The goal is to turn data into information and information into insight.” – Carly Fiorina, former chief executive officer, Hewlett Packard.
Retail streams receive a massive volume of online data which needs to be analyzed in a way that it multiplies profitability, improves customer experience, and can be used to outperform competitors. With the increasing number of key players in the e-commerce market, it has become a necessity for businesses to step up their game to reap profits which can only be possible by overcoming the challenges related to the data collected over time.
Let’s take a look at some of the stumbling blocks for e-commerce marketers and the solutions to outdo them:
Are you tracking the right metrics?
If not, then you need to start tracking them now! Your e-commerce store might be drowning in a sea of information, but it is always a struggle to figure out the right metrics to track and measure. In the worst case scenario, digital marketers might end up tracking easily manipulated figures that might appear good on the report but hold no actual value for the business.
Solution: Just because you feel that a particular business metric is trackable does not necessarily mean that it would add value to your marketing plans. You need to think about the overall business goals and track the metrics that would be unique to your company. This also includes the common ones that you are bound to track such as revenue, conversion rates, and transaction.
Are you able to transform data into actions?
Once you have collected all the customer data, it is time to put it to good use. However, a common problem among the e-commerce business owners is that they do not extract valuable insights from their data and act on it quickly. A survey from PwC and IronMountain shows just that. It says only 4% of businesses can extract full value from the information they collect.
The present-day competitive online market demands you to take decisions instantly yet make sure that they prove effective in the long run. That is why it is necessary to draw meaningful connections from the business metrics.
Solution: Use a marketing automation platform to draw meaningful insights and choose the right metrics. With this, you can get data-driven recommendations, real-time data analysis, and can solidify your next marketing move.
Consider the example of Amazon. It is one of the biggest leaders in using a comprehensive collaborative filtering engine (CFE). The purpose of this is to analyze items purchased by customers previously, what is in their online shopping cart or their wish list, which products are reviewed and rated, and what items have been searched the most. The data collected after analysis is used to recommend products to the customers while buying those same items.
Are you providing an omnichannel customer experience?
In a report by ecomdash it was found that businesses lacking in an omnichannel retailing strategy might lag behind their savvy competitors. If you too are committing the same mistake, then it is time to rethink.
The Internet and the latest technologies have made it possible for the customers to reach out to online stores through different touch-points, i.e., desktop and mobile. They expect a consistent shopping experience across these platforms and can even fluctuate from a retail space to an online store when they are willing to purchase something.
Solution: To meet the evolving needs of the customers, your brand must engage them at every possible touch point. Identify the key channels that you feel will be helpful in attracting customers. Optimize channels such as email, phone, live chat, online help centers, in-app messaging, etc., by adding personalized messages and offering them one-on-one interactions.
Have you been avoiding competitor analysis?
Marketers who are focusing solely on the e-commerce store and not keeping their competitors into account are missing out on some key aspects of your launch strategy. There might be others in the market offering similar products and services as you. Unless you have a solid marketing strategy to differentiate yourself, it is difficult to survive.
Solution: Observing the strengths and weaknesses of your competitors’ can help the marketers identify unique opportunities, eliminate potential threats, and capture a greater share of the e-commerce market. You can even capitalize on their best strategies and figure out if you can incorporate these in your marketing setup. Make efficient use of social media platforms for promoting products and invest in promotional offers to create a web presence for engaging customers.
On a final note, e-commerce is becoming complex, and customers smart. They continue to have high expectations from online retailers, which can only be fulfilled by overcoming the data challenges as that would help you to remain competitive, increase conversions, and build consumer loyalty.