India is the fast-growing market for the Ecommerce sector. Revenue from the sector is expected to increase from US$ 38.5 billion in 2017 to US$ 200 billion in 2026, due to ongoing digital transformation. Indians now shop for lifestyle and clothing products more frequently through e-commerce than ever before and the trend is bound to increase with lower data cost and variety of options. The e-commerce industry in India is presently valued at ₹ 72,000 crores. Incomes are rising, along with home values and stocks. That points to more income and more confidence to spend it. The consumer spending is projected to increase by 2.5% in e-commerce so the demand of ecommerce analytics.
Src – https://www.ibef.org/industry/ecommerce/infographic
Before understand the need of e-commerce analytics, it is required to understand its meaning first. Ecommerce analytics can be referred to any tool or strategy designed to analyze large amounts of data in order to produce actionable insights. Ecommerce generates complex, comprehensive datasets — particularly those related to client behavior. So, for a business it becomes a need for ecommerce analytics.
Now, how Ecommerce Analytics is going to help your business?
- Analytics will help you to understand sales funnel
- You can track visitor’s interaction with the website
- To understand your buyer’s persona
- To track ROI of each marketing platform and their performance
- Helps you to analyse effective website design and UX optimization and many more
Dave McClure, founder of Startup accelerator 500 startups, introduced the AARRR framework that explains the understanding of your customers and their journey on your website.
AARRR stands for Acquisition, Activation, Retention, Referral and Revenue
Acquisition– If we put simply, acquisition is acquiring new consumers. Whatever be the acquisition strategy, it is required to know how you attract and acquire visitors which is the first step of the sales funnel. How many visitors are coming? What kind of? What is their valuable activity on the website? What source of traffic has brought them?
Activation– When a visitor makes a first interaction with your website (signing up newsletter, product view, browsing products, add t cart or Wishlist) is called activation. At this stage, it is recommended to provide enough CTAs, check their conversion rate and improvise your strategy accordingly.
Retention– Just because your customers have purchased from you, doesn’t guarantee that they will again do it. Studies shows that it’s easier to retain existing customers than creating new customers. It is required that your customer retention rate should dramatically increase your profits. It can be done by focusing on increasing their loyalty and purchase intent. By giving coupon codes and loyalty points to the existing customers.
Revenue– This is the biggest sign of sales funnel success. Is that enough? Your goal is to increase revenue as well as AOV (Average Order Value). Export the list of customers with low AOV and encourage them to make larger purchase.
Referral– Referral can be word of mouth or sharing on WhatsApp or any other social media. Referral Rate is the metric that will tell you the rate at which a user refers new users.
Now, what are the tools that you should use to analyse the whole data of your website. You will find a lot of analytics tools available online. Though all tools are not same in terms of complexity, features, insights, accessibility and price. Some of them will give you the data insights, some will track the mouse movements, interaction with website and many other things. Along with managing the store, Shopify helps to analyse e-commerce business performance but to get the detailed insights of your business and behaviour of your website visitors, e-commerce experts rely on different tools/shopify apps. I have mentioned here few of the them that differ in many aspects but are important to get insights.
What are the best Ecommerce Analytics Tools to learn today ?
- Google Analytics – It is one of the most popular analytical tools. It is a web analytics service provided to Google to track each and every activity of the user. It uses a JavaScript code, combination of cookies and browsers to collect information from websites and provides you in-depth details of your visitor. It lets you measure your advertising ROI, time spent by user, real time users, sessions, source of traffic, etc.
Understanding of your customer’s behavior is a key to any marketing strategy. Google Analytics provides you valuable insights that can help you to shape the success strategy of your business. You need Google Analytics to make your campaigns more effective, to know more about your visitors (demographically and geographically), to study cause of bounce rate, to know what social platforms work for you, etc.
- Google Search Console – GSC is a web service provided by Google that helps you monitor maintain and troubleshoot your website’s presence in Google Search Results. It allows webmasters to check indexing status and optimize visibility of your website.
GSC helps you to maintain your site performance by resolving server errors, site load issues and security issues. Not just this, it helps you to know what keywords are working for your site, gives insights of your SEO performance, track your site’s mobile compatibility, etc.
- HotJar– Hotjar is a tool that reveals the online behavior of users. Hotjar actively records the visit of the user on your website. Hotjar initiates a Web Socket Connection which sends the information like mouse movements, mouse clicks, etc. to the Hotjar servers. Each event tracked is saved in the database using a timestamp which is later used to replay the events.
The site had a promotional banner directly above their Checkout button which garnered more attention. So, they moved the button a little higher, and this results in more CTA clicks.
The three types of Heatmaps you will see when creating a Heatmap are:
- Click and Tap
- Move
- Scroll
Hotjar gives you a clear and visual data points unlike other analytical tools that gives only data. It tells you whether your visitors are clicking your CTAs. It also provides on-page polls features with little popups that let you understand the visitor’s satisfaction. Recordings allows you to watch user sessions across your website that helps to know where users actually get stuck and abandon your page.
These analytical tools not only give you the meaningful insights for your future marketing plan but also helps to reshape and modify your existing campaigns to give better ROI. Understanding the metrics and making your strategy can be the most significant contributor in achieving your business goals.
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