The e-commerce industry is still expanding rapidly. Improving technologies and changing customer trends and preferences are responsible for the huge growth of e-commerce. It is predicted that, by 2040, 95% of all purchases will be made through e-commerce platforms.
What is e-commerce analytics?
E-commerce analytics is a vital part of every online business. It collects, analyzes and provides insights regarding e-shop performance. There are 3 crucial components to e-commerce analytics: sales channels, customer experience and products. By analyzing these 3 elements, you will be ready to maximize the benefits from ecommerce analytics.
What are the benefits to using e-commerce analytics?
As mentioned, if you don’t want to get lost in all the data, it is crucial to use e-commerce analytics. Why is it so important? This information is used to make data-driven decisions that will increase website traffic, customer experience, and sales. Businesses use e-commerce analytics to learn more about how their customers act and then use this information to create better experiences for their customers. As a result, this knowledge allows businesses to optimize their operations and reach long-term goals.
E-commerce analytics can greatly enhance your site's performance by leveraging SEO techniques that might include an in-depth root domain understanding. Recognizing its role is crucial, as a properly managed root domain can significantly affect site visibility, playing a pivotal part in customers finding and engaging with your online store. By optimizing your root domain alongside employing analytical tools, the navigation ease and searchability increase for potential customers.
Still having doubts about how to maximize your online store’s performance? Keep reading and you will get 5 valuable insights into the benefits of ecommerce analytics:
1. Tracking customer behavior
Understanding customers and providing the right value will definitely bring success to your business. By setting up ecommerce analytics, your company can follow how customers are interacting with your website and make data-driven decisions. Customers are the ones who spend the most time on your page, and the success of your business depends on them. For example, customers can detect failures or problems that cause bad metrics or sales. If your website has interface problems, as a result customers will leave your page or even finish up by not buying anything. Using e-commerce analytics tools will help you to be proactive by keeping a close eye on customer behavior and anticipating potential issues, ensuring that your e-shop runs smoothly.
Furthermore, e-commerce analytics also allows you to make targeted marketing and sales decisions, as you will see statistics about what customers are looking for. This will give you an idea of what is trending or popular, and you can take advantage of this by making sure that your e-shop meets these demands.
2. See product performance
Another reason why it is important to have analytics for e-commerce is to see product performance. Consider the following scenario: your company has thousands of different products, and you are unable to check all of the insights and customer preferred products manually. With ecommerce analytics, all the manual work will be automated. This enables your team to focus on more urgent tasks such as helping customers. Monitoring product performance also helps to manage the supply chain process and lower costs, as it shows if certain products are in high demand or not. Lastly, it can help your sales and marketing teams change their strategies and make more targeted decisions.
Seeing real-time data dashboards of your product's performance will allow your team to make decisions right away. You won't have to wait for weekly or monthly updates, and your business will always have up-to-date daily information. With customized dashboards, you can see which products you just sold, how much you earned, and much more! Using ecommerce analytic tools and Plecto will be the perfect combination, with all the results just on one screen.
3. Monitoring mobile device performance
According to the most recent forecasts, 187.5 million users will shop via smartphone by 2024. It has an impact on more than just the consumer experience, since having a mobile-friendly website is critical for your e-commerce business. Even if you have a fantastic desktop website version, having issues with the mobile version's performance might have a negative impact on the user experience and reduce sales as a result. Therefore, it is important for e-commerce businesses to optimize their websites for mobile, making sure that the user experience is seamless across all devices.
By utilizing ecommerce analytics tools, you can ensure that your website is optimized for the highest possible performance across all devices. Remember - shoppers are more likely to trust brands that appear at the top of search engine results. So, if your website has poor usability, then this will have a negative impact on your site’s SEO. This will in turn decrease the visibility of your website, resulting in decreased sales and a weakened brand image.
Shopify is one of the most popular websites for creating and managing e-commerce businesses. Plecto integrates with Shopify, so all your data can easily be visualized . By integrating your Shopify data with Plecto, your team will easily be able to keep track of the key data, identify any key trends, and if needed, take immediate action!
4. Evaluate and improve marketing campaigns
If you want to maximize your e-commerce business, getting your marketing right is essential. By staying up-to-date with the latest e-commerce industry insights, you can make informed decisions and implement effective strategies to drive growth and success. Using analytic tools for ecommerce, you can analyze all your e-commerce sales channels and see which sales channel is contributing the most revenue to your business; for example, it could be email marketing, social media, or SEO. So, you can easily shift your marketing plan according to the data and maximize your customer reach.
Now, customers want more personalized marketing advertising because it’s getting more difficult to catch their attention in the massive market. Having ecommerce analytics can help your team understand customers' preferences and behaviors. With ecommerce analytic tool insights, you can design personalized messages for individual customers.
We are happy to share that you can integrate marketing and e-commerce analytical data into Plecto dashboards. So, your marketing team can always be updated regarding marketing campaign results. Even with real-time data, you can boost your marketing team's motivation and performance, for example, by adding gamification elements to your dashboard!
5. A/B Testing
A/B testing is a method used across the e-commerce world. It allows you to test two versions of your product - A and B, which tests the original variable version with new features for different user segments. Having different versions lets users decide which version is performing better according to the given metrics. Ecommerce analytics can help with A/B testing by providing valuable insights such as evaluating your results, identifying areas for future improvement, and setting targets for the test. By collecting this data with e-commerce analytic tools, your team can make data-driven decisions. This will, in turn, improve your webshop metrics and user experience and provide the best possible version to visitors.
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Here we presented 5 different ways ecommerce analytical tools can improve your online store performance! Because of increasing competition and changing customers’ expectations, your team needs to make decisions on the spot in order to grow and stay successful in the market.
By combining a powerful duo - Plecto and e-commerce analytics - you will be able to make timely decisions and be a proactive player in the market. It will give exactly the needed data, which will be needed to track your business progress. Additionally, this will also give you an advantage over your competitors and ensure that your online store is providing the best customer experience.
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