The world of e-commerce has expanded immensely in the last few years, which means competition is fiercer than ever. The pandemic brought it to greater heights, with more and more customers appreciating the ease, convenience, and safety of shopping online. It’s not an exaggeration to say that e-commerce shops are popping up like mushrooms.
Of course, since the market has become saturated, e-commerce businesses must keep up with the trends and find ways to keep an edge over their competitors. The plain old marketing and advertising formula doesn’t seem to be enough anymore. While they still prove to be helpful, they can be more effective when paired with the power of analytics.
Yes, we’re talking about gathering relevant, personalized data that can help you determine what your customers prefer and predict their behaviors. Whether you’re riding the success of your business launching or just getting started on an affordable business venture, knowing the importance of e-commerce analytics will help you go a long way.
Want to learn how data can help you boost conversions and drive sales? Here are some of the ways you can do just that.
Develop Your Products through the Help of Data
Consumers are spoiled for choice when it comes to the traditional market, even more so online.
Now that online shops are sprouting everywhere, it’s becoming harder for businesses to attract prospects, much less convert them into paying customers.
The latter have higher expectations about the different aspects of their shopping experience, from the user-friendliness of the e-commerce site to the product quality and the shipping experience. While they can have anything in a few clicks, they are not certainly compromising on quality and customer experience.
As an e-commerce business, you want to give them the best customer journey. This is where data comes in. Analyzing the behavior and preferences of your past customers will provide you with rich insights into their wants and expectations. You might find they prefer a specific color of a product or want something more customized. They might be abandoning their carts because some products are out of stock but weren’t labeled as such.
Whatever information you need, the data analytics of your e-commerce site is a gold mine that can aid your product improvement. You’ll be able to design them in a way that will suit your target audience’s taste.
Manage Your Product Inventory with Ease
Many e-commerce businesses find it challenging to manage their inventory, especially if they have many products. Cue data-driven inventory management. This technique will allow you to keep an accurate list of your stocks and track their availability. It also helps you predict your inventory needs and lets you cut down on lead times.
You’ll know when the popular products are running out of stock so you can secure some before it happens. It’s also easier to track products that don’t gain traction, helping you decide not to invest in them in the future.
It may take time to gather data, but it will be a breeze once you get started. You’ll gain a lot from data-driven inventory management, allowing you to save time and effort and ensure you’re investing in the right products.
Encourage More Sales through Cross-Selling
They say it’s harder to acquire new customers than retain existing ones. Making sure that you’re providing the best customer experience is one way to cultivate customer retention and loyalty. You can do this by looking into your customer data and determining their preferences. You may also take note of their personal information that can be integral in your personalization efforts.
If you find they have been exploring a particular product category, you can give them more customized recommendations, appealing to their taste and preferences. You can even do cross-selling, helping you close higher sales value. Giving them a positive customer experience can encourage them to come back to your shop again and again.
Make Wiser Decisions in Advertising Spend
Businesses cannot neglect marketing and advertising efforts. As you know, running ads can be expensive. If you want to grow your business by increasing conversions, you’ll want to run effective ads that will increase your returns. One way to do this is to analyze your e-commerce data and target your ads wisely.
You’ll know when to serve the ads to a particular audience, depending on where they are currently in the customer touchpoints. This means you’ll have to consult customer data and determine what part of the buying process they are in.
Are they still prospecting and weighing their options? Are they still on the awareness stage, or are they ready to buy? Knowing all these insights will allow you to serve a highly targeted ad to the right audience at the right time. You’ll be able to tell when not to spend money on ads that do not usher in customers. In short, you can maximize your ad spend.
Re-evaluate and Improve Your Strategy
E-commerce analytics is a good measurement of your strategy’s success. Is what you’re doing still effective? Are you getting results? By looking into your e-commerce data, you’ll know what’s going on in your business and the industry as a whole. You can assess where you stand in the face of competition and determine which part of your business needs improvements. You can figure out a way to mitigate possible risks and ensure your business’s long-term success.
Optimize Your Product Pricing
Pricing can change at a drop of the hat, but it is especially challenging when you are just starting to introduce a new product to the market. It can be tricky to put a price as it can easily affect your customers’ interest. Picking a high price can drive them away, but pricing your products too low can mean lost profit margins. The latter can even affect your customers’ perception since cheap products are often considered low quality.
There are external factors that can heavily affect product pricing too. You will need to pour hours into researching the market, tracking the competitive landscape, and finding a good balance between your capital and the current market price. Expect to carefully analyze your customer base and their last transactions as well.
However, if you take a look at your CRM, you will find available data at your disposal that will allow you to determine the ideal price range based on various important factors. These factors are as follows:
- Customer base price tolerance
- Customer behavior
- Product demand
To make it more seamless and effective, you can choose to put your customers on segments based on different price points. The insights you will gain from this exercise can help identify the optimal pricing structure for your new products, which can then maximize your sales potential.
Create Case Studies to Convince Potential Customers
Every business strives to be credible and trustworthy in front of its customer base. You will want to gain their trust by showing them what you can do. Although most of your content marketing efforts focus on this endeavor, there are other ways to highlight your capabilities and accomplishments, often for the benefit of potential customers.
What better way to do just that than through creating case studies? Through the data and insights gathered from your e-commerce site, you will find a wealth of opportunities to showcase your success stories. You will be able to underline real-world examples based on your own experience. This can help you communicate your value to your customers, who will take you seriously when they see that data and facts back up your claims.
While they may take a lot of time and effort, case studies are impactful selling points that usher in a wealth of benefits. It solidifies the trust customers put in you and convinces prospects to do business with you.
Enhance Your Brand Messaging
Customers often have their own expectations from a brand. They are very particular about the message that you get across. They expect the information they get from you to be immediate, relevant, and valuable. Your brand messaging must resonate with your customers, evoke their emotions, and persuade them to choose your products again and again.
To do this, you must tailor your content and message to their needs and preferences. Ask yourself: what are their fears and challenges? What are their motivations? How can you position your brand to help them solve their problems? What makes you stand out? With the help of comprehensive data, you can create customer segments that group your customers based on various attributes. It can be their age, social status, gender, location, and many others.
You can then create A/B tests of your messaging to determine which works best for each segment. You can analyze how they respond to different elements of your messaging, including your headlines, offers, creatives, and copy. Once you have determined the best combination, you can use a more refined messaging that can engage your customers.
Lead Your Customers through a Marketing Funnel
Marketing and selling are two different things, but they intersect and work better together. Marketers are the architects of generating leads, and salespeople do the convincing and nurturing. More often than not, leads need warming up, so you’re putting them on nurture campaigns.
A funnel will help you lay out a guide for your potential customer at their first interaction with your brand. It can touch on different channels, including social media, SEO, content marketing, and paid advertising. For an effective funnel to work, you should understand that the customer journey differs for each lead. Some might be in the awareness stage, while others are already considering your brand. Many might just be waiting for a push in the right direction before hitting the purchase button.
With the customer data at your disposal, you can track and analyze at which stage of the customer journey they are in. You can then tailor your marketing efforts, including your messaging and ads, to their particular needs. You can retarget those who have visited your website on your Facebook. You can also re-engage those who have abandoned their carts and encourage them to proceed to checkout. The possibilities are endless.
Boost Retention Sales and Repeat Purchases
Customer retention is one of the hardest things to do. When selling your products, it’s vital to remember that the customer journey does not end at checkout. You will need to invest in your existing customers by providing them with an exceptional customer journey from the very start and even after they have already bought from you.
It can be as simple as giving them a personalized email, thanking them for doing business with you. You can take it further by providing your customers with thank-you notes when you ship their items. You may consider sending them an email that includes exclusive discounts and promo codes during special occasions. When they have concerns or questions, it is best to answer them right away and provide sound solutions.
By delving into your database and leveraging the information you have, you can give your customers a pleasant experience that will put you in their good graces. They will consider your brand when they decide to buy the product once again. Repeat purchases are common and can even be better than new sales.
Remember, it is more expensive to acquire new customers than retain existing ones. Once you have established a good relationship between you and your customers, it is easier to invite them to buy from you again or recommend other products that might interest them.
Wrapping It Up
Now that you know the importance of e-commerce analytics and how it can help you boost your sales, it’s time for you to rethink your strategy and make sure this is incorporated. You can delve deep into the facts and figures and make intelligent business decisions. With customer data, you’ll understand the shift in your target market’s behavior and keep up with the changing trends. This is one of the keys to the growth of your e-commerce business.
Boosting sales has many angles of attack you can choose from. Sure— e-commerce comes with efficiency and comfort. Going back to ‘analog’ ways like hiring a sales agent or doing it yourself is always a choice. Few companies like Closify should make an interesting argument about this.