Nowadays, the e-commerce industry is booming at an unprecedented rate. Given the highly competitive market, online business owners need to make better decisions faster to gain more advantages over their rivalries. This is where analytics shows off its benefits.
This article will focus on E-commerce analytics: all the basics that online business owners must understand
What Is E-commerce Analytics?
E-commerce analytics serves as a tool to example users’ behavior in depth. It reveals the location of your visitors, the amount of time they look at a particular product, the most appealing content to them, the product they are planning to buy, and so on.
Therefore, you can know precisely what a user is doing on your site to come up with the best method of serving him or her.
One of the best ways to promote online sales is exploiting the AARRR metrics. It stands for acquisition, activation, revenue, retention, and referral. These set up a clear roadmap of five different focuses when it comes to the development of your business.
This part deals with how to attract customers. Visitors show up from search engines such as Bing, Google, paid advertising, or social networks.
The most important thing is to track down the location of visitors and pay attention to the sources that generate a high volume of traffic.
At this stage, users register for a newsletter or a product trial. In other words, they’ve taken the very first actions that promise a purchase.
This is where the success of sales funnel is the most obvious.
You are by no means certain that one customer will buy from your site again after he successfully makes a purchase.
Therefore, cohort analysis helps with the study of habits or activities of certain cohorts during a period. Retention is similar to segmentation but focuses more on historical data to detect any changes in consumer behavior.
Compared to getting a new customer, it’s easier to keep a loyal one.
The power of word-of-mouth is so outstanding that it can develop your business to a new level. The chance is that other members in your customers’ family are interested in your offering, and a referral from them is out-of-this-world.
Typical E-commerce Analytics Tool
Free and easy-to-use, Google analytics gives a well-informed understanding of your customers as well as the performance of your content, products, and website.
Google Search Console
Also free of charge, this tool allows you to see Google’s view of your website and provides advice to enhance its organic presence.
Thanks to its intuitive nature, Google search console works out queries that can increase the volume of traffic to your site, thereby proposing what needs to be adjusted.
This analytics tool simplifies data to get website owners on the act instead of merely looking at it. It finds out the most critical data to direct your focus so that you can straightforwardly develop your business.
Hotjar deploys an effective approach to web analysis in the sense that it introduces heatmaps with a vivid representation of customer actions.
Via such visual aids, you can know which is and is not working for your visitors.
It’s easy for you to manipulate on the heatmaps, including clicking, moving, scrolling, downloading, and even sharing them.
Social media are a powerful tool of publication for online businesses, and Facebook is a typical example.
The Facebook Page Insights section is so popular with detailed statistics of page likes, post reach, and visitor engagement. Although it has gone through diverse adjustments to its interface during the last years, the good news is that it’s becoming more and more user-friendly.
Knowing about E-commerce analytics: All the basics is crucial to survive and thrive in such fierce competition among online store owners. We hope you can figure out the most useful analytics solution to your website.