E-commerce Analytics Masterclass: Lesson One
Take a look around. There’s an online store getting launched every day.
As a consumer, no matter what you’re looking for, you have at least ten brands to choose from. But as an e-commerce business owner, you have the same ten brands to worry about! 😅
You must have seen online brands all over Facebook, Instagram, emails and possibly every other channel promoting their products, trying to target the same audiences.
But if you ask them, they’re all just doing what the other one is. Their e-commerce marketing strategies are just a shot in the dark. While it works for some brands, others simply fail at turning these tactics into great sales.
The reason? The lack of being able to track and record the right data.
That’s why we’re building out this e-commerce analytics masterclass. It will walk you through the basics of analytics that you should be tracking to those that determine the success of your product range and how you can use them to get more revenue.
What is e-commerce analytics?
E-commerce analytics is a platform that allows you to tie together all the data points that help you understand who your shopper truly is.
Right from on-site behavior to how shoppers interact with your social media advertisements, emails, and other strategies, e-commerce analytics brings it all together. It gives you a comprehensive picture of how shoppers interact with your brand, what they purchase and why, and how you can get them to make a purchase again.
Did the last line get your attention? That’s why you need e-commerce analytics. 📊
Why do you need e-commerce analytics?
1. Your shoppers expect personalization
70% of consumers expect personalization from brands. E-commerce analytics gives you insights into changing market trends and consumer behavior.
When you understand why they interact or engage with certain campaigns and what their actions are, you’re able to optimize and personalize campaigns for higher conversions.
2. Not all your shoppers are the same
If you thought mapping on-site interactions is all you needed to convert a shopper into a customer, you’re wrong. A typical shopper will land on your site through a promotional campaign, wishlist a few products and maybe, add a product to their cart.
Will they make the purchase? You never know. Unless you have e-commerce analytics on your side.
Based on previous interactions, purchases made, campaigns interacted with, your analytics helps you segment the different types of shoppers on your store.
3. More data means more revenue
E-commerce analytics bring every relevant r data onto one dashboard. It then highlights data that can show you opportunities to convert shoppers. 🛍
Spotted a price-sensitive shopper? Send them a discount code on email.
Is a product running out of stock every time? Time to increase the price!
When you have data laid out in an actionable format, you can turn it into more revenue for your store and ensure all your campaigns remain optimized.
Simply put, with e-commerce analytics you’re not blindly following anyone. You’re not making any assumptions and losing money. And most importantly, you’re standing out from the competition by truly understanding what makes the shopper convert!
Take all those promotional emails you receive from the bigger brands as an example. You browsed a product a week ago and suddenly they have all the relevant recommendations to make.
Almost seems like they know you personally, right?
The e-commerce analytics framework – AARRR
E-Commerce analytics works around the simple logic of pulling in data from all the channels you’re promoting your store on, across the customer journey funnel.
AARRR – Acquisition, Activation, Retention, Referral, Revenue.
A typical store runs multi-channel campaigns, so it is important to monitor which one works best for them. Is it social media that is driving more sales or are shoppers coming through the search engine? Are your email campaigns doing better than your retargeting ads?
Uncover it all with e-commerce analytics.
A shopper just subscribed to your newsletter. But, hold on, that doesn’t guarantee a purchase!
The shopper may be interested in what you offer but they still need a little nudge to actually convert. This may require retargeting them with ads or sending them multiple email campaigns. E-commerce analytics will help you identify the channel that is the most effective at turning subscribers into customers.
Remember what we said at the start? A shopper has at least ten brands to choose from when making a purchase.
Simply put, there is no guarantee that they will come back to you for another purchase. That’s where retention comes into play.
E-commerce analytics studies the activities of the shoppers that visit your store. It takes into account how they browse products, which ones they show interest in the most and which ones they do purchase.
Collating this data over a specified period of time helps you segment your customers.
This enables you to create personalized customer journeys and campaigns to keep these customers engaged. The more they come back to your store, the higher are the chances of them making another purchase!
Oh, and did you know that increasing your customer retention by 5% can increase your profits by 25-95%?
A whopping 92% of people trust recommendations from friends and family over ad campaigns from brands. So when you’re already focusing on customer retention, why not reach more customers through them?
You can set up a referral marketing program offering different incentives to shoppers for inviting their friends.
But with e-commerce analytics, you can identify which of the incentives really nudged the shopper to not just make a purchase, but invite more people to the store.
In the end, it is all about sales and the money your store makes. After all, that’s how a business runs!
With all the data on one dashboard, an e-commerce analytics platform identifies and highlights the market opportunities.
Is there a certain segment of shoppers that are more likely to buy bundle deals? Is there a segment that is willing to pay more for a high-quality product? With data, you can adjust your product pricing and campaigns accordingly to cash in more revenue.
Getting started – The e-commerce analytics tools you need
1. Google Analytics – Know your customers
The first and foremost tool you absolutely need is Google Analytics. The e-commerce analytics platform offers detailed reports on your store’s performance and who the visitors are. With everything presented visually on a clean dashboard, you can start tracking where your visitors are coming from, how shoppers are searching for your store, which campaigns are driving the most number of conversions and more.
You’ll still need to go through a lot of resources before you’re finally able to measure the right metrics on Google Analytics. And of course, derive actionables for your campaigns.
2. Google Search Console – Search Behaviour
The very next data you need is how shoppers are reaching your store – organically.
You may be running various paid campaigns to promote your products. Knowing which search terms are leading your customers to which products organically can help you reduce your customer acquisition costs drastically.
Google Search Console helps you identify queries that bring organic traffic to your site in real-time. You can use the data to further optimize specific product pages or your store for relevant keywords and improve your organic presence.
3. Kissmetrics – On-Store Behaviour
Want to know what online shoppers really do on reaching your store? Kissmetrics gives you in-depth insights into what actions visitors are taking, what products they’re looking at and more.
Monitoring consumer behavior helps you understand the shopper’s psychology and use that data to improve your campaigns.
4. Crazy Egg – Site Experience
Talking about knowing your shoppers, it is also important to identify which sections of your store are grabbing the most attention.
Is the banner image on the homepage really a good place to promote your flash deal? Or is the sidebar more effective for driving site traffic to the flash deal page? With Crazy Egg, you can make data-backed decisions to optimize the site experience for shoppers.
5. RevTap – One stop for all your Analytics
More data, the better.
But more data can also mean a lot of confusion. 😕
Many online store owners and marketers lose track of critical store and marketing data in the process of collating reports from different tools. This results in them losing out on opportunities to increase sales.
RevTap provides e-commerce analytics that offers a comprehensive view of all your data. This tool integrates with different analytics platforms and marketing apps, bringing all the store and marketing data into one dashboard.
Presenting the key metrics in easy-to-consume, visual reports, RevTap highlights your growth performance. But most importantly, it identifies and helps you see market opportunities you’ve been missing out on.
Do you need e-commerce analytics?
If you aren’t leveraging shopper data, you’re losing money. So the simple answer here is YES.
Looking into your e-commerce analytics allow you to truly understand your shoppers, their purchase behavior and preferences. This enables you to improve your customer acquisition, engagement, retention, and satisfaction over a period of time.
Does e-commerce analytics seem easier said than done? You’re not wrong.
Getting started with analytics and making sense of your data can be overwhelming. But in the next chapter, we’ll be covering how to set up your analytics to start tracking the right data and measuring the relevant metrics for your e-commerce business growth.