By incorporating analytics in the e-commerce business, organizations can make more informed decisions, improve their customer service, make their operations more efficient, and effectively leverage their marketing campaigns. Business analytics uses data mining, predictive analysis and statistical analysis to transform raw data into meaningful output so that business owners can make smarter data-driven business decisions.
The benefit of business analytics
Business analytics gives you a high-level, holistic view of your business. It allows top management to see which sections of the company are lagging or not performing at their optimum level and take appropriate measures to bring them on par with other departments.
Here are a few other benefits of implementing analytics in business:
Helps keep business expenses within budget: Poor management of business expenses can make or break any business. Businesses that don’t know how to manage expenses are not in a position to expand, take advantage of available investment opportunities or even complete their projects within a stipulated time. Business analytics enables C-level executives and finance teams to compare their expenses with their budget and draw the line for expenses if they are going beyond the allotted budget.
Improved decision making: Accessibility to critical-business data gives a company the power to make a decision that can leverage the company’s resources more effectively. Business analytics provides an organization with meaningful and relevant data to make more accurate data-driven decisions in a fast-changing environment.
Increases customer acquisition and retention: Business owners and marketers can use business analytics tools to monitor and manage customer behaviour. This data gives businesses insight into how their target customer behaves and thinks. Such insights help companies make better marketing strategies and plan to promote their products or services, thereby driving more traffic to their business website.
What exactly is analytics in marketing
Analytics in marketing is the process of garnering and studying metrics data to measure the company’s performance and efficiency of various marketing campaigns. The data thus collected gives businesses valuable insights into their consumer behaviour and patterns, regional preferences, creative preferences and much more. In addition, marketing analytics lets businesses identify new opportunities, channels and markets, monitor trends over time and predict future results based on historical data.
Application of analytics in the e-commerce industry
Making supply chain robust and resilient: For businesses to succeed in e-commerce, they need to make their supply chain more robust and resilient. It can be done by managing the product data from the warehouse to get the product into the customer’s hands. E-commerce industries extensively use supply chain analytics to manage inventory and streamline their supply chain.
Analyze information to detect fraud: Analytics plays a vital role in the early detection and prevention of fraud. It combines analytical technology and techniques with human interaction to detect fraudulent practices such as improper transactions or bribery before or after the transaction. In addition, since fraud analytics can identify new patterns, trends, and scenarios under which fraud can occur, it warns the business owners if the transactions deviate from the usual pattern.
Predicts what’s in store for e-commerce businesses: Predictive analytics helps e-commerce businesses determine future market trends based on factors such as the size of the transaction, the season, category of products etc. It uses automated machine learning, data mining and AI techniques to create a predictive model which can be used to forecast the demand for certain products or services. Such analysis is useful in determining the magnitude of sales for such products that would take place in the future so that e-commerce merchants can adjust their inventory level and develop a marketing strategy keeping in mind the target audience for these products.
Measure the success of marketing campaigns: With web analytics in marketing, the business can truly see how effective their marketing campaigns have been in user engagement, capturing leads, conversion and brand recognition. Web analytics can tell business owners how many visitors have visited their website, where they come from, what they are doing and how much time they spend on their website. By analyzing these data, businesses can know the effectiveness of their marketing efforts, find problems in them and formulate better decisions.
Fine-tuning and personalizing marketing strategy: Google analytics allows e-commerce retailers to track various dimensions of users such as where they come from, what they are browsing, how much time they spend on the website, their demographic characteristics and much more. By knowing this information, e-commerce business owners can fine-tune and personalize their marketing strategy. Besides this, they can also restructure their product landing page to engage customers of a particular market segment and entice them to purchase.
Your Retail Coach (YRC) is a retail consulting company offering a full spectrum of services to companies in retail & ecommerce ranging from business plan writing, Standard Operating Procedures writing, developing KPIs & KRAs for each function & position, Software evaluation, etc. Developing a blueprint for business is the first step towards incorporating analytics in any business. To know more, schedule a consultation call with a YRC Expert today !