How does it work in practice? We may see what materials attract customers to our on-line store and what content they search, so that we can provide materials they are looking for. Thus, we will invest in creating only that content which is relevant to the users.
Another interesting application of analytics in e-commerce is studying visits which do not end in a purchase. We need to first understand why it happens that way. Maybe the users do not like the product or the website or maybe they are unable to find what they need. However, it may happen that users quitting the website will come back later or buy from our bricks-and-mortar store.
How to know this? One of the ways is implementing the function of adding to favourites. Thanks to it, you will be able to see how many users who do not finalise their purchase are interested in the product, but wish to buy it in a different way or at a different time.
This allows to offer to such users additional functions which can facilitate their shopping, e.g. an option of printing out the saved products in the form of a shopping list which they can use in a traditional store or a messaging system alerting them of the products which have been added to favourites.
Analytics is customer focus
It is thanks to the job of analysts that the customer may feel more comfortable, may easily find what he is looking for, feel noticed and receive special treatment. It is about improving the experience by remaining sensitive to customer needs - just like this local store assistant who would always remember your taste and your choices.
Analytics is no stalking, but a way of paying attention to the customer and his needs and a readiness to adjust your e-commerce business to real customer needs. All the more so, because when you acquire collective and anonymous data there is no risk of infringing on the user privacy.
People first, then the tools
If you feel convinced about implementing analytics in your on-line business, before you begin, note the 10/90 rule advocated by the guru of on-line analytics Avinash Kaushnik. For every 10 dollars invested in the tools, you should invest 90 dollars in the right people: those who will know how to obtain valuable and useful data, will be able to interpret them and recommend best solutions. Even the best tools, if they are not configured and used accurately may distort our judgement or flood us with a wave of meaningless reports and charts we are unable to conclude from.