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Adopt ecommerce analytics before Black Friday. Here's why

August 22, 2016 / by Emma Kobylenski

If you have been considering adopting an ecommerce analytics strategy, you should get going. The biggest sales days of the year are coming for online purchases and you need to be ready.

The earlier you adopt the better, and here's why:

 

You don't want to overwhelm your team

Last year the holiday numbers for online sales looked like this:

Online Sales Graph Holiday Season 2015

That amounts to $8.31 billion in 30 days time, and it does not include the post-Christmas sales that carry on into January.  Long story short, things are about to get very busy for your team. It would be unwise to spring a new, potentially complex tool on them while they are trying to get everything together for the holiday season.

Deciding what tool will be accepted with open arms requires you to choose something relevant. There are so many analytics tools on the market, that choosing incorrectly could overwhelm your team and create unproductive resistance. To find a tool that fits your teams needs,  ask yourself these questions:

 

What is the main reason you want to adopt an ecommerce analytics strategy?
Be specific.

Examples: Inventory control across online channels, shopping cart abandonment, user experience on your product pages, specific product performance, customer engagement on your homepage...etc

 

What can you measure in order to achieve your main objective? aka: What metrics do you need?

Examples: conversion rates, cart abandonment rates, customer acquisition costs, page views, versions of marketing copy, product impressions, customer lifetime value, average order value...etc

 

From here, you can make a better decision about what kind of tool you need, and assess other objectives and metrics that make sense. Taking it piece by piece will give you a better foundation to motivate your team to a new adopt ecommerce analytics tool.

Compare analytics tools

 

It only gets better

The earlier you adopt an analytics strategy the better. This is due to the beautiful fact that the more data you have, the clearer your performance becomes. Imagine data as a pixel. With one pixel, you cannot even begin to imagine the bigger picture that it composes. The more pixels you combine, the image becomes less blurry, and eventually becomes clear. The same goes for analytics.

Pixel

Adopting this year, means being able to compare performance next year, and the next. The big, clear picture you get from collecting data about your business is the key to success.

You can pinpoint spikes in sales and say "Why did this happen?" or identify patterns of shopping cart abandonment and ask, "If we change X, can we fix this?" As you collect more data, the comparison allows you to define better goals, control your inventory, engage customers differently, or merchandise more effectively.

 

You don't want to run out of stock

Using ecommerce analytics allows you to find trends and anticipate your customers future needs. This means you can control your inventory and avoid stock-outs. Did you know that starting on Thanksgiving stock-outs double? This will frustrate your customers if you cannot react fast enough.

 

Standing on a hoverboard What will be hot this year?

 

By collecting data about your product sales across your online channels, you can avoid potential stock-outs that would cost your company money. If you had last years numbers, it would be easier to prepare for and get ahead of any inventory hiccups.

 

Are you ready to adopt ecommerce analytics?

Let me stress this -- do not adopt new technology simply because it exists. Have a well-defined purpose that let's you make an informed decision, or you might end up frustrated instead of more productive.

That said, in the end, you know that the decision to adopt ecommerce analytics is a no-brainer. Find the correct platform for your business and it will unleash untapped growth potential.

Analytics empowers your company to identify patterns, monitor performance, and ask the right questions to make positive change. So why wait any longer?

 


 

Want to track product performance across your online channels, including third-party retailers? Product-level ecommerce analytics might be what your team needs. 

Learn more

 

 

 

 

 

Topics: Analytics, Ecommerce, Product Management, Tips & Hacks

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Emma Kobylenski

Written by Emma Kobylenski

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