The Importance of Detailed Ecommerce Analytics

E-commerce analytics are incredibly important for your business, and it’s not just because they can help you make more money. If you don’t know how your customers are moving through your site, or what they are doing when they get there—or if you don’t know what about their experience keeps them coming back for more—you won’t be able to improve it.

Without detailed eCommerce analytics, it will be hard for you to optimize your site in any way whatsoever. This can result in lost sales opportunities and missed marketing opportunities that could have been easily addressed with better data analysis and insight into user behavior on the website itself.

Prioritizing Your Ecommerce Analytics Efforts

Before you get started on your eCommerce analytics, it’s important to understand that there are several things to keep in mind.

  • E-commerce analytics is not the solution. It’s a tool that helps you solve problems and make better decisions.

  • You need to know what you want to achieve before you can start measuring how well you’re doing it. For example, if your goal is to increase sales revenue by 50%, then this should be the focus of your analysis efforts rather than optimizing conversion rates or session duration times (which may not even be related).

  • There are many different ways of measuring eCommerce performance; which ones are most important depends on what goals they will help achieve—and some won't fit all businesses equally well because they're too broad or narrow in scope. For example:

Improving Sales Through Detailed Ecommerce Analytics

  • Use data to identify your most profitable customers. When you have a detailed look at your eCommerce analytics, you can see which types of customers are the most profitable and what they are buying. You can use this information to target this specific segment with marketing campaigns or special offers.

  • Use data to identify your best-performing products. Detailed eCommerce analytics will allow you to analyze each product individually and see which ones are selling well or poorly compared with others in their category. This can help you make better decisions about what kinds of products should be available on your website and allow you to focus on those that make the most profit for you (or work as loss leaders).

  • Use data to identify your best-performing marketing channels. With so many different marketing channels available today (and more coming up every day), it’s easy for marketers not know where exactly leads coming from each channel go after conversion; however, if we were able to get detailed insights into our website traffic sources then we could quickly find out which ones give us better return on investment than others because those would be more targeted towards our target audience instead just based off demographics alone like age group/gender, etc which doesn’t help much in determining whether someone is looking specifically for something before making a purchase decision anyway."

Digging into Customer Data

Customer data is one of the most important things you can collect. It’s the ultimate source of information about what your customers want, how they behave, and how to make them happy.

In this section, we’ll go into detail on some examples of customer data that are valuable to eCommerce businesses. We'll also take a look at why it's so important for eCommerce businesses to focus on collecting good quality data as well as how you can use this information to improve your business.

Tracking Impulse Purchases

Tracking impulse purchases is just one way you can use detailed eCommerce analytics to increase revenue, but it's also one of the most important.

Impulse purchases are purchases that are made without any previous planning or intention. They happen when someone spots an item and decides to buy it on the spot. Retailers need to be able to see what their customers are spending money on so they can make strategic decisions about future products. For example, if most of your customers are buying wine from you, then it may make sense for you to stock more bottles of different types and varieties of wine to appeal to those customers' tastes better.

For this reason alone—tracking impulse purchases—detailed eCommerce analytics should be part of any online retailer's business plan!

Promoting Sales to Specific Customers

Detailed analytics can be used to target your customers in several ways.

  • Use customer data to promote sales. You can use your analytics to identify first-time customers and send them coupons, special offers, or updates on new products. This will encourage repeat business from customers who may have been planning on purchasing from you again but didn't know that you had something new available for them!

  • Use customer data to target new customers. If you want more customers but don't know what kind of people are looking for your product or service, then look at the information about them in your analytics program. For example: if most of your sales come from older women with children between 10-15 years old who live within 20 miles of your store/business location then it stands to reason that advertising online would reach these potential buyers by exposing them through social media platforms such as Facebook which is popular among this demographic group due its high usage rates among women aged 35+ years old who have children under 18 years old living at home with them (accordingly defined by Nielsen).

