Since its inception E-commerce has grown at an astonishing rate. The boom has been simply magnificent. This segment has transformed the marketing and business industries and is continuing to flourish. The popularity of bulk of e-commerce businesses results from the mega shifts of traditional old fashioned marketing to the modern day online marketing.
The great news is more than half of the consumer base worldwide prefers online shopping. The sale figure of e-commerce is amazing. It is currently growing at nearly 23%, year on year. This year, the sale figure of e-commerce is predicted to be more than $2.4 billion
The e-commerce business model is a successful business model. The model makes businesses over 62% successful compared to the companies adopting the tried and tested traditional business models. These models are not just restricted to a particular region or country. It is happening from Russia to Australia, from China to New Zealand, basically everywhere.
Choosing The Best Product Sales Analysis Tool For E-commerce
If you are the owner of an e-commerce store using any of today’s popular platforms, you probably have access to a wealth of key data and information regarding your customers. These significant customer insights, marketing and merchandising data presents infinite opportunities for boosting online sales and revenues. It can help you in growing your business, provided that you are making the right use of the precious customer data.
Unfortunately, the number of online users making use of analytics is on a very low side. A disappointing 20% of online retailers are making use of their analytics. The vast majority of e-commerce business owners hardly bother to check their analytics. This is quite ill-fated, considering the scope this venture has. It has been observed that most aren’t even tracking important metrics like customer visits, conversions, behavior, and wants.
Following are some of the questions to ask when considering the use of sales analysis tools for your e-commerce site:
Does it help you understand your customer base?
One of the key things to understand as an eCommerce business is your customer base. Without proper understanding of who your customers are and how they behave, you cannot satisfy them, and if you cannot satisfy your customers, you cannot succeed.
Hence, when choosing a product sales analytics tool, you must see how well and in depth it helps you understand your customer segments. The RetentionGrid, for example, clearly divides up your customer base in 7 segments: Loyal customers, Promising Customers, New Customers, Drifting Customers, At-risk customers, Red Alert customers, and Sleepers. Each segment illustrates the data and key information in easy to understand color-coded graphs, which helps you see each segment’s relationship with your store so that you know what kind of attention to give to which customer. This data also helps you create customized ads targeting the different segments of your audience/customer base.
Furthermore, they provide suggestions on how to tap the different segments of markets
How about Customer behavior?
Ecommerce businesses need to identify which parts of their website the customers interact with the most and where your website fails to engage them. This way they are able to improve and optimize their site and its pages accordingly. Crazy Egg is one of the tools that have come up with a new trend of offering information in the form of heat maps, which can be used to study various segments of your website. The Heatmap report lets you see what people care about on a web page, and what they don’t even notice (even when they should). This thorough examination of the site portrays which areas of the site is up to the mark and which areas need to improved.
How comprehensive is it?
Is your company looking for a comprehensive e-commerce analytics solution? Then look for a tool that has proven itself to be effective in providing companies with the relevant information that can help the firms in augmenting their consumer base, customer acquisition and retention rates.
One more thing you should look out for with such an analytical tool is the layout of the information. If it provides detailed information which the e-commerce business can exploit to overcome hurdles and attain new peaks in the world of digital marketing, it might be the right tool for you. Kissmetrics is one of the tools that come with the above-mentioned features.
Also read: Close every Sale – 6 Ways to Improve
Does it come with an integrated CRM?
An actionable analytics platform comes not only with analytics but with an integrated CRM, and an extremely crucial automated email marketing system. This combination will facilitate you to look at various aspects of the generated reports, and act upon them accordingly.
One such tool is Metrilo, which also comes equipped with the set up of retention analysis, which can help the entities in understanding the customer’s lifecycle. It also makes it easy for the organizations to send out the crucial marketing material at the right time and can be useful for you turn one time buyers into loyal— a feature that is quite unique in usual analytics solutions.
It can be said that this tool helps you in two fronts, one in fine-tuning your marketing strategies and secondly in increasing the volume of your online sales.
Is it user-friendly?
This is one of the most asked questions when it comes to using an analytics packages. For smaller companies or ones that have not employed dedicated experts for analytics, ease of use is of prime importance. One of the most simplified, user friendly analytics tools, for example, is Google Analytics; moreover, it is a free tool.
They do have a premium service for Enterprise clients, but it’s free option is also quite powerful. This tool has proven to be quite successful while being easy to use and comprehend. Thanks to the fame of the tool, there are almost hundreds of tutorials available on the web. The major acceptance of this tool has helped it integrated into many e-commerce platforms.
The only drawback with this tool is that, to get detailed reports, you need to spend a lot of time in fine tuning the different tools.
Does it allow the creation of a sales funnel?
The creation of a sales funnel helps online stores to make an idea of how the customers move through your site. This understanding of navigation is vital. These funnels filter out the results, making it easy for business to interpret results and coming up with a well defined marketing strategy. Having these funnels helps you sculpt the user journey, so it converts bigger and better. MixPanel is one of the tools that lets you instantly create a sales funnel.
With the filtered data, you can feedback your insights into your outlet and optimize. The loops in feedback help you perfect your site and take it to the desired level. You can learn the art of knowing where the dead ends and low conversion points are and subsequently work towards improving them.
In the modern world, e-commerce is impacting global trade. The development of e-commerce has been tremendous. It has boosted sales tremendously and changed the dynamics of the market. There have been different analytical tools that have been created in the recent time to further strengthen this dynamic form of commerce, and those who do not make proper use of these tools cannot really stand out in the competition.
| About the Guest Author:
Sohail Rupani is a Senior SEO Strategist for an agency known for best Orlando SEO Services ‘PNC Digital‘. He specializes in SEO and SEM techniques. He is passionate about technology and loves to analyze the tech industry in his spare time and stay in touch with the latest happenings. He also writes technical articles about SEO and digital marketing. Follow @sohailrupani for more updates.