What is the secret behind the success of big eCommerce sites such as Amazon, Alibaba, eBay, Jingdong? Plain and simple – efficient business decisions based on performance data. These eCommerce giants literally swim in metrics and data. Every single move is based upon numbers from the previous step. But what are these crunch numbers and why do eCommerce websites need to be so obsessed with them?
Performance Statistics: & How Do They Help an eCommerce Site?
To identify and work with the right set of KPIs, it is essential that you have access to the required statistics. There are different types of performance data and analytic tools at your disposal to help push your eCommerce site to the brim of success. These tools and resources are any eCommerce business’s best friend.
The performance analytics is directly proportional to the sale and purchase funnel of a website. Insights such as how many visitors exited the website from the landing page itself, or the number of times the cart was left abandoned, etc. help an eCommerce site identify the roadblocks. The metrics gathered using such insights help you perfect the decision making in business. When you are able to pinpoint the leakage point in the sales funnel of your products and services, you can work to mend it straight away. It is these metrics and statistics that help you make an informed decision.
Types of Performance Data and Metrics: How They Help an eCommerce Site
Neglecting the importance of performance data in making business decisions essentially means cutting the oxygen supply. Do you not want to know why there are hundreds of carts abandoned at the check-out point, or why users do not navigate further than the marketed landing page? Narrowing down to the right metrics is pretty much trial and error. You start with a small, achievable goal and then just work your way upwards and outwards. The goal can be anything, achieving a minimum bounce rate or maximizing traffic on the landing page, and so on.
- Real-time Reports –
These reports essentially tell you who or how many visitors are present on your website in real-time, i.e., right this moment. With the help of other analytics, you can create a better user experience when you know who your target audience is.
- Audience Reports – an extension of the real-time analytics, the audience report lets you know more about who the audience is, i.e., basic characteristics of the user – their location, demographics, language, interests, etc. Understanding your user helps you:
- Tailor the content
- Gauge the user’s technical preference, and improvise their business decision models accordingly
- Figure out their loyalty based on the recurrence rate
- Understand their interests and create targeted ad campaigns for maximum RoI
- Improve the overall marketing campaign performance
- Acquisition Reports – the report shows the top channels and mediums sending visitors to your website. It can be organic, referral, direct, paid, or social. With an understanding of the acquisitions, you can:
- Figure out the effectiveness of your eCommerce site’s marketing campaigns
- Know which search engine is driving in maximum traffic, and how much
- Know which websites are referring traffic to your landing page
- Where are the users landing maximum when they reach your website
- Behavior Reports – this report helps you understand the behavior pattern and flow of the users on your eCommerce site. Which are the pages that they are getting onto the website, what are the pages they are looking at while on the site, and finally, which page they are exiting from. All these behavior flow is captured in the report that helps in:
- Identifying the highest bounce pages and make them more captivating and engaging
- Keeping a check on the different drop off points within the eCommerce site
- Fixing technical issues that might be slowing the page down
- Conversion Reports – probably one of the most important types of performance data for an eCommerce business for which a professional developer is required to create extra coding for the website. Conversion rates are basically percentage statistics between different stages of a shopper’s movements on the website. Percentage of products that made it to the shopping cart and converted into a successful buy. The conversion rate is directly proportional to the abandonment rate. It helps you in identifying the bottleneck in a buyer’s journey so that you can develop decision making models in business accordingly.
Making The Right Business Decisions With Data Analytics
To make a business decision that positively impacts the site, proper data mining is required. Data specialists can help peel the layers of data and numbers to keep your eCommerce site above water. With everything digitizing, eCommerce companies need to rake in the metrics and Key Performance Indicators (KPIs) for an informed business decision making process.
- Plan marketing strategies and understand if they are working or not: Use the performance data and analytic reports to understand which marketing strategies are raking in higher ROI and which of them are failing.
- Pay attention to the product bottleneck: The performance data report helps you understand why a particular product is left abandoned near the check-out, or why certain products have a higher rate of return than others.
- Website layout and merchandise: With the behavior report, you can improve decision making in business. You can identify the reason behind the increased bounce rate of a certain page and change its look to make it more engaging and convert traffic.
- Avoid the ‘Sold Out’ banner: Keep a track of the top-selling products. A forecast of stock needed can help you rake in greater profits.
The data analytics for business decision making online are not just any other marketing technique. They are the food and soul. With the help of data specialists, you can convert these performance data and stats to increase the overall sales and revenue of the site. Learning how your product or service is striving in the real world is essential to create a backdrop of how the business is coping as a whole. With performance data and numbers, you as an eCommerce site can discover snags and bumps in the road early on, and mend the journey accordingly.