Nothing can beat user spontaneity. When a product is liked, everyone hears about it. And the...
How to use Data Analytics to increase sales?
Most e-commerce companies are reactive decision-makers. They test different sales techniques and opt for the one that produces the most sales. While this strategy can bring good results in the long run, neglecting Data Analytics can result in delaying the profitability of your online store for a long time.
In fact, many businesses do not perform rigorous data analysis, nor employ Data Analytics tools and predictive analysis algorithms for decision making. They instead use speculative criteria, which may involve a high degree of risk, or entail cost overruns over an extended period of time.
There is, however, an easier way to reach the same destination. That is precisely what Data Analytics is all about. Using the historical data of your online store (audience, customer acquisition, conversions...) allows you to know which sales techniques, products, prices, or marketing campaigns are generating better results.
In this article, we will show you how Webmefy can help you use your eCommerce Analytics to maximize your profits.
What is Data Analytics and how does it apply to e-commerce?
We are surrounded by data. Anything we do on the Internet leaves a trace. Online stores can benefit from this information to better understand their customers, their identity, their tastes, preferences, interests, and behaviors. And thus enable you to better meet their expectations and increase sales in your eCommerce.
Data Analytics involves the analysis of e-commerce data provided through multiple channels.
Is not just about measuring your web traffic with Google Analytics or the percentage of conversions, but the sum of the whole set of data available to the company. This includes, for example, the users' response to your e-mail marketing campaigns, the degree of customer loyalty, the audience sources that reach your website, or even the percentage of customers who abandon your shopping cart.
In other words, Data Analytics analyzes a set of interrelated metrics to obtain more advanced knowledge about your customer, your sales, and your behaviors. Not having advanced insights means that your marketing strategy is constrained by the lack of knowledge concerning the actual situation of your business.
Why is Data Analytics important for your online store?
Data Analytics plays an essential role in the digital strategy of any online store. Marketing actions cannot be implemented in isolation, without measuring ROI and analyzing their effectiveness.
Data analytics considers the different variables that influence the sales process in order to try to improve and optimize them all.
For instance, an online store may have lost 15% of its sales over the course of a year as a result of a decline in audience. This drop-in audience may have been caused by multiple reasons, but the manager believes that it is largely due to a reduction in the rate of conversions in their Facebook Ads campaigns.
Data Analytics can help us understand why there has been a reduction in sales from different traffic sources, as well as the variables that are linked to each one. This will help us understand that sales may have decreased not only because of Facebook Ads campaigns but also because of the organic traffic coming to our page.
By analyzing other variables, such as the bounce rate, usability and web speed, SEO positioning, or the different sources of traffic, we can understand that certain results are related to others. For example, poor mobile usability can lead to a reduction in the conversions of your Ads campaigns.
Fields of data analytics in e-commerce
As you can see, the different areas of data analytics are interrelated. It is therefore essential that your eCommerce can rely on eCommerce and Data Analytics experts to help you analyze each of these variables separately and study how they influence each other, for the purpose of improving your strategy to increase sales.
Let's take a look at the essential areas to consider in Data Analytics for eCommerce.
The first element that must be analyzed is the web traffic or audience. Knowing the volume of monthly visits. It is necessary to have as much comprehensive and accurate information as possible about their demographic characteristics, including age, gender, language, interests, occupation, income level, and device used to connect.
Once this information is available, we can apply sales techniques focused on your audience profile. Suppose, for example, that the majority of your sales are made from mobile devices. It would be vital for your online store to improve usability and mobile speed in order to increase sales from smartphones, as well as to analyze why the level of sales from desktops is not as high as it should be.
- Customer Acquisition
What are the traffic sources of your online store? What percentage of customers end up registering or adding a product to the shopping cart? What percentage of customers end up buying a product? And from which channels do they come? Do social media posts work better or blog articles? Is it more effective to sell from Instagram or Google Ads?
Conducting a thorough analysis of customer acquisition is key to increasing your eCommerce sales. And it is one of the missions of Data Analytics. You cannot improve something that has not been evaluated first. With this data, you can refine your strategy to increase sales in your online store
- Purchasing behavior
What products do people purchase the most in your store? What is the bounce rate of your online store, according to the traffic sources of each customer? What products are sold the least? Which of your store's references get added to the cart the most but don't end up in a purchase?
Being able to know what the user is going through once they are browsing your store is of great importance. Understanding the causes of their behavior is essential to know how you need to improve your online store to increase sales. After all, not everything depends on investing more in link-building or paying more for your ads. Optimizing your website is key to increasing conversions.
The conversion rate is another element that needs to be analyzed. By using Data Analytics, however, we go much deeper. For example, what percentage of your customers are one-time buyers, and what percentage become repeat customers? How long does it take for a user to complete a purchase from the moment they arrive at your online store? How long does it take for users on your Klaviyo subscriber list to become customers?
These aspects are essential when applying CRO techniques. The solution is not to increase your budget, but to understand the problem and invest wisely.
To learn how to improve the investment of your marketing budget and increase sales in your online store, you need to rely on the help of professionals in Data Analytics for eCommerce. We at Webmefy can help you increase your return on investment (ROI) to increase the sales of your store. Let's talk!