The Role of Analytics in eCommerce
by Kevin Heisler
What is eCommerce Analytics?
As we continue to shift to a digital world, more and more of our business processes will occur on digital platforms. This in turn is going to create an influx of new data that needs to be interpreted. eCommerce analytics takes data from every facet of an online business and brings it into one easy-to-interpret place. It allows for insights into search behavior, purchasing habits, and trends. Along with that, it improves the customer experience and makes it more likely for repeat purchases. Long gone are the days of team members being left in the dark about online performance. Analytics allow for quick and easy dissemination of information throughout an entire organization.
The Value of Analytics
According to Forrester Research, B2B eCommerce transactions will reach 1.2 trillion by 2021. That number is much larger than their B2C counterparts, even though B2B companies have traditionally been slower to implement eCommerce. This goes to show how much untapped potential is still out there for manufacturers, distributors, and dealers. One of the best ways to capitalize on this is to optimize any eCommerce offering. This brings us to the value of analytics. Analytics platforms take massive amounts of data on anything from sales margin by channel, to the lifetime value of customers, and turn it into easily digestible reports that promote quicker, more efficient decision making. It can help to determine if it’s more cost-effective to spend on attracting new customers or focus on repeat buyers. You can tell which products are hot or cold and which products are often bought together so you can make suggestions on future purchases. The different ways to maximize eCommerce are numerous and a great analytics platform running alongside a digital sales strategy will provide all the insights necessary to grow market share and potentially identify new markets for growth.
Long Term Impact
So, eCommerce and analytics are in place, but what does that mean for an organization in the long run? There is no time to become complacent because both eCommerce and analytics are simply steps in the process towards continued success. An eCommerce site combined with a great analytics platform will give insights that help determine how the business will be positioned going forward and if any significant changes are needed. The insights will help identify better areas to spend marketing dollars, where to focus on content creation, and which products to increase or decrease inventory and/or pricing. Most importantly they help reach the ultimate step, increased revenue. Website analysis is a continuous process that when properly managed will provide lasting value. Customer behavior and expectations are constantly changing, so keeping up with that is the best way to achieve customer satisfaction. Properly utilizing analytics is a crucial building block for company growth and the right platform will help to do just that.
Every GenAlpha installation includes our analytics platform, Equip360 Insights. Whether it’s customer, product, or performance analytics, this platform provides a deeper understanding of any business process. Curious about how much value an individual product provides? What about the number of customers you’re at risk of losing? Equip360 Insights provides answers to these questions along with so much more. It also has the ability to create customizable reports that can be scheduled and shared via email so that informed decisions can be made quickly. These reports allow for all members of an organization to be clued into performance and working towards a common goal. It’s the complete tool for analyzing an online business and getting the most out of eCommerce. The time is now to Equip analytics.