This year, the global e-commerce market is expected to reach $6.6 trillion, a major increase from $5.8 trillion in 2023. In the Netherlands, the e-commerce market also continues to grow strongly and a growth of 7.59% is expected. This brings the total value to €46.6 billion in 2024. This continued growth makes e-commerce one of the most competitive industries. To stay ahead of the competition, companies must continuously pull out all the stops. Effective e-commerce analytics is an indispensable instrument.
In order to determine what actions, promotions, recommendations, etc. work and which do not, it is important to gain useful insights from the large amounts of data generated by customer activities. An example: More than 70% of customers abandon their shopping cart when shopping online (cart abandonment rate). If you can use data to find out why customers abandon their shopping cart, you can adjust your strategy accordingly.
While identifying and solving the precise causes of cart abandonment is challenging, it certainly offers opportunities to improve e-commerce strategies, increase customer satisfaction and maximize revenue.
Insight into customer behavior
E-commerce analytics involves collecting and analyzing data to inform business decisions. This includes decisions that improve various aspects of the customer journey, such as acquisition, conversion and retention. This data provides valuable insights to optimize marketing strategies, improve customer experience and increase sales. For example, thanks in part to e-commerce analytics, Sana Commerce has a increase of 30% in new deals.
Gain understanding of your customer’s behavior
By collecting and analyzing data from multiple sources, e-commerce companies can better understand their customers’ behavior. In addition, they can find out which marketing channels work best and where and when customers drop out during their purchasing process. For example, customers are becoming increasingly demanding in terms of speed of delivery and returns policy. By analyzing how customers respond to factors such as delivery times and return conditions, companies can make targeted improvements and prevent customers from dropping out at this point.
In addition, real-time insights into customer behavior, competition and market conditions provide the opportunity to dynamically optimize prices to maximize both revenue and profitability.
Personalization growth strategy
Personalization plays an important role in any e-commerce strategy. Companies that use advanced analytics tools can build detailed customer profiles, which they can then use to deliver personalized experiences.
Effective and privacy-friendly personalization not only leads to higher conversion rates, but also ensures greater customer loyalty. For example, personalized calls to action work approximately 2x as good als algemene calls-to-action.
Measuring marketing effectiveness
Another essential aspect of e-commerce analytics is measuring the effectiveness of marketing campaigns. By analyzing performance data from different marketing channels, companies can continuously improve their strategies and increase their ROI. For example, if it turns out that many customers start their customer journey via a certain social media platform, the company can choose to invest more in this. This is especially important now, as traditional tracking methods are under pressure due to increasing consumer privacy awareness.
This increasing focus on privacy means that companies must ensure that their e-commerce analytics solutions meet the highest data protection standards. This is not only a legal requirement under legislation such as the GDPR, but also essential to maintain customer trust and prevent reputational damage.
The future of e-commerce analytics
In one of the most competitive industries, e-commerce analytics is indispensable. E-commerce analytics platforms are getting better every year and can do more and more. For example, the current rapid developments in the field of AI already offer new possibilities and will yield even better tools in the future.
In addition, real-time analytics are also becoming increasingly important, especially for dynamic pricing and personalized marketing. And finally, privacy legislation will become increasingly important and companies will have a competitive advantage if they already use privacy-friendly analytics tools now. From one recent research According to three quarters of Dutch companies, privacy has a positive impact on their business.
Sources introduction: Emarketer in Research and Markets
Source: www.frankwatching.com
