Why Is Digital Analytics Key to Success for E-Commerce?

Why this Newsletter?

?? Welcome to the first edition of our newsletter, “Enable Digital Analytics Data”!

I am excited to share with you the latest updates and news from our organization, #Aloola, and to keep our valued members informed and engaged with our mission and initiatives.

As we continue to Grow and Evolve, this #newsletter will serve as a platform to showcase our progress and achievements.?

Thank you for your continued support, and I hope you enjoy reading our newsletter.

-Nikhil Sojitra, Founder & CEO - Aloola

Digital analytics is the analysis of data received from various digital platforms and is essential in aiding to determine the power and impact of your business and marketing strategies.?

With Digital Analytics, you can have visibility into your Website Traffic, User Behavior, Conversion Rates and much more.

Now you might be wondering,

?What is Digital Analytics?

Why is it required??

?? Does it have any challenges or limitations??

How can it be implemented??

??What are the benefits of using Digital Analytics or is there a Tool for it??

Unwrapping these Questions

Digital Analytics can be challenging and having a Team of Experts can be tremendously beneficial so the results can be leveraged universally.

Now what exactly does this rosy-sounding term Digital Analytics mean?

In this report, the data from various digital platforms and sources are tracked and evaluated to make data-driven decisions.?

Data from websites, social media platforms, mobile apps, and other different channels are considered in Digital Analytics.

#DigitalAnalytics also involves the healthy use of various tools and techniques to determine user behavior, website interactions, conversion rates, and other #KPIs to gain insights into customer experience and plan new strategies. The top goal of Digital Analytics is to derive valuable insights that can help a business make better data-driven decisions, enhance user experience, uplift business growth, and increase revenue.

?? E-commerce has become a new normal in the business landscape with the advancement in technology.

From buying a simple toothpick to health insurance, everything has been fast-tracked by technologies like mobile phones and laptops.?

With this advancement in Technology and #AI, people from different domains are going online to research, buy, and sell products everyday and having data and insights into the Buyer’s Journey is essential.

With the help of Digital Analytics in the E-commerce industry, interactions and collaboration with customers have become seamless and quick.

How does E-commerce Tracking help Enhance E-commerce Businesses?

With e-commerce tracking, it's easy to have insight into customer behavior, preference, and needs. With these insights, a business can decide on modifications in website design, plan new marketing strategies, and can come up with new product offerings to serve their customers in the best possible way.

Digital analytics plays a prime role in the growth of e-commerce businesses, with numerous benefits that include:

• Better Understanding Of Customer Base

By using Digital Analytics Services, one can have a clear idea of customer behavior, user preferences, and requirements. With the help of Digital Analytics, e-commerce businesses can make data-driven decisions and can improve customer experience.

• Enhanced Marketing Strategies

With the help of Digital Analytics, businesses can determine which marketing channels are yielding fruitful results. For example, which platform drives the most traffic and #conversions .

• Improved Product Performance

With the use of Digital #analyticstools, e-commerce industries can identify their best-selling products and can easily enhance the functionality, quality and overall user experience of a product which can help to acquire more revenue and scalability.

• Real-Time Insights

Digital analytics provide actionable information and help you to determine website traffic in real time. With the use of real-time insights, businesses can identify issues in their processes or systems in real time and can make changes to improve performance.

• Enhanced Revenue

By using Digital Analytics, e-commerce businesses can confine their marketing campaigns and advertisements to target the right audience and generate more revenue.

• Analysis of Website Traffic

Digital analytics tools aid e-commerce businesses in tracking how many people are visiting their websites, which products are most viewed, and how much time visitors spend on each page. This data helps a business identify where they are lacking and to optimize accordingly to fit their client's needs.

• Deepened Insights of Customer Behavior

By inspecting customer data such as a customer's clickstream data or purchase history, e-commerce businesses can have an idea of customers' needs and requirements. Accordingly, a business can target its desired audience, and create relevant marketing campaigns to fit their business targets.

• Marketing Campaign Analysis

With the use of e-commerce analytics tools, businesses can track how effective their marketing campaigns performed and can plan their budget and any upcoming campaigns for future business success and growth.

?? 7 Metrics that You Must Track for Your E-commerce Business

Now you might be perplexed as to that which metrics we should track in an e-commerce business. So let's have a quick look at it.

• Internal Search Terms:

What products are most people searching for on your e-commerce website?

