The increased use of modern technology I the retail sector has resulted in the generation of large amounts of data. This resultant data can be related to any customers or sales or revenue generated etc. This also helps in understanding the various aspects customer’s behavior such as the products most liked & purchased by them.
Developing know-how about the customers and their online buying behavior helps in planning so that they keep coming back. Online visitors who come to check products offer valuable information that can be used to increase online sales.
- Following conversion rates: The percentage of visitors that finally make purchases from the online store constitutes conversion rates. This is used for analyzing the effectiveness of an online store. Tracking the conversion rates help in evaluating whether you need to make changes in your online store or not. Online retailers can consider the following changes in their web stores to increase the user experience:
- Simple & easy checkout step with guest login facility
- Easy to register account creation
- Displaying return & shipping information beforehand.
- Beef-up the security layer for online payments.
Measuring the effectiveness of promotional campaign: Promotional campaigns, discounts on products & exchange vouchers should be issued judiciously. Online retailers need to analyze which promotional offers help with conversion. This will give an idea about repeating such offers in the near future. Online retailers need to check which type of communication channel is used for promotional purpose. They need to check which promotional emails or vouchers has maximum number of conversions.
Getting information about most products sold: Getting knowledge of those products that generates the most sales helps in devising plans for promotional offers. Online retailers can promote only such products on the home page along with the images or interactive videos. Additionally, they need to make extra efforts in promoting the rest of less sales generating products. Focusing on the high selling products and removing the rest other helps in increasing ROI and sales.
Period of buying: Knowing about the timings at which online customers are checking-out helps in focusing and utilizing that time slot. Knowledge about the exact time frames helps in devising various promotional offers. Subject to industry or the products in which the company deals in retailers can find the peak timings in which customers purchase the most.
Appraising email analytics: Communicating through email is considered as one of the most important channel of communication. Online retailers use email to inform about the status of the order, new promotional offers and new products. The analysis of email promotion gives insights about who is opening and responding to such mails. Online retailers need to analyze about the open rate, engagement and the bounce rate. Being vigilant about the data generated by such analysis not only helps in devising strategies but also gives insights by comparing results with industry averages.
Observing traffic sources: Online retailers need to check from where the traffic is coming. Checking from where the online customers are coming will help in focusing on such promotional medium of the channel. Knowledge about which web site the customers are using most gives insight about the differences between you and competitors’ web store.
Average order value: How much a customer spends while making online purchases gives the average order value. Online retailers resort to various techniques such as cross selling displaying products as related products helps in increasing the average order value. This also indicates the average spending power of the online customers and to what extent it can be stretched. Information such as highest selling products also gives an idea about the related products that can be sold along with the main products.