Imagine you have access to real-time on-site customer behavior data, to past engagement stats, but also to advanced insights about channel performance, future buying trends, best price points etc. – this is possible only with the right tools. Sales analytics have the unique purpose of empowering online businesses as they discover opportunities and support data-driven eCommerce strategies. By collecting enormous amounts of data correctly and by processing it automatically, analytics tools fulfill a growing need on the market: to maximize return on investment in record time. Therefore, it’s no surprise that instead of spending hours, days or weeks on tracking relevant data and then trying to decode it, companies prefer leaving it all in the hands of smart eCommerce tools, like Clarobi.
According to a McKinsey report, companies that integrate customer (or product) analytics “earn twice as much profit as any competitor company that does not use these technologies”. So, let’s discuss a bit about what business value or benefits can be derived from analytics.
Customer behavior insights
The first real benefit that eCommerce analytics brings to the table is access to granular customer behavior data. Whether you need to know which customer segment has the highest conversion rate or what their preferences are, such tools track every visit, action and goal, transforming raw data into easy-to-understand custom reports. What’s more, most tools come with advanced filtering options that allow drilling down on data to extract everything needed to make informed decisions.
Misunderstanding customers’ needs is the worst impression a business owner wants to leave because customer satisfaction is everything. For example, knowing when and why customers drop out of a funnel, or what they struggle with across the journey is key, especially when it comes to increasing sales and long-term loyalty. Analytics tools help you gain a deeper understanding of your store's performance and provide advice on how to take action with that data.
Product insights
Before businesses invest in new products or stock up on others, it’s extremely important for them to predict sales and customer trends. Analytics tools go beyond simple descriptive analytics and reports on basic product metrics, such your top sellers, low converters or most discounted products. Their predictive feature digs deeper into the data and makes it possible to make forecasts based on current demand analysis. Specifically, eCommerce businesses can track an item’s performance down to the variant, being able to identify which products should be ordered in bigger quantities and which ones shouldn’t.
Marketing strategy insights
Retailers need to measure the effectiveness of online marketing campaigns. Analytics takes care of this by tracking ad clicks, time spend on the website, channel traffic and conversion rate. By measuring these metrics, you can accurately fine-tune your marketing strategy and unlock hidden business potential. For instance, you can learn which channels bring the highest value customers, and then double down on it or invest more in retargeting and targeting lookalike audiences. Further down the line, businesses can use this knowledge to build brand loyalty and customer engagement to drive more sales.
Personalizing recommendations during customers’ shopping experience and forecasting inventory for the next season are goals easily doable with the right analytics tool. And the overall benefits, such as better decision making, cost reduction, and revenue growth, are undeniably important for any eCommerce business. This is why, we’ve created a sales analytics tool that delivers customer, product and marketing insights – Clarobi. Its features are built to ensure quick and easy access to the accurate monitoring of: campaign and acquisition channel performance, the main KPIs of your store, trends, anomalies and goals, customer segmentation based on activity and so much more.