Understanding eCommerce Analytics: 3 Critical Aspects

on Analytics Engineer, Data Analytics, Google Analytics, Google Analytics 360, Sales Analytics, Website SEO Analysis • January 3rd, 2022

Ecommerce Analytics FI

An eCommerce platform allows consumers to compare prices across various sellers and read customer reviews before making buying decisions. As a result, they have high expectations from sellers. If you are an eCommerce business owner, your customers won’t buy from you just because you are selling something they want. Your business needs to offer a unique feature that draws them to you. 

How do you know what to offer? The most effective way to determine what attracts your customers is to collect data on their behavior. This is where eCommerce Analytics comes to your aid.

eCommerce Analytics compiles data from all platforms that your prospective buyers visit so that you can draw insight from them. It helps you analyze the behavior of the Potential Leads and Customers of an eCommerce business and reports the analysis to sellers to help them make better Marketing Decisions for increased sales.

This article focuses on eCommerce Analytics and its 5 Key Metrics. It introduces you to eCommerce Analytics strategies and helps you understand the usefulness of the 4 most commonly used eCommerce Analytics tools.

Table of Contents

Introduction to eCommerce Analytics

eCommerce Analytics image
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eCommerce Analytics is a tool that analyses the behavior of the Potential Leads and Customers of an eCommerce business and reports the analysis to sellers to help them make better Marketing Decisions for increased sales. 

The kind of information that this service reports include:

  • Where your prospective buyers are coming from
  • How many consumers visit your Online Store
  • What the typical customer journey looks like on your Website
  • The kind of products they often purchase
  • Whether your paid ads are effective

eCommerce Analytics collects data throughout the whole customer journey: from Discovery, Acquisition, Conversion, and Retention to Advocacy.

Once you understand how eCommerce Analytics works, you can quickly determine what makes your customers buy a product and use the information aggressively in your eCommerce pages. Read on to discover more information about how this service can benefit your business.

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Key Metrics of eCommerce Analytics

Because it often involves a lot of metrics, eCommerce can be overwhelming. For this reason, most business owners make business decisions based on their gut feelings instead of using the available insights to implement data-driven decisions. 

Meanwhile, there’s no reason why you have to take care of all your Customer Metrics at once. You can single out the most important metrics, and use them to achieve success in eCommerce Sales.

Here are the 5 Key Metrics of eCommerce Analytics that all eCommerce businesses must take note of:

1) Discovery

In the Discovery stage, you can create Awareness Ads for your business. Awareness Ads inform potential customers about the existence of your business. Successful Awareness Ads engage the buyer and emphasize the information that is most likely of interest to them.

If you want your Awareness Ads to be effective, you must first collect data about your customers. You can find data about your customer’s Location, Age, Gender, and Interests in your Google Analytics account. Use this data to build your user persona, to whom you will address your Awareness Ads.

Awareness Ads also help you take advantage of the following Social Media Metrics:

  • Reach: This refers to the number of people who view an ad. This metric correlates closely with the number of Leads you get on your eCommerce Website. If your reach is high, chances are that many potential buyers will visit your Website.
  • Impressions: This refers to the number of times people viewed your ad. 
  • Engagement: This refers to the number of Social Media users that engage with your content. Analyzing this Social Media Metric can help you determine where to focus your ad budget. If your reach on a particular Social Media platform often converts into engagement, you can increase your ad budget on the platform.

2) Acquisition

The second thing you have to do is measure the number of people who visit your Website and calculate the cost of acquiring these Leads. The money and time you’ve spent on your Awareness Ads are worthwhile if anyone who viewed them visited your eCommerce Website. You can find the Performance Analysis of your ads in the ‘Acquisition’ section of your Google Analytics account.

3) Conversion

After acquiring Leads to your Online Store, the next step is to convert them into paying customers. You may find that some people visited your Website but didn’t make a purchase. Also, some may click on a product in your store, and leave the site without making payment. You can use eCommerce Analytics to track such customers, and display ads that encourage them to buy your products.

