Businesses around the world want to improve on their products by adding exciting new features and jettisoning the ones that aren’t successful so that they can get more items to check out.
Most of the time companies tend to go with their intuition or the most vocal customer comments when making decisions.
However, that gut feeling is no match for analytics and metrics when it comes to getting more quantifiable insights on customers and their purchasing behavior. Here are a few ways in which analytics can boost your product:
Acquiring more customers
To get more leads in your funnel, you need to understand the process of customer acquisition. How do the visitors behave and where do they come from? Are you making any undue assumptions? Have the rules of the game changed?
Collecting funnel and path data allows engineers and product managers to make better decisions about any enhancements that need to be made and how to offer more suitable products. That is a sure fire way to increase the conversion rate.
Timing of conversions
Timing plays a crucial role in successful conversions. So your visitors linger on the page before they decide to buy for something? Or, do they make up their minds instantly? Do they go through the category pages and shop around before they enter product specific pages? Knowing when your customer convert can give you a good idea on where and how to add a chat service, pop-ups or whether you need to remove distracting items or even change the design.
Using an analytics tool can lend more insight into the pool timing of visitor behavior in your store. You can get an exact read on the timing of specific visitors and their behavioral patterns.
It is not very different from your local car dealership. One customer might be in a rush to buy a car and the salesman would go for a hard sell. Another might have all the time to spare and respond more favorably to a relaxed approach.
A better understanding of timing analytics can have a favorable impact on customer conversions and their overall experience.
Better product hierarchy
Are you placing your products in the correct location on your website? How do you know? Product-based analytics can show you which products get the most impressions on the home page, the category pages, and on individual product pages.
Often times we can never guess which products our customers want more simply based on how many times it has been purchased. If there is a high demand product buried on your web store, product analytics can help you get it in front of your customers faster.
Whats more, if you see a product has a lot of views and few conversions, you will be able to make better decisions about why. Is the product description out of date or off-putting? Does the product image need to be improved? The sooner you can identify these problems the better.
Breaking up the users on your site into segments allows for smarter targeting of products and messages for better ROI. Identifying types of consumers makes it clear as to where the opportunities exist for upselling and where you might be losing certain demographics.
Sometimes the people we thought would like our products are actually not the ones who buy them, especially in the fashion industry where trends and styles change overnight. By analyzing who your customers are and distinguishing between them, you can employ custom solutions to fit all needs.
Product and channel segmentation
Just like segmenting users, your products themselves should be segmented and analyzed for better benchmarking and decision making. If you sell things in your own store and through other online retailers, analyzing product performance is a slow-motion nightmare.
Analytics that allow you to collect product information across online channels and then lets you differentiate between those channels and product groups will let you understand which products work best where. Is there a specific color that sells best overall? Do some of your retailers always run out of the same sizes? Did your spring collection perform as well as you hoped?
Segmenting products by variation, collection, or category and then by channel can make your product development less of a guessing game.
Analytics for better conversions - Take aways
It is time to invest in your customers through analytics. The good news is that analytics software exists that can give you actionable insights and turn you into an data driven business owner.
Without immediate and measurable results, competing in ecommerce becomes a lot more difficult. Most important of all, it drives a much better user experience and that makes all the difference in the world.