Growing your eCommerce profits needs informed business strategies and solid decision-making. And, ‘right’ data is the key to it.
Real data gives you real insights and quantitative metrics needed to run and drive your online store toward profitability.
You can understand your shopper’s buying behavior and shape it according to the latest market trends in order to uplift their shopping experience. You can track key performance eCommerce metrics and improve your store accordingly.
In addition, you can also tailor your marketing efforts to customer preferences and introduce new products. All based on real insights!
All of these serious efforts should bring you expected eCommerce profits like boosted sales, increased revenue, and countless happy shoppers.
This is what (and much more) eCommerce data can do to your business. But how do you leverage real data to grow your eCommerce profits?
Let’s find out in this blog:
What do you mean by ‘right’ eCommerce data (how do you find it)?
Here, right data refers to data that is real and relevant to your business. It should provide the real performance of your online store, show the outcomes of your efforts and demonstrate the true behavior of shoppers on your website.
So, only real data can help you make informed business strategies to grow your eCommerce profits. Wrong or inadequate data means poor strategies and wrong results.
But how do you find this ‘right’ data?’ The answer is – eCommerce analytics!
Now, what is eCommerce Analytics?
eCommerce analytics is the process of discovering, gathering, and interpreting data from all sources relevant to your online store. It helps measure performance trends, user behavior in your store, and ROI (Return on Investment). It tells about visits, clicks, bounce rate, conversions, and other data points on your eCommerce store.
Using this data, you can make intelligent business decisions, which should result in increased sales and higher ROI.
eCommerce data analytics have become even more important than ever before. In physical stores, there is a limited number of retailers to compete with. But when it comes to online stores, the competition is huge.
It’s estimated that around 218.8 US shoppers will shop online in 2023. Imagine the competition!!!
Data analytics help you make improvements in order to build and grow your eCommerce profits. For example, you can monitor cart abandonment patterns in a product line. Accordingly, you can make changes to reduce the cart abandonment rate for that particular collection in your store.
Types of eCommerce Data
There are several different types of eCommerce data to inform your marketing strategy and gain an advantage. The most popular types are:
Audience: This type of eCommerce data gives in-depth insights into the demographics of your audience, such as their age, gender, income, etc. It also includes devices they use to access your store – mobile phone or desktop, Android or iOS.
This helps you determine how your website is being accessed so that you can target your marketing and advertising efforts accordingly.
Acquisition: This data shows how people find you online. Acquisition data helps you learn about your store’s most profitable online marketing channels. You can also identify channels that are not working and are a waste of your time and efforts.
Customer Behavior: Once people land on your website, how do they behave? Do they buy anything? What page does the majority of visitors click on first? How many visitors leave your website without exploring it? Which products drive the most interest and sales? How long do people spend in your store?
Answers to these questions help track customers’ journeys on your site. You can use these insights to discover weaknesses in your store that can be improved in order to boost engagement and conversion rates.
Conversion: When and how do your store visitors turn into your customers? This is one of the most important insights you need to track eCommerce profits. You need to answer the following questions:
- How long does it take for a visitor to become a paying customer?
- Do your customers convert once a year or several times?
- Do shoppers buy items after one visit or several visits?
- Do they make repeat purchases?
- How many visitors or customers abandon their shopping carts on your site?
This data impacts your marketing message and helps craft discounts and deals to engage your current shoppers.
Paid Marketing: Paid marketing analytics help determine your ROI for various paid marketing activities. It answers questions like how much revenue you generate from social media ads, pay-per-click ads, email marketing, etc.
If you don’t assess this, you may end up wasting so much money without helping your store’s bottom line.
Now, coming to our main topic –
How do You Use Data to Grow eCommerce Profits
Now that you know what data you need, it’s time to learn how to use this real data to grow eCommerce profits.
Let’s take a look:
- Data-Driven Product Development
As the competition is growing stiffer, shoppers now have more options than ever before. So, how would you stand out? One way to do this is to keep up with shoppers’ accelerating expectations and design products for their interests.
And for this, you need to know consumers’ likes and dislikes. You can use this knowledge (data) to develop products or curate your inventory with products that customers will love. This will ultimately lead to increased eCommerce profits.
- Personalized Shopping Experience
Around 91% of people prefer shopping with brands that offer personalized product recommendations. But today, the benefits of eCommerce personalization go beyond products and include the following:
- Increased sales
- Enhanced brand loyalty
- Improved ability to keep up with the competition
As consumers are becoming choosier and they have countless options, eCommerce personalization has become more critical than ever before.
But how do you achieve personalization in your eCommerce store? Leverage consumer data.
Once you’ve insights like buyers’ shopping patterns, preferences, etc., you can personalize every single part of the customer journey.
- Analyze Carts to Improve Promotions and Purchases
Shopping cart abandonment is a common issue for eCommerce operators. According to the Baymard Institute, the average cart abandonment rate is almost 70%, which is huge.
So, you’ve to analyze data around the shopping cart abandonment rate on your online store. See what’s inside the cart, and remind your customers about products in the card through promotions and offers.
Another way to use this data is to look at products purchased from the cart. You can determine the types of products shoppers are most likely to buy. So, you can determine which products are worth marketing or promoting through remarketing campaigns.
- Analyze Search Queries to Understand Customer’s Interests
One thing that is often overlooked is search queries on Google (or other search engines) and in your store. Analysis of search queries can be surprisingly very helpful when it comes to growing your eCommerce profits.
This data shows what your shoppers are looking for on your website. Also, search queries keep changing in weird ways. Accordingly, you can create useful content like product descriptions and meta tags for product pages.
It’s the easiest way to learn about your shopper’s behavior in your store. Plus, it’s a great opportunity to connect with your customers and grow sales.
- Calculate Customer Lifetime Value (CLV) for Upselling
CLV is eCommerce analytics is a metric that measures projected revenue a customer may generate during their lifetime for your business.
Realizing CLV may drive more and more sales to your business. For example, if someone buys your products twice, you can analyze those conversions using the CLV report.
Using this data, you can determine how to keep promoting your products to them that they already like. As a result, you’ll drive more sales and even upsell.
- Improve Return on Ad Spend
ECommerce data analytics may also help maximize your ad spend. In addition, these insights would keep you from spending money on poor-performing ads that don’t bring any positive results.
Undeniably, ads are critical for any eCommerce store. But, when these efforts are not data-driven, then you may end up wasting your money. So, use data to inform your advertising strategy. As a result, you’ll be able to reach the right audiences at the right time, thus driving higher conversion rates.
Serving the wrong ads to the wrong audience may still get you clicks, but it will also result in a bounce rate, thus hurting your rankings. That’s why data is the key to successful advertising of your eCommerce store or products.
Besides these, use data in any way that you believe will benefit your online store. Just do it mindfully and intelligently.
Final Words – Invest in the Right eCommerce Analytics Tools
The easiest way to track your eCommerce data is to use the right and reliable tool. Need some recommendations? We recommend BeProfit, an easy-to-use tool that lets you discover real insights and eCommerce profits.
The tool you use should come with an intuitive dashboard that provides all insights at a glance. You should be able to perform precise profit analysis and have easy data access. It should give you the ability to fully customizable data analytics to your preferences.
Most importantly, you should be able to integrate it with platforms like Instagram, TikTok, Google, and more, to make calculations easy.