4) Retention

After converting your Leads for the first time, you should do your best to retain them. Investing your time and money into Customer Retention will pay off in the long run. Besides, it’s always more expensive to acquire new customers than to retain existing ones.

5) Advocacy

If you provide quality services to your customers over an extended period, they may become advocates for your business. Your customers will fall in love with your company and share good feedback with their friends.

eCommerce Analytics Strategies

eCommerce Analytics will help you increase your sales and revenue if used the right way. Below are suggestions on what to do with an eCommerce Analytics report:

  • Capture new Leads immediately after they reach your Website. If most of your Leads leave your Website as soon as they visit, you can capture them by introducing discounts on the Website’s homepage.
  • Reward your loyal customers. You can encourage your existing customers to visit your store often by sending sales coupons to their emails.
  • Remove underperforming keywords. If you notice that a keyword has stopped bringing you enough traffic, you may stop using it.
  • Add new products from customer searches. This is necessary because, sometimes, your customers may search for a product that is not available in your Online Store. eCommerce Analytics will report such inquiries to you. You can use this data as recommendations for product additions.

eCommerce Analytics Tools

There are numerous eCommerce Analytics tools on the internet. Some of them are:

1) Google Analytics

eCommerce Analytics: Google Analytics image
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Google Analytics is the most commonly used eCommerce Analytics tool, and it’s free too. When you integrate this tool with your Online Store, it will report data about your site traffic. This data includes information about how your customers find you, the site pages they view, and even the amount of time they spend on your Website.

eCommerce data in Google Analytics will help you learn how to improve the experience of your Leads and reach them easily. Before you use the Google Analytics tool on your Website, you must install tracking on the site. This is because Google Analytics uses tracking codes to compile and analyze data.

Follow these steps to set up your Google Analytics account for eCommerce Analytics:

Step 1: Enable eCommerce Tracking on the Website

Add HTML code, one that will let your Website collect e-commerce data, and send the data to Google Analytics, or hire a Web Designer to do the job for you.

Step 2: Create a Google Analytics Account

If you don’t have a Google Analytics account, you’ll need to create one first. Sign in to your Google Analytics account once. You can start using the account immediately after Google approves your registration.

Step 3: Enable eCommerce Settings

Go to the menu bar on Google Analytics and select ‘Admin’. Then, scroll to ‘View’, and click on ‘eCommerce Settings’.  Next, set the ‘Enable eCommerce’ option to ‘On’ and click ‘Save’.

For more information on Google Analytics, click here.

2) Kissmetrics

eCommerce Analytics: Kissmetrics image
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Kissmetrics is a premium eCommerce Analytics tool. It costs $120 – $600 monthly. This eCommerce Analytics tool shows your customer’s paths on your Website before buying a product or leaving without any purchase. You also get insights into each customer’s actions on the site.  

Put differently, Kissmetrics is designed to help eCommerce business owners increase conversions by providing them with information about how their customers behave on a site before converting.

For more information on Kissmetrics, click here.

3) Piwik

eCommerce Analytics: Piwik image
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Piwik is a free eCommerce Analytics tool that offers similar features to Google Analytics. However, instead of using tracking codes like Google Analytics, Piwik requires users to download its software and install it on their eCommerce site’s servers. 

You can use Piwik to track conversions and monitor multiple Websites. Piwik can also send eCommerce Analytics reports directly into your emails if you are too busy to check the software.

For more information on Piwik, click here.

4) Visual Website Optimizer

eCommerce Analytics: Visual Website Optimizer image
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Visual Website Optimizer is an eCommerce Analytics tool that lets you create different versions of your web pages to determine which converts most. In Visual Website Optimizer, you can optimize your web page versions for Layout, Colors, Images, Call-To-Actions, and even Promotions. The Visual Website Optimizer costs $49 – $99 monthly to use.

For more information on Visual Website Optimizer, click here.

Conclusion

This article introduced you to eCommerce Analytics and the 5 Key Features of eCommerce Analytics. It also provided the important eCommerce Analytics that you must take note of. It also briefed you on some of the most popular eCommerce Analytics tools in the market.

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Share your experience of understanding eCommerce Analytics in the comments below!

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