E-commerce Insights: Transforming Data into Actionable Insights for Growth
The e-commerce industry has seen a major shift in recent times and is expected to grow even more in the coming years. This growth paves the way to reach a wider customer base and in turn, generate more sales. However, this is possible only if you keep up with the advancements happening in your industry with a keen eye out for the expectations and behaviours of your customers – hiring a full-service digital marketing agency can aid you in doing that and translate these insights into revenue.
In this blog, we will explore the analytics, metrics, and expected trends to unfold in the coming times, and how businesses can transform this data into insights that can drive their future course of action for growth and revenue.
Primary data metrics to look out for –
Conversion rate
In the most basic terms, the rate of conversion is the percentage of people who visit your website and make a purchase. You can simply calculate it by dividing the number of placed orders by the number of visitors on your e-commerce website. This metric can give you dynamic insights into customer behaviour, website performance and functionality, and product appeal.
Shopping Cart Abandonment Rate
The cart abandonment rate indicates the number of people who add items to their carts but do not complete their purchase – in other words, they abandon their carts. This can show how many potential customers are interested in buying your product. An e-commerce marketing agency can help you analyse your abandoned cart rate and understand and solve the reasons for the same.
Average Order Value
Average Order Value, abbreviated as AOV is the average amount of money spent by a customer in one transaction on your e-commerce website. This serves as a fundamental metric that aids your business in understanding the average revenue earned from every order. You can easily calculate your AOV by dividing the total revenue by the total number of orders for a specific period. This can help you come up with valuable and effective strategies for better pricing, and offers & discounts, and mainly perceive the spending patterns of your customers.
Customer Lifetime Value
Another crucial metric in understanding customer behavior is the Customer Lifetime Value or CLV – it indicates the total value a customer is expected to generate for a business throughout their relationship. It can be computed by multiplying the AOV, the lifespan of the customer, and the frequency of their purchase. Monitoring the CLV can help you make strategic decisions for customer acquisition as well as retention.
Upcoming trends that can provide insights –
Emergence of new social media platforms
For years on end, Instagram has been at the forefront of social media platforms for e-commerce as a primary channel to influence their decisions when it comes to purchasing a product. But in recent times, there have been some new channels such as TikTok, Snapchat, and more that can connect the audience with a product and prompt them to make a purchase. The best e-commerce marketing agency makes the right use of social commerce for user-generated content to drive more revenue to your business.
Integration of Artificial Intelligence with E-commerce
When it comes to e-commerce, the use of AI is becoming more and more popular in the last few years. It can be used effectively to personalise the shopping experience for the user, ensuring better chances of conversions – using AI can offer a highly targeted experience by scanning a user’s browsing history and recommending them products accordingly. Such AI-driven campaigns can generate better results, conversions, and ROI.
The breakthrough of Buy Now, Pay Later model
The buy now, pay later model has been a turning point as far as e-commerce is concerned – several people are now using this method of shopping as it offers an advantage to the customers who can defer their payment for a few months as decided. The emergence of this model has gained instant popularity among customers because of its flexibility in payment, and among sellers as this method can translate into improved sales. A full-service digital marketing agency can help you set up this payment method for your website.
The rise of live commerce
Live streaming has become an important form of connecting with your audience, which has led to its use in e-commerce as well – it has become a platform to have broadcasts that showcase and sell your product in real-time. The viewers can interact with the live video, get their questions answered, and make purchases while watching the broadcast, creating a dynamic shopping experience of the new age that is both, interactive as well as convenient.
How to turn data metrics into actionable insights?
Data Collection
The first step when forming data-driven strategies for revenue is to collect the said data from various channels that your store is available on. This data can help you understand the behaviour of your customers, measure the traffic on your website, analyse market trends, and identify the operational efficiency of your website. Any e-commerce marketing agency uses Google Analytics, data from Shopify stores, and even some new tools for the collection of relevant data that can help guide your efforts in the right direction.
User Segmentation
It’s crucial to know that not all users are the same – the importance of segmenting your audience into smaller groups based on characteristics such as interests, behaviour, demographics, and more cannot be overstated. Such segmentation facilitates personalisation, ensuring your marketing efforts succeed and you can customise them based on their group’s specific requirements.
Use of Predictive Analytics
Using predictive analytics can help you understand the operations of your business to foresee customer behaviours, enhance marketing strategies, improve the management of inventory by forecasting demands, and make the overall decision-making process easier and faster. Hiring the best e-commerce marketing company will take these efforts off of your hands.
Utilisation of A/B testing
A/B testing refers to the comparison of two versions of campaigns to determine which performs better. Conducting such experimentation on product images, pricing, or even CTAs can help you gain insights into what your customers truly desire and prefer, fine-tuning your strategies based on your customers’ responses.
Final thoughts
In conclusion, the factor helping businesses draw strategies that are guaranteed to drive sales is data – understanding metrics and analytics and anticipating future trends is crucial to transform data into insights that generate revenue. A full-service digital marketing agency can help you use this data effectively, come up with data-driven strategies, and guide your e-commerce business towards success.
