Shopify Instagram Ads Guide: 400X your customer reach with 20% reduced ad spend

ecommerce customer analytics
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In today’s day and age, every successful eCommerce business’ playbook will tell you that customer-centricity must be the cornerstone of all your decision making and to thrive in this era, you must put the customer before everything else.

Moreover, with an increase in the number of digital touchpoints and interactions between your Shopify store and your customers, there’s so much data you can collect and feed into your marketing efforts.

And thanks to the wide range of technologically advanced eCommerce analytics tools like RevTap available at your disposal, constantly fetching you an insurmountable amount of data that can unlock a goldmine of customer insights around their preferences, behavior, and pain points, getting to know your customers is not really a challenge anymore.

However, you still find most businesses relying minimally on customer data for their marketing efforts or to drive sales.

To stay ahead of the competitors’ curve, you will have to think beyond merely personalizing retargeting ads or segmenting your email lists, and start leveraging Shopify customer analytics to its maximum potential to study customer behavior and interaction on your online store as well as other social channels. It is the closest you can get to measuring and quantifying customer experience (CX) on your digital properties so you can aptly anticipate customers’ needs and apprehensions and cater to them.

In this guide, we take you through the what, why, and how of customer analytics and also the steps to devising a solid strategy for your business.

What Is eCommerce Customer Analytics?

Put simply, customer analytics is nothing but the process of smartly leveraging customer data to dictate your business decisions and marketing efforts. Customers are divided into relevant segments, and data from each of these segments is tracked and analyzed to understand how a particular group of your customers interact with your Shopify store, what makes them convert, what makes them drop off, and so on.

For example, if your analytics data tells you that for a particular category of products, 70% of the buyers are 20-35 years old. Now, wouldn’t it make sense to run a dedicated promotional campaign where you market this specific catalog to customers (and visitors) who fall within this segment. 

This is exactly what eCommerce customer analytics empowers you to do! 

You never know when you’re going to uncover an incredible insight about your customers until you actively monitor your analytics and set out looking for them. 

To learn more about eCommerce customer analytics, join our Masterclass here

What Is The Goal Of eCommerce Customer Analytics?

The goal of customer analytics may sound straightforward but is quite nuanced. In fact, the benefits of customer analytics are multifold, including:

Helps optimize your marketing budget

Understanding each of your customer segments better and what makes them convert will help you decide upon how to streamline budgets for all your marketing activities. If you’re looking at customer data to guide your marketing efforts, you can naturally be more confident of the efficacy of your campaigns as you would spend more where you are likely to drive a better ROI and pull back on non-performing avenues. 

For instance, let’s assume that you are currently in the process of figuring out the marketing plan for your end of year sale, and analyzing data from last year’s sale tells you that nearly 35% of the footfall was driven by social channels. 

This bit of information is extremely critical to your plan as you now know that it’s going to be worth spending a significant chunk of your budget on running Facebook and Instagram ads and not so much on Google ads (considering they didn’t perform as expected). This was only the tip of the iceberg as there is so much more valuable information that eCommerce customer analytics can fetch you that you can use to optimize your marketing budget and hopefully, save some big bucks. 

Improves the efficiency of your marketing efforts

By relying on your eCommerce customer analytics data for all your campaigns and taking the most cost effective and time efficient route to engage with your customers, you can essentially double down the efficiency of your marketing activities. Customer analytics helps you move away from shooting in the dark towards a highly strategic and targeted marketing plan that engages relevantly, thus driving far better results.

Drives better engagement

Needless to say, if your marketing efforts are more directed and targeted for your specific customer segments, you can expect customers to be more engaged with your online store whether it is on social channels or on your digital properties. You can drive better participation in the contests you run on social media, expect more turnout on your ongoing sales, get more visitors interested in your products, and so on if you simply leverage eCommerce data analytics to shape how you reach out and connect with your prospects.

Promises a higher CTR on your marketing campaigns

Let’s say you run an email campaign to reach out to shoppers who specifically dropped off from one of the most critical category pages on your Shopify store.

