How to Choose the Right eCommerce Analytics Tool

Data is one of the most essential components of running an eCommerce business. It helps you understand customer behavior, sales trends, and the overall situation of your business. And all of this is necessary if you want your brand to be successful.?

However, getting hold of the correct data is not as easy. There are multiple platforms, channels, and data streams, which makes this task complex. What’s even more difficult is to gather insights from whatever data you pull.?

And this is where the eCommerce analytics tool comes in. These tools make it easy for eCommerce businesses to gather, analyze, and interpret data from various sources under one roof.?

But the software market is crowded, which makes it difficult to choose the right eCommerce analytics tool for your brand. In this blog, we solve this problem for you. Below, you’ll find all the crucial things you should consider before investing in an eCommerce analytics tool.?

Recap: What is an eCommerce analytics tool?

An eCommerce analytics tool is software that gathers, analyses and interprets all the customer and sales-related data you need to run an eCommerce business.?

It helps you understand things as granular as individual customer behavior to things as data-heavy as market trends.?You can identify patterns, and based on those patterns, you can find new opportunities and fix the leakages in your business.?

Here are some of the benefits of using an eCommerce analytics tool:?

• It helps you get a complete view of your eCommerce performance, which keeps sales trends, customer demographics, and product performance into account.?
• You get data from all the platforms in a single dashboard.?
• You can track the performance of your business by tracking metrics like AOV, conversion rate, CLV and much more.?
• Helps you in marketing using customer segmentation and behavior analysis.?
• Your decision will be more impactful because they’ll be backed by data rather than your guesswork.?
• And the best part is you’ll always be a step ahead of your competitors who don’t use data for their decisions.?

Factors to consider while choosing the best eCommerce analytics tool

1. Features and capabilities

A software is defined by the features it has and how accurate they are. Here are some of the features and capabilities that your eCommerce analytics tool must offer:?

• Website traffic tracking

Your analytics tool should show insights into the traffic sources, including organic search, direct visits, referrals, and paid campaigns. It should also offer metrics such as page views, unique visitors, bounce rates, and session durations for you to understand the effectiveness of your website in attracting and retaining visitors.?

• Sales tracking

Effectively tracking your sales allows you to monitor and analyze your eCommerce revenue streams precisely.?The sales performance data can have metrics like transaction volumes, order values, conversion rates, and average order sizes.?

Moreover, it should allow you to segment sales data by product categories, customer segments, and geographic regions to identify trends and opportunities for optimisation.?

• Customer behavior tracking

To optimize your store for user experience, it’s essential for you to understand customer behavior. And it’s important because how many conversions you get is directly proportional to the user experience.?

A competent eCommerce analytics tool will always give you a clear picture of different aspects of customer behavior, like browsing patterns, product interactions, cart abandonment rates, and repeat purchase behavior.?

• Marketing campaign tracking

Do you want to evaluate how your campaigns are performing across multiple channels? Marketing campaign tracking is the feature that you must look out for.?

Make sure that your analytics tool can attribute sales and conversions to your marketing touchpoints. It can be email campaigns, social media ads, or even search engine marketing — you should know the origin of the sale.?

• Classification and filtering based on impact

You don’t necessarily keep a close watch on every eCommerce metric. Your priority should be tracking the metrics that have the maximum impact on your business goals. And how do you identify these metrics? Well, your eCommerce analytics tool should do this identifying task for you.?

It should allow you to categorize metrics and segments based on predefined criteria. Criteria can be anything like high-value customers, top-performing products, or profitable marketing channels. You should also have the option to filter the options to drill down as deep as you want to go.?

• Attribution

Attribution modeling is a crucial component of analytics for understanding the contribution of each marketing touchpoint to the overall conversion process.?

The eCommerce analytics tool you choose should support attribution models, like first-touch, last-touch, and multi-touch attribution, to accurately assess the effectiveness of your marketing efforts.?

It should also provide insights into the overlap and synergy between different marketing channels, allowing you to optimize your budget allocation and maximize ROI.?

2. Platform integrations

The effectiveness of your eCommerce analytics tool depends on its seamless integration with multiple platforms and data sources.?

Seek a tool with extensive integration capabilities to access data from various eCommerce platforms, payment gateways, advertising networks, and third-party apps.?

Ensure it supports Shopify, WooCommerce, Magento, or a mix of platforms with native integrations or APIs for data extraction and synchronization. It should also integrate with marketing tools like Google Analytics, Facebook Ads, and Mailchimp to consolidate data in one dashboard.?

3. Ease of use

Having a user-friendly interface is crucial for maximizing the effectiveness of your eCommerce analytics tool. It should be easy for everyone, from the setup process to generating reports and interpreting data.?

It should come with features like customisable dashboards, drag-and-drop functionality, and guided workflows to support efficient data analysis. Moreover, it should also be easy for the team to share the dashboards and reports with other members and stakeholders.?

4. Custom report building

The right eCommerce analytics will always offer complete customisation features to build custom reports tailored to your specific requirements and preferences.?

Look for features such as drag-and-drop report builders, customisable templates, and dynamic filters that allow you to create reports that align with your unique business goals and KPIs.?

Looking for the best ecommerce analytics tool?

Follow Graas to tap real-time insights and recommendations to improve your revenue numbers.?

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