Analytics is the big buzz word that everyone in the ecommerce industry talks about. But as a small or medium scale business owner, what does customer analytics mean to you and your online store? In this post we will break it down and tell you what it really entails.
The first question that probably comes to your mind is – Why should I worry about customer analytics if I am already working hard for my products and customers. Well, you answered it. Analytics will only help you work hard in the right direction. It will not only give you insights about your product but also tell you what your customers are looking for.
Let’s first understand the primary objective of your online store. To put it simply, it is a platform for putting your products in front of your customers. So in order to convert visitors into actual buyers, you need to find ways to sell better and market your product. Customer analytics is that powerful tool that helps you market effectively and with a proper approach.
Imagine a scenario in which you post an ad on Facebook about a new discount you’re offering on your store. A customer sees the ad, clicks on it, reaches your store, chooses a product, adds it to cart, checks out and makes a payment against it. This is an ideal scenario that looks like a complete circle. However, in real life this works as a funnel. The number of people seeing your ad on Facebook is large, but only some of them will click on it. Further, even lesser will actually make a payment. Which means those who reach the bottom of the funnel are really small in number. Analytics will help you understand what exactly happens at every step of the funnel and what hurdles are the customers facing before they make a purchase.
Analytics also helps you understand customer behaviour from where you can decide on product recommendations on your website. It also helps you forecast the sale of a particular product and boost it during special occasions like Christmas or Thanksgiving. Plus it gives you a better idea of how well a product sells and which customer visits your store often.
In case you are wondering where to begin, for starters you can enable Google analytics for your store. All you have to do is sign up, add your store link and you have access to a repository of data that you can leverage on. You can play around with the dashboard, understand the statistics for your store and try to implement your learnings in the form of small changes. Eventually, you will find out the right formula for yourself and your ecommerce store. By telling you what works and what doesn’t, analytics aids in boosting your sales even further. Finally, analytics and you can together give your customer a delightful experience of shopping at your online store.