eCommerce analytics is the process of collecting, analyzing, and interpreting the data from your online store. It includes key metrics such as customer behavior, sales, and marketing effectiveness. This data helps you optimize your store’s performance and make data-driven decisions.
eCommerce analytics tools have 5 major benefits, which are listed below.
- Make better business decisions with data-driven insights.
- Improve customer experience by identifying customer’s pain points.
- Optimize marketing strategies and boost conversion rates.
- Track performance metrics to understand your customer’s journey.
- Personalize your products and services to meet consumer needs effectively.
Geekflare has researched and tested the best eCommerce analytics tools based on features such as customer behavior tracking, sales performance analysis, real-time data processing, integration capabilities, and custom reports and dashboards.
- Supermetrics – Best for Marketing Data Aggregation
- Woopra – Best for Customer Journey Analytics
- Mixpanel – Best for Actionable User Insights
- Google Analytics – Best FREE Web Analytics
- Semrush – Best for Market Analysis
- Amplitude Analytics – Best for Product and Growth Analysis
- Glew – Best for Multi-Channel eCommerce Analytics
- Kissmetrics – Best for Conversion Rate Optimization
- Omniconvert Reveal – Best for Customer Lifetime Value Optimization
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Supermetrics
Best for Marketing Data Aggregation
Supermetrics integrates and automates data management across various marketing platforms, providing businesses a consolidated view of their marketing performance. This simplifies eCommerce data analysis and management for users without extensive technical expertise.
Supermetrics Features
- 150+ Data Sources: Supermetrics integrates data from 150+ popular sources like Google Analytics, Facebook ads, YouTube, Shopify, and Marketo and presents it in a centralized customizable dashboard. This eliminates the process of logging into various platforms and analyzing your eCommerce data analysis under various UIs.
- Automated Data Transfers: Reduce manual reporting tasks with automatic data transfers to your preferred business intelligence platforms like Google Sheets, Power BI, Tableau, and Looker Studio.
- Real-Time Insights: Supermetrics provides real-time data updates so businesses can make informed decisions and tweak their marketing strategies quickly. This also helps businesses optimize their ad spend and improve their ROI on various marketing campaigns.
- User-Friendly Reporting: You get built-in reporting tools and templates to create custom, visually engaging dashboards and reports. Such custom dashboards highlight key metrics and trends, particularly helping marketing agencies and teams present data to clients clearly and concisely.
- Support for Data Warehouses: Supports major data warehousing solutions, such as Google AlloyDB, BigQuery, and Snowflake, allowing businesses to store and analyze large volumes of data efficiently.
Supermetrics stands out as a powerful eCommerce analytics software, particularly for businesses looking to enhance their data management capabilities and gain actionable insights from their marketing efforts.
Supermetrics Pros
Free plug-and-play reporting templates for Looker Studio, Excel, Google Sheets, and Power BI.
Offers Supermetrics Storage if you don’t have your own data warehouse.
Full sales funnel measurement to gain insights into traffic, conversions, and interactions.
Supermetrics Cons
You have to pay individually for each data source you want to integrate.
Struggles in efficiency if the data volume is large. You’ll need to use a data warehouse.
Many users have reported delayed customer support.
Supermetrics Pricing
Supermetrics charges separately for each data source. Popular data sources like Looker Studio, Google Sheets, Excel, and Power BI cost $29/month. Other data sources like Supermetrics API, BigQuery, and Google Cloud Storage come with custom pricing.
Woopra
Best for Customer Journey Analytics
Woopra provides eCommerce businesses with in-depth, real-time customer journey analytics. It lets businesses track and analyze customer interactions across multiple touchpoints, providing a unified view of the customer experience.
Woopra Features
- Abandoned Cart Reduction: Woopra analyzes customer behavior at each touchpoint and identifies reasons for abandoned carts, such as issues with pricing, shipping, or the checkout process. It allows you to optimize the checkout experience and reduce cart abandonment rates.
- Detailed Behavioral Analysis: Get granular data on user behavior, including which pages your customers visit, how much time they spend on content, and how they interact with specific page elements. Such in-depth analysis helps understand the drop-off points and make better decisions.
- Comprehensive Customer Profiles: Woopra creates detailed individual customer profiles in real-time with details about their location, engagement, feature use, and more. This holistic view helps in personalized marketing and enhances customer service efforts.
- Dashboard Customizations: With its extensive customization options, businesses can tailor the reports and dashboards to their specific analytical needs. Woopra offers multiple chart types and data presentations to customize the visual layouts of your dashboards.
- Built-in Triggers and Automations: Take action on your data with hundreds of out-of-the-box triggers. Use these triggers to automate tasks such as updating statuses in CRM software, sending notifications to Slack channels, prioritizing enterprise-level support tickets with Zendesk, or triggering a drip campaign in Mailchimp.
By emphasizing the customer experience, Woopra helps businesses identify strengths and weaknesses in their sales funnels, thereby improving customer retention and acquisition strategies. Its analytics tools are designed to enhance user engagement at every stage of the customer journey.
Woopra Pros
One-click integrations with popular tools like ActiveCampaign, Clearbit, BigQuery, Slack, and Hubspot.
The free plan is generous with 500K actions/mo, 90-day data retention, 30+ integrations, and up to 10 seats.
Offers visually appealing dashboards and reports.
Woopra Cons
The Pro plan is too expensive when compared to other eCommerce analytics tools.
The Pro plan only retains data for up to 24 months.
Data warehouse syncing is only available in the Enterprise plan.
