commerce data analytics tools available in the e-commerce market, business firms of all sizes should start with data analytics and get its benefits to take their organization to new heights.
And, if you also wish to start using data analytics tools for your business, connect with the leading e-commerce web development company in New York and drive your business growth. Indglobal Digital Private Limited has the best team of web developers to help its clients get profits for their respective businesses.