Are you an eCommerce business owner looking to improve your business in 2023?
If yes, then you have major competition at your hands: there are 12 million – 24 million eCommerce sites across the entire globe, with some top companies in the world being eCommerce businesses.
Despite such fierce competition, you still have a solid chance to stand out with eCommerce analytics.
With global eCommerce retail sales estimated to reach $7.3 Trillion by 2025, it’s certainly no wonder why businesses today use analytics to boost the performance of their e-store.
This guide will walk you through eCommerce analytics concepts, techniques, and free tools (because who can’t deny a good deal?) to help you make the best data-driven decisions.
What is eCommerce analytics, and why is it important?
To begin, it’s important to understand what eCommerce analytics is. eCommerce analytics uses data and insights to understand your business performance.
By leveraging eCommerce analytics, you can easily identify data trends, spot growth opportunities, and target the right customers with the most relevant offers.
Analytics can help you measure the impact of influencer content, track conversions and sales, identify influencers with the highest engagement rates, and compare performance across different social media platforms.
From customer segmentation to website performance, the different types of eCommerce analytics will give you an in-depth look into your operations and help you make smarter decisions.
To learn more, check this out: Why Analytics Is Important for an Ecommerce Business
Are you an absolute beginner when it comes to ecommere analytics? Watch this video from Shopify.
Here are the different analytics to start using to get you ahead.
The 6 different types of eCommerce analytics
1. Customer Segmentation Analytics
Customer segmentation analytics is a powerful tool for eCommerce businesses. It allows you to better understand your customers by utilizing data-driven insights about each customer.
Customer segmentation analytics can provide you with a glimpse into specific customer behavior, which can be used to optimize your website design and product placement within e-commerce stores, and even help you determine how they interact with your business.
Knowing more about your customer also allows you to build more targeted marketing and promotional campaigns and tailor their offerings to specific segments of the population.
There are three key types of customer segmentation data you need to begin understanding your customers:
- Demographics Data: Demographics data allow you to identify characteristics of customers, including age, gender, income level, location, and other information.
By understanding the demographics of your customer base, eCommerce businesses can effectively tailor their marketing and product offerings toward those most likely to make purchases.
- Behavioral data: Behavioral data provides a general idea of how customers interact with a business, their individual preferences, patterns of behavior, and what they are likely to purchase in the future.
The most common way to segment customers is by comparing past behaviors such as spending habits, frequency of visits, recent purchases, or abandoned carts.
- Psychographic data: Psychographic data describes the lifestyle and values of customers, which can help eCommerce businesses better understand their target audiences.
Psychographic data such as interests, values, opinions, and beliefs can also be used to identify potential opportunities for eCommerce growth.
Implementing customer segmentation analytics requires an investment in resources, but the reward is invaluable: a deeper understanding of your customers that will help you take steps toward future success.
2. Sales Performance Analytics
While customer segmentation helps you understand your customer, sales performance analytics through sales reporting software helps you to understand key conversion insights and tell you what sells or not.
Conversion rates are key metrics eCommerce businesses should pay attention to when analyzing their sales performance analytics.
Conversion rate is the percentage of visitors that take the desired action out of the total number of visitors on your website. This desired action can include purchasing a product, signing up for emails, or downloading an app.
Knowing this metric helps you understand how many of your potential customers converted into actual paying customers and can help create decisions on customer outreach strategies.
By regularly monitoring conversion rate trends, eCommerce businesses can identify opportunities to convert more visitors into customers.
There are several different types of conversion rates eCommerce businesses can track:
- Overall Conversion Rate: This is the total number of website visitors that took the desired action (e.g., purchased a product) out of the total number of website visitors.
- Product-Specific Conversion Rate: This is the total number of customers who purchased a specific product out of the total number of people who visited that product page.
- Campaign-Specific Conversion Rate: This is the total number of people who completed an action as part of a particular campaign (e.g., signed up for emails or downloaded an app) out of the total number of people exposed to that campaign.
Average order value (AOV) is another key metric in sales performance analytics.
AOV is calculated by dividing total revenue for a given period, such as a month, by the number of orders placed during that period.
This data provides information on the average amount customers are spending per transaction on their site. An eCommerce business should strive to increase its AOV over time to maximize profits and reach desired revenue goals.
