Data Analytics – the Secret to a Growing Ecommerce Business
Over the past few years, companies selling products online have experienced tremendous growth. However, the flip side of this growth is that competition is also increasing and retailers must understand all dimensions of ecommerce strategy to stay on top. Brands need to capitalize on this opportunity by using data analytics that allow them to ensure greater inventory availability, forecast risk, and optimize their strategies to reach target audiences with greater precision. It’s important to know what’s important to track and how to best use the data to make informed strategic decisions for growth. It is crucial to have a holistic view of the e-commerce market and to keep an eye on hygiene and growth measures in all the markets where a brand seeks to develop its business.
India’s e-commerce industry is valued at US $ 81 billion and is expected to reach US $ 200 billion by 2027 (Statista). Brands are seeing double-digit online sales, especially when it comes to selling fast-moving and essential products, which saw tremendous growth during Covid. While some categories are rapidly growing, others, such as clothing and luxury goods, are struggling to thrive in these unprecedented times. What many brands fail to realize is that they have yet to fully exploit the capabilities of these online marketplaces.
The number of online shoppers has grown dramatically, expected to reach 220 million by 2025. The expansion of technological advancements provides consumers with convenient access. Growing consumer awareness and changing lifestyles have led to the expansion of the e-commerce industry, making it a prime destination for brands looking to expand their reach. Brands often hear about incredible e-commerce success stories and wonder what they’ve done differently. Here are some important points to keep in mind –
● E-commerce platforms have changed the way people shop. This trend has shifted to mobile shopping, with over 83% of consumers shopping on small screens rather than computers. The customer experience for content and targeting must be shaped accordingly.
● Zero moment of truth refers to the buying process when the consumer researches a product before purchasing it. Nowadays, customers prefer to search on e-commerce platforms than on search engines. 62% of Indian users start their product search on Amazon, while others use multiple platforms for their search (Amazon advertising report)
● Up to 56% of shoppers expect product availability to determine their affinity with buying brands (think with the Google report). Many big brands, despite dominating the offline market, are falling behind the competition in the online market. Is it enough to be present on these marketplaces? Or do they need to have a broader perspective before they truly become industry winners? These brands are still struggling to establish themselves in e-commerce due to their conventional approach and the underestimation of the importance of selling products on the internet. While others who have started to take advantage of these online platforms and have taken their first steps towards Omni Channel growth, are still missing many aspects. Competition from smaller brands, order fulfillment, customer experience, visibility, returns, finding the right markets and increasing marketing spend are some of the factors holding them back. There are also plenty of brands out there that have it all. From the right talent to sufficient ecommerce budgets, they have it all on their plate. What they lack is the ability to use those resources to the fullest.
We discussed how a customer’s buying decision is affected by several factors. Here are some things that brands should consider when developing an e-commerce strategy:
1. Eliminate lost sales by avoiding out-of-stock cases
When consumers repeatedly see a product out of stock on a product page, it prompts them to turn to competing brands. As a result, 42% of customers cited limited stock as a primary concern that prompted them to switch to brands other than their initial preference. Additionally, brands that have a large portfolio across multiple platforms may experience issues with manual inventory tracking. By the time they can consolidate the reports of the various channels, significant sales losses and a shift of customers to competing brands would have occurred.
Using channel intelligence tools to track and analyze inventory, sales, buy box, sellers, and inventory status is essential for identifying sales trends across zip codes and channels, plan events and seasonality, and optimize fill rates to reduce your lost sales.
2. Prices and promotions play an important role in selling products online.
A survey by 10S found that 78% of customers made purchases solely on the basis of offers and promotions, and 71% of them cited rebranding in search of a better coupon. There are thousands of brands listed across multiple ecommerce channels, and to be on top a brand needs to know what their competitors are doing, especially when it comes to the prices they are offering their customers, the promotions they are offering to their customers. they suggest and how often they make changes.
Therefore, tracking competitor prices and promotions to better understand their strategies and ensure that the correct discounts apply to their own products while reporting any deviations from the plan is essential for identifying and designing more competitive campaigns. and make better use of available budgets. .
3. Reviews are a gold mine of customer feedback and dramatically affect a brand’s online reputation.
Reviews have a substantial impact on a buyer’s consideration journey through the search and buy funnel. Customers expect brands to respond within two days. When brands use each comment constructively to shape the customer journey, it shows that they care about their customers, increasing their chances of retaining them. Brand managers need information to help them develop a solid strategy to give customers what they want and maintain their reputation online. But when your presence is on multiple channels, it becomes difficult to analyze scattered data.
This is where detailed sentiment analysis can help, a technique where you use natural language processing (NLP) OR machine learning to infer consumer sentiment from their comments / reviews. With it, brands can access all the information available across multiple channels and receive relevant and valuable data on customer feedback on price, delivery, product, packaging, performance and quality. It is also crucial for brands to identify areas in which their competitors are outperforming them so that they can take swift action to maintain their brand’s position in the market.
4. The product detail page is more than just an SEO tool.
Your eCommerce product page is your storefront and your seller. If it doesn’t look good or has some missing content, that won’t encourage the customer to stay or make a purchase.
Regular content audits play an important role in quickly identifying and correcting deficiencies in product display page content, against industry benchmarks and brand guidelines. It can provide comprehensive dashboards that indicate whether the information displayed is correct and complete to improve discoverability and purchase of your products and highlight gaps that need to be addressed.
The mobile search industry has dominated its desktop counterpart for some time. 71% of consumers say they are likely to complete the purchase via mobile. Sellers need to make sure their content is optimized for mobile search in order to increase revenue, otherwise traffic to the content will be limited and inefficient.
5. Research is one of the most important touchpoints for brand visibility and customer accessibility.
In fact, 60% of visitors to Amazon India never go past the first page of search results. With more than 100 million product-related searches performed daily on platforms like Amazon, a brand must keep an eye on the search terms (keywords) on which it gets maximum visibility and take into account various aspects such as:
o How do products rank when searched for these particular keywords?
o Does this change over time or does the brand need to change keywords regularly?
o What types of keywords are used by customers and competitors?
o What should be the proportion of branded and generic (non-brand) keywords in the brand’s keyword group?
Identifying search metrics is essential for brands because it tells them how well online visibility they get when a customer searches for their product; Also, it helps design keyword bidding and planning strategies. By tracking the percentage share of each keyword and category in the top 20 search results, the brand will be able to understand how much share it has compared to the competition and whether it has enough percentage share to leave an impact on the competition. customer mindset for higher conversion rates.
The right tool can help brands analyze a wide range of data including conversion rates, product visibility, SKU availability, product categories, and more to design business strategies. However, just tracking these metrics is not enough, brands need to analyze them and cross-reference them with sales, advertising and competition data. A comprehensive overview of all key metrics and how they affect each other can help a brand make strategically sound decisions to accelerate growth.
The opinions expressed above are those of the author.
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