February 14, 2023
Make or break your ecommerce business with this non-negotiable
Data, it really is everywhere. Whether it’s indicating how many spaces are left in England’s “smart” car parks or tracking at-risk snow leopards in Tajikistan, the use of data is prevalent in almost every domain of life these days.
It might be complicated, but we should never shy away from its utility, especially when it comes to ecommerce.
Successful ecommerce efforts are almost always driven by businesses drawing on data properly.
Reliable data always features heavily in these case studies, having been captured by the right tools.
Ecommerce decisions should never be made upon assumptions. Instead, they should always be based on what the data tells us.
Your marketing, order management and supplier relationship should always champion data tools and the information they produce.
But what does this look like?
From GoogleAnalytics through to “purchase to return rate”, this blog will cover the key tools and metrics to look out for when navigating your ecommerce multichannel business to success.
Marketing tools and metrics
Marketing is one of the most data-intensive areas of ecommerce.
From analysing customer behaviour and demographics to measuring the effectiveness of advertising campaigns, data is essential for developing effective marketing strategy.
Common marketing acquisition tools include Google Analytics, Facebook Business Data and Google’s AdWords.
These tools allow businesses to gain insights into customer behaviour and demographics, track website traffic, and measure the effectiveness of advertising campaigns.
By using data to gain insights into customer behaviour, ecommerce businesses can target their marketing efforts more effectively, resulting in higher conversion rates and increased sales.
Google Analytics is one of the most widely used marketing acquisition tools and is an essential tool for ecommerce businesses. It provides a wealth of information about website traffic, including the number of visitors, where they come from, and how they interact with your website.
By tracking this data, businesses can identify trends and patterns that can inform marketing strategies, such as which pages are most popular, which products are most frequently viewed, and which marketing campaigns are most effective. Additionally, Google Analytics provides insights into customer behaviour, such as how long visitors stay on your website and which pages they view.
Updates have been rolled out to ensure that users have access to the latest and most advanced features. Google Data Studio, a powerful data visualisation tool, and Google Lighthouse, an automated web performance audit tool, are now available to all GA3 users. These tools allow businesses to better understand their data, identify trends and patterns, and make more informed decisions.
With GA4 just around the corner, there’s never been a better time to embrace the extensive tools on offer by tech giants Alphabet.
Meta Business is another important marketing tool for ecommerce businesses. It provides detailed information about your Facebook ads, such as the number of clicks, impressions and conversions. In addition, it allows you to segment data based on demographics, such as age and gender, which can inform marketing strategies. For example, if you notice that your ads are performing better with a certain demographic, you can target your marketing efforts more effectively to that group.
Google AdWords is a popular marketing acquisition tool that allows businesses to track the performance of their Google ads. It provides detailed information about the number of clicks, impressions, and conversions, as well as data on the demographics of the people who click on your ads. This information can help businesses identify which ads are performing well, and which are not, so they can adjust their strategies accordingly.
Order management is another key area where data plays a crucial role. The power of data in OMS (order management system) allows businesses to track customer orders and analyse data.
This can help businesses optimise their processes to ensure that orders are fulfilled quickly and efficiently.
What’s more, data can be used to identify areas where businesses can improve their order management systems, such as reducing order processing times or improving inventory management.
When it comes to order management, the most important metrics to consider include:
Order fulfilment rate: The percentage of orders that are fulfilled on time and without errors. A high fulfilment rate indicates that the business is efficiently managing its inventory and shipping processes.
Order processing time: This metric measures the time it takes for an order to be processed, from the time the customer places the order to the time it is shipped. A low processing time indicates that the business is efficiently managing its order management processes.
Inventory turnover rate: The best way to find out how quickly a business is selling its inventory. A high turnover rate indicates that the business is effectively managing its inventory and selling its products at a good pace.
Shipping cost per order: This metric measures the average shipping cost per order. A low cost per order indicates that the business is effectively managing its shipping processes and minimising costs.
Purchase to return rate is another important metric to consider when it comes to order management. This metric measures the percentage of purchases that are returned by customers. A high return rate can indicate a variety of issues, such as poor product quality, inaccurate product descriptions, or a lack of customer satisfaction.
By monitoring this metric, ecommerce businesses can gain insight into the reasons for customer returns and take steps to address them. For example, if the high return rate is due to poor product quality, the business may need to improve its quality control processes or seek out new suppliers.
If the high return rate is due to inaccurate product descriptions, the business may need to improve its product listing or provide more detailed product information.
With the right OMS and technological integrations, your business can access all the insights essential to success and scalability.
Data is also vital for managing relationships with suppliers.
By keeping track of supplier performance and inventory levels, businesses can ensure that they have the right products in stock at the right time.
Data can help businesses identify areas where they can improve their supply chain processes, resulting in greater efficiency and cost savings.
Shipping management is one area where data can be particularly useful. By tracking shipping data, businesses can identify patterns in shipping times, delivery routes, and inventory levels. This can help businesses optimise their shipping processes to ensure that orders are delivered on time and at the lowest possible cost.
Data can also be used to identify potential shipping bottlenecks, such as ports that are frequently delayed, so that businesses can take action to avoid them.
Finally, reporting data is an important aspect of managing supplier relationships.
By generating detailed reports on supplier performance, businesses can identify areas where they need to improve, such as reducing lead times or improving inventory management. Data can also be used to identify opportunities for cost savings, such as negotiating better shipping rates or identifying new suppliers.
Harness data in 2023…
Data is essential for the success of ecommerce businesses and its importance for ecommerce businesses will continue to grow as new technology is rolled out in 2023.
By effectively managing and relying on data, businesses can gain valuable insights that drive marketing efforts, improve order efficiency, and optimise supplier relationships.
As your ecommerce business continues to grow and evolve, the utility of data will only increase… As a result, making data management an essential part of any ecommerce strategy will be essential to success..
With the right tools and a data-driven approach, businesses can turn data into a powerful competitive advantage.