By tracking AOV on an ongoing basis, eCommerce businesses can discover more about customer behavior and identify trends or patterns which indicate areas where improvements can be made.
For example, a business might find that customers who purchase multiple items in one order have a higher AOV than those who only purchase one item.
This could lead the eCommerce business to consider offering incentives or discounts that encourage customers to add additional items to their cart and increase the AOV.
Product performance metrics are the last key component in your sales performance analytics. This helps businesses determine how goods are selling, which products customers prefer, and what needs to be changed.
Additionally, you can use this data to offer discounts or promotions during peak times to increase sales and reach a wider audience.
By understanding shopping behavior with eCommerce analytics, eCommerce owners can make informed decisions on product placement and pricing strategies.
3. Traffic Acquisition Analysis
You’ve probably done some online shopping, and you know that you usually start by searching for the product online.
Well, you’re not alone since nearly 40% of online shoppers begin their shopping experience by online searching.
It is vital to focus on search engine optimization (SEO) and other traffic acquisition analytics to ensure shoppers find you and determine your site is relevant to their search.
Traffic Acquisition Analysis measures the volume and quality of customers visiting their websites. It can also help eCommerce companies evaluate how well they convert visitors into customers.
By examining data on user acquisition, eCommerce businesses can identify marketing campaigns driving the most traffic, understand which channels are giving them the best ROI, and determine how effective certain strategies are at attracting new customers.
With this information, eCommerce firms can make more informed decisions when allocating resources toward marketing initiatives or optimizing their website design for more conversions.
When it comes to eCommerce businesses, organic search traffic is the lifeblood of sales. Organic search traffic sources are defined as those visitors that arrive at your eCommerce store through search engine optimization (SEO) and other unpaid methods.
By measuring organic search traffic sources, eCommerce businesses can identify which pages and content are performing well and what needs to be tweaked for improved performance.
Additionally, eCommerce companies can determine the effectiveness of their SEO strategies by analyzing the results of keyword research and backlinks campaigns.
On the flip side, there’s paid search traffic. This can be a goldmine for eCommerce businesses that know how to navigate it successfully — but there’s also risk involved as you invest.
This could mean using Google Ads, Facebook Ads, or other paid campaigns. Understanding paid search sources and optimizing your analytics is key to improving your eCommerce business.
The last source you can leverage is social media traffic.
Social media traffic involves analyzing where customers are coming from on social media and evaluating the performance of different channels. Opting for a social media scheduler, which has the ability to schedule google my business posts for higher reach and traffic, can be a game changer for you. As well as social media automation and graphic design tools that can streamline your workload and time better.
A comprehensive analytics strategy should include a focus on understanding how visitors from various social networks interact with your eCommerce website – including what content is persuasive for them and resonates best with each channel and what gets you the most conversion.
4. Customer Lifetime Value (CLV) Analysis
Understanding your customers' Customer Lifetime Value (CLV) can be an incredibly powerful tool for improving profitability.
CLV – or “lifetime customer value” – is a measure of how much money a customer will spend with you over their lifetime as a customer.
It's easy to calculate: Customer Lifetime Value = (Customer Value * Average Customer Lifespan), where Customer Value = Average Purchase Value * Average Number of Purchases
With these metrics in hand, you’ll be able to identify which customers contribute the most revenue to your business and how to maximize them.
With CLV, it helps understand how well-existing marketing campaigns are performing and determine which strategies should be employed for maximum return on investment.
CLV analytics can help eCommerce businesses focus on the right customers and ensure they’re getting their money’s worth. Since many eCommerce companies are competing for the same customers, clearly understanding which strategies drive the most value is an important part of staying one step ahead of the competition.
Analytics data provides eCommerce businesses with a deeper understanding of how marketing campaigns perform on different outlets such as email, social media, or paid advertising platforms.
Another important aspect of eCommerce analytics is calculating the return on investment (ROI) of e-commerce investments.
By understanding the ROI of e-commerce investments, businesses can determine whether or not they are achieving their desired goals and objectives.
To calculate the ROI of e-commerce investments, you need first to identify all costs associated with your e-commerce activities, such as advertising expenses, website development fees, hosting costs, and any other expenses related to running an eCommerce business.
