Ecommerce Analytics – what does that bring to your mind? Maybe you think of trawling through spreadsheets, scouring for figures, trying to make sense of trends, and making decisions based on what you think you’ve found out. It can feel like an arduous prospect. So what is it? How can it help you?
What is eCommerce Analytics?
Knowledge is power and eCommerce analytics is a tool that gives you invaluable knowledge. You can gain a bigger picture of the performance of your store, identify areas that are driving growth and determine which are the areas that need improvement. If you gain a deeper understanding of your products, marketing, inventory, and customers you’ll have the information you need to make well thought out decisions that will be for the benefit of your company.
The problem with data is not a lack of it, but a misuse of it. According to one study, the volume of digital data generated worldwide is doubling every two years! There is a surging amount of data available but only about 5 per cent of data is analysed by most business owners. There is a wealth of understanding and insight at hand if you have the right tools to tap into it.
So, how can data and analytics benefit you as a business owner?
You will have the data you need to improve your products.
It is never an easy task to decide on new products or the development path for current products. No matter how good a product looks in theory, true success is not guaranteed. Even the most experienced seller cannot rely on their own gut instinct. Every decision needs to be based on and backed by thorough and solid data.
You will unlock insights into your pricing strategy.
Everyone knows that prices everywhere are just going up. There’s only so much tolerance that you can expect from your customers until they can’t afford to fork out the money for your product and service. You will only be able to ascertain this tolerance level with data. Analytics will give you the insight you need to know whether to drop or up prices, depending on your customer’s habits. Using data to make pricing decisions makes a big difference. Research shows that companies who make data-backed decisions regarding their price management see an increase of 2 per cent – 7 per cent in business margins. You also have the information you need to make quick decisions about products – you can be more agile and adaptable in response to changes in the market when you have a thorough understanding of your business and the needed data.
You will have a head start against your competitors.
With a detailed understanding of your business, products, and customers, you will gain significant competitive advantages. You can stay ahead of the game when it comes to changes in the market or audience and respond quickly to these changes. You will have a good knowledge of what to keep and what to change regarding your products and pricing in either response to or comparison with the competitors in your field.
Finding the best eCommerce analytics program is key to success.
To gain the most benefits, you need to find the best program that will deliver the data you need in a format that works for you and your team. Here, the software is your friend and can do things automatically that would otherwise take hours of valuable time. There are so many options in the realm of eCommerce data analytics software that the multitude of choices can feel overwhelming. The best kinds of software are ones that cover all bases, giving you a broader picture of your customers and trends. Analytics tools have multiple benefits so finding the right one for you is essential to getting the most out of it. You need a system that will help you to grow your business and reach out to more customers. Areas of improvement need to be found and solved and you need to have an awareness of the marketing strategies that will help you to get ahead in your niche. An easy-to-use platform will make life a lot simpler and help you to get the information you need quickly and effortlessly. A reliable and effective system will help you to understand your most popular products now while also predicting the user behaviour you may see in the future.
Find a platform with the capability to scale up or down to match the needs of your business. If your company is growing, you need to have a software solution that will grow with you. The amount of available data is massive so look for an analytic tool that pulls the relevant information that you need to make good decisions. It might be tempting to reduce expenses by opting for a platform that’s free to use, but these do not always offer the best value. Instead, weigh up your needs in features with the money you pay to ascertain whether it will be a worthwhile investment for years to come. Data needs to be shared – there are many people within a business that will benefit from having access to the information that an analytic tool can provide. This being the case, it’s important to find a solution that allows for sharing and collaboration. Allow broad accessibility and the ability and give team members the ability to work together. Above all, find an analytics tool that suits, and fits in with, your existing eCommerce platform. Keep the long-term goals of your business at the forefront of your mind when you’re looking for topics and making decisions. Don’t be swayed by a “one size fits all” solution but look for something that works for you and your business specifically. This will help you to meet the objectives of the business now and in the future.
Data is always increasing, and its value increases with it. Therefore, it’s a good idea to make an investment in eCommerce analytics now to give the understanding you need to create a future-proof business.
Wow. This is the first time I know about this. They are really great. Thank you for sharing.
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