Analyzing Your Traffic Flow and Paths

Traffic flow and paths can provide you with a better understanding of how your customers interact with your site. They give you a glimpse into what they are looking at, where they get lost, and what they ignore.

  • Where are the bottlenecks? Are there certain pages or links that cause too many people to abandon their carts?

  • Which features do customers find most useful? Do users stick to one feature or do they use several throughout their journey on the site (e.g., shopping cart)?

  • Which items cause customers to abandon their carts most often?

Increasing your Site's Usability and Customization through Detailed Analytics

The usability of your site is often a deciding factor in whether or not a customer will buy from you. In fact, according to Bloomreach's 2018 Ecommerce Benchmark Report, the top reason consumers abandon their shopping carts is poor usability.

If you want to increase the number of sales coming through your website, then it's important to understand how people use it so that you can improve their experience. Setting up analytics tools like Google Analytics and Hotjar will help you collect information about your customer's behavior on the site and where they click—which pages are most popular? Which ones are being overlooked? What pages should get more attention from developers in terms of design or content?

Once you've gathered this data, use it! It’s one thing for Hotjar to tell me that my users aren't reading my blog posts because they're too long (I knew that already), but if I combine this knowledge with other insights about my audience—age range, location preference—then I can tailor future content accordingly.

Creating a Great First Impression

An important part of eCommerce analytics is understanding how your customers reach your site. Whether they come from Google, Facebook, or another channel, you need to understand their behavior before they've even interacted with your business.

Once you have this information, you can use it to create a great first impression on your website. This will help make sure that customers convert and become repeat visitors who buy from you again in the future.

Of course, if you want more insight into why some visitors aren't converting (and thus aren't returning), then you'll need to dig deeper into the data provided by analytics software like Google Analytics and start digging around in reports like Funnel Visualization and Behavior Flow.

Using Ecommerce Analytics to Find Out How Customers Are Reaching Your Site

Tools like Google Analytics and Google Search Console are great for understanding how customers are reaching your site. Using these tools together with other tools that provide similar data, you can get a good idea of where new visitors come from and what keywords they use to find you.

Analyzing the Effectiveness of Your Targeted Ads and Search Campaigns

As you know, advertising is a key part of your eCommerce marketing strategy. But as any marketer will tell you, there are always ways to improve your ads and make them more effective. That's where analytics comes in. Analytics can help you understand what works and what doesn't work when it comes to your targeted ads and search campaigns.

When analyzing the effectiveness of targeted ads, you should consider things like click-through rate (CTR), conversion rates, cost per acquisition (CPA), lifetime value (LTV), and cost per acquisition (CPA). While these metrics may sound complicated at first glance, they're fairly easy to interpret once you get used to them! For example:

  • Click-through Rate - This measures how many people who see an ad choose to click on it versus how many see the ad but don't click on it. So if 100 people saw an ad but only 10 clicked on it then we would say that our CTR was 10%. A good rule of thumb here is that anything above 2% means there's potential for growth while anything under 1% means that something needs attention ASAP!

  • Conversion Rate - This measures how often someone takes action after seeing one particular piece of content or advertisement relative to all possible visitors who viewed said piece/ad during the same period; so if 20 visitors visited our site but only 5 purchased something within 30 days then we would say our conversion rate was 25%.

Detailed Ecommerce analytics can help you bring in more customers, close more sales and increase your profits.

Detailed Ecommerce analytics can help you bring in more customers, close more sales and increase your profits. They're a powerful tool that allows you to understand how your business is performing at every stage of the customer journey, from when they first land on your site through to the checkout and beyond.

By using detailed analytics, merchants can access insights about their customers' behaviors and preferences. With this information in hand, merchants can make informed decisions about how they market their products or services online; what kind of design elements should be included on their e-commerce website; which marketing campaigns are most effective; where they should focus their efforts (e.g., search engine optimization); etc.

Conclusion

E-commerce analytics is an important part of running a business, but it can also be confusing. Make sure you know what you’re looking for and how to find it before diving into this data.