Once these costs have been identified, you should then subtract them from the total revenue generated by your e-commerce business to calculate your net profit. Finally, divide this number by your total e-commerce investment cost to get your e-commerce ROI.
5. Marketing Performance Analytics
Another important tool for eCommerce businesses is marketing performance analytics. This helps you understand how well your marketing campaigns are performing and affecting your bottom line.
This type of analytics helps eCommerce businesses understand the impact of different strategies and tactics, which allows them to allocate resources to maximize ROI better.
Email campaigns are a great way to reach out to potential and existing customers, but you must measure the performance of your campaigns to make sure they’re successful. Common eCommerce analytics metrics for email campaigns include open rate, click-through rate, bounce rate, unsubscribe rate, and conversion rate.
- Open Rate – This metric measures how many emails were opened out of the total sent (expressed as a percentage). It’s an important metric as it tells you how engaged your audience is with your message.
- Click-Through Rate – This measures how many people clicked through from the emails to visit a website or landing page (expressed as a percentage). A high click-through rate means your audience finds the message interesting and engaging.
- Bounce Rate – This measures how many emails “bounced” (were undeliverable or were marked as spam). A high bounce rate indicates that your email address list needs to be cleaned up or updated.
- Unsubscribe Rate – This is the percentage of people who unsubscribed from receiving future emails from you. It’s important to keep track of this metric since it could indicate dissatisfaction with your eCommerce business.
- Conversion Rate – The conversion rate measures how successful your campaigns are in achieving their goals (such as sales or sign-ups). It's calculated by taking the total number of conversions (sales or sign-ups) and dividing it by the total number of emails sent.
You can also take advantage of social media analytics. This is gathering data from social media platforms, such as Twitter and Facebook, to better understand how users interact with brands and products, customer behaviors, preferences, and engagement patterns.
Beyond social media and email campaigns, you need to have an email finder tool in your pocket for better campaign performance and lead generation activities for your businesses or services. Did you know that 30% of consumers say influencer recommendations are one of the key factors in their purchasing decisions?
Influencer marketing analytics refers to tracking performance metrics associated with campaigns involving influencers — individuals or organizations who have an active following in a given field or industry.
Analytics can help you measure the impact of influencer content, track conversions and sales, identify influencers with the highest engagement rates, and compare performance across different social media platforms.
These metrics can also help you understand which influencers are most effective at driving conversions and encourage more targeted investments in influencer relationships.
By leveraging these analytics, you can learn more about your influencer campaigns' performance, allowing you to adjust your eCommerce marketing strategy better and maximize ROI.
With analytics at your fingertips, you can stay up to date on industry trends and ensure your eCommerce business is competitive. So don't forget to add influencer marketing analytics to your eCommerce toolbox!
6. Website performance analytics is a metric that measures the overall performance of an eCommerce business website. It encompasses aspects such as page loading speed, user interface design, navigation flow, checkout process, and more.
By tracking these metrics one can identify areas for improvement that will improve customer experience and ultimately lead to increased sales. Additionally, analytics can provide insights into how customers engage with your eCommerce business, enabling you to tailor content or offers to meet their needs better. For example, are they engaging more with video content vs. written content? Longer-form vs. shorter-form content? These insights will help you adjust your strategy accordingly.
With eCommerce analytics tools like Google Analytics, you can measure the success of marketing campaigns and track user behavior on your eCommerce site to better understand what drives conversions.
Performance tracking tools and software can give eCommerce business owners an edge when it comes to an understanding of how their website is performing. Examples of popular performance tracking tools and software include Google Analytics, Adobe Analytics, Webtrends, Splunk, and KISSmetrics.
These analytics platforms track key aspects of eCommerce websites, such as page speed, user engagement metrics, customer retention rates, search engine optimization (SEO) rankings, and conversion rates.
Page speed is an important metric to track. Only 12% of mobile and 13% of desktop websites are optimized to pass core web vitals test.
With the right performance tracking tool or software in place, eCommerce businesses can make better decisions about optimizing their website for maximum profitability.
Heat map analysis is a visual technique you can use to analyze your eCommerce website performance further. Through this method, analytics professionals can identify areas of a website that are performing well and where improvements need to be made.
