E-commerce is considered the act of buying or selling a product or service over the internet. It incorporates every stage of the buying process online, including product discovery, customer service, payments, and data analytics. Focusing on the need to deliver a seamless and personalized shopping experience, digital commerce analytics has become a critical tool for businesses. By aggregating and analyzing related data, digital commerce analytics generate important insights from customer behavior, sales trends, and marketing effectiveness.
In this blog, we’ll look at different aspects of digital commerce analytics and the importance attached to it, along with the key metrics every brand should track to stay ahead in the competitive online marketplace.
What is Digital Commerce?
Digital commerce is the buying and selling of goods or services over the internet, but that is not all; it encompasses overall online shopping experience including product discovery, customer service payments, and analytics. This connects a business or brands to consumers with help of technology for a seamless efficient and personalized shopping experience .
Digital Commerce Analytics
Digital commerce analytics can be defined as gathering and quantifying data concerning digital commerce activities: measurement, analysis, and interpretation. It provides insights into customer behavior, sales trends, marketing effectiveness, and product performance, among other things, about how customers interact with websites or apps. This type of analytics empowers companies to make data-driven decisions to optimize their strategies in the interest of improving customer experiences and gaining revenue.
Importance of Digital Commerce Analytics
- Informed Decision Making – Providing data-driven insights for businesses to make informed strategic decisions regarding product offerings, pricing strategies, and marketing campaigns.
- Optimized Customer Experience- Understanding the behavior and preferences of customers helps businesses optimize the shopping experience, which results in increasing customer satisfaction and loyalty
- Improved Marketing Effectiveness- It enables the identification of which marketing channels and campaigns deliver the maximum effectiveness and thus enables efficient utilization of the marketing budget and the maximization of ROI.
- Increased Conversion Rates- In terms of causes of cart abandonment and other user paths, among other things, businesses can uncover points of blocking and implement changes that help them to sell.
- Personalized Marketing-Allows businesses to provide tailor-made shopping experiences by aligning customers with relevant products, offers, and messages emanating from their previous behavior and preferences.
- Competitive Advantage- It holds information about market trends, and what the customers want to purchase or consume, thereby allowing businesses to be ahead of the competition and adapt to the markets’ changes.
- Fraud Detection- Through studying patterns in transactions, along with customer behaviors, digital commerce analytics can help identify potential fraud instances and prevent them.
Metrics that every brand should monitor
Discoverability Analysis
Discoverability is all about Share of Shelf or Search. The brand must track Share of Shelf across competition in category across wide range of e-commerce platforms (both apps & web) and locations.
- Enhance brand discoverability based on keywords
- Track and measure digital share of shelf performance
- Slice and dice through various platforms, cities, product categories etc.
- It helps the brand to identify the apt keywords and take necessary actions.
Pricing Analysis
Identify and track the pricing and discounting patterns across ecommerce platforms on your own brands versus competition. Get real-time industry-dedicated market insights to construct better pricing & discount strategies to improve revenue.
- Real time industry ASPs & discounts vis-a-vis your own brand
- Category averages along with current Brand price & discount metrics & trends.
- In sighting into highest & lowest ASPs & Discounts based on platform, city & category.
- Detect MAP violations & pricing violations by platforms using OEM codes.
Availability Analysis
The Availability tool allows the Brand to understand availability trends across the platforms. Competition analysis enriches insights into geographies that could be targeted to increase reach and capture new customers.
- Trace of Availability by Platform, Location & Sub- category of own brand vis-à-vis competition,
- Insight based on availability into potential geographies to target customers,
- OOS Status across products, regions, and platforms.
- In addition, Trend Analysis of Availability combined with continuing OOS Products.
Customer Feedback Analysis
The Customer feedback tool help find out what customers think about the brand via review rating and Q&A. It also provides in-depth keyword analysis with relevant Amazon Pi integration and sentiment analysis to divulge into exactly what brand need to work on.
- Monitor Rating & Reviews
- Customer Feedback Trend Analysis
- Product sentiment tracking across categories, sub-category, product variant, brand and sub-brand vis-à-vis competition
Best-Seller Page Analysis
The best seller page tool provides a configurable dataset that shows the own and competitors’ best-selling page & products across categories, sub-categories and platform and their attributes.
- Monitor Best performing brand in sub-category and along with their rank (top 3)
- Track brand best seller page rank
- Gives Deep dive analysis of brand with product count delta, ASP, Organic & sponsored SOS delta%
Conclusion
For business companies with a vision for excelling and thriving in this competitive online marketplace, digital commerce analytics is an incredibly powerful resource. Data-driven insight can lead companies to make informed strategic decisions in relation to customer experiences, marketing effectiveness improvement, and conversion rates. Key metrics that ought to be tracked include discoverability, pricing, availability, customer feedback, and best-selling performance, all of which can prove useful in optimizing your digital commerce strategy. With the help of digital commerce solutions, brands using these insights will be better positioned to adapt to the market and enhance their competitive edge, thereby leading to sustainable growth.
