The E-Commerce boom didn’t just change the way we buy goods, it revolutionized the way we look at our customers completely. E- Commerce uses analytics as a tool to study consumer behavior, further boosting sales, acquiring new customers and building a brand. There are 4 major elements in any e-commerce business that need to be analyzed to ensure proper functioning of the business:
- As most commerce businesses just act as a platform to connect buyers with suppliers, supplier analysis is done to determine supplier efficiency, pricing compared to other suppliers and supply performance to ensure proper input as per required market output.
- E-commerce businesses have faced constant scrutiny for the supply of counterfeit products. Even though the products are sent by the suppliers, the brand name under which they are sold faces potential reputational damage. This causes loss of trust. Hence trust analysis is of the utmost importance for any online business.
- Consumer analysis provides an insight into how a consumer perceives a brand in respect to our competitors and helps us to customize the consumer experiences based on their preferences to increase retention rate.
- Doesn’t it make you happy when a product arrives within 2 working days of placing the order? This is made possible through an efficient supply chain. Supply Chain management plays a key role in providing an amazing consumer experience. All the aspects of supply chain ranging from warehouse management to the delivery of product though to the attitude of delivery driver are analyzed.
When you are updated with the movement of your package and expected delivery date, the company is using that data to check for any snags and then working towards smoothing the process.
To do these analysis the right framework needs to be chosen. There are numerous analytical metrics that are used to give consumer insights. Four major matrices common across all the industries are:
- The number of visitors visiting your site tells the success story of your e-commerce business. More visitors means more potential sales.
- Keywords are phrases a consumer tends to use in his or her searches. These searches are analyzed to see the relevant products/services available with the service provider and are displayed to the consumer accordingly.
- Page Views help an industry analyze the popular content and modify their business accordingly. Example: Page views for a site selling fairy lights are high, we can stock fairy lights as well as that is the current market trend.
- Referring Sites are an amazing tool used in the industry to match the products to their perfect target segment. Example: A person visiting a blog about weight loss can be pitched products such as green tea or fat burners through advertisements. The website hosting the advertisement will act as a referral site and help boost sales.
It can rightly be concluded that in a highly competitive environment of E-Commerce businesses efficiency is the only thing a company can rely on for its survival, and efficiency is directly proportional to the quality of analysis we do on every segment of business.