Heat maps track user interactions with a website on a page-by-page basis.
This data can help eCommerce companies improve the overall user experience by optimizing their web pages for greater engagement.
Areas of improvement may include increasing clickthrough rates, reducing bounce rates, and improving conversion rate optimization (CRO).
Additionally, heatmap analysis can provide eCommerce businesses an idea of what elements of a webpage leads users to make purchases or leave without taking action.
Click path analysis is your final tool used in website performance analysis. It involves looking at a user's route through your eCommerce website and gathering information on what pages they visit, how long they stay, and where they drop off.
This data can help identify areas of improvement and strengths that you may be able to capitalize on to increase sales.
Click path analysis can also help eCommerce business owners understand customer behavior and preferences, allowing them to target their marketing efforts better.
With the right use of analytics from click path analysis, businesses can optimize their eCommerce platform for maximum efficiency.
The benefits of utilizing eCommerce analytics
Here are just some of the major benefits you get now that you’re one step closer to becoming analytics-savvy:
- Insight into consumer behavior: The eCommerce analytics available to businesses are far more than just a number-crunching tool. You can gain unprecedented access to your customer’s behaviors and preferences.
With this knowledge, you can make data-driven decisions that allow you to meet the needs of your customers better, optimize the user experience on your website, and improve the overall performance of your eCommerce business.
With a comprehensive eCommerce analytics strategy, you can tailor your messaging to match what customers want to see and hear while browsing online.
Armed with this information, you can identify customer segments more likely to convert and provide.
Improved user experience and Increased customer loyalty: With eCommerce analytics, you can learn how customers interact with your eCommerce store and make decisions that will improve their experience.
By tracking customer behavior on your eCommerce website or app, you can determine which areas need to be improved and how to optimize the user experience.
For example, you can see which products are the most popular and uncover user frustrations.
With this knowledge, you can make changes to your eCommerce store that will benefit your customers and keep them coming back. By improving the customer experience, eCommerce analytics can help build loyalty and increase sales.
Improved search engine visibility: With eCommerce analytics, you can measure your SEO strategy's effectiveness, enabling you to identify potential weak spots in organic ranking.
You'll also be able to track keyword performance and make changes on an ongoing basis that will help you rank higher in search engine results.
Additionally, eCommerce analytics lets you monitor trends over time so you know when adjustments should be made to keep up with changing algorithms or emerging keywords.
By taking advantage of eCommerce analytics, your business can become more visible in search engine results—and as a result, attract more customers.
Faster response times: When eCommerce business owners use analytics to analyze their customers' behavior, they can respond quickly and accurately to changes in customer demand.
By understanding what motivates customers and where they find value in the eCommerce experience, eCommerce entrepreneurs can adjust their strategies in real-time, making adjustments as needed.
1. Enhanced competitive advantage: With the power of analytics, eCommerce businesses can gain an enhanced competitive advantage by analyzing their data and making informed decisions to increase profitability and customer engagement.
By understanding how customers interact with products and services, eCommerce owners can identify potential opportunities to improve operations or marketing to stay ahead of competitors
2. Reduced costs: E-commerce analytics allow you to easily identify areas that are draining resources or not producing results, so you can adjust accordingly before too much damage is done.
With eCommerce analytics on your side, you'll be able to see where adjustments need to be made faster than ever before – saving time and money in the process.
3. Improved decision-making abilities: Like a cloud-based CCTV camera analytics system,, business owners must have access to real-time data that will help them identify areas of success and areas needing improvement in eCommerce analytics.
This information allows businesses to develop strategies that maximize profits while minimizing risks. Analyzing data also helps eCommerce entrepreneurs anticipate changes in customer behavior or seasonality, so they can adjust their tactics accordingly.
In short, incorporating eCommerce analytics into your business strategy is an excellent way to ensure you’re always making smarter decisions.
4. Increased profits: The results of eCommerce analytics can be seen almost instantly in your bottom line. Companies who invest time and effort into eCommerce analytics often see increased profits that far outpace what they would have achieved without taking advantage of the practice.
