Growing Your Online Business with Data Analytics
In the current digital era, having an online store is just the beginning. To genuinely escalate your business, you need to use ecommerce data analytics.
This potent instrument can offer precious insights into your customers' habits and assist you in enhancing your online store's performance.
Obstacles Encountered by Ecommerce Businesses
Online businesses face many challenges. These include making customers happy, stopping them from leaving their shopping carts behind, getting more people to buy things, and attracting new customers.
But don't worry – you can solve these problems by collecting and looking at data from different places.
Key Ecommerce Metrics: Your Path to Success
Knowing certain important numbers about your online store is like having a map to success.
These numbers show you how well your store is doing and where you can make things better. They help you make smart choices that get people more interested, boost sales, and make your business grow.
For instance, if the data shows a high shopping cart abandonment rate, businesses can take steps to simplify the checkout process and improve customer experience.
Or, if certain products are not selling well, businesses can use ecommerce analytics to understand why and offer better products.
Key Ecommerce Metrics and KPIs
Key ecommerce metrics that businesses should track include:
- Performance metrics like product views and impressions. These give you an idea of how many people are seeing your products and how many are actually clicking to learn more.
- Gross profit/revenue. It tells you how much money your business is making after the cost of goods sold (COGS) is deducted. This is a clear indicator of your business's financial health.
- Refunds. A less pleasant metric to track, but nonetheless important. A high refund rate could indicate dissatisfaction with your products or services, which could hurt your brand reputation in the long run.
- Average order value (AOV). This tells you how much customers typically spend on each order. If your AOV is low, you might need to consider upselling or cross-selling strategies to increase it.
- Marketing metrics like channel profitability. They help you understand which marketing channels are bringing in the most revenue, so you can allocate your resources more effectively.
- Conversion optimization metrics like conversion rate and shopping cart abandonment rate. A low conversion rate or high abandonment rate could indicate issues with your website's usability or checkout process.
- User experience metrics like bounce rate and exit pages. These tell you how many people leave your website after viewing only one page, or which pages people typically leave your website from. This can help you identify any problematic areas on your website that need improvement.
Best Practices for Ecommerce Analytics
To get the most out of your ecommerce analytics, it's crucial to use the right tool.
A leading ecommerce analytics tool like Datma can greatly help in tracking store performance and driving sales.
For example, Datma, with its comprehensive reports covers all the points mentioned above, and more.
- Product views and impressions are tracked at the SKU-level. What’s more, collection page views are also available
- Gross profit can be tracked per each SKU or as an overall total for the store
- Product revenue can be tracked at the product level, collection level and as an overall total for the store
- For refunds, Datma monitors refunded value, units, and rate for each product in the catalogue. As well as overall total for the store
- Average Order Value (AOV) is tracked as an overall total, but then also specifically for New or Recurring customers
- Over 20 measures for each Marketing channel. But also metrics like cost, revenue and ROAS (Return on Ad Spend) for your Google Ads and Facebook Ads
- Conversion rate (CR) metrics for each product and/or collection
- Bounce rate metrics for sessions, and a dedicated report for Exit Pages
To find out more about what Datma’s analytics have to offer, you can request a demo here.
And remember, it’s not only about tools. Another best practice is continual testing of your strategies. This allows you to see what is working and what isn't, so you can adjust your strategies accordingly.
In conclusion, tracking key ecommerce metrics and KPIs is essential for any online business. By doing so, you can gain valuable insights into your business's performance and make informed decisions to drive growth.
With the right tools and strategies, you can turn your ecommerce analytics into a powerful tool for success.