Ecommerce companies are all about getting desired conversions and good revenues. Yes, things like customer satisfaction and the number of social media followers are important, but no ecommerce company is going to pride itself on high customer ratings and solid social media numbers when its conversion rates are down.
That being said, there has been a worryingly growing trend of companies simply tracking basic actions like daily traffic while ignoring crucial analytics such as purchases and conversion rates. This viewpoint is supported by a recent market survey showing that “Only 50% of e-commerce businesses track main conversion points.” Worse still, the report notes that “80% of online retailers are using Google Analytics incorrectly” regarding increase in business conversion rates.
In order to make better use of analytics and improve your ecommerce conversions, you may need to make certain changes.
Here are three analytics-based techniques that—if used correctly—could lead to substantial improvements in your conversion rates.
The use of analytical data to personalize on-site promotions is an online marketing strategy that has been used extensively by many companies to encourage strong conversion rates. Based on the data you collect from your analytics, you too can personalize offers to suit personalized needs by your visitors. For example, you can track where your visitors are coming from, and then use their geo location-based preferences to tailor befitting on-site promotions for them.
Besides location-based analytics, you can collect data on interests, personal demographics (like sex, age and race) behavioral patterns, and technology-oriented analytics to create personalized promotions for your target visitors.
You can always combine or blend different analytics for maximum affect on your promotions. In Google Analytics, for example, there is a provision for cross-referencing geo-location and measurable data on mobile usage. By combining data on these two aspects, you can do many things at once with your promotions, including the customization of services on the basis of tracked IP addresses and mobile-based data.
This approach was used by car shopping company Edmunds.com to help establish whether or not site visitors would respond to free price quotes. By using personalized quotes on targeted visitors, Edmunds.com reportedly saw an increase in the company’s conversion rates by 18%.
Even with wildfire growth and popularity of social media marketing, email promotions still remain as one of the key tenets in the ecommerce industry. Email marketing, especially when infused with data-centered personalization, can be extremely effective in accentuating conversion rates in your business.
This point is asserted by a recent ecommerce study conducted by Experian, showing that personalized email promotions have a 41% higher click-through rate and 29% higher open rate than non-personalized email promotions.
For proper personalization of your emails, you will, of course, need to go beyond the common practice of including a subscriber’s name in the subject line.
Under Google Analytics’ Terms of Service, website owners are allowed to store personal customer information like names and emails. By monitoring the behavioral patterns of the customers based on such information, you can easily identify issues such as the best time days and times to send your email promotions.
Additionally, such data from Google Analytics can help you identify your A-list customers (those who visit your site most and what they purchase, or are most interested in). Once you identify such customers, you can go ahead to customize your emails to attend to their needs and serve them in a personalized way.
As a note, though, the data analytics from Google can only get you so far. To get down to the customer’s level and personalize your email promotions in an emphatic way, you may need to invest in additional data analysis software.
A good example here is the MailChimp tool that can be used with Google Analytics to track email marketing actions. When you combine MailChimp with Google Analytics, you can track actions such as the opening of your email, as is shown in the picture below:
Many ecommerce companies are increasingly investing in this space, using their special data analysis systems to track customer information like birthdays, and then sending personalized birthday wishes via email. Some companies even go as far as sending birthday discount and free coupons via emails.
A case study on Restaurant.com exemplifies just how effective personalized email marketing can transform your conversions in a great way. By doing away with generic emails and switching to personalized emails that were based on behavioral data from analytics, Restaurant.com reportedly witnessed a growth in their revenue per email by a whopping 900% in just 12 months.
To create personalized and dynamic pages for your site, you need data on customer purchasing behaviors, browsing trends, and general insights on their likes and dislikes. Here is another example of the usefulness of Google Analytics. Through the analytics, you get enhanced ecommerce product reports and insights, including: how many times a product has been added to a cart, how many times a product has been viewed or purchased, and the geolocation of a customer.
Using such data, you can then create dynamic and data-driven product pages that personalize experiences for your visitors, like giving recommendations based on their purchasing behaviors.
Amazon is a befitting example of how this strategy can work miracles on your site. Typically, Amazon records every single action taken by visitors on its pages, including clicks and visited pages. Then based on that data, Amazon ensures that user experience are tailored for each visitor in a dynamic way that takes account of metrics like purchases, browsing behavior and product searches. Through this personalized shopping experience, Amazon maximizes on the chances of getting desired visitor conversions. This has seen the company make $543 in revenue per user, which is the highest among all online retailers and reportedly ten times more than Groupon, the second highest earner per user.
Using the methods we have covered in this guide, you can start maximizing your chances of conversions once you sign up for Google Analytics.
Of course, there are plenty of analytics tools out there, along with more methods, so don’t hesitate to experiment with them. This experimentation is important, particularly if you want to get more comfortable with the analytics and move on to more powerful analytical tools and tap into the value of advanced segments and metrics. By implementing these methods, you will soon be enjoying significant improvements in your revenues and conversion rates while attracting and retaining customers in a better way.