Why Is Customer Behavior Analysis Vital To E-Commerce Companies?
eCommerce | Trends
Last Updated: 15 Sep 2020 | 5 min read
You probably noticed a trend that appeared and gained prominence over the last few years. It’s overcoming the field of e-commerce. Previously, companies used to push products and services to their customers at all costs, even in digital selling. Today, however, you have to provide value to the customer and meeting the user on his/her own terms. It’s the guiding principle of an e-commerce business. Here you’ll understand why user behavior analysis is crucial to an e-commerce business.
It’s safe to say, without making it sound exaggerating, that e-commerce currently dominates the world of retail. According to reports generated by researchers, retail e-commerce sales will surpass 2 trillion with double-digit growth projected to continue beyond 2020. In the US alone, around 8 out of 10 individuals purchase products over the web.
The consumers of today’s day and age are always ready to make online purchases. It’s not a challenge anymore. If you’re new to e-commerce, then it can be quite intimidating to ascertain how to drive profit, especially if you can’t rely on anybody apart from your own gut.
The experts of e-commerce website and mobile app development say that understanding how users act while navigating through your site or app is the first step in establishing a business that will thrive. You have to supplement your own business intuition with an in-depth analysis of customer behavior to create data-driven strategies. These tactics will instil confidence in your team to take the e-commerce company to the next stage.
About consumer behavior analysis
For every online retailer, data on the online behavior of a customer or user is probably one of the most crucial business assets. An e-commerce business can extract deeper consumer information via behavioral data analysis and present a much more personalized experience to those people. In short, user behavior analysis is a data-backed observation of online buyers and users to ascertain how they interact with your company. Specialists of e-commerce website and mobile app development explain three consumer behaviors that you can analyze in your business.
Browsing behavior: Online behavior of a consumer will allow you to track their online activity on your web-based store. You need to find out what attracts a shopper to your store, the products they search for, and how personalized landing pages influence conversions.
Purchase behavior: This one gives you detailed insights into the needs and interests of users. It’s an incredibly accurate indicator of consumer behavior. If you want to scrutinize purchasing behavior, then you need to explore their buying patterns, and how they respond to promotional activities like an exclusive offer or product discounts.
Email behavior: It’s the age of instant messaging, but email marketing is still as effective as it used to be, especially for e-commerce businesses. With this metric, you can measure how customers respond to your email marketing messages. You have to find out how many business emails your customers checked, the number of users who opened the emails, and the number of emails that prompted them to visit your website or use your app to buy something.
Experts of a custom e-commerce development company already told you how crucial user behavior analysis could be for your business. Now you’ll learn what you can gain from it.
Understanding a customer’s journey: A few of the largest retailers in the world utilize data analytics to contemplate the requirements of their customers. One of those retailers is Walmart. According to researchers, the organization recently reported that they witnessed a growth of 29% in US e-commerce sales after targeting their customers using data gathered by mapping their journeys. An advanced behavioral analytics solution lets you disclose the entirety of a customer’s decision journey and penetrate the digital-shopper genome. Some people learn about your business through social media, while others spot an advertisement that you released on a shopping search engine. Contemplating the journey of a modern customer in an omnichannel world is about understanding their behavior on your native site, your mobile app, and every other platform.
Regional differences: Your business managed to become successful in a specific part of the world. Naturally, you started thinking about expanding to other markets as it’s the next logical step. How can you be sure that you would succeed again? No matter how good your company is, customer behavior would always be the endgame because it differs vastly in various regions of the world. Even Amazon, the e-commerce giant, couldn’t penetrate the Chinese market, even after succeeding in almost every major European nation. If you don’t want to encounter losses, then you must understand the local market. In that regard, the right analytics would prevent you from guessing how customers from another country would behave. User behavior scrutiny would let you investigate how differently or similarly customers in the targeted region behave from other digital buyers.
Knowing where to run promotional campaigns: If you want to run your e-commerce business in the right way, then you can’t wait for buyers to come to you. You have to go where they already are. The perfect behavior analytics tool will be able to tell you the origin point of your customers. As a result, you would realize where it would be beneficial for you to direct your marketing and promotional efforts. The best analytics tool can do even more. For instance, it can take your curiosity one step further and gather information about the behavior of the people who reach you through various channels.
The specialists working with a custom eCommerce development company understand that uncertainty and fear are constant companions of every bold initiative. These two things will follow you during marketing campaigns, website redesigning or launching your business in a new region. However, an appropriate analytics solution can provide validation at crucial stages of every new initiative that you take. It would contribute to boosting internal trust and confidence while preventing you from flying blindly on intuition.
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