In 2018 alone, over 2.5 quintillion bytes of data were created every single day. Now, for those who aren’t all about eCommerce data analytics like us, we can assure you that number is pretty impressive!
But how exactly can use make the most of all that data and improve your eCommerce store? This article will run through 5 ways you can use data analytics to supercharge your business (if you’re not convinced yet, we’ve written an article showing you the benefits of data analytics).
Let’s jump into it.
1. Optimize Conversion Rate by Shooting Pop-Ups Precisely When Users Need a Push
By using Verfacto’s data analytics tools, your site will automatically match customer behavior to past customer data trends by using data-driven marketing pop-ups. If Verfacto detects that a user is falling into a pattern of a typical user that is about to click off your site, it can then launch a pop-up.
These pop-ups could offer a small discount on a product a user has recently viewed. Due to this, their attention will be recaptured, ensuring they stay on your site.
If a user spends more time browsing your product, the chance they add something to the cart and check out will dramatically increase.
2. Use eCommerce Data Analytics to Offer Support When Needed
There is nothing worse than logging on to a website and getting an instant chat pop-up. Straight away, a pop-up blocks the screen and draws your focus away from the website.
That’s not to say that all pop-ups are bad – they’re often just utilized incorrectly.
In fact, pop-ups are very effective marketing tools. Not only will your users be able to ask your team questions, but it’s also a great way of giving the customer additional information about products.
To make the most out of pop-ups, Verfacto tracks the amount of time a current user’s session has been going for. Let’s say that the average non-bounced user leaves your site after 6 minutes. Then, during that time, but not too early, Verfacto will push pop-ups onto your customers’ screens.
By timing this correctly, you won’t interfere with their first moments on the site. Instead, only when they’re likely to want or need extra information will the pop-up arrive. This delayed arrival further increases the level of comfort your users have on your website.
As they are most likely to need a pop-up, one will arrive – and not a minute earlier!
3. Offer Product Recommendations Based on Customer Behaviour
Verfacto’s powerful customer segmentation allows you to filter your customers by personality type. One of the most useful of these is ‘Trendy Buyers.’ These are customers that enjoy new products or limited edition launches.
By offering your newest ranges and individual products to these customers directly, you’re more likely to boost engagement and sales from this segment. A trendy buyer has a history of buying new products, meaning that your new products are something they’ll flock to.
By using Verfacto’s user segmentation, you’ll be able to target these users specifically. Using behavioral targeting will ensure Trendy Buyers see your products and have an opportunity to browse through them.
This initial step of connecting the correct customer type to products they will like will boost your sales and create a wave of intrigue around your new products.
4. Give Something Back to Your Most Loyal Customers
By calculating the LTV of your customers on an individual basis, you can build up a picture of which users are continually coming back and purchasing on your site. A higher LTV is a sign of a returning customer, this metric taking into account all of their purchases on your site over time.
By monitoring your data analytics and finding these customers, you can give a little something back to them. You could send them a small discount for a future purchase as a way of saying thank you. Alternatively, on their next order, you could waive the fee for shipping.
Small actions like these cost relatively little to your business. However, the effect they can have is enormous. Your most loyal customers will feel looked after by your business, inspiring a sense that this website accommodates directly for them.
Being recognized as a loyal customer and being rewarded for it means that those users are likely to continue with this reliable behavior. Although you may spend a few dollars on giving a gift or discount to a customer, this will be nothing compared to ensuring their continual support over time.
This tactic is why loyalty schemes work so well. By giving up a small portion of your revenue every 5 or 10 sales, you’ll be guaranteeing more long-term customers.
5. Use eCommerce Data Analytics to Work Out If Discounts Are Worth It
Have you ever been about to hit that checkout button when all of a sudden a discount pops up on your screen? You still finish checking out, but you use the coupon the site gave you to save yourself a few bucks.
This situation hemorrhages money for businesses. An untargeted approach to giving out discounts is a significant setback to your sales. It decreases both the AOV and the average customer LTV over time.
Instead of randomly giving out coupons, use data analytics to work out if they’re actually needed.
When you launch a new product, run A/B testing on your audience. While one half may have access to a small discount, the others would have to buy for the full price.
Once this campaign has run for a period, you’ll be left with a new set of data. Most likely, there will be more sales on the discounted side. However, this does not necessarily mean you should give out discounts for your product.
Instead, calculate if the total amount of money you discounted is larger than the difference in total sales of the two data sets. If it isn’t, then the additional customers from the discounted section make running a discount on this product worthwhile. If you ended up discounting more money than the difference between A/B, then you know not to use coupons on this particular item.
By using a data-driven marketing tool like Verfacto, you’ll make it easier than ever to incorporate eCommerce data analytics into the daily life of your business. In no time at all, you’ll be supercharging your sales, boosting engagement, and increasing your customer satisfaction (see more about data-driven marketing benefits here and find out the most recent trends for data-driven marketing here).
If you want to unlock the power of data, then get started with Verfacto’s one-month free trial today!