We’ve been seeing a lot of reports online about the changing consumer behavior, especially since the pandemic. Even with lockdowns being lifted, shoppers are still choosing to shop online. The kind of items consumers buy has also changed.
These consumer behavior trends are too generic to the eCommerce industry, giving very little insight into what will work for your eCommerce store. What you need to do is tap into your analytics to understand the specific consumer trends and behavior shifts happening on your Shopify store.
We wanted to make it easier for you to access your store’s data to analyze and pinpoint changing consumer behavior among your shoppers. Here are 5 ways you can use your Shopify analytics to understand consumer behavior changes.
5 Ways to Use Analytics to Understand Changing Consumer Behavior on Your Shopify Store
1. Understand how products sell
The easiest way to understand how your customers are shopping on your Shopify store is by looking at your product analytics. Shopify gives you an overview of your sales, including a list of the top products sold.
However, you need a more detailed understanding of your product sales. This is where product segments come in. Using product segments, you can understand how shoppers buy different products.
Here are some product sales trends you can understand using these segments:
- Understand which products are bought on discount
- Pinpoint products that are popular via a certain channel– paid search, social, email, direct, etc
- Learn which products are commonly reordered
You can then use these insights to understand customer preferences and strategize your sales and marketing accordingly. For instance, you can set up a ‘Reorder’ function on products that are reordered most often. This can help you generate recurring revenue. You can also optimize pricing according to how products are discounted or even increase pricing for bestselling items.
2. Look at where shoppers are coming from
Knowing how shoppers land on your Shopify store can help you attract newer visitors. The Performance Breakdown report is filled with insights into which channels bring the most traffic, revenue, and conversions.
With this breakdown, you can change your strategy. You can start focusing more on channels that bring in high-value shoppers and deprioritize channels with lower conversions.
For example, you may find that referrals bring in less traffic as compared to organic search but witness a large session value. Due to this, you may choose to focus more on promoting your referral program.
3. Pinpoint abandoned or refunded products
Product segments allow you to view the list of products that have been abandoned or refunded by your shoppers. These are two segments that give you an instant understanding of the changing consumer behavior on your store. By monitoring these two segments closely, you can take immediate action if the refund or abandonment rate is high for specific products.
Shoppers may be abandoning or returning your products for a variety of reasons. You can set up a survey within your refund process to gather data on exactly why shoppers are sending back the product. Using this information, you can take action, like removing the product from your store or optimizing its price.
For instance, shoppers may refund certain products because of their low quality or large price tag while they may return other products because they just didn’t find it useful.
For abandoned products, you can test different pricing based on how your competitors have priced the item or try tactics like discounts or free shipping on your cart recovery message. Customers on your Shopify store may prefer lower prices or an enticing offer to justice the purchase.
Pro-tip: Product price has always been a factor for shoppers when making purchasing decisions. Due to the pandemic, shoppers have become more frugal. Monitoring customer behavior and testing your pricing can help you understand what price point they would be willing to convert on.
4. Analyze which communication channel is seeing higher performance
With numerous Shopify apps available, merchants can easily get detailed reports for each marketing app that they use. But, it’ll be considerably hard to compare the performance of one email promotion in contrast to the same promotion on SMS.
An integrated analytics dashboard can allow you to compare different communication channels — email, SMS, Facebook, etc.— and their performance. This way, you can see how a product or a sale promotion performed across different channels.
You can then use this to optimize your marketing plans. For example, you may find that your email campaign for a sale performed better than SMS. With this insight, you can send a second email campaign about the expiry of the sale, allowing you to make the most of the channel.
Let’s take an instance where you send marketing messages to your loyal customers. Comparing different marketing channels on your integrated analytics dashboard, you might find that SMS works better than other communication channels. Instead of using every channel to communicate to your loyal shoppers, you can solely use SMS to send promotions and offers to this customer segment.
5. Understand discount preferences
Free shipping, percentage discounts, or BOGO— how do you know which kind of offer your shoppers prefer? Using analytics, you can get a better idea of your customers’ preferences for the kind of discount they would like to use when shopping.
The checkout funnel allows you to see which coupons your shoppers are using. This data lets you track shopper preferences. For instance, you may learn that shoppers prefer a discount over BOGO. You can then eliminate the BOGO offer and display the 20% offer across your store.
Understand changing consumer behavior using analytics
As an eCommerce business in an already competitive environment, you need to be able to understand exactly what successful on your store and what needs improving. By enabling your store analytics, understanding changing consumer behavior is easier. Unfortunately, Shopify’s analytics aren’t extensive enough for the detailed results that you need.
Apps like RevTap are built to simplify analytics for Shopify, allowing you to access your data and understand your performance.
Using the app, you can view your traffic and checkout reports, see how your products perform, and understand the different types of customers you have. With this insight, you can optimize your store, improve your marketing strategies, and maximize your conversions.