Imagine if you could find out, well in advance, what your customers are likely to buy and at what price you should sell it to maximize your profit.
Imagine getting advanced information about what issues are likely to arise long before your customer notifies customer service. As an online retailer, all this information would not only keep you on your toes, but would also help you determine the best product mix, marketing strategies, and sales promotions to implement. This is where eCommerce analytics come into play.
Think of analytics as a magic wand. It helps your business identify gaps and issues, lets you know what's working, and lets you make better decisions much faster.
Benefits of ecommerce analytics
#1: Help build a strong supply chain
Customers buy online for two reasons: convenience and better prices. That's why your supply chain must be strong. Are the products advertised on your website available in adequate quantity in your stock? Failure to do so will result in slower delivery and the customer satisfaction level will drop and the customer lifetime value will be negatively affected. On the other hand, having too many units in stock will take up space in your inventory and increase your costs. Finding that balance between supply and demand is tricky, which is why using analytics to predict future sales is vital.
#2: Analyze the data to detect fraud
Analytics plays a key role in detecting fraud. Because analytics can detect patterns based on customer behavior, it can alert you when an anomalous transaction is detected. As an e-commerce business, you can send a notification to the customer asking if they are really trying to complete a certain transaction and wait for their express approval before processing the transaction.
#3: Anticipate what awaits you
Analytics for ecommerce merchants helps them determine future trends based on various factors including transaction size, season, product category, etc. This analysis is useful in determining what future sales will look like and helps the merchant determine which products to focus on, whether to rebalance their inventory, what marketing tactics to implement to promote certain products, and what promotions to offer. in different products.
#4: Personalize recommendations for your customers
Selling to the same customer is much easier than acquiring a new one; any seller can confirm it. So when you can sell to the same customer more than once, you're optimizing the value you can get from them. Personalized recommendations are a great way to do this.
Every time someone clicks on a product, if they see that other products are being recommended, there's a chance they'll want to explore and buy something beyond their original purchase. Recommender systems are also great because when the same customer returns to the retailer's website, they can see in advance what's new and relevant to them based on their past purchase history.
#5: Forecast stock for next season
As a retailer, you need to know if having a certain product on your virtual shelf is worth the cost of keeping it in stock. Ecommerce Analytics helps determine the sales volume of a given product, which sales are forecast for the future, what has been the customer satisfaction index, among other factors.
Ecommerce analytics are helpful in determining which products you need to continue to stock and which may need to be reconsidered for sale next season.
#6: Evaluate your marketing
Information related to online marketing analysis is very important for a retailer. You can invest hundreds or thousands of dollars in online marketing campaigns, but if you can't determine their effectiveness, you can never determine if your marketing strategy is working or not.
Google Analytics takes care of this by measuring ad clicks, visitor engagement time on your website, channel data and promotion effectiveness. By measuring these metrics, you can determine your return on investment and adjust your marketing strategy for the future.
#7: Personalize the customer shopping experience
Different customers interact with an e-commerce site differently. Some love to constantly check the "deal of the day", while others are looking to just buy books and dive right into that section, skipping even the homepage. When a certain customer visits your site, what is the first thing you would like to show them?
Ecommerce Analytics helps retailers study user behavior and determine how the website should be structured based on customer preferences, which product landing page is most likely to engage the customer and convert them, leading them to make a purchase.
#8: Know your customers better
Retailers need to understand customer types, demographics, behavior and turnover. All of these analyzes are helpful in determining product strategy and any necessary realignments to meet business and revenue goals. This analysis can also help you decide which promotions to launch to maximize conversions from visitors visiting your site.
#9: Optimize product pricing
In the e-commerce industry, the price of a product is determined based on the demand for a product, its availability in the market, and how competitors price the same product. You can use predictive analytics to analyze price trends and determine what the optimal price for a product should be to maximize profit. Amazon is a classic example of an online retailer using predictive pricing.
The use of analytics to drive business is increasing across all industries. Senior management through e-commerce dashboard get information about business goals, product managers get information about product sales and if sales are generating optimal profit then e-commerce analytics is favored by the entire organization.
Want to know how your ecommerce business can benefit from analytics in particular? ContactComTecdiscover.