E-Commerce Analytics to maximize ROI: Part 1

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E-commerce analytics is one of the more popular tactics that help ensure business growth and drive success. Almost all the important marketing decisions a business makes are heavily based on the results produced from these analytics. Around 66% of marketers agree that e-commerce analytics is crucial for the business to move in the right direction and thrive.

Let us look at the WHAT and WHY of E-commerce Analytics and its role in the success of your e-commerce store.

The WHAT and WHY of Ecommerce Analytics

E-commerce Analytics is a marketing tactic that enables companies to discover, interpret and communicate data patterns related to their business. They help measure user behavior, performance trends, ROI, etc., for the campaigns and make better business decisions to improve sales, cut costs and overall business development.

E-commerce analytics can be greatly beneficial for your online store in helping you organize and manage data in a comprehensive and useful manner and develop metrics that are crucial for continuously monitoring business performance. Data analytics will help focus on your store performance and its issues, and the performance metrics serve the purpose of identifying and solving these issues effectively and satisfactorily.

When undertaking e-commerce analytics, effective tracking is crucial to acquire accurate information about store performance and derive meaningful insights from the collected data. The many tracking touch points significant for an effective tracking process are data on website visits, product views, cart additions, and many more.

Few Key Analytics Metrics for ROI Maximization

  1. Conversion Rate Optimization (CRO)

Conversion Rate Optimization (CRO) is an important aspect of any website if you are looking to maximize its Return on Investment (ROI). If you aim for a successful business, you need to give greater attention to increasing conversions for your e-commerce store. Thus, a few tips and strategies will prove advantageous for your store in converting your visitors into customers. Some such strategies include:

  • Create effective landing pages as they set the first impression about your website to the users

  • Utilizing personalization technology gives a fulfilling and dynamic experience to the users


  • Providing the users with clear information with optimized and direct CTAsand button placements
  • Utilizing A/B TestingTools

 

 

  • Improving credibility among users through clear communication policies
  • Incorporating visually appealing images and catchy content boosts visibility and traffic for your store

 

 

  • Leveraging customer behavior data acquired through e-commerce analytics programs like Google Analytics to improve UI and UX.

All these above strategies can help businesses customize their online store in a convenient and effortless way for the users to navigate. And the easier it is for the users to find relevant products, the easier it will be for you to convert these users into loyal and credible customers.

  1. Average Order Value (AOV) Enhancement

 

 

 

 

Another important metric to consider for ROI maximization is the Average Order Value (AOV). Keeping track of the average order value for your business can, in return, maintain track of your profits and help manage your revenue growth and profit reporting. A few tips for improving the average order value for your business include:

  • Cross-selling a different product to go with the customer’s chosen product

 

 

  • Up-selling; To give an example, buy two and get one free

 

 

  • Volume Discounts for when the person is convinced to buy an addition of the same product by increasing the volume of the orders, thereby increasing order value

 

  • Shipping charges free for a minimum order price
  • Coupons and discounts motivate users to buy once and become regular customers.
  • Return policy if the customer is dissatisfied with your product and wants to send them back

Implementing these tips for your e-commerce store can help increase AOV for your business and ensure your customers keep returning after every purchase.

  1. Customer Acquisition Cost (CAC) Management

 

 

Customer Acquisition Cost (CAC) is an important metric that measures the cost of acquiring new customers for your business. The metric evaluates how much money goes into gaining a new customer for the company.

Evaluating the CAC helps determine the return on investment of the company’s customer acquisition efforts. CAC includes the company’s spending on marketing, advertising, and sales of a particular product. Tips to improve your CAC include:

  • Align your CAC strategies with customers’ buying preferences
  • Encourage and share customer feedback, thereby attracting more leads
  • Monitor performance on various advertising platforms to determine which marketing expense offers the highest ROI
  • Implement conversion tools such as Google Analytics and A/B Testing to analyze conversion rates and maximize conversions


  • Incorporate CRM software to improve customer relationships and build valuable relationships with buyers, meet their needs and expectations, and lower your CAC.

 

 

You can achieve maximum ROI for your e-commerce store by effectively implementing the above-mentioned tips and strategies. In the second part, we will dive deeper into the intricacies of e-commerce analytics and why it is important to employ them to achieve success for your Shopify Store!

Head to our website and learn more about our various services for growing your business. We provide a wide range of services. To avail of its benefits, all you need to do is connect with us, and we will take care of the rest!

 

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