When done right, eCommerce analytics helps businesses identify trends and opportunities quickly, enabling them to move faster than their competition and seize more market share. This isn’t just a claim, the world’s top eCommerce companies are living testaments of this, and maybe you will be too.
How to Use E-Commerce Analytics for Strategic Decisions and Planning
With all the different types of eCommerce analytics now at your disposal, you can make better decisions for your eCommerce store. So, what strategies can you apply to the data you have? Let’s dive in.
Analyzing Website Performance
Now you know how to analyze website performance, what can you do with the data, and how can you plan your strategy around it.
You can begin to review website traffic sources as you analyze website performance.
Knowing where your visitors are coming from can help you refine and optimize your eCommerce business strategies for greater success. To truly take advantage of eCommerce analytics, you must understand both direct and indirect website traffic sources.
Direct sources are when customers come to your eCommerce site directly, either by typing in the URL or clicking on a link. Indirect sources are when customers find your eCommerce site through other websites, such as search engine results, advertising links, affiliate sites, and social media or video marketing campaigns. These indirect traffic sources can be tracked and monitored to help you make more informed business decisions.
As another strategy, you can start identifying user behavior patterns on your site, which will help track how often visitors view a certain page or take a specific action. You can also use this data to identify user behavior patterns.
By understanding these patterns, you can learn more about what motivates your visitors and make changes to improve their experience on your eCommerce store. For example, analyzing customer interactions can help you identify which product pages are most popular or which pages are causing visitors to drop off.
Lastly, in analyzing website performance, examining product page performance data can help determine how customers interact with product pages, such as which products tend to be the most popular or the most viewed.
By looking into the purchasing behavior of your target customer base, you can make informed decisions about pricing and promotion strategies that will positively impact your eCommerce business.
Investigating Customer Behavior and Segmentation
You can use your customer behavior and segmentation data to examine customer purchasing trends and loyalty insight.
When you run an eCommerce business, one of the most important things to understand is your customers' purchasing trends. Focus on understanding what drives customers to purchase and why they choose your store over others when shopping.
With a comprehensive analytics solution, eCommerce businesses can track customer purchases, how often they purchase, and their average order amount.
They can also examine loyalty points awarded by customers to determine how likely they are to return for future purchases. By closely observing customer purchasing activity, eCommerce businesses can make informed decisions about which products and services to focus on to encourage more frequent purchases and larger orders from returning customers.
You can also leverage your data by capturing customer segmentation demographics and
evaluating customer lifetime value (CLV).
With your demographics data available, you can now strategize based on customer preferences and benefit from a more accurate picture of how customers interact with your website.
Analytics can also be leveraged to identify potential growth opportunities and determine where eCommerce businesses may be lacking in product offerings or promotions that could drive higher customer engagement and loyalty, which directly correlates to your CLV.
You can better predict customer behavior and reward loyal customers by understanding CLV. Customer behavior over time can create more targeted campaigns to increase customer loyalty. CLV can also help eCommerce businesses identify potential opportunities for upselling and cross-selling, which can lead to increased sales, so make sure to take advantage of it.
Analyzing eCommerce marketing campaigns
By monitoring various metrics such as conversion rates, average order value, and customer retention, eCommerce business owners will know how their eCommerce marketing efforts are performing.
This data can then be used to refine further and improve future eCommerce marketing campaigns. This could include optimizing the eCommerce website design and layout to increase conversions, leveraging customer segmentation to create more targeted campaigns, or launching more effective promotions. Whatever your e-commerce marketing goals are, analytics can provide you with what you need to make data-driven decisions and improve e-commerce marketing performance.
You can also track customer interactions and behaviors on your eCommerce website, more into what's driving conversions, what products they're buying—and which ones they may be avoiding.
This kind of information helps eCommerce companies make decisions about where to focus marketing efforts, what products to promote and how to craft their messages to get the most out of each e-commerce campaign.
Lastly, with all this data at your disposal, you can now optimize eCommerce channels and campaigns and tailor it to what works best for your customer and how they interact with it. All other data you’ve gathered, putting your learnings into practice.
The Top Ten Free Tools for eCommerce Analytics
Google Analytics: Google Analytics is the eCommerce analytics tool of choice for many businesses. It's an easy-to-use platform provides insight into web traffic and customer behavior, enabling you to track sales, conversions, and customer acquisition.
