Ecommerce Analytics Playbook: A Step-by-Step Guide for Online Retailers

The good thing about ecommerce analytics is there is a lot of data. The bad thing about ecommerce analytics is there is a lot of data.

But don’t worry! We’ve put together a step-by-step guide on how you can start approaching your ecommerce business from a data-driven perspective.

eCommerce Analytics 101

The good thing about ecommerce data is there’s lots of it. Sales trends. Shopping cart activity. Marketing performance. Customer demographics. Browsing and buying behavior. The list goes on.

The bad thing about ecommerce data is there’s lots of it. And data generates more data, which in turn generates even more data. And it can be unwieldy – in some cases, it can be outright intimidating.

Nonetheless, when you manage to gather, visualize, and analyze all of your crucial ecommerce data, it becomes an unparalleled tool for growth.

So, what exactly is ecommerce analytics?

Simply put, it’s the process of gathering all the different information related to your ecommerce activities and placing it under a microscope.

It involves integrating all your data into one place, building dashboards and reports so you can visualize the data, and then analyzing the data to gain actionable insights into your business.

Key ingredients for ecommerce analytics

What do we mean by actionable insights?

Well, a bunch of random numbers shown in a nicely designed dashboard won’t help you win more customers. But, by understanding what the numbers are telling you, you can make timely effective decisions that will support the growth of your business.

For example, with the right data at your fingertips you can:

  • Understand which channels are bringing the most customers – and optimize your marketing budget accordingly.
  • Learn which groups of customers spend the most and what they are spending their money on – and target them with specific offers and sales.
  • Reveal which customers are least likely to make a second purchase and why – and develop an appropriate customer retention strategy.

Most importantly, all of these insights will be based on real data. Hard numbers and facts instead of costly guesses and estimates.

Ecommerce analytics – get ahead and stay there!

To achieve all this, however, you first need to identify which metrics are the most crucial to your ecommerce business.
And that is the next step in this journey.