Analytical Tips and Tricks for Your eCommerce Business
Agency professionals, beginning brands, and all types of eCommerce businesses in-between need reliable data analytics to grow and compete. But what exactly is data analytics, and what makes an analytics tool so important? This quick look at the very basics of data analytics will help you understand what it is and why the right tool can transform your business.
What is Analytics?
To start with, data analytics in eCommerce is the process of critically evaluating trends in sales data sets in order to draw wider conclusion about a business overall. This leads to making informed business decisions backed by concrete data, and whose results can be monitored in real time. A data analytics tool is a piece of software that is designed to both collect raw business data and provide an easy way to process that data into usable measurements called metrics. Good analytics software is designed to help you quickly understand the most impactful metrics to grow and optimizing you decision making moving forward. There are a few main ways that an analytics tool accomplishes this.
Understanding Your Business
The first thing an analytics tool does is help you the business owner understand your own business. Seeing a product’s sales performance on a given day is one thing, but seeing how products perform over time, across platforms, and in relationship to each other takes you from data gathering to proper analysis. Monitering trends, calculating profit margins, and seeing how various aspects of your business support or cannibalize each other helps you better optimize your spending and manage your overall business wisely.
Understanding Your Customer
The next thing analytics does is help you understand your customers. Advertising is the art of targeting, and shotgunning eCommerce advertisements to the largest audience possible is a quick way to lose all your advertisement budget. Good analytics software helps you focus on audience segments that are curious about your product, leverage keywords that your audience is most interested in, and merge data from individual campaigns into overall advertisement performance.
Sharing the Data Properly
Last but definitely not least, analytics gets all that data into the right hands. In the early days of marketing, raw data acquisition was hard part. These days thanks to the internet, the sheer amount of data is overwhelming, and the difficulty is in figuring out what is the right data to look at and when. Good analytics software both compiles large amounts of data into easy-to-understand metrics and uses automated notifications, alerts, and snapshots to make sure that the right people see the correct information in a timely manner. Every business owner wants to start their day with a quick health check for their sales to look over during coffee, and no business owner wants to wake up on a Monday to see an undetected error on Friday killed their sales all weekend long. Good analytics software makes sure your data is simple, timely, and informative. Best of luck growing and managing your eCommerce business!
Thank you,
Commerce Canal Team
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