Why Data Analysis for Small Ecommerce Businesses Is Best Outsourced
THE CONSTANT STATE OF INNOVATIONS AND CHANGES IN THE DYNAMIC E-COMMERCE RETAIL SECTOR HAS MEANT THAT SMALL AND LARGE E-COMMERCE BUSINESSES TURN TO TECHNOLOGY TO MAINTAIN THEIR COMPETITIVE ADVANTAGE.
DATA-DRIVEN BUSINESS INSIGHTS ARE BECOMING CRUCIAL FOR ANY ONLINE RETAILER TO GAUGE THE CHANGING MARKET TRENDS AND CUSTOMER BEHAVIOUR.
• While data or business analytics is crucial for any industry domain, data analysis for small E-commerce businesses in the form of Ecommerce analytics has assumed an important role in the growth (or even survival) of these players in an increasingly competitive market space.
• Overall, the industry perception around data science in Ecommerce is that this technology is only useful for the bigger players. This is why around 77% of the smaller E-commerce p layers do not have any strategy for data analysis and restrict themselves to limited business insights from free tools like Google Analytics
What are E-commerce Analytics and how are they relevant to smaller companies?
In simple terms, E-commerce analytics (or Ecommerce analytics) is a set of any data analysis tools or methods used to derive valuable business insights from vast volumes of data generated by the E-commerce business. With the right E-commerce analytics tool, you can set and measure your business goals through the proper KPIs and metrics that work for your business.
• Effective SEO management that can target and attract over 40% of online shoppers who search for retail products through an online search. Data analytics tools help in measuring crucial KPIs like search volumes, cost-per-click, clickthrough rates, and conversion rates
• Better Customer Retention through methods focussed on building customer loyalty, repeat purchases, and customer satisfaction. • Customer retention is the lifeline of any E-commerce business as according to the industry statistics, 80% of future revenue will be generated from the top 20% of existing customers. • Through E-commerce analytics, you can track various KPIs like the percentage of returning visitors, social sharing, and modelling of the customer lifetime value (or CLV).
• Website optimization based on data insights provided by analytics tools on how online shoppers interact with your Ecommerce website. • This include key focus areas such as user navigation, ease of product check-outs, product presentations, rate of abandoned shopping carts, and the overall usability.
How does any E-commerce business analyse its data particularly as it is generated from a wide variety of data sources? Here are some of the most effective data sources: • Mouse track data including online clicks, click maps, and page scrolls • Live chat data including purchase intentions, product information, and customer feedback.
5 Reasons why Ecommerce companies must outsource data analysis
Reduces costs
This is probably the biggest reasons for the growth of the outsourcing model and is no different for E-commerce analytics. For SMBs, hiring an in-house data analytics team comprising of data analysts, data scientists, and project managers can be both expensive and time-consuming.
Focus on their core business goals
By outsourcing data analytics-related functions to an external party, business leaders and executives in E-commerce companies can focus on their core business goals like increasing customer engagement and retention. Third-party data analytics solutions can remove the unnecessary clutter around large and complex data sets and present the useful and relevant data insights and results for a more informed decisionmaking process.
More accurate data analysis with professiona l expertise
Professional data analytics solution providers are equipped with a variety of data analytics tools used to analyse, interpret, and visualize E-commerce data. This can also significantly reduce your time and costs trying to hire and train full-time data analysts or the time spent in evaluating and choosing the data analytics tools that would be the right fit for your business needs.
Keeps your data secure
As an E-commerce vendor, your business data is the most valuable asset of your business. This typically including all your customer profiles, recent purchases, product catalogues, purchase orders, delivery status, and much more. Losing this data can negatively impact your business operations and reputation at least for some period of time.
Saves time and effort
By outsourcing your data analytics, you are assured of the immediate services of a professional analytics team specifically for immediate marketing initiatives. This saves a lot of your time and effort organizing and planning for your business analytics.
Conclusio n
For small to medium E-commerce retailers, investing in a comprehensive data analytics solution and team can drain their resources and divert their focus from the core functions of the Ecommerce business.
This article lists the business benefits of outsourcing your data analytics to a third-party analytics company.
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