Web analytics is one of the fundamental elements of building an online presence, especially effective e-commerce. Why is it worth analyzing every inch of your website? How should you go about it? We'll reveal the secret!
Why is e-commerce analytics so important?
Collecting and analyzing data allows for better utilization of available resources and the selection of strategies that will positively impact the company's development. Intuition is key in business, but making decisions based on our own intuitions may not end as well as we would like. The same applies to assessing our work – relying on our own assumptions or sympathies does not provide a complete picture. Collecting comprehensive data allows us to pinpoint specific areas and actions that require correction. Analysis based on this data allows us to chart a clear path and effectively implement future plans.
Analytics in e-commerce has many advantages:
- It allows you to make informed decisions based on real information – as mentioned above, specific data allows you to take actions based on real needs, not subjective feelings.
The collected data allows us to identify target audiences and tailor communication to their needs and expectations. The analysis also allows us to tailor advertising and offers to current trends, which significantly influence how and what we buy.
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- It allows for increased revenue – engaging with customers effectively is not only an effective way to convince them to shop in our store, but also to return to our virtual doors. Analyzing data and drawing accurate conclusions from it also allows for expanding your audience. Greater reach translates directly into greater profits.
- It brings you closer to improved operational efficiency – data allows you to make better business decisions, for example, regarding budget allocation across different advertising channels. Selecting the most effective channels and investing more in them offers the opportunity for greater profits.
One of the fundamental characteristics of the e-commerce world is its constant volatility. The flexibility of solutions allows for quick adaptation to trends, visible, among other things, through the tracking of user behavior on websites, and for rapid response to external factors. The first part of 2020 demonstrated this perfectly – the global lockdown forced many businesses to increase their online operations, and in some cases, to launch online altogether. Many companies have discovered that running an e-commerce business differs significantly from what they are used to in brick-and-mortar stores, where sales operate under slightly different rules.
What data to collect?
Sales in online stores depend on many factors. The most important factors are certainly the same as those found in brick-and-mortar stores, such as price and product availability. However, in the case of online sales, more technical aspects of the website also come into play, such as its speed, site navigation, and the availability of popular technological solutions.
The same applies to marketing activities – in brick-and-mortar stores, additional products are recommended at the checkout, while in the shopping cart, customers can be encouraged to add items purchased by other customers. When it comes to advertising, brick-and-mortar solutions rely on television and banners, which may not always catch the eye of a potential customer. Online advertising can be more effective – for example, remarketing allows customers to track undecided customers and remind them about the store and products they previously viewed.
Customer information and the ability to track them emerge with the implementation of solutions that analyze customer behavior. Most of these solutions rely on data provided via cookies—cookies that identify users and their computers, store preferences, and play a crucial role in compiling online activity statistics.
Data is collected using appropriate software – Google Analytics clearly dominates here, without which e-commerce analytics wouldn't be the same. The database can be extensive, and the records can be very detailed, such as user age, gender, location, and language. Reports can also provide information about their interests. Other collected information concerns more technical elements – such as the operating system and browsers used by your potential customers.
Collecting and tracking results and comparing them allows us to obtain quite detailed information about who visits our websites and:
- from which websites do users come to the website and – in a broader context – whether SEO activities are effective,
- how long they spend reading posts and which ones are the most popular,
- what products are most often purchased together,
- where a customer most often abandons a purchase in a store,
- how many sessions does it take to complete the transaction.
For detailed website and e-commerce analytics, it is also worth using other tools, such as:
– Semstorm,
– Senuta,
– HotJar,
– Crazy Egg,
– Optimize Google.
How to use the data?
Collecting and analyzing data isn't enough. Identifying where our business is losing or failing to realize its potential is the real value that must be translated into concrete actions. Ecommerce analytics makes this possible.
Information collected by Google Analytics and other tools should be considered in many online store processes, including website design. Analytics is also essential during UX processes, especially during the optimization phase of ready-made solutions. The data is also useful for planning marketing activities and troubleshooting website issues.
