Last updated - September 8, 2020
Diverse walks of life use analytics in its advanced form to gather unique insights. Web analytics is quite the star when we talk about an eCommerce business. Even those who have only heard about analytics know that it is an essential aspect of modern day business world. This article intends to look into some of the general aspects of analytics that can help your online business.
Optimizes marketing strategy
Analytics offers abundant insights that you can imaginatively channel into your store’s marketing strategy. A good marketing strategy involves a bird’s-eye view, more than simply focusing on just the page views to your website. The trick is to integrate data sourced from different channels in a more efficient way. Of course, you have to take into account the more noticeable trends of your web analytics data. Along with it, you can also consider data from other channels like blogs, email marketing initiatives, social media and even live promotional events. This will help in devising a more personalized reach to your customers.
Balancing customer-specific and product-specific data
Certainly, a comprehensive analysis of data from multiple channels gives you an edge in predicting customer interests. Knowing customer interests and basing your marketing initiatives on that definitely will help in the long run. Eventually, you will have more chances to convert leads to sales. Now, let’s look at an example scenario. If a specific product on your store is getting more leads from a social media channel than email marketing, you can revamp the strategy accordingly.
Using Recommendation Systems
There is a noticeable increase in the role of Recommendation Systems in eCommerce. These prediction systems use a lot of analytics data such as product views, product purchases, customer’s social engagement patterns, etc to give personalized recommendations.
Offers solutions to risk management
Fraud risks are a major challenge in the eCommerce industry. In a broader outlook, internet businesses involve risks for both sellers and customers. From a store owner’s perspective, you need a sure-fire risk management solution, which does not affect customer satisfaction. Analytics can help in determining authenticity and integrity of customers to your site. There are even predictive models that help you evaluate the financial capabilities of your customers. To manage fraud risk on your WooCommerce store, you can check out this extension.
Provides support for inventory management
Inventory management in eCommerce industry is heavily dependent on analytics data as well. Based on the data from sales reports, store owners can make adjustments to their inventory. There should be prompt alerts to notify low stock of any in-demand product. Supply chain metrics can provide valuable insights on the progress of your business. Metrics like success rate with different vendors, delivery efficiency, sales channels of top selling products, etc can dynamically influence your inventory management strategy.
Enhances user experience
A very important factor that determines the success of an eCommerce business is user experience, and as you may have guessed, analytics plays a major role in it too. Intuitive user experience design uses data from conversions, page views, customer behavior, demographics, etc. Metrics before and after a conspicuous design change on your store can also prove particularly useful. Intelligent use of analytics data to monitor and adjust user experience can surely contribute to long-term business success.