You’re spending a ton of money on ads, but sales aren’t increasing proportionally. Budgets dictate you have to shift gears and reallocate your ad budget based on performance to stop bleeding money—but how do you decide which channels to cut?
With information. Specifically, in the ecommerce world, with data—also called ecommerce analytics.
Ecommerce analytics help you understand your customers and their journey better, letting you make smarter decisions that provide a superior shopping experience to customers and generate lifelong loyalty.
Analytics become more important when you take the competition into consideration, with ecommerce sales set to cross $5 trillion globally in 2022. People today have more options than ever before when shopping online. To stand out from the crowd, you need to compete on the shopping experience in addition to price and quality.
Ecommerce analytics is the science of collecting, processing, and leveraging data about your ecommerce store for greater optimization and growth. Analytics help you measure how well your store is performing, what’s working and what isn’t, and how you can optimize elements of your store to improve on your strengths.
Ecommerce analytics covers your processes to gather data, the visualization techniques to represent insights from data, and the mechanism to report those insights.
Your ecommerce sales data, platforms like Google Analytics, online consumer surveys, email open rates, and Excel worksheets—every data repository down to the last paper-based form—are all part of the process.
The more and better data sources you incorporate into your analytics software and the deeper you go to interpret them, the better your chances of benefitting from the data and leveraging it for ecommerce success.
Yes. Ecommerce analytics is crucial not just to succeed, but simply to survive in the modern ecommerce space.
User experience is the deciding factor when it comes to the present and future of ecommerce domination. You obviously have to offer the best products at the best value but the real differentiation happens during the journey, not the destination. A 2020 survey showed that 97% of customers tend to drop a purchase due to an inconvenient shopping experience. Analytics help you avoid that unpleasant experience for your customers.
Still not convinced? Here are some practical and tangible benefits of analytics:
To put together an efficient analytics machine from the ground up, make sure you’re keeping in mind the following guidelines:
Spending hours manually collecting data from all kinds of sources won’t leave you any time for analysis, let alone reach any actionable insights.
You’ll need to take stock of all data sources in a single place. This includes data from Shopify, platforms like Magento, ad data from Facebook, Google Ads, and Instagram, your Google Analytics Enhanced Ecommerce data, CRM platforms, and email providers.
Next, you need to bring all your data to a centralized platform like Google Analytics or more advanced tools like Triple Whale. With Triple Whale, you can integrate all your different data sources and visualize everything from your customer journeys to marketing performance and product trends in one place.
Analytics is an ongoing activity and needs to be fed with data every week, if not every day. Manually collecting such data every other data can eat up a significant amount of time. Instead, you can make your analytics platform do that for you.
Triple Whale can integrate with your favorite ecommerce and marketing platforms to pull data regularly from each of them—automatically.
It can automate the entire process from data collection to processing to visualization. Without visualizing your metrics and reports, your mind cannot instantly make sense of the data. Visual representation makes it easier to digest the information and take action.
Data sharing with your team members and even across departments is absolutely essential, especially when companies today are trying to establish shared revenue goals for each department.
Having an overarching analytics solution makes it easier to share reports with stakeholders, thanks to standardized formats and common metrics to track for every department.
There is no limit to what you can track when you get down to it. But there are a set of metrics that should be part of every analytics charter, corresponding to each stage of the conversion funnel:
The first stage of the customer lifecycle is awareness. Demographic information like age, gender, geographic location, and more from Google Analytics can give you an initial understanding of your brand awareness, so you know if you need to increase investment in paid ads and organic marketing.
You should also track the following advanced metrics pertaining to the discovery stage:
The next stage is customer acquisition. Acquisition metrics show you if your marketing efforts are reaping the desired rewards and customers are considering buying from you.
You should track the following metrics for this stage:
Next, you need to study whether your customers are going through with purchases as much as you want them to. If not, you’ll need to optimize your cart abandonment strategies to increase your conversion rate.
You should track the following conversion metrics:
Retention metrics indicate whether you’re able to turn customers into loyal customers, generating increased value from them over the customer lifecycle.
For measuring retention, track the metrics below:
Advocates are your best customers. They spread the word about your brand and products to friends and family and help you acquire new leads and revenue.
Measure the following metrics to determine advocacy:
Ecommerce analytics is your secret to unlocking scale and sales. It gives you insights into every single aspect of your business—from your ad sales to on-site customer behavior.
You need to manage not just the task of collating data from multiple sources, but also process the insights you derive—for easy consumption.
If you’re still collecting and analyzing data manually, you’re losing out on time to use the data. eComOS makes the process seamless from start to finish. Discover how you can unlock the power of your data to make better decisions and scale faster.
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