This week we will talk about e-commerce analytics and why you should be paying attention to it. When it comes to online businesses gathering data is a crucial part of the work.
Collecting data to then analyze it,, will help you create your next strategies. When you have information about your business it will allow you to understand several things, like the type of customers that you have, what they purchase, make better decisions, and will help you create your next strategies. Let’s begin with the basics.
What is E-commerce Analytics?
First, let’s start with what it is. E-commerce Analytics is the process of gathering data from all areas that have an impact on your online store and using this information to understand the trends and the shift in consumers’ behavior to make data-driven decisions that will drive more online sales.
Why is this important for your business?
But why is it important? E-commerce Analytics is all about understanding what is happening with your business. Relying on data will help give you advantages. Because, you will take advantage of the increased traffic and online sales, but also get ready for the new normal, for this you have to understand data and rely on e-commerce analytics.
Ecommerce Metrics you need to look closely:
Handling data can be overwhelming so we will give you some of the most important metrics you should be focusing on:
First, you have to gather the information that helps you find your audience and create awareness that will lead them to your online store. One tool that can help you with this is Google analytics. With Analytics you can help you gather information about the demographic location of your audience, their age range, and gender. This is very important information since it can help you create more effective marketing campaigns that in the end will have an important impact on your organic growth.
So now you have the audience, you need to make them go to your site. Measure the number of consumers that visited your store and the cost of acquisition. Some metrics that are related to the acquisition are:
Click-through rate (CTR): Which is the percentage of users who click on a specific link, to the number of total users who view an email or social media post
Cost per lead (CPL): the average cost of generating new business leads
Cost per acquisition (CPA): this metric goes one step further and measures the average cost of acquiring a customer
Once you attract people to your site you need to convert these visits into sales. Unfortunately not all the people who visit your website will end up buying from it. And even those who click that button, might change their mind and leave your website.
Sales conversion rate: the percentage of visitors who purchase your online store; increasing the traffic to your website will help you reach your target sales.
The average e-commerce conversion rate in the U.S. is much lower than you think, it is between 2% and 3%. There are some things you can do to improve your conversion rate, like optimize your product listing, upload great quality pictures, and also make sure your page is optimized and fast.
Making new customers is not the only objective you should be aiming for. Keeping them is a key part of the process. It is always important to keep customers since the cost of finding new ones is expensive.
In conclusion, e-commerce advertisement is all about gathering data to find the right people, the people that match your business profile, because, at the end of the day those are the people with more chances of becoming customers and futures sales.
We know it can be overwhelming, handling data, and also analyzing it, for that reason on our next blog we will be sharing with you some tools to help you with this process. Going forward, you don’t have to dive into the e-commerce world all by yourself, we can also help you find out more about it here.