Mixpanel: Mixpanel is a powerful eCommerce analytics platform that helps eCommerce businesses gain actionable ideas for their customers and improve their eCommerce operations.
With Mixpanel, eCommerce business owners can track user behavior throughout the website journey, analyze how users interact with specific products/features, identify which campaigns are most effective, and see how customers use different devices when shopping online.
KISSmetrics: KISSmetrics is an eCommerce analytics tool designed to help businesses track their customers’ behavior and better understand their needs.
It provides detailed information about user actions, allowing eCommerce business owners to target their marketing efforts better and optimize the user experience.
From heatmaps to A/B testing, Crazy Egg makes eCommerce analytics easy and actionable, so eCommerce businesses can make data-driven decisions to increase conversions.
You can access several more features, including heatmap reports, A/B testing, traffic analysis, etc.
Hotjar offers data like user behavior, shopping habits, and conversion rates. Hotjar provides real-time feedback on what pages are performing best and where improvements can be made to make your eCommerce business more successful.
Hotjar also allows you to gain valuable customer feedback through surveys and polls, which can be used to inform strategic decisions for your eCommerce store.
There are several plans available, but a free one includes access to up to 1,050 sessions/month, automatic data capture, and unlimited heatmaps.
Heap provides powerful tools for website optimization, search engine optimization, marketing automation, email campaigns, and more. With detailed reports for each eCommerce store, Heap helps businesses identify growth opportunities and improve their online presence.
With its intuitive user interface, businesses of all sizes can quickly track the performance of their eCommerce sites in real-time.
Plus, the comprehensive eCommerce analytics reporting provided by Heap makes it easy to spot trends and make adjustments as necessary.
Clicky includes information such as pageviews, visitors, referrers, and conversions so that you can get an overall picture of how well your eCommerce business is doing.
You can track website visitors in real-time, analyze visitor paths and interactions with your site, get detailed insights into key metrics like page views and bounce rates, monitor conversion rates and eCommerce sales, and much more.
Plus, Clicky makes it easy to compare different segments of customers or products to understand what's driving sales or making changes over time.
Adobe Analytics: Adobe Analytics is a powerful web analytics solution that allows eCommerce businesses to measure site performance, track marketing campaigns, and gain ideas about customers’ buying habits.
Built on rich data sources from Adobe Experience Cloud solutions such as Marketo and AEM (Adobe Experience Manager), this comprehensive eCommerce analytics platform provides an array of features.
Its features include advanced segmentation capabilities for more detailed analysis; custom reporting for making informed decisions; automated alerts for staying up-to-date with changing trends; and a complete picture of customer activity from initial click to purchase.
Optimizely features include A/B testing, segmentation, personalization, and experimentation capabilities to give more information on customer behavior. It also offers enterprise-level features like multivariate testing and audience targeting, so eCommerce businesses can get the most out of their data.
By leveraging Optimizely’s tools, eCommerce business owners can maximize sales by optimizing their websites for performance and better understanding the behavior of their customers.
Segment: With Segment, you can quickly identify trends in customer behavior, website performance, and sales conversions. You get details into how customers interact with your eCommerce site, allowing you to make informed decisions about product development and marketing strategies.
Segment also offers user segmentation and custom event tracking features to refine your analytics and target particular audiences further or track specific behaviors.
Bonus resources: 20 Best eCommerce Analytics Software of 2022
Top Ten Tips from Experts
Here are some top tips from eCommerce experts:
“A critical step in improving your eCommerce business through analytics is to further segment your customers into groups with similar interests and buying habits. This will help you better understand their preferences and target them with the most relevant content and offers. “
— by Derek Bruce, Operations Director at Skills Training Group
“I recommend setting goals for each campaign so that you can track progress towards achieving them over time. Doing this will also allow you to identify which campaigns are performing well or need additional optimization.”
— by Jonathan Merry, Founder & CEO at Bankless Times
“Use tools like heat maps and scroll maps to understand better where customers pay the most attention on eCommerce websites and what visuals are causing them to take action.”
— by Gene Fitzgerald, Head of Marketing at BOS
“It’s important for eCommerce businesses to stay up-to-date with data trends and industry changes to remain competitive and increase revenue. I recommend regularly reviewing the data on customer engagement and using the insights to make strategic decisions.”
