Many different elements come together when running a successful e-commerce business. However, one of the key attributes that all of these companies have is that they never stop learning.
Successful e-commerce companies learn about their customers to continue to refine their strategy and make the changes needed to delight their consumer base.
With that being said, in this blog post, we will delve deeper into the different reasons why every e-commerce business should be using a consumer insights platform in 2022.
What is customer analytics?
Before we look at the value of customer insights platforms, we must explain what this is!
Customer analytics is a term that describes a group of data points that reveal what consumers are interacting with, how they are interacting with it, and the amount of time spent on it. By interpreting this sort of data, you can better understand what is resonating among your various customer segments.
Every marketing initiative will have some analytics attached to it. For example, some of the relevant consumer analytics for websites are as follows:
- The average amount of time spent on a web page
- The percentage of users who bounce in comparison to how many stays to visit a different page
- The number of users who click on a featured homepage offer
- The number of daily pageviews
These metrics can help you get a better understanding of your customers and how your website is serving them.
These metrics change all of the time, and there are some factors that you may not be able to control. Ultimately, the only way for you to understand your analytics is by delving deeper and taking a closer look at the data.
Why do all eCommerce businesses need a consumer insights platform?
There are many different marketing strategies you can use today, but one that never seems to work very well is guesswork! Instead, you should collect, assess, and make decisions based on genuine data attributed to your customers. This is exactly what a consumer insights platform provides you with.
So, let’s take a look at some of the different ways that you can improve your business with a consumer insights platform:
You can capture, store, and organize consumer data
There is only one place to begin, and this is with the ability to collect data by using an efficient customer insights tool. While there are a lot of different tools that enable you to do this, a consumer insights platform will give you a single place where you can manage all data.
This will allow you to view all of the analytics that comes through from different tools, systems, and integrations that make up your e-commerce experience.
When all of your marketing efforts are guided via a single data repository, you can deliver an improved omnichannel experience for all of your consumers while facilitating the activation of high-priority marketing strategies as well.
You can use data to make better decisions.
Ultimately, consumer insights tools are beneficial because they help you make better business decisions. You can use all of the data that has been mentioned above to move your company forward and make better decisions.
After all, the business landscape is changing all of the time. Consumers’ wants and needs are also changing. It would be best if you kept up-to-date with this to ensure that your business is in a position to compete with the competition.
If there has been a significant shift in what customers are looking for or how they are interacting with your business online, you need to know about this so that you can react accordingly. If you don’t, you will continue to miss the mark, and a more on-the-ball competitor will be able to jump ahead of you and take some of your customers in the process.
This is why it is critical to make sure that you maximize the available data so that you can make the best possible decisions for your business.
Expand into new markets or leave underperforming markets
More accurate sales and customer data will impact a number of areas of your operations, particularly your sales performance.
You can use the consumer insights you have received to figure out what markets you should be venturing into, as well as learn about underperforming markets.
You may realize that you are spending too much of your time and money on a market that is not bringing you any results.
Determine the optimal price for your products
Aside from the benefits that we have discussed so far, another reason why you may want to consider investing in a consumer insights tool is that you will be able to figure out the optimal price for your product.
Did you know that 30 percent of the pricing decisions that e-store owners make each year are off? That means that every three in 10 products are priced incorrectly. So naturally, when this happens, you are going to lose money.
However, with customer insights tools providing you with more insight, you will be able to set product pricing effectively to maximize your returns.
Enhance your marketing campaign and target consumers more effectively
In addition to the benefits that we have mentioned so far, you cannot overlook the impact of consumer insights tools in your marketing efforts. You will get a better insight into relevant purchasing data, such as consumer purchasing history, meaning you will be able to target your promotions to those customers who are most likely to use them.
Research by MGI and McKinsey has indicated that e-stores can boost their operating margins by as much as 60 percent if they use efficient promotions and analytics-related initiatives.
Consumers expect their experiences with brands to be personalized in the current day and age. They do not expect to receive the same emails as everyone else, nor do they expect to be shown the same offers or products when browsing your website.
The most successful e-stores tailor their marketing efforts effectively to bring in an improved ROI. The only way that you will be able to do this, though, is by understanding your customers.
You need to know what customer ‘X’ will find appealing and encourage them to buy. At the same time, you need to realize that customer ‘Y’ may not find the same approach appealing, so you will need to adjust your efforts if you want to convert customer Y.
This is more important than a lot of business owners realize. Epsilon and GBH Insights’ survey revealed that every 8 in 10 respondents want personalization from the companies they purchase from.
An effective consumer insights tool can also help you better understand the revenue you expect to bring in over the coming year.
You can determine areas whereby you can enhance your customer service and possibly lower customer churn.
Improve your inventory planning
Last but not least, another benefit associated with consumer insights platforms is that they can help you plan your inventory more effectively, ensuring fewer markdowns.
If you leverage consumer insights, especially sales data, it will allow you to forecast the amount of inventory that you could need more accurately.
If you have more precise and accurate inventory levels, this means your company will be less likely to have too much product that then has to be marked down in the future.
Final words on why every business should be using consumer insights tools in 2022
Ultimately, the only way that your business will grow is if you understand how you are performing at present. You need to learn about your customers and understand their current interactions with your website. This will give you the information you need to make the right decisions for your business.
It does not matter whether you have a small e-store that sells jewelry or a large and long-established online store that sells electronic goods; you need to understand your customers. This is why consumer insights platforms are necessary for all businesses in 2022.