You run an online business and have invested plenty of money in the digital marketing side. You’ve also got plenty of sales, but how do you determine if you’re spending smart money? How do you generate the correct business intelligence data for the most efficient digital marketing practices?
If they want to grow and survive, all eCommerce platforms need to invest in collecting business intelligence data. This need usually involves analyzing different sales metrics and analytics reports.
These are a lot of big business words for a simple eCommerce site. It doesn’t have to be that hard, but it is that important. So let’s break down the importance of reporting analytics of your digital shop and end with an excellent recommendation on where to start.
What are eCommerce data reporting analytics?
Your customers leave a digital trail when they click on a link to get to your store. That digital trail continues through your store and ends after they leave. You have the platform to understand all of their actions while on your site.
You also know how much each action costs. Advertisements cost money. Inventory costs money. Based on this, you can start to understand how much each customer path is either earning you or costing you.
These data analytics platforms mine customer data from your site and do the heavy lifting for you. Their goal is to present to you simple numbers that are usable and executable. In this way, you can change your eCommerce platform, off-page ad campaigns, or sales funnel in proactive ways based on real numbers.
What are some examples of data reporting analytics?
First, let’s look at some example data reporting analytics or metrics. These are not the same as KPIs. A metric is a specific performance measurement. A metric doesn’t mean anything in and of itself. Instead, it would be best if you viewed a metric in the context of the entire campaign. A KPI will take in the context of the metric and give a bigger picture to the business. Here are some prime metrics to always be aware of when running a digital shop:
- Average Order Value: Average value of all orders over a given period
- Customer Lifetime Value: The amount of revenue a single user will provide you with over their lifetime
- Customer Retention Rate: This rate shows how well you retain customers or lose them
- Shopping Cart Abandonment Rate: How often customers abandon their cart
- Bounce Rate: How many people leave your site after visiting one page
- Website Traffic: How many people visit your site daily, weekly, or monthly
- Conversion Rate: How frequently a site visitor becomes a paying customer
- Onsite Activity Metrics: What visitors read, click on, and how long they spend on your website
Do all data analytics platforms do the same thing?
Not all eCommerce digital shops are the same, and not all data analytics platforms are the same. They will sell different products and different services. So, they will all need different types of data to show utility. For example, a product-based eCommerce site with seasonal turnover may benefit from more email marketing analytics reports. A service-based company may want to know how their bounce rate changes based on alterations to their landing page.
You need to understand that not all data analytical platforms are the same because most of these platforms are focused on only a specific aspect of digital analytics reports. Therefore, you need to ensure you have the correct numbers and metrics for your niche and process.
How can Parselytics help you maximize profit?
If you don’t have much experience or knowledge on the different platforms, deciding which one to use could seem overwhelming. Pick a platform that will always provide you with the proper data analytics reports no matter what type of store you run. In this way, you can focus on the other parts of your job.
Parselytics does just that. They combine transactional sales reports and marketing reports into one bionic report containing all of the critical data you need to make informed decisions. So don’t just generate reports for fun; create recommendations to help you make the right choices for your digital shop’s future. Reach out today to start harnessing metrics to make informed decisions and increase your profits