— by Abdul Saboor, Digital Marketer at The Stock Dork
“eCommerce businesses should create optimization plans that guide them through the process of improving their websites and increasing conversions. This should include setting goals, determining key performance indicators (KPIs), and testing different changes to see what works best for your business.”
— by Sean Stevens, Director of Immerse Education
Frequently Asked Questions (FAQs)
How often should eCommerce analytics data be reviewed?
When it comes to eCommerce analytics data, the answer is simple: as often as possible! After all, eCommerce analytics can provide insights into your business's performance and help you make more informed decisions.
By regularly reviewing eCommerce analytics data, you can track how your store is doing in website visits, customer loyalty, sales trends, and more.
Plus, monitoring your eCommerce analytics data over time will enable you to identify patterns and make adjustments that can produce better results.
To get the most out of eCommerce analytics data, try to review it at least once a week or even daily if feasible. This way, you’ll be able to spot any changes quickly and take action accordingly.
If this is too much work, try to set regular schedules to compare performances in a set period, like monthly or quarterly.
Depending on how well your business is doing, you can identify weak points and what needs more attention to guarantee your success.
What key metrics should eCommerce businesses measure?
Here are five key metrics that eCommerce businesses should keep track of to make sure they're pointed in the right direction:
- Conversion Rate: Knowing your conversion rate tells you how well your website or store converts browsers into buyers. This metric can help you to identify problems with your checkout process or product pages and provides knowledge of customer behavior before customers leave without making a purchase.
- Average Order Value: Tracking this number gives you an idea of how much money customers are willing to spend on each visit and if there are any opportunities to increase sales by offering discounts, bundles, or upgrades.
- Customer Retention: Keeping track of customer retention is a great way to measure your eCommerce business’s success in building customer relationships over time. It can also be used to develop loyalty programs and strategies for retaining existing customers while targeting potential new ones.
- Traffic Sources: Analyzing where most of your website traffic is coming from helps you determine your online marketing campaigns' success and where there may be opportunities to redirect resources or adjust strategies.
- Abandonment Rate: This metric measures the number of visits that don't convert into purchases. It explains why customers aren't completing orders or abandoning their shopping carts halfway through the checkout process. By understanding this metric, eCommerce businesses can identify where they need to improve user experience and boost conversions.
By tracking these five key eCommerce metrics, eCommerce business owners will better understand what motivates customers to purchase their products or services and make informed decisions about improving their eCommerce performance.
What is eCommerce analytics?
E-commerce analytics is the process of collecting, analyzing, and interpreting eCommerce data to gain insights that can help you optimize your eCommerce business.
By leveraging eCommerce analytics, you can better understand who is buying from you and their preferences so that you can tailor your marketing efforts accordingly.
Additionally, eCommerce analytics provides information on customer behavior and how customers interact with your website or app. This helps you identify areas where improvements are needed or new growth opportunities.
With eCommerce analytics, you’re able to make informed decisions that have a positive impact on your bottom line.
How do I stay up-to-date with e-commerce technology trends?
One of the best ways to stay up-to-date with e-commerce technology trends is to attend industry events, such as conferences and trade shows. These provide a great opportunity to network with other professionals in the field and learn from their experiences. You can also discuss ideas and solutions with vendors specializing in e-commerce technology solutions.
Another way to stay up-to-date is through online forums, blogs, and publications related to e-commerce technology trends. Many resources on the web will help keep you informed of what’s new in the world of e-commerce technology. Additionally, subscribing to newsletters or following influencers on social media can be great information sources.
Finally, it’s important to stay abreast of changes in the legal and regulatory environment. Changes to laws or regulations can significantly impact how you operate, so staying informed is important. Additionally, understanding industry best practices will help ensure that your business complies with existing regulations and prepares for future ones.
Analytics can be a powerful tool for your eCommerce business.
Understanding how data affects your eCommerce business will give you the information needed to make informed decisions that drive growth and success.
If you found this eCommerce analytics guide to be helpful, share it with your network! Doing so will help further the understanding of data-driven eCommerce to your teams and take your eCommerce operations to the next level.