It started out as a Gap Analysis for eCommerce clients, it evolved into creating entire eCommerce eco-systems for our client’s performance marketing.
Before any “shop” can scale up their revenue it is imperative that key foundations are in place. In my opinion this all starts with proper website tracking and digital channel tracking in place. Surprisingly we have found that this is where most eCommerce companies have found wanting. So why is tracking so important for your eCommerce business:
1. Improve your User Experience
- Tracking HOW your users are using your website helps you identify where you can improve the experience for your potential customers.
- Example: if a high number of users are abandoning their shopping carts, you can analyse WHY this is happening (we once saw that there was a higher abandoned rate when a user’s basket size was lower than the min. for free shipping) by knowing solutions can be implemented.
2. Gain a better understanding of your customer
- By understanding your customers behaviour & preferences you can personalize the shopping experience, recommend products, and create targeted marketing campaigns.
- Example: Users that come through an Apple device outside of a metropolitan area has a lower cost per conversion due to no brick & mortar stores available in their area = less competition & a higher conversion rate. Run special campaigns to outside areas pulling in “online-only” products.
3. Build your sales funnel
- Most sales on online stores are from Returning Visitors. While tracking the sales on your website is extremely important it is equally important to track users that are showing interest in purchasing from you in the future. By tracking these high-intent actions that a user takes we can remarket to these users through a variety of marketing channels
- Example: Tracking users that have added a product to their cart you can remarket to these users via Email Marketing, Social Media Ads and Google Ads
4. Better inventory management
- A major success of eCommerce websites is having the right inventory in stock at the right time to meet customer demands. It also helps reduce the risk of overstocking or stock shortages. By tracking and analysing your sales data you can make informed decisions about your inventory.
- Other tracking metrics that can assist here is seeing demand via Google Search Terms report as well as what users are typing in your on-site search bar.
5. Shine light on potential new markets
- We all go through “that” exercise. Where we describe our target market based on who has been buying from us and our assumptions. What we have seen is that data has allowed our clients in identifying markets they have not even thought about 😉 These are generally untapped markets with very little competition and a great return on marketing spend.
- Example: by pulling a location report it was noted that neighbouring African countries have a higher conversion rate than South Africa
6. Enhanced Marketing Campaigns
- There are multiple touchpoints before a potential customer converts to a paying customer. The last “touchpoint” is not the only important part of the sales funnel. The right tracking will allow you to understand which campaigns/channels are starting, nurturing, or closing the sale for your business.
- The right tracking allows for better targeting and more effective marketing campaigns. Ensuring less wasted spend and in turn a better return on your marketing investment.
- Example: Google Shopping Ads are showing zero sales but when looking at the full path to purchase we see that it has the highest return of starting the sale.
By having these valuable insights eCommerce companies can increase their online conversion rates and see higher revenue.
*phew so all this info… where does one even start? We believe in starting with a Tracking Audit. This looks at 2 elements:
- What is currently in place?
- What needs to be in place?
Once we understand these 2 elements we can build a roadmap on how to get from A to B 🙂