According to the research conducted in 2019, the ecommerce industry is expected to grow to a $6.54 trillion in terms of retail sales by the end of the year 2022. Within the past few years, ecommerce shops have been popping up, intending to grow into international brands. However, the goal is not only to have a shop but also to generate significant revenues.
You need to adopt a unique business strategy that will make you stand out among your competitors and acquire as many customers as possible. E-commerce sales data analytics plays a fundamental role when you plan to elevate the number of sales that you record within a particular duration.
To be in a better position to elevate your ecommerce brand to the world, you need to secure more customers who will enable you to skyrocket the number of sales that you record. When talking about data analytics, you need to reflect on a specific kind of data mainly generated from your daily business operations.
Do you know that you can boost your ecommerce sale using data analytics? This sounds like magic, right? That is not magic since it is doable! Let’s check out the actionable insights shared below to give you a concise picture of how this aspect can be converted into reality.
Collect Data from Multiple Sources
To secure a more competitive position in business, companies have heavily invested in collecting data from different sources. Apart from ensuring that the data they collect is reliable, the organization ensures that customers from different domains have been factored in within the collected data report.
However, the problem is not with the collected data; the main issue is how to analyze the data from different platforms. Once you have the data in your hands, you need to incorporate the power of data visualization to analyze the findings. Try to create simple visualization such as Sankey diagram, Donut chart or a Dot plot chart to make it easy to understand for both your client and managers.
The data is used to evaluate different customer needs and preferences. Organizations use the information in tailoring their products and services depending on the nature of their customers. In return, this increases their chances of recording more sales, thus impacting the continued growth of the business brand.
Generating Data-Driven products
The current ecommerce world gives consumers more choices compared to the past days. Besides, business brands have a huge role in creating a better customer experience, and generating and delivering quality products to consumers. Data analytics has made the entire process easier since organizations can easily understand what customers want.
Using the data gathered from your customers, you get a chance to visualize the information and generate insights that offer guidance during the journey of product development. This means that you get a chance to involve your customers in creating particular products and services.
Also, the data gives you a good source of information that you can utilize when targeting a specific market audience. You will be better positioned to sell most of the generated products using data insights, recording a considerable revenue at the end of the day.
Elevate the Returns on Ad Spend
Data analytics can enable you to maximize the ad spend. By doing in-depth data analysis, you will be able to limit the chances of spending huge sums of money on ads that do not convert. Note that ads play a key role in ecommerce marketing. The problem is that if you do not rely on the available data, you may choose the wrong keywords.
Ecommerce data analytics digs deep into different customer sources, generating insight into choosing the most appropriate keywords that you can use in creating ads that convert. Even though applying the wrong ads to the wrong audience increases your chances of getting more clicks although you will also record an increased bounce rate.
This is likely to affect your search engine rankings and the general performance of your business. The only secrete is to do proper analytics, and you will have your needs sorted.
Invest in Smarter Inventory Management
The most common challenge across the ecommerce world matters to do with inventory management. When you invest in data analytics, the inventory management process becomes simple and consumes less time. Proper inventory management enables you to have an accurate stock record and identify where various products are stored.
If you have a smart system put in place, you will limit the issues of various items going out of stock without your consent. Also, you will identify some of the products that last in the stock for a longer duration and reduce the rate at which they are produced. However, it will take a while before you collect the amount of data that can help you make such moves.
You need to be more creative, think outside the box, and identify some of the products you can stock depending on your customer preference. This will make your choices unique, increasing your chances of recording more sales than usual.
Create a Better Customer Experience
Many entrepreneurs within the ecommerce world are struggling with the issue of creating a better a customer experience. Note that customers only go to organizations where they feel like their presence is much appreciated. It doesn’t matter how good your products are; if you do not offer a good customer experience, you won’t manage to retain any customers in the long run.
This is a common issue with many ecommerce sites that are heavily cluttered and difficult to navigate. After collecting data from your business operations, you need to incorporate the power of data visualization tool such as AnyChart, ChartExpo, Tableau, and Power BI in the process to generate insights and evaluate what your customers want. Even though this sounds like a difficult task, you need to read through all the customer reviews.
Note that the customers’ reviews give you a clear picture of what your customers like and dislike within your business. Focus on your areas of weakness to ensure that customers have something good to talk about your brand. This will place you on a better end and increase the number of sales you record after a given duration.
Research has revealed that 49% of ecommerce managers believe that data analytics plays a crucial role in effective decision-making. When it comes to skyrocketing the number of sales recorded, you need to be mindful of your business data since it is a rich source of information that you can use to make decisions that propel the business to the next level.
I have more than 12 years of experience in the field of Digital Marketing and Data Analysis, currently working as a Digital Marketing Specialist at ChartExpo.