Ecommerce Analytics

Posted: March 25, 2011 in Uncategorized

E commerce Analytics goes very deep in depth to understand your site performance on your online store. This therefore needs one to be able to truly define the essential data from the reports generated by Analytics tools.

One of the ways to track your E-commerce store and to improve on future products is using the RFM approach. Recency Frequency and Monetary analysis. why this approach ? because

1. Customers who have purchased recently are more likely to purchase again.
2. Customers who have purchased frequently are more likely to purchase again.
3. Customers who have spent the most money are more likely to purchase again.

Now these are all true given the fact that you are more likely to go and buy from a shop that you have already bought from before because they have proven themselfs worthy or what they are selling which means you are now in a position to go back and buy again which results in you becoming A  frequent customer. Again you are more likely to buy from a shop you have already spent huge about on because that brings about discounts and so forth.

Now with this in mind you can now use Analytics to discover your most valuable customers because they are going to be your first marketing target.

Listed are Some of the key things to look for/at when tracking e-commerce:

  1. Defining metrics that matter because because you need more than information but data that can help you improve/increase revenue/traffic and this can be found in key performance indicators (KPI’s) which tells you how well your site is doing according to the set goals.
  2. Monitor only your important KPI. If your goal is to get advertisers advertising on your site than you are should monitor your traffic and if you own an online store you should monitor your revenue. Always focus on whats important.
  3. Grouping your visitors behaviors
  4. Know your navigation report (clickstream) by identifying your popular pages , if people are completing goals and what percentage is leaving uncompleted goals so you can understand where most people are exiting the gaol process
  5. Be up to date with your top keywords and make sure that they get what they are looking for.
  6. Optimize your landing page by providing enough information to make people stay on your site
  7. Calculate your visitors conversion and see how many people come back to view your site
  8. Saving Historical data to track trends like which time of the year you get the most traffic or the most sales
  9. Making changes slowly but surely as you grow to allow room for adjustments
  10. Make sure you are always improving to provide better service to the consumer

Its a free tool that we all can use and has so much to offer for us. So why not ?

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