A website tailored to the user
Designing and reviewing implemented changes allows for increased website accessibility and easier user navigation. Simple paths and easy access to information also work well for online stores. A large number of unclear categories or a chaotically designed customization form can frustrate customers and ultimately lead to them abandoning their purchase. Difficulties completing a purchase sometimes lead to choosing a competitor—even if their products are more expensive. Monitoring all steps leading to the completion of the purchasing process allows you to identify the moment when a customer abandons the process and design it in a way that improves the user experience.
From a UX and website design perspective, information about the devices users use will also be valuable. If mobile traffic predominates, it's crucial to ensure the page is properly designed and sized – not only to accommodate smaller screen sizes but also to accommodate slower network connections. The hours your customers visit your site can also be important – some night-time visitors will undoubtedly be delighted by the option of using the dark mode option.
Marketing – on familiar terms with analysis
Google Analytics and related solutions are the foundation of every internet-focused marketer's business. This is where they gather information about users—who they are, where they come from, and what interests them. These tools allow them to identify the content that engages them most and the content that doesn't generate much interest. In the case of newsletters, for example, tracking codes allow them to monitor how many emails were actually opened and whether recipients decided to click through to the promoted websites.
Knowing your users and dividing them into more or less engaged groups is useful when setting up Google Ads campaigns. Increasing your spending on a specific group can yield better results than advertising to everyone.
Analytics allows you to create events and goals, making it much easier to measure the effectiveness of your marketing efforts. Additionally, Google Analytics offers dedicated e-commerce reports, which provide a broader perspective on your store's sales.
Creating goals is one of the elements of building an effective marketing strategy, especially if created in a SMART way:
- Sprecise,
- Mimmortal,
- Atraction,
- Rrealistic,
- Tdeadline.
This methodology allows you to create realistic goals, the achievement of which can be monitored using Google Analytics. Goals can be set based on what works best for a given store.
When analyzing problems with conversions (i.e., meeting goals), it's worth asking yourself a few questions... or rather, one question, only a few times. "5 whys" is a method that allows you to effectively drill down and pinpoint the root cause with a single question. Answering subsequent questions, for example, "The most popular product has stopped selling. Why?" "There's an error on the website and you can't add it to your cart. Why?" " The recent update changes were poorly implemented. Why?" " The pressure to implement changes was too great, and accelerating the process was achieved at the expense of testing." Why? " IT department investment is too low, and its lack of investment impacts the quality of the entire store."
Analytics in e-commerce – react to changes!
Keeping your finger on the pulse – even through tracking within your website – significantly facilitates a quick response to potential issues. For example, a sudden lack of conversions or cart abandonment may indicate issues with a specific page – for example, a significant slowdown or a technical error preventing the transaction from being completed. Identifying the problem quickly saves time and money.
Analytics in e-commerce – where to get knowledge?
A good place to start basic analysis of your online store is by implementing Google Analytics tracking code. Learn how this tool works and how to set your own goals from official Google resources:
- Google Analytics for Beginners,
- Google Analytics for Advanced Users
- Google Analytics 360 Package – Getting Started
- Google Tag Manager Basics
The courses consist of several lessons with instructional videos. Unfortunately, the training materials and the course itself are only available in English.
- You can also learn about your first steps with Analytics this pageMost content in the support subdomain is available in Polish.
If you're planning to delve deeper into the basics of e-commerce analytics, especially Google Analytics, we encourage you to take advantage of the courses—in Polish! —available on our training platform . You can also find the basics of Analytics in our guide, " Google Analytics Basics ."
Basics of e-commerce analytics
Investing time in your own development and developing your skills is never wasted. When it comes to business, a different – more analytical – perspective on the world of purchasing will allow you to uncover subtleties that will help your store grow and achieve real profits!
Failure to implement analytical tools and actively use them is simply a waste of money. Don't risk it – check out our guides today!
Summary
The above article covers the following topics:
- The role of analytics in making strategic decisions in an e-shop
- What information do you need to collect to accurately assess e-commerce performance? Data analysis
- Using data to forecast trends and demand. How?