Now, this is definitely going to get you a better open, response, and click through rate as opposed to reaching out to your entire email list with the same promotional messaging. This is simply because visitors who had dropped off from that particular page obviously have a higher purchase intent when it comes to those products, while the rest of your email list may not necessarily feel the same way.

Therefore, making sure each of your marketing campaigns is driven by customer insights gathered by Shopify store analytics is certainly going to fetch you far better click through rates compared to the run off the mill ones.

Helps you nail your brand messaging

Messaging is another key factor that determines how customers interact with your marketing communication. How eCommerce customer analytics helps you outdo and customize your messaging is fairly simple. Let’s say you run a retargeting campaign for a specific range of products and customer segments. Now, you could simply go ahead and target them with Google/Facebook/Instagram ads or emails that just remind them that they have left their carts behind and nudges them to complete their purchase. 

Or you could first look at the data for these abandoners to divide them into segments such as first time buyers, loyal customers, and inactive customers. This could then guide the messaging that you should target them with to stimulate the desired action, which is purchase in this case. 

For a first time buyer, you might want to offer a bigger discount as opposed to an inactive customer, whom you can target by reminding them of their loyalty reward point balance. 

Since messaging you use in your campaigns is extremely critical, getting it right by having a comprehensive understanding of your customers’ profile and purchase journey is all the more essential. 

eCommerce Customer Analytics Metrics You Need To Track

Before you begin to form customer segments and analyze your collected data, there are some metrics that you should absolutely need to be tracking to be able to gauge customer journeys and quantify customers. Here are some of the eCommerce metrics you should watch closely:

Conversion Rate

Conversion rate is the primary metric you need to track to determine the efficacy of your paid or organic marketing activities. Conversion rate is the measure of the percentage of visitors who end up taking the desired action among those who viewed or interacted with your online store or marketing campaign. Tracking and analyzing this is important so you have enough data to make strategic optimizations to your store’s user experience or campaigns’ critical elements to get more people to convert.

Customer Lifetime Value

Customer lifetime value is the measurement of the time a customer spends engaging with your business and the total amount of money they spend on your products, essentially the total financial contribution of a customer to your business throughout. This is critical so you can determine the ROI of customer acquisition as getting customers to your site and converting them involves a cost that you might ideally want to be lower than the revenue they contribute towards.

Net Promoter Score (NPS)

Net promoter score is a measurement of how likely your customers are to refer your online store or products to others. This numerical figure tells you which segment of customers are loyalists or advocates, whereas which of them are not as impressed to refer you to their loved ones. Again, a higher score means the customer is delighted by your shopping experience. Here’s what a typical NPS survey form looks like: 

Referral Rate

Referral rate is nothing but an indication of the number of first time shoppers you gain via your referral program. This is important as it will tell you how effective your referral program is and what are some of the tweaks you need to make to improve this rate.

Customer Satisfaction (CSAT)

Your customer satisfaction score is the cumulative rating or score given by customers after any interaction based on how satisfied they were with your response quality, the resolution provided, and turnaround time. This score is an indication of the success or failure of your customer support efforts. For instance, if you send out a survey to every shopper who interacts with your support agent and ask them to rate the resolution they received on a scale of 1 to 5, a low score clearly tells you that customers are dissatisfied with your resolution. 

How Do You Analyze Customer Data?

As a marketer, you probably rely on a couple of age-old avenues to gather your customer data, including:

Google Analytics

Google analytics undoubtedly offers a goldmine of insights on your customers. Under the “Audience” tab in your Google Analytics dashboard, you get a bunch of different views basis which you can slice and dice your audience segment reports to get to know your store visitors and customers better. 

