Driving your eCommerce approach requires a thorough assessment of crucial performance indicators (KPIs) and business metrics. If you operate an online store, you likely already employ vital data analysis tools for monitoring your sales and business.
Do you possess the correct tools and technology? Are you maximizing their potential for optimal return on your investment? The encouraging news is that the eCommerce sector generates ample operational and customer data, providing rich insights for practical application. Progressive e-commerce businesses are already leveraging advanced technologies to use this data for a long-term competitive advantage.
These technologies focus on creating, gathering, visualizing, and analyzing data from various devices, channels, and touchpoints. Regardless of the size of your e-commerce store, it’s worth exploring these technologies that could offer a considerable return on investment in a short period.
Analytics
As an eCommerce store owner, you can monitor every customer click on your site in real-time. This clickstream data can offer valuable insights into enhancing your store’s layout, customer engagement, and product range. For instance, consider the comprehensive analytics provided throughout your sales funnel.
● By tracking cost per impression (CPM) and cost per click (CPC) metrics, you can measure the return on investment (ROI) of your online marketing. This allows you to identify the most traffic-generating referral sources and concentrate on them.
● Once a potential client visits your website, a customer journey map can display their navigation pattern, duration on your site, items added to their cart, and more. Ecommerce analytics can also assist in identifying shopping process bottlenecks and effectively combating cart abandonment and exit intent.
● Analytics facilitate the tracking of crucial strategic parameters like Cost per Acquisition (CPA), Average Order Value, and Customer Lifetime Value (CLV) post-conversion. These metrics form the basis of your long-term sales strategy and brand-building efforts.
Cloud-based DIY analytical tools enable even small businesses to utilize e-commerce analytics at low initial costs. You can start with basic analytics modules and gradually adopt more advanced statistical techniques as your business expands.
Customer Relationship Management (CRM)
Providing consistent customer experience from lead generation to conversion and beyond is vital. CRM tools enable tracking of all online and offline customer interactions for sales, marketing, and customer service. They also facilitate the collection of customer data for further analysis using eCommerce analytics tools.
CRM helps understand your customer’s shopping behavior, allowing you to modify your store strategy. It enables segmenting your customer base into distinct groups and customizing your products and services for the most profitable segments to boost your margins. It also empowers you to devise the most effective real-time pricing and promotional offers to increase sales.
CRM can identify opportunities for cross-selling and upselling, thereby increasing sales and reducing sales costs. After all, retaining and growing an existing customer is much cheaper than acquiring a new one.
Social Engagement
Social media has revolutionized customer-brand interactions. As part of their comprehensive branding strategy, eCommerce stores may opt for multiple social media platforms based on their offerings and target audience.
Social media is a powerful marketing and customer service tool. However, negative feedback can potentially damage your branding efforts. Hence, it’s crucial to stay informed about your surroundings, and social media analytics facilitates this.
By monitoring engagement analytics like net promoter score (NPS), positive/negative sentiment values, and interaction count (Shares, Likes), you can gauge customer satisfaction and loyalty. You can also identify influential individuals to promote positive feedback and, ultimately, sales on your eCommerce site.
Conclusion
In eCommerce analytics, it’s crucial to adopt a strategy that integrates CRM, social engagement, and store data to extract valuable business insights. We assist our clients in aligning their analytics projects with their long-term growth and brand-building objectives.