We have always heard the phrase “ knowledge is power” and in the eCommerce world, knowing when, how, where, and which customer to target is the knowledge that brings you power.
Importance of Data Collection in Ecommerce Store
Technology all over the globe is changing at a fast pace. To keep up with this pace in the eCommerce industry, you have to curate data according to your customers so their shopping needs are all met at your store.
And this can happen when you have sufficient meaningful data of the customers who visit your website.
Back in the day stores like Amazon used to collect data with the help of a system called book match. Unfortunately, it was slow and frequently crashed. The same system is now replaced by powerful Artificial intelligence and machine learning software.
Before you invest in some data analytics, let’s look at some reasons why data collection has become so crucial to the success of today’s eCommerce stores:
1. Personalization
Collecting data isn’t enough, you need to mine enough data to find patterns and stories inside. One of the biggest reasons data collection is so famous online in multiple industries is personalization.
Personalization helps the business create a fully or semi customized experience for their customers.
E.g if someone is more fond of getting updates through Instagram, they only get routed to that social media. Another person might be fond of reading text messages at 5 pm after work, they will receive text messages about your company promotions at this time.
These small changes are more likely to convert the potential customer into a loyal one.
2. Marketing
Whether it’s email marketing or social media platforms. The number one department that benefits from data collection are marketing. Having the data and predicting the right patterns helps you market better to your target audience.
Not only does this increase sale but also gives you a competitive edge over your competitors.
According to a Harvard business review, 60% of companies globally are investing in data analytics at the moment. From resolving shoe size issues to not having to annoy customers for the same data repeatedly, marketing departments are experiencing the glory of the eCommerce world.
3. Product/Service Designing
The second closest contender to the marketing department is product/service design. Gone are the days of blind iteration with your products until one of them would just click with the customers.
Online reviews and other real-time feedback help a brand make well-informed choices about investment and improvements.
E.g Zappos has found out that if they offer free delivery on the first order of the customer, they are 61% more likely to come back.
Another day-to-day example would be the Instagram and Netflix feed, both these products have been carefully redesigned to incorporate user behavior collected through data analytics.
4. Better Processes
According to Google, more than 50% of customers will cancel their planned order if they receive bad customer service. Data collection is not only for consumers’ products but it also helps you resolve internal issues. For E.g.
Having a glitch in customer service or having an unnecessary delay can ruin the best products out there.
This type of glitches can be instantly identified if you have the appropriate data collection and analysis methods in place.
Otherwise, by the time you realize why your business is losing customers, it might be far too gone.
One other way to provide flawless customer service is by maintaining a database of the information of all customers, so if you have a returning customer, you already have all the details instead of asking them again.
5. Collecting the Right Data
There are several kinds of data and data collection methods when it comes to business but there are some you should particularly pay attention to.
After all, not all data is of use to the business and we don’t want to waste resources:
1. Conversion Rate
Conversion rate is the pulse of your online business. Several factors throughout the life of your business will affect the conversion rate and it keeps fluctuating.
As long as customers are landing, making purchases from your site, and interacting with your social media, you are in the safe zone.
Pay attention to where the traffic is coming from, what is your bounce rate (no action by a visitor), is it paid, organic, or PPC traffic, and several other questions.
This information will help you make profitable decisions about your business and you’ll know which channels and pages to improve and which to invest in more.
2. Gross Profit
While most people go towards their sales revenue and conversion rate to check if the business is doing well, it can be often deceptive.
Especially if there is a sale going on. The sales revenue could go up with the conversion rate but the actual gross profit could remain the same.
Several eCommerce store platforms provide easy calculation of gross profit on their platform.
3. Customer’s Choice
Customer interaction with various products on your website is also a very useful insight to have especially for eCommerce stores.
One of the main advantages of having an online business is that you can give a customized experience to your customers.
However, to provide this customized experience you need to ensure that you know what are products that your customers are most attracted to.
Once you have an idea about your fast-selling products you can market them in the spaces that are most visited by your customers.
Furthermore, you can also program your store in such a way that it gives customized product recommendations according to the purchasing history of your clients.
6. Helps in Business Expansion
A business that doesn’t have the room to grow is a stale business that no one wants to be a part of. A successful business is one that keeps on growing with time and adapts according to the customer’s choices and preferences.
And one of the major ways to expand your business is by analyzing the needs and wants of your customers and then acting accordingly.
This is where your consumers’ data is useful. You can understand the pattern and behaviors of your consumers and alter or modify your products accordingly.
For example, if your business is selling plants and you notice that people who are visiting your website are also interested in planters, then you can launch planters as your products as well.
In conclusion, in the branding world of today, whoever has data and is using it the right way is the king.
Data is the driving force in almost every aspect of business now which is one of the major reasons why companies, big and small, are investing in data acquisition as well as data analysis to make smart and informed business decisions.
Conclusion
Customer loyalties are gained and managed through using consumer neuropsychology but none of that would work in the long run if you don’t have the right data. Let us know below how your company has used data analytics to accelerate business growth.
_________________________________________________________________________
Some other articles you might find of interest:
Understand how you can maximize your time to grow your business:
Time Is Money And Your Most Valuable Resource. Use it Wisely to Build Your Business
https://www.thekickassentrepreneur.com/time-is-money
Looking for effective ways to drive and increase traffic to your startup website?
SEO Traffic Guide To Boost Your Blog Rankings
https://www.thekickassentrepreneur.com/guide-to-boost-your-blog-rankings/
Looking for effective ways to drive and increase traffic to your startup website?
3 Top Reasons Why Startups Fail and How Not to Become a Victim
