The advent of analytics tools has done wonders for the world of e-commerce.
With analytics reports at your fingertips, you can work out comprehensive business strategies and boost your business’s annual turnover.
In the following post, you will learn everything you need to know about analytics tool for Ecommerce.
What is analytics?
In the business world, analytics means the logical analysis of customer data or past trends to achieve comprehensive insights into your company’s operation.
Besides, you can apply analytics to make accurate predictions about future trends.
Analytics is based on metrics to produce internal insights.
As a standard of measurement, metrics help count and track whether your business is running correctly. For example, a metric can be the number of customers installing your app.
Types of analytics
Generally speaking, there are 6 major types of analytics in e-commerce:
1. Customer analytics
Such analytics deals with the assessment of customer acquisition, customer loyalty, and behavioral segmentation.
2. Marketing analytics
With marketing analytics, business owners can be updated on the marketing mix, brand health, and multichannel campaign.
3. Merchandising and planning
The analytics of merchandising and planning helps you with shelf space optimization, product pricing, and store location decisions.
4. Demand and supply chain
This kind of analytics focuses on inventory planning, demand forecasting, and product flow optimization.
5. Risk analytics
With risk analytics, you can easily detect fraudulent activities, process errors, and shoplifting possibilities.
6. Predictive analytics
The predictive analytics facilitates the determination of customer LTV, revenue forecasting, trend analysis as well as product recommendations.
Benefits of analytics tools for Ecommerce
Is that everything you need to know about an Ecommerce analytics tool? The answer is no. They have numerous benefits that even business owners don’t know.
Enhancing user experience
Analytics offers an excellent tool in understanding your customers in details. You can learn about their age, gender, geographic location, interests, buying habits, etc., So, coming up with ideas improve their shopping experience.
In addition, the information about the technology your customers are using to browse your site is also available, particularly operating systems and devices. As a result, you can check if your site is compatible with those technologies and make prompt improvements if necessary.
Identifying the best content
Via analytics tools, you can know which content receives the greatest attention, bounce rate, and average duration of each page. Hence, optimizing the most favored type of content will boost your site engagement and attract more customers.
At the same time, it is possible to post the latest information on your top landing pages or refresh the whole structure or design.
Helping your site’s SEO
Search engine optimization plays a crucial role in calculating your business growth. The amount of organic traffic your business site receives is in direct ratio to the number of conversions it gains.
With analytics tools, you can improve your site’s SEO through creating targeted content, enhancing visibility on search engines, and tracking referrals.
Creating more partnership opportunities
Website analytics proves useful in informing you about outbound links. For example, Google Analytics can help you view the top links to other websites on your own, thereby seeking new cooperation opportunities.
Via tools such as Google Analytics, you can persuade other business owners to sign contracts with outbound links reports.
Analytics tools have been around for a significant time, so it is so difficult to imagine what the world would become without them.
Hope that you all have remembered everything you need to know about analytics tool, especially for Ecommerce business in order not to be left behind.
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