E-commerce, unlike a physical shop business, where one can serve only a certain number of people – is different. Internet businesses find it that it’s necessary to rely on the numbers, whether counting the amount of visitors that come to the website or counting the amount of orders that have been made for a particular time period. Nevertheless, counting the website visitors, understanding KPIs and profiling the customers is harder in practice.
Today, analytic tools may process the information and present it through innovative analysis for a certain metric, let’s say number of visitors. They could segregate the traffic coming from social networking campaigns and the one coming from email advertising campaigns or from ppc campaigns. This is extremely helpful because businesses can find correlations between metrics and work to improve their businesses.
Marketing segmentation for e-commerce can be done on micro levels through analytics. For an example, with Gigrove Analytics, you can see how many visitors are accessing the web store that were referred through a social network. This kind of analytic tool offers actionable info for the marketing department and also gives details on the returns on investment of an advertising campaign as an example. With all of the metrics, the company may simply access the data about the potential customers and form strategies to convert them to buyers. They may create a product for the prospective clients based on which part of the world they’re coming from from as well. It could also be known that through that platform they reached – if it’s social network or an email, with more information about the website visitors, the e-commerce businesses can convert them into real clients and reap profits.
The question then arises: how to get purchase-oriented traffic for your web store? One of the most most important things that online businesses need to know is to understand behavioural attributes of their customers. Experiment and watch their actions before you press the trigger button. Define your marketing spending budget just after this. Look into your pockets. See how much could you afford to spend on marketing. Conversion metrics give you an idea of how well you’re capable of getting your visitors to purchase from you. This can happen in two forms: mainly because the visitor is coming nearly ready to purchase, or else, the visitor is coming from some 3rd party partner that offered a discount, but isn’t really that keen into buying.
Both these scenarios have different results. Similarly, each web store would have its own rate of conversion. As an example, for elite e-commerce sites, with the luxurious products, the conversion rate might be around 0.03%. Again, it depends upon your site completely. You could gauge your rate of conversion through this metric. The sales metrics might vary in accordance with the nature of your e-commerce website. There are sites that sell their very own products, whereas there are other that resell goods or services.
Knowing your KPIs
The advancement of online businesses could be determined not only by the information showed on financial statements. Online businesses should also present steps that show the operation and improvement of the company. The metrics, such as key operation indicators, are used more commonly to evaluate the performance of a business on various areas and activities. The metrics as mentioned above could be broken down into different dimensions for this purpose. From the income analytics class, a business can measure the operation of its income throughout the subsequent dimensions: gross profit, non-interest incomes level, commission income amount, etc. The profit is an element of the expense and income is the element of the financial statement, so interpret these differently and carefully. Online analytics and reporting are there to help you interpret these in detail.