Do Your Ecommerce Analytics Are Telling the Truth? -
Analytics tracking on any site offers a wealth of insight on the performance of the site, that can be especially useful for ecommerce websites. It helps you know the things that are working as well as what isn't, which informs decisions about how to spend your energy, time, and money.
In this light How do you ensure that you're actually studying the metrics that provide you with valuable data? Are you getting a complete view of your site's performance? Read on for more information about the reasons why analytics are essential to your online store.
Why is Analytics so Important?
You only have so many options; time and funds are at an all-time low. If you're not keeping track of what methods have been successful, you could be losing money and time in platforms that don't work very well. If you are able to track the effectiveness rates of each channel you're using You can identify the ones that are most successful and concentrate your efforts there.
Analytics provides you with the possibility to switch from a less successful channel before your bottom line is damaged. It also lets you conduct continuous experiments on your website and online presence , guiding the way to increased conversions and profitability.
Set Up Your Funnels
Funnel analysis is among the most fundamental methods of analysis of marketing activity. That means your targeted viewers will be guided through a series of steps, or a funnel until they finally decide to purchase the product you would like for them to purchase.
Let's say, for example, you've created an email-based campaign. We'll look at the various steps in that funnel.
- Create an email to promote your upcoming sale, or the launch of a the launch of a new product to 1000 customers who've made a purchase from your site before.
- When you sent out 1,000 emails, your service did not deliver 970 emailsand the remaining 30 bounced.
- The 350 emails are actually read by recipients.
- One hundred fifty of the customers who opened the email actually clicked the hyperlinks in the email.
- The 45 people that clicked on the link added the product you promoted into their cart
- 10 of the 45 who added the item to their shopping carts ultimately completed the purchase.
What was the final outcome? 1% of the original targeted audience did actually convert. But, it's clear the largest drops occurred between the steps 2 and 3 as in addition to the steps of 3 and 4. It is obvious that you must increase the value of your emails so that they are more appealing, leading to a higher open rate, and you must examine the hyperlinks you're putting within the email, ensuring that it's a deal your customers can't resist. If you didn't use statistics, you won't be able to determine where you need to focus your efforts in order to boost the conversion rate of your emails.
Do you want to know how to create an analytics system for your online store? A full-stack ecommerce solution will seamlessly be integrated with tools similar to Google Analytics that allows you to track every aspect of your operation.
Important Types of Analytics
We gave you a quick overview of the email marketing funnel. But it's only one of the metrics you need to use. Below are some other things you need to add to your strategy:
Pay-Per-Click
A pay-per click (PPC) advertising will yield good results, but you'll not achieve the greatest value on your investment if you do not regularly experiment using the method. Simply putting your ads anywhere and hoping that the correct audience will click on them will not suffice. You need monitor which areas are performing best, and ensure that you're putting your dollars exactly where they'll perform best.
Conducting an effective PPC campaigns can take a lot of time which is why many organizations decide to outsource it. But, you must have a solid knowledge of the term so that you understand the reports when they come at you. It is important to be aware of:
- CPM (Cost per mile)A cost per mile model of pricing. It charges for every one thousand displays of your ad for a particular user.
- CPC (Cost per Click)-- The price model that allows you to charge every time a user visits your ad
- CTR (Click through rate)-- The algorithm divides the amount of times that users have clicked your advertisement by the amount of times your ad displayed within a designated period of time
- CPA (Cost per Action)A price model that demands a fee each time a user completes a specified action
- Average position -- The place in which your advertisement is placed on the average appearance within the user's results for a search.
Analytics for Social Media
More businesses are using social media as an effective way to reach customers in a place they feel confident. In addition to engaging with building relationships with clients, social media is also becoming a popular medium for advertising.
Facebook Analytics offers a great deal of information related to customer engagement, post reach as well as page views and many more to businesses that use their Facebook pages to communicate with the customers.
Twitter Analytics isn't quite as helpful to businesses who simply have only a Twitter account; their analytics platform is only available to advertisers. However, there are third-party services that provide users with analytics on their regular Twitter accounts.
A/B Testing
What are you going to do with the information you get from your analysis? Begin A/B testing. It means you test two variations of one aspect of your approach against one and see which one will be the most effective. Which landing page does the audience appear to be more interested inwhich one has the black background or the white background? Which one is more popular? Which one did the customers hit more frequently which was the red one or the green?
The power of knowledge is in the mind, and A/B testing provides you with the necessary information to create an irresistible marketing strategy. Be aware of the tests you're conducting so that you'll be aware of the changes that are responsible to the outcome you've seen.
Knowing the reasons behind your marketing strategy will make your business more profitable in the long run. An ecommerce platform that is robust and full stack like will give you the tools you need for analyzing the performance of your website.
Download our free ecommerce guide, What You Need to Learn About Selling Online.