The views available are:

  • Overview – Gives you an overarching view of the attributes of all your site visitors
  • Demographics – Divides your audience into specific age and gender groups
  • Interests – Segments your visitors basis their affinities and preferences
  • Geography – Divides your store visitors basis their geographic location 
  • Behavior – Segments your audience basis multiple criteria including new vs returning customers, engagement, and frequency and recency of their purchase on your store
  • Technology – Simply tells you which browser, operating system, screen resolution, etc. your visitors are using
  • Mobile – Divides your audience on the basis of desktop, mobile, and tablet users

For each of these views, GA gives you information on user sessions, bounce rates, transactions, revenue, and much more. 

Facebook Insights

Given the extensive reach of Facebook, engaging with your audience here is a no brainer. Not just that, Facebook also offers impressive analytics and reporting capabilities that eCommerce businesses can leverage to understand their audience better. 

The Facebook dashboard also offers multiple views to segment your audience report.

The most common views are: 

  • Overview – Here you get to view the key metrics including views, likes, reach, etc. for all your recent posts
  • Followers – An insight into who your page’s followers are, what percentage of these are paid and how many are unpaid, 
  • Likes – A complete breakup of the source, growth, and averages of the likes your posts receive
  • Reach – The number of Facebook users your posts are reaching, along with the reaction and engagement they are generating
  • Page Views – Insights into the number and major sources of traffic to your Facebook page 
  • Actions on Page – Overview of the actions users perform upon reaching your Facebook page
  • Posts – A deep dive into how your posts are performing – which of them are loved by your audience, how they compare against your competitors, and so on
  • Events – If you’ve created and marketed an online or offline event on Facebook, here you will find numbers on the reach of this event including awareness, engagement, tickets sold, and more
  • People – Highlights who likes your post, interacted with your brand, engaged with your content, and so on
  • Stories – The number of people who viewed your story, divided into paid promotions and organic reach
  • Messages – Insights into the interactions you’ve had with your audience via Facebook Messenger – including the total number of messages received, the average turnaround time, messages marked as spam or blocked by customers, and so on
Google Trends

Google Trends is majorly used by marketers to identify trending topics among their target audience so they incorporate the same in their marketing activities to engage better. With access to Google’s vast search data, you can uncover insights around your product, audience’s interest, vertical, industry, or even competitors and use it to plan your marketing campaigns that your target audience might be interested in. you can look at how various search queries are performing and figure out which ones are performing the best in your domain so you can double down your efforts in promoting products related to them. 

For example, if you own a healthcare eCommerce store and are planning to do an AMA session on your social channels with a known expert in the industry. Before you finalize the theme of the session, you could always check Google Trends to find out the trending topics in the industry to anticipate what your audience and potential customers might be interested in so you end up successfully driving the desired engagement. 

Your Shopify store’s analytics is an untapped opportunity to grow your sales. Make your data work for you. Give RevTap a spin!

The Problem With The Current Tactic

While these were some of the most popular tools used to study and analyze customer data, they do have certain shortcomings that are more often than not ignored by most marketers. Some of these are: 

No industry benchmarks to compare

Let’s say your recent holiday sale paid ad campaign got you a 3% CTR. Now, what do you make of that figure? If you don’t have a clear picture of the industry benchmarks for your critical metrics, you are never going to be to judge your campaigns’ performance. You might end up doubling down on your budget just to improve that figure without knowing that it is in fact at par with the industry’s benchmark. Google Analytics doesn’t tell you how your store is performing with respect to global eCommerce benchmarks. Sure, you could go ahead and do your secondary research, but that only adds an entirely new step to the process. 

Lack of assistance in determining the next steps

Conventional eCommerce data analytics tools only show you numbers without any assistance on what you should make of them. Unless you have loads and loads of time to go through seemingly endless data points that track every customer action and drill down actionable customer insights from them, you are going to need some help – either in the form of an analytics specialist or an AI-driven insights tool that does the heavy lifting for you.

Unavailability of customer data

Google analytics can only fetch you valuable information with regards to your store visitors and target audience, thus allowing you to study the various types of potential customers your marketing efforts must cater to. However, to close the loop of understanding customer behavior, you also need data on how people behave on your online store (so you can get them to convert better), which is not available in Google Analytics.