Internal search terms will help them to see what visitors are looking for and can improve their products based on that data.?

internal search terms report

1. Sometimes people are searching for several products which are not available on your website. For example, on an e-commerce website users might look for certain keywords like “pink dress” or “size 11 shoes” to find specific products in a website’s inventory.?Businesses can use this data to further optimize their product offerings.
2. By analyzing and observing internal search terms, businesses can have a wider view of user intent, the popular keywords that the customers search for, and identify any loopholes or gaps in the products being offered.?
3. Based on the list of search terms, you can improve the content of your products to help in SEO & PPC initiatives.
4. Based on past search terms data, businesses can forecast sales in the future for a specific time.

• Conversion Rate: #ConversionRate is the average percentage of visitors that purchase from your website out of the total number of visitors that visited your website. It is one of the crucial metrics that help you to determine the areas that demand your attention and improve your overall sales funnel.

ConversionRate = (Number of Conversions / Total Number of Visitors) * 100

• Average Order Value: Average order value is an average of the total amount of money a customer spends on each order from your website or app.

Average Order Value = Total Revenue / Number of Orders

• #CustomerLifetimeValue (CLV): It is the total revenue that you can estimate from a single customer account as long as the business relationship continues. If you are looking forward to enhancing your customer retention rate or want to make better profits, then you must work on improving your customer lifetime value.?

Customer Lifetime Value = Average Purchase Value × Purchase Frequency × Customer Lifespan

• Cart Abandonment Rate: The percentage of visitors that add items to their cart at the initial step but do not complete the transaction due to any reason. Cart abandonment rate is a great way to figure out loopholes in your checkout process.

Cart Abandonment Rate = (Number of Carts Abandoned / Number of Carts Created) * 100

• Traffic Sources: It is important for a business to know where its major traffic comes from. By identifying the major traffic sources, one can precisely plan the strategies for that platform, optimize favorable marketing efforts, and enhance revenue.
• Return On Ad Spend: Also termed #ROAS, this is a metric used to analyze the revenue generated from advertising campaigns in comparison to the amount spent on them. A good ROAS value indicates the success of a campaign. With this metric, you can have a clear view of the result of the budget you spend.

ROAS = (Revenue Generated from Ads / Cost of Ads) * 100

??Top 5 Techniques to Optimize Digital Analytics:

1. A/B Testing: A/B testing is a technique that compares two different versions of a web page or app to pinpoint which has better results in terms of user engagement and conversion rate.
2. Funnel Analysis: Under this technique, the complete conversion process of a visitor is analyzed to identify the specific stage where the user left in the process. It assists to decide which stage needs attention and improvement.
3. Heat Mapping: This is a process used to monitor user behavior by recording mouse movements, clicks, and scrolling events on a webpage. By using heat mapping, the most clicked areas of a webpage can be determined, web design can be optimized and user experience can be improved.
4. User Segmentation: User segmentation involves segregating customers into groups based on the similar behavior and preferences. Under this technique, visitors are segmented based on demographics and behavioral data, which helps to increase user engagement and brand awareness.
5. Predictive Analysis: With the involvement of AI, technology has become more sophisticated. One such technology is #PredictiveAnalysis which makes use of #machinelearning algorithms to analyze historical data, patterns, and trends to predict user behavior.

?? Check out our Director of Client Services at Aloola, Danielle Kingsbury's post on “How do you check if your Consent Management Platform (CMP) is working”:

Digital Analytics Challenges:

Though the power of Digital Analytics is crystal clear, it also has certain limitations that requires attention:

• Data Quality & Accuracy

As Digital Analytics is completely data driven, use of incomplete information in it, can lead to incorrect insights and wrong decisions.

• Complexity

Though digital analysis is very helpful and impressive, it requires a sufficient amount of technical knowledge and expertise for one to use it to enhance productivity.?

• Privacy & Security Concerns

As privacy and security concerns are highly exercised these days, the limitations of data to analyze due to privacy issues can be another challenge.

??Ready to Embark on Your Journey With E-Commerce Tracking?

Overall Digital Analytics can pave the way to enhance revenue and increase the #sales of e-commerce businesses.

With Digital Analytics, e-commerce businesses can have a complete and clear view of their entire business, target the right audience, and share relevant products based on consumer behavior.

In addition, it aids in identifying loopholes in strategies and the process currently being used, and allows you to analyze and optimize to drive business growth.?

Are you looking to increase your #revenue or uplift your productivity but your team is lacking in its Digital Analytics expertise?

Not to worry! Aloola is here! As an Enterprise-Level consulting firm, we have a team of #AdobeAnalytics and #GoogleAnalytics consultants who are renowned for our expertise and curated results by providing businesses with accurate Insights & Analysis to make data-driven decisions.?

Ready to start your journey with Digital Analytics??

Please reach out to us at [email protected] or fill the form and we will get back to you shortly.