eCommerce Data Analysis Strategies for Online Stores

Data is one of the biggest dilemmas for any eCommerce company. eCommerce data analysis plays a crucial role in the decision making process. This, in turn, decides profitability. It becomes imperative to collate data and speed up the decision making process. 

The Importance of Data

It is important to know what your customers need. The secret of success when it comes to eCommerce is having the right product and creating the right user experience.

Analyst presenting data to a client using a computer

Correct data helps to pinpoint the pain areas and work on them for improved customer satisfaction. It helps to create better products. It helps understand what marketing strategies work and what don’t. 

Creating a Single Solution to Read Data 

The best option for your company can be decided as per your needs and the complexity of your data. 

Spreadsheets

Spreadsheets are the traditional way of analyzing data and crunching numbers. Most people are familiar with Excel or Google sheet, and this makes it easier to get started. Its ease of use and ability to deduce insights is preferred by a number of businesses.

Woman analyzing spreadsheet data using her computer

Not only that, these tools are easily available and can be used across multiple systems and locations with ease.

Create a single source of truth

However, as the company scales and the amount of data increase, spreadsheets prove to be inefficient in many respects. Cell spaces are limited including the nature of queries that it can handle. Spreadsheets are incapable of handling historical data and there is limited scope for automation. 

Spreadsheets are the best option for micro and small companies and businesses that are just starting out.  

Data Visualization Tools

Data visualization tools such as Tableau, Google Data Studio, and Power BI help organize data in a visual manner. It helps team members interpret data across all channels quickly. Data visualization tools are great for high-level insights. It gives you various dashboards to view data from. It’s easy to present eCommerce data analysis to the management. 

3d data illustration in a computer

However, there are chances of missing insights because of oversimplification. Data that is deemed less important may be left out. Another drawback is that it relies heavily on the tools and there is no interaction with the raw data. 

Companies that don’t have a dedicated data analytics team but still need valuable insights find data visualization tools ideal.

Data Warehouses

Large collections of business data, both historical and new are known as data warehouses. There are no limits to the amount of data that can be stored. It can run complex queries on historical data that has been accumulated from transactional sources and helps with data mining. 

Data warehousing helps if you need to analyze data gathered from different sources. This helps businesses make better informed decisions. Data warehouses are costly to implement and require the knowledge of SQL. Also, it takes a lot of time and financial investment to build a data warehouse project. 

Only enterprise level organizations that are ready to scale should get into data warehouses. 

Conclusion

Combining data and creating a single source of truth for your eCommerce business can work wonders. It removes assumptions from eCommerce data analysis and gives you concrete figures that help to convert prospects into customers. It has the potential to skyrocket growth and profitability for the company.

Paul Andrewshttp://optiwiseonline.com
If you are looking to sell on eCommerce or are already selling on the platform but looking to scale up operations, then I am that guy you think you’re not looking for! But if you think again you can let me leverage my years of selling experience on ecommerce platforms to provide hands-on, strategic guidance to your brands or private labels to help set up, grow and scale your business.

Get in Touch

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related Articles

Pet Products and Services Take a Fancy to E-commerce

The pet industry has been undergoing tremendous growth. According to the American Pet Products Association or APPA, nearly 85 million households own a pet....

The Rise of Mobile Shopping Apps

Mobile technology altered how we live. After all, our smartphones are always within an arm's reach, dictating our daily habits. Consequently, trends surrounding mobile...

E-commerce Working Beautifully for the Cosmetics Industry

The e-commerce growth for the cosmetics industry was largely the result of social media. The content was well-suited to such platforms as Pinterest and...

Get in Touch

22,020FansLike
0FollowersFollow
0SubscribersSubscribe

Latest Posts