E-commerce Analytics Masterclass: Lesson Three
In our previous lesson, we guided you through setting up Google Analytics to start tracking your store and marketing data. But what do you do after? Dig into customer analytics.
Put that data to use and understand who your customers really are.
Knowing shoppers who tend to make purchases from your store and those who simply browse products and leave, can go a long way.
Let us explain.
What is e-commerce customer analytics?
Let’s just call customer analytics a process by which customer behavior is used to make key business decisions. It uses market segmentation and predictive analytics to go beyond the general demographics of a target market, and understand what makes consumers from that market convert.
The data is used by businesses for planning out their direct marketing campaigns, setting up customer relationship management, optimizing site experience, and more.
Why is e-commerce customer analytics important?
According to surveys, more than 74% of online shoppers are frustrated that brands don’t serve them content and experiences that cater to their interests. In fact, about 89% of the customers switch brands after poor customer experience, resulting in businesses losing 20% of their annual revenue.
Now that’s losing a lot of business, especially when the e-commerce industry is growing every day.
So if you don’t know what shoppers are looking for or what their purchase behavior looks like, you’re definitely losing customers to competitors.
Understanding audience reports in Google Analytics
Setting up Google Analytics to track the right metrics is just step one. The e-commerce analytics platform offers nine different reporting sections under “Audience”:
1. Overview – Comprehensive look at who your site visitors are.
2. Demographics – The age and gender of the audience on your store.
3. Interests – Visitors segmented by affinity and marketing categories.
4. Geo – Languages and locations of your site visitors.
5. Behavior – New vs. Returning Visitors, Frequency & Recency and Engagement.
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6. Technology – Browsers, operating systems, and networks used by your store visitors.
7. Mobile – Shows you the number of desktop, mobile and tablet users who visit your site.
8. Custom – Reports defined by you based on metrics you want to track.
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9. Users flow – Visualization of how visitors move through the online store.
Understanding Insights on Facebook
Facebook is one of the largest social media networks in the world. So after Google, it is obviously the one place where most e-commerce businesses advertise to reach their target customers.
Good thing is that apart from giving businesses a great opportunity to reach shoppers, it also offers extensive Facebook Audience Insights.
Here, the report is broken into eleven segments:
Apart from giving you a Page Summary, the Overview tab also shows you key metrics for your most recent posts and a performance comparison with similar Facebook Pages. This gives you an insight into what content your shoppers are actively engaging with and what your social media strategy lacks.
Don’t just stick to the number of likes your online store’s Facebook page has. The Likes tab gives you a graphical representation of your growth, averages and also the sources of the likes your page has been getting.
On the Reach tab, Facebook gives you an insight into how many users your page and posts are reaching. It also highlights the reactions, comments, and shares that your posts get, along with the reactions they generate. You also get to see how many users have hidden your posts, marked them as spam or unliked/ unfollowed your page.
4. Page Views
Similar to the traffic report you get from Google Analytics, the Page Views tab gives you an insight into the top traffic sources to it. It shows you the total number of views, total people who viewed the page and the posts, and the top sources from where these users came.
5. Actions on page
The Actions on Page insights help you understand what people actually do after reaching your Facebook page. It gives you an overview of the total actions taken on the page, people clicked the action button, people who clicked to get directions, people who clicked your phone number or your website link.
The Posts tab gives you all the information around how your content is doing and when your audience is interacting with them actively. Right from when your followers are online, the post types they love, top posts from competitor pages and performance comparison of all the posts you’ve published, this tab shares it all.
This one is for e-commerce businesses that often organize events. It could be an online event or an offline one like setting up pop-up stores at a popular destination. The insights give you a peek into event numbers like awareness, engagement, tickets and your audience. It also gives you a look at the upcoming and past events, so you can compare performance and improve your strategy.
If your e-commerce business has been investing in creating short videos to promote products, this one is for you. It mainly tells you the number of video views you’ve received, broken into – organic vs paid, unique vs repeat, auto-played vs clicked-to-play. You can also which of the videos performed the best.
The People tab is the simplest report in Facebook Insights. It shows you who liked your page, your fans, who saw the posts you’ve made and engaged with them.
The Messages tab offers you performance metrics on the conversations you’ve had with consumers on the Messenger. They include total conversations, your response time, deleted conversations, those marked as spam or are blocked by the users.
These are reports that might or might not be relevant to your e-commerce business – based on how you’re promoting the page, your products or who you’ve collaborated with for a campaign.
- Promotions – If you want a quick overview of all the recent promotions you’ve made, this is it. It lets you see how your campaigns have performed over time and how much it cost you.
- Branded Content – If you’re collaborating with a Verified Page – other brands or influencers, the tab lists down the posts that gave you a mention. It shows you the reach and engagement of each of those posts.
- Local – If you have a local business as well, this tab gives you an insight into the foot traffic in the area, general demographics of people there and those of them who have seen your ad.
Want to go a step further? You can also dig deep into your Facebook Ads Manager to pull out data around your shoppers.
Understanding customer analytics from Facebook Ads Manager
No matter how big or small your e-commerce business is at the moment, you’re surely using Facebook and Instagram ads to promote products. With a massive userbase, it’s only obvious to have a paid campaign to reach more customers on the two channels.
While the Ads Manager gives you an overview as well as an in-depth look at your paid promotions, you can also use it for e-commerce customer analytics. See what kind of ad performs the best, what demographics respond the most and which ad placement has been the most effective!
To do so, from the list of all your campaigns, click on the ad you recently completed and want to analyze.
The performance gives you an insight into how your ad campaign for the defined audience performed over a specific period of time. The three preset graphs show the results according to its objective, its reach and the total amount spent. You can also customize this graph to compare the two metrics that matter the most to you.
The demographics tab shows you the breakdown of the gender and the age group of users who interacted with your ad. You can even toggle to see the breakdown based on the ads’ reach, impressions and amount spent.
This one’s another important graph. The placements tab shows you how the ad has performed across different platforms – Facebook and Instagram; and placements – Facebook desktop right column, Instagram mobile News Feed, Instagram stories, Facebook stories, and others.
Putting your e-commerce customer analytics to use
All your analytics and marketing platforms give you insights into how your campaigns are performing. That helps you conclude what type of shoppers your store is getting and how they interact with your promotions, what they prefer and what makes them complete a purchase on the store.
But moving across the different platforms, taking note of critical data and creating customer segments to understand your shoppers better, can be more than overwhelming.
That’s where RevTap comes in.
The e-commerce analytics platform connects with all your analytics and marketing tools. It then pulls in the data from all the platforms onto a unified dashboard, using easy-to-consume visualizations that help you understand who your shoppers really are.
Analyzing data from all the platforms, it breaks your audience into 24 Smart Segments – abandoned cart, big spenders, full-price customers, refunders, VIP customers and more.
Simply put, you no longer need to work on creating customer personas or updating them on a day to day basis. RevTap continually optimizes these segments, updating them with the changing shopper behavior.
You can use these Smart Segments and actionable data to optimize your store and campaigns to match the shopper’s expectations – at all times!
All set with e-commerce customer analytics? It’s time for the next step.
In our next lesson, we’re talking about measuring your marketing performance and how you can optimize your campaigns for higher conversions and sales.