Woopra Pricing
Plan | Price (monthly) | Offerings |
---|---|---|
Core | $0 | 500K actions/mo, 90-day data retention, up to 10 seats, user journey tracking, 30+ integrations, and standard support. |
Pro | $999 | Up to 50 seats, 5 million actions/mo, 24 months of data retention, dynamic journeys, behavioral segmentation, triggers, and premium support. |
Enterprise | Custom Pricing | 50 million actions/mo, 24+ months of data retention, more than 50 seats, data warehouse sync, workflows, data stores, and dedicated support. |
Mixpanel
Best for Actionable User Insights
Mixpanel follows an event-centric analysis approach to give businesses deep insights into user behavior and engagement. It tracks user interactions in detail, enabling store owners to effectively understand customer behavior and optimize their sales funnels.
Mixpanel Features
- Event Tracking: Mixpanel allows users to track specific events and actions within their eCommerce stores. This includes a detailed analysis of the purchase flow, most bought products, cart conversions, and top channels driving new users.
- Cart Analysis: It helps eCommerce businesses understand user purchase behaviors by tracking items in users’ carts at various stages of the buying process. This allows companies to identify trends and optimize their offerings accordingly.
- Real-Time Analytics: Mixpanel provides real-time eCommerce website analytics, enabling you to make quick decisions based on the most current user interactions. This is crucial for responding to changes in user behavior and improving user experience.
- User-Friendly Dashboards: You get interactive reports and customizable dashboards with key performance indicators (KPIs) such as daily active users, retention rates, and conversion metrics, making it easier for teams to visualize and interpret data.
- Revenue Analytics: Monitor revenue contributions from different product categories and marketing efforts in one place, facilitating a unified view of business performance.
Overall, Mixpanel is one of the best analytics tools for eCommerce stores looking to deepen their understanding of user behavior and enhance their product offerings.
Mixpanel Pros
Integrates with popular tools like Figma, Braze, Google Cloud, Hotjar, and Snowflake.
Session replays to analyze customer journey.
Cohort analysis to spot geographic and demographic trends.
Mixpanel Cons
Onboarding is difficult. You’ll need an engineering team to implement the tool.
Limited Spark AI query builder requests (60 queries/month) even in the Growth plan.
Add-on required for data warehouse export.
Mixpanel Pricing
Plan | Price (monthly) | Offerings |
---|---|---|
Free | $0 | Up to 20 million events/month, essential analytics, pre-built analytics templates, 30 Spark AI queries/month, and access to Slack community. |
Growth | $24 | 60 Spark AI queries/month, advanced analytics, saved reports and cohorts, and multi-touch attributions. |
Enterprise | Custom pricing | 300 Spark AI queries/month, anomaly detection, root cause analysis, onboarding customer success, and dedicated account manager. |
Google Analytics
Best FREE Web Analytics
Google Analytics gathers extensive data on website visitors, enhances tracking and reporting of product performance and revenue, segments audiences for personalized experiences, tracks conversions to measure marketing effectiveness, and provides mobile performance insights.
Google Analytics Features
- Track Marketing Campaigns: Monitor your marketing campaigns using Google Analytics. Identify successful campaigns based on traffic, conversions, ad revenue spend, and more. You can even do A/B testing of your web pages and landing pages to improve your marketing strategies.
- Manage Goals and Funnels: GA lets you track key goals like newsletter signups, contact form submissions, completed purchases, and more. With tracking codes and UTM parameters, you can even track and analyze your sales funnels and boost conversions.
- Enhanced eCommerce: This innovative feature for eCommerce businesses provides detailed insights about product impressions, product clicks, add-to-cart, checkout steps, and transactions. This allows you to identify customer drop-off points and tweak your online store.
- Audience Segmentation: Create audience sets based on demographics, interests, behavior, and location. This will help you better understand your target audience and create personalized experiences for them.
- Customer Behavior Analysis: GA offers insights on key metrics related to customer interactions, such as time spent on pages, bounce rates, and product views. This will help you identify popular products and potential issues in the customer journey.
Google Analytics offers many powerful features for free. However, the analytics dashboards are not beginner-friendly. So, you can explore some Google Analytics alternatives for a simpler way of tracking your eCommerce metrics.
Google Analytics Pros
Free to use.
Out-of-the-box reports on audience, acquisition, behavior, and conversions.
Manage multiple properties (websites) under one account.
Seamless integration with other Google services, such as Google Ads and Search Console.
Google Analytics Cons
It follows cookie-based tracking, so you might encounter privacy compliance issues.
GA offers a lot of advanced features that might overwhelm beginners.
Lack of customer support or documentation.
Data sampling might lead to inaccurate data.
Google Analytics Pricing
Google Analytics is free.
Semrush
Best for Market Analysis
Semrush is an all-in-one tool for your eCommerce store. It helps you analyze your competitors, manage social media channels, boost organic traffic with SEO, optimize ad spend, and create content easily with an AI-powered writing tool called ContentShake.
Semrush Features
- Market Explorer: This tool categorizes your competitors into groups like “Game Changers” or “Established Players,” providing a strategic overview of the competitive landscape. It presents the data in easy-to-analyze tables, graphs, and charts.
- Traffic Analytics: Discover traffic metrics for your website. Some key metrics include total visits, unique visitors, purchase conversion, pages/visits, average visit duration, and bounce rate. You can also do the same analysis for your competitors and find gaps in your marketing tactics.
- EyeOn: Monitors your competitor’s online activities, including newly published content, the latest product offerings, and activity trends. It also reveals your competitors’ ad campaigns and delivers weekly email notifications to help you stay informed about their strategies.
- One2Target: Get in-depth audience insights based on demographic, socioeconomic, and psychographