What is eCommerce analytics?
eCommerce analytics is a key component of the digital transformation of businesses. It makes it possible to track the customer journey across omni-channel touch points and build a comprehensive view of what drives revenue. This insight informs better business decision-making.
With eCommerce analytics, businesses can better manage all phases of inventory, from vendor management and manufacturing to pricing and delivery. It also makes it possible to detect fraud, enhance marketing, and deeply understand customer expectations.
Why is eCommerce analytics important?
To stay ahead of the curve and be successful, businesses need deep insight into inventory, markets, user preferences, and buyer behavior. An eCommerce site produces data, but that data must be analyzed to gain the insight necessary to make fast business decisions that effectively move business forward.
eCommerce data analysis is used to help businesses better understand data and effectively use it for customer-centric initiatives, including:
- Personalized marketing
- Improved conversion rates
- Omni-channel merchandising
- Store promotions
- AI-enabled commerce
- Inventory planning
- Supplier management
- IOT and real-time visibility
- Improved customer service
- Reduced costs
Benefits of eCommerce analytics
With e-Commerce data analytics, organizations can spot areas of opportunity, predict important trends, and gain efficiencies that can lead to growth.
Produce data-driven insights to inform strategy
Data analytics helps eCommerce businesses gain insight into what is happening in the business and can uncover important market trends and risks.
Better understand customer demographics to tailor individual experiences
Understanding how consumers interact with a brand can inform what types of content, formats, and channels resonate with key demographics. eCommerce data analytics can also help optimally position product mix and enhance the buying experience for shoppers.
Optimize pricing, inventory and up-sell performance
eCommerce data analytics can give organizations a granular picture of what drives prices for each customer segment. That insight can help uncover the best price points at the product — not category — level to earn maximum revenue.
Analyze patterns or trends in the data for accurate forecasting
eCommerce analytics allows organizations to understand how their business is performing and how it will likely perform in the future. This forecasting informs everything from sales and hiring goals to ensuring the right products are available at the right time to meet customer expectations.
Measure the effectiveness of sales and marketing campaigns
Data analytics can help eCommerce businesses measure the effectiveness of marketing campaigns, inform holistic marketing programs, gain more omni-channel traction, and improve decision-making.
Examples of eCommerce analytics
The following examples show how eCommerce analytics can support effective operational and strategic decision-making for online businesses.
Building a scalable eCommerce data platform
Massive growth can be a double-edged sword. Great profits are welcomed, but large amounts of data to analyze can seem impossible to manage. When a rapidly successful consumer electronics accessory company faced that challenge, they turned to Looker for a data platform that could continually scale to their fast-paced business. Now, with the Looker LookML solution, nearly every team at the company can ask the right questions of their data and use the answers to make informed business decisions.
Increasing revenue with e-commerce data
The key to eCommerce success is effectively targeting audiences, improving site conversions, and learning from customer behavior. Learn how an online marketplace that connects professional makers with people who want one-of-a-kind creations is using Looker solutions to turn data about visitor engagement into dollars.
Drive business efficiency with centralized data
Analyze customer data properly and the insights will deliver competitive advantage. But when data resides in different places, the entire analytics process slows down. A men’s clothing brand known for their short-shorts and swim trunks asked Looker for a way to both centralize customer data for more efficient analysis and prepare good data visualizations. Learn how the Looker solution freed up time for the data team and improved allocation of marketing spend.
A better business recipe for eCommerce
The ability to make business decisions with real-time data helps optimize business processes and improve customer service. For the pioneer meal kit delivery company, growing data volume and queries were affecting the way they were able to scale and serve clients. Learn how they improved speed and cost efficiency in data management by using an analytics platform from Looker.
Using data to improve eCommerce
This short Tech Talk explores how a men’s apparel retailer, a mattress retailer, and a discount retailer all have relied on Looker solutions to accelerate eCommerce.