Comparison of marketing data from different platforms not possible

You might be leveraging a plethora of marketing channels to spread brand awareness and drive traffic to your store, giving you lots of room for comparison, optimization, and improvement. While your Shopify analytics apps and Google Analytics may show you a clear picture of the performance of your marketing campaigns across all channels, but not in comparison to each other. Without this, you either have to blindly keep allocating more budget to one channel and less to the other, or have to do the manual work of comparison yourself.

Turning Your Data Into Actionable Customer Insights

Getting detailed individual customer profiles

Do you know who the top 1% of your eCommerce store shoppers are? What are their preferences? How do they behave on your site? And so on. Having a robust eCommerce customer analytics tool can help you trickle it down to the last details, so you can pay special attention to the people who are the most loyal and active on your online store. And not just that, since you’d be getting detailed individual custom profiles’ insights, the world is your oyster to see how you want to leverage the same.

Segmenting customers based on behavior

Not all customers on your eCommerce store follow the same ten steps or have the same attributes when it comes to their identities. Surely, there are different buckets you can categorize them in, and that’s the best you can hope for. 

By segmenting customers based on their behavior on your store, you can glean insights into their likes, preferences, wants, to be able to target them with more relevant and targeted messaging and offers. 
See how customer segmentation works with RevTap. Install the app for FREE!

Customer purchase behavior analysis

Your customers and shoppers’ behavior on your online store is one thing, their purchase behavior is another. The two might seem overlapping, but that’s not the case with every shopper, some just prefer browsing more, and some come with their minds already made up. Hence, it becomes imperative for you to leverage not just their purchase behavior, but also their purchase behavior when it comes to serving experiences most relevant to them.

Identifying channels where they come from

In eCommerce marketing, attribution is everything. If you can attribute with precision the impact of your marketing efforts, you are sure to do better than 99% of the industry. One of the major challenges eCommerce stores face today is to understand where their buyers are coming from so that they can reach them better, improving marketing efficiency, while not realizing the answer is right in front of them.

What campaigns they engage with the most

You deploy a plethora of campaigns all around the year, only to find some succeed and some fail. But, have you ever looked at data from those in hindsight and being able to devise your strategy for a campaign? We bet not, as haven’t a ton of other eCommerce marketers.

As an eCommerce store owner, it’s important for you to know what campaigns your shoppers and prospects are finding worth their time, and what are not adding any impact to your topline. eCommerce customer analytics tools can help you gather the same in a jiffy.

Now, let’s discuss how you can create various segments based on behavioral data to churn out actionable customer insights from it.

What are the different types of customer segmentation?

Based on purchase behavior and history

Every customer has a unique purchase journey and history on your online store, basis which you can group them into various segments. These segments could be based on their purchase history, for example: 

  • First time vs returning buyer
  • Frequent vs inactive buyer
  • Loyal vs new shopper

You could also form other subjective segments based on the data you have collected. One such segment could be created basis buyers’ past purchase or browsing behavior on your store. Here you can create segments such as – 

  • Price conscious buyer or bargain hunter
  • Window shopper
  • Cautious or prudent shopper
  • Thorough researcher 
Based on the level of engagement 

These segments are usually created basis how engaged a customer is with your brand. This includes engagement on your online store, social media channels, other communication channels such as push notifications and email, and so on. 

Customer engagement platforms allow you to assign scores to customers for every engagement activity they participate in, the sum total of which helps you quantify how engaged or disengaged customers are. Depending on these scores, you can always segment your customers based on how invested these customers are in your products and how connected they are to your brand. 

Based on demographics

This is probably the easiest customer segment to create. In demographic segmentation, division is done on the basis of factors including, but not limited to the following: 

  • Age
  • Gender
  • Education
  • Family Size
  • Ethnicity

Most Important Customer Segments You Need To Create And Track Closely

First time buyers

These are shoppers who have just stumbled upon your online store and made their very first purchase. Now, it’s extremely critical for you to impress and engage them to keep them hooked to your store.

You must go all out when it comes to marketing to these customers and consistently reaching out to them with enticing offers and deals that you think will interest them. Since they have already placed their trust in you once, they wouldn’t shy away from doing so again as long as you manage to capture and retain their attention.

Cart abandoners

These are shoppers who browsed your online store, shortlisted products, added them to their carts, but eventually ended up abandoning them and dropping off. This is a rather sensitive segment of customers and you wouldn’t want to frustrate them or put them off, as you cannot be sure why they abandoned their cart in the first place.

Therefore, a strategically planned cart abandonment strategy would come in handy here wherein you properly time and craft your communication to these shoppers and reach out to them over various channels, nudging them to reconsider their shortlisted products. Be sure as to not bombard them with multiple deals and offers via every channel possible. That is only going to do you more harm than good by driving them further away from completing their purchase.

Loyal customers

These are high value customers who have repeatedly trusted you with their purchases and are loyal towards your brand. Since you have the most amount of data of these customers, you want to use it smartly to promote products that align with their preferences and not just anything and everything in general.

These customers have stuck by you and have certain expectations you must meet so they go ahead and refer your store to their loved ones. If you already don’t have one, you might want to create a solid loyalty rewards program to convert more returning buyers into loyalists.

Bargain hunters

These are shoppers constantly on the lookout for deals and discounts and only end up buying from your store when their shortlisted products are on sale. While there could be a plethora of reasons for this, you want to make sure you smartly promote your on-sale items to these customers to drive them to your store and get them to spend more.

Full price buyers

Since these costumes purchase from your store, irrespective of the price tag, you can assume that they have a strong affinity towards certain items and don’t mind paying the asked price for it. You can leverage this data to drive high value purchases from these customers by promoting their favorite products as well as limited edition ones by creating a sense of urgency and FOMO.

Inactive customers

These customers were once active on your store, but due to some reason haven’t visited it in a while (3-6 months depending on your vertical). What you can do here is to re-engage them with unmissable deals on the products they had once bought to nudge them back to your store. It might also work in your favor to remind them of the loyalty reward points that are left unattended in their accounts and how they can still use them to get discounts.

How To Leverage Customer Segments To Drive More Sales

Now that we’ve discussed how you can form relevant customer segments, let’s move on to how you can leverage these segments smartly to drive more sales to your online store.

Personalize your retargeting communication

When crafting your cart recovery strategy to retarget cart abandoners, be sure to personalize your emails, push notifications, or SMS basis the specific items left behind by particular customers. For instance, if someone has abandoned a big ticket item, you might want to offer support, FAQ links, or customer reviews in your recovery email rather than trying to lure them with deals that create a sense of urgency. The reason is simple – for someone making a big purchase, they are more likely than not looking for a discount, but rather reassurance or some assistance to go ahead and complete their purchase.

Here’s an example of a cart recovery email that does the same:

Attract bargain hunters using unmissable deals and offers

Since bargain hunters are always on the lookout for discounts and usually impulsively give in if they find one, you want to leverage that and engage them with enticing offers that drive them back to your store and urge them to make a purchase. Whether it is in the form of Spin The Wheel on your store or an exclusive coupon sent directly to their email, there are tonnes of opportunities to engage such buyers and get them shopping.

Here’s an example of how you can offer deals on your store:

Engage returning customers with loyalty points and rewards

There’s a reason businesses pay so much emphasis on delighting return customers, these are people who have shown their trust in your brand, more than just once. They believe in your mission, values, and find your product offerings aligned with their wants and needs. Hence, it becomes super important for you to retain them at all costs.

One of the easier ways to make that possible is to repay their patronage with loyalty points and other rewards, that way, they’ll feel indebted to you for being of even more value to them. Here’s an example of how beauty brand Ulta does it well:

Cross-sell and up-sell to first-time customers

For people who are coming to your store for the first time, you have a great chance of making the most of the opportunity. Since these customers do not have very strong opinions about your products or offerings, you can easily suggest cross-sells and upsells from your best selling, top rated, and other product categories.

That way, even if they end up purchasing it on an impulse, you wouldn’t be losing out on their trust. To take a cue, refer to how Gap does it:

Engage inactive customers with feedback surveys

They say feedback is the food of the champions, and it couldn’t be more true for eCommerce brands. What’s worse than a customer not engaging with your brand despite having signed up on your store or having made a purchase in the past? You not knowing why.

Feedback surveys allow you to hear straight from the horse’s mouth on how you can improve your services and products, among other things. So make sure you engage inactive customers with feedback surveys to get a pulse of their mind. The following might be a good question to ask, for starters.

Why Is eCommerce Customer Analytics Important To Your Business?

We’ve talked in depth about customer analytics and how you can unlock its abundant potential in helping you better understand your ideal target audience, customers, and their preferences. However, if you are still in doubt about how it specifically helps grow eCommerce businesses, here are some ways in which customer analytics empowers you to make the most of your marketing efforts: 

Knowing who your ideal customer is

Just as you can’t fix what you don’t know needs fixing, you can’t sell to who you do not know. And especially when it comes to eCommerce, you really need to have a grasp on who your ideal customer is. Once you have that, then, and only then, can you market your offerings effectively. In the absence of which, you’d be akin to shooting in the dark hoping for something to stick. It doesn’t work. 

The beauty of Shopify customer analytics and its application lies in the fact that understanding who your ideal customer is now just a matter of willingness, rather than effort. So, make sure you’re leveraging your eCommerce store’s customer data to glean such insights.

Leveraging personalization to its maximum potential

Marketing gurus for long have been championing the fact that personalization is the key to success in the online world. However, gimmick and cliches aside, personalization actually is nothing but using gathered data to serve experiences that match your customers’ preferences.

In other words, it’s simply the application of insights derived from some data. This is where eCommerce customer analytics can come to your rescue, you’d simply be doing something very straightforward, and yet reaping rewards with great return on investment.

Optimizing your marketing spends

According to a Gartner study, 44% of marketers can not attribute where their marketing spends have been creating an impact. And that’s a travesty, right? The whole point of your marketing and growth efforts should be to quantify with precision what brings in the results, what doesn’t, and double down your efforts accordingly.

By leveraging your eCommerce customer analytics tool, you can easily attribute your marketing spends and then optimize the same for maximum impact. It’s no longer just a matter of expertise, rather having the know-how of how to use data effectively.


Seemingly endless dashboards that track every action each of your customers takes throughout their journey, countless metrics to track, silos of data at your disposal, and unlimited possibility of insights to be generated! Sounds exhausting, right? Well, it doesn’t have to be. The only thing between you and a systematic approach towards customer analytics is an AI-driven platform that consolidates data from all your marketing, sales, and analytics tools and presents to you one consolidated view of your store’s performance. 

RevTap does the heavy lifting for you by analyzing your customers’ behavior, generating smart segments, and enabling personalized marketing for each of them. Basically, any and every manual task associated with creating customer segments can be automated with RevTap within clicks. 

All you need to do is install RevTap for your Shopify store, integrate it with GA, Facebook ads manager, your email marketing platform, and other marketing and sales tools, and voila! RevTap does the rest to help you identify and smartly leverage your customer segments based on your shoppers’ past purchase behavior to improve engagement, retention, and sales on your online store. 

Your Shopify store’s analytics is an untapped opportunity to grow your sales. Make your data work for you. Give RevTap a spin!
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Vanhishikha Bhargava
Vanhishikha Bhargava
Vanhishikha is the Head of Content and Partnerships at RevTap. You'll usually find her hunting for strategies and tools to enable eCommerce businesses to sell more. At other times, you'll find her testing them and writing about them with a cup of coffee.

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