So you’ve started an online dropshipping business. Or you’re thinking about starting one. Or maybe, you have a dropshipping business already but are looking for ways to grow it. So you look around for ideas and tips on how to ensure you’re moving in the right direction. If your search is targeted enough, you’ll come across a few brands that have been successful at running a dropshipping business. At the same time, you will also come across a number of stores that are barely making a hundred sales in a month.
While you’ll find plenty of articles and expert tips around marketing your online dropshipping business, very few will come down to sharing the core difference between those two stores:
- Truly understanding who their customer is
- Knowing which of their products people actually want
- Understanding their best marketing channel
And completely cutting out the guesswork.
After analyzing over 1500+ dropshipping stores and speaking to hundreds of online retailers, we found that no two dropshipping stores had the same:
- Product/ inventory performance
- Customer demographics
- Marketing channels that got them traffic
- Marketing channels that got them sales
- Customer purchase behaviour/ checkout funnel
Want to know more about how to make your dropshipping business successful? Get a FREE consultation from our experts.
So how do you imagine the marketing strategies offered by the innumerable blogs online are applicable to your growth?
Come to think of it, they never shared what goes behind making each of those strategies a hit! What data you need to have in place before you implement any of those strategies. That’s where the 3 sides of data that we recommend to dropshipping businesses come in:
- Customer analytics and segments
- Product analytics and segments
- Marketing performance analytics
PS. If you’re thinking about working with an agency, remember to read this article first: The Evolution of Shopify Agencies.
Customer eCommerce analytics and segments: Why your online dropshipping business needs them
There are deal shoppers. Then there are free shipping shoppers. There are those who are price-sensitive, but then there are those too who would pay more just to get their hands on a limited edition product. You will also have shoppers who will choose to keep coming back to your store to make the purchase, but those that choose ‘new’ stores over the old ones, do exist!
Now you can’t have the same offer to appeal to each of these shoppers here. But categorising shoppers based on their shopping behaviour or purchase parameters can be tricky. Especially as your store starts to see more traffic, subscribers and sales. That’s where customer analytics and segments come in.
Customer analytics refers to digging into data to identify the purchase behaviour of different consumers – the source of acquisition, products purchased, the average amount spent on your store, their previous interaction and more. And segments refers to using this data to group together different types of shoppers so you can identify them as – VIP customers, new customers, big-ticket customers, high AOV customers, cart abandoners and more.
- Get insights into customer purchase behaviour
- Create customer segments based on interaction to identify motivators
- Identify your active, at-risk and lost customers
- Know your VIP and loyal customers to boost customer retention
With more data on your shoppers and customers, you get to personalize your marketing messages and outreach better.
For example, if you see 5 shoppers who have repeatedly chosen to make a purchase from your store, your goal should turn them into loyal customers who would advocate your dropshipping store. So you can exclusively reach out to these 5 shoppers to learn more about their preferences, and to request them to join your loyalty program.
Want to learn more about customer analytics and how you can find your target audience? Get a FREE consultation from our experts.
Product eCommerce analytics and segments: Why your online dropshipping business needs them
Let’s say you start an online dropshipping business in home decor. That category by itself has so many sub-categories like curtains, bedsheets, cushions, artsy decor items and more.
You obviously want to cater to different visitors and their interests. So you bring in multiple products from each category to market on your store. But how do you know how many takers there are of each of these products, or which category/ range of products is going to do well?
Would you rather continue marketing a 100 products in home decor or would you prefer knowing the top 20 items your target customers are looking for, doubling down all your efforts on marketing those?
The successful dropshipping businesses focus on the latter. Knowing which product is trending, what people are willing to pay more for and which products do well only when in bundles, helps the business sell more.
Imagine spending USD 500 every month marketing a product that gets traffic, but also gets abandoned the most. Bummer!
Product analytics refers to digging into consumer service reports, product returns, customer feedback and other product-related data to identify product improvements and understand the actual consumer demand. It is then used to create smart segments like top-selling, most profitable, cold products, most-abandoned and more to help you identify what works and what doesn’t to get sales for your dropshipping business.
- Analyze the performance and demand of each product
- Auto-create 10+ product segments based on on-ground market performance
- Identify opportunities to upsell and cross-sell products
- Price your products better to get more profits
And most importantly, set yourself apart by becoming the one dropshipping store that always ‘somehow’ has the most trending products to offer!
Not sure which products are getting you more profits and revenue, or need help strategizing the pricing? Reach out to our Shopify experts for a FREE consultation.
Marketing performance analytics: Why your online dropshipping business needs them
No two customers are the same. Some may discover your products on the search engine. But there will be those who come across your brand on Facebook or maybe even Instagram. Then, there will be those who have visited your store, subscribed for newsletters and come through email marketing. We’re not going to list down all the other digital platforms here right now – because there are way too many!
So how do you know which platform should you be actively marketing on?
How do you know which marketing and advertising channels are getting you traffic and which one is actually driving sales?
How do you know that the amount you’re spending promoting the products on your dropshipping store has a high return?
Well, you can’t just endlessly keep throwing in money across all the platforms. That’s exactly the opposite of why you started a dropshipping business – to be able to run a business by investing less or investing smartly.
That’s where marketing performance analytics comes in.
Performance analytics enables you to track, aggregate and visualize the key indicators of success for your store, and your marketing campaigns – over a defined period of time. So you know exactly how much you’re spending, where, on which campaigns and the returns you’re seeing on the investment you’ve made.
- Identify your top traffic sources
- Identify your top revenue sources (channels that drive in traffic that converts into sales)
- Analyze your Facebook campaign performance and identify opportunities to get more out of less
- Improve email marketing campaigns with insights on what gets opened and clicked
- Identify checkout drivers (popular coupons and offers, shipping and payment methods)
Need help one-upping your eCommerce marketing strategy? Reach out to our experts for a FREE marketing consultation.
The differentiator is knowing what, when, who and where to sell!
The number of online stores is increasing by the day. The number of options that a typical shopper has when making a purchase are all too many. People following their passion and starting an online store based on the dropshipping model, are increasing too – especially as platforms like Shopify make it easier for them to take their brands online.
The only way to sustain in a competitive market is to get that extra edge and that’s data.
Imagine knowing what product to sell to who exactly and where. That’s the difference between a successful dropshipping business and one that fails at getting recurring sales in.
Ready to take your dropshipping business to the next level?
Deep dive into data with RevTap – eCommerce analytics simplified.