Ecommerce and analytics are almost synonymous. Several e-commerce startups have burgeoned over the past few years and so has their investment in analytic tools.
With Machine Learning and Big Data, Data Analytics is sought after in order to assist in boosting business by deriving insights from, otherwise complicated, chunks of data. E-Commerce merchants use various kinds of tools and resources to analyze their etail data. Key roles played by these tools to boost E-Commerce sales are:
Being able to track traffic to your website from numerous sources allows an e-commerce owner a first-hand look at how visitors are interacting with the site and what is working. Website numbers also assist in ideation of new vouchers, discounts, exclusive product offers, and so forth, which help boost sales.
In e-commerce provider needs insights on things such as visitor engagement, the effectiveness of a marketing campaign, conversion ratio, and more. This kind of insight can be offered by analytics software thus helping them make informed choices.
Data and information on drop-offs such as cart abandonment along with location information of the customer can help a marketer know what works and what doesn’t. E-commerce companies require visibility on their various parameters so that they know what they need to optimize.
While maximizing your revenues has always been the main objective, proper optimization of the storefront has never been easy. Luckily, analytics tools provide actionable insights that help in proactive management of stores and operations.
There are certain key metrics that help merchants take decisions faster and better:
You have to know how many out of all the individuals that visit your website actually make a purchase. This is a clear indicator of your site’s performance. This will help you know the channels that you should prioritize and invest further in.
Average Order Value
This enables you to understand your customers’ buying habits. It will help you design more effective marketing campaigns and promotional offers to cross-sell and up-sell.
This metric is the key indicator of an e-commerce store’s overall health. Obviously, poor traffic is a call for a change of strategy.
Value per Visit
This metric is calculated by dividing the total revenue generated by the number of visits at a particular period. What makes this metric hard to track is the nature of the visits. The visit does not always have to end in a purchase for it to be termed as a valuable visit. A customer could share your product on their social media or even a comment; these are invaluable as well.
Customers frequently add items to their carts then leave. Even though some do return, most do not. Thus, understanding what causes this abandonment shall allow you to mitigate this issue.
The increasing popularity of mobile devices has seen to the major e-commerce incorporating a separate mobile strategy that offers special discounts and more to mobile users.
The biggest fear of an online trader is product returns since they hugely impact their profits. There are various reasons why a customer would return a product. Thus, having a tool that is able to keep track of why this happens will help the trader know which pitfalls to avoid.
Customer Lifetime Value
This metric is what allows an e-commerce platform to measure its sustainability. It is the lifeblood of any online trading platform that ultimately determines the profitability of the business. Having a tool that can measure the profitability of a client by checking the amount spent to acquire the customers vs the revenue generated is important in determining your sustainability.
Despite the success of analytic tools, not all of them are created equal. There are analytics tools that use Artificial Intelligence to keep tab on your site’s metrics and give you intelligent insights that make other analytic software look like amateurs. In fact, Gartner has predicted that, by 2020, over 85% of all interactions between users and retailers will be done by AI.
So, what are the benefits of using AI integrated Analytics Software on your online platform?
Amazon was able boost its sales by 29% to after it began using targeted recommendations. AI enhances the way a consumer can be targeted with items meant specifically for them. The beauty of AI, however, is that it not only recommends products similar to those the consumer had purchased before; but it is able to anticipate what they may need. You can obviously see how this can be used to your advantage.
The ability of AI to sift through copious amounts of data to give you only the most important information such as who’s likely to buy and what they are likely to buy is going to help you to convert users into customers more effectively and at reduced costs.
Artificial intelligence powered analytics software will even tell you what to do to effectively engage your visitors to maximize their conversion into clients while increasing the purchasing habits of your current consumers.
With the help of AI, you will drop all the efforts and costs involved in aggressive remarketing and ad exposure just so that you can get new customers. This is because this software is able to focus only on the relevant advertising to reach the right visitor at the right time. So, instead of casting a wide net with the hope of catching a few fish, you will be able to target only the audience that is likely to be converted.
AI-powered analytics software such as Essential Insights is able to give each visitor a personalized experience when they get onto the platform. It is able to recommend only products that are relevant to that visitor. Thus, even the ads they get will be specifically targeted to them thus they will catch their attention rather than annoy them.
This particular approach has seen retailers realize sale gains of up to 10 percent at a rate that is three times that of their competitors. Accenture predicts that it will boost profitability rates by 59% by 2035. Do you want to be left out?
The benefits of understanding analytics, especially when it comes to ecommerce platforms, are seemingly endless. Nevertheless, you still need to have the best analytic software to be able to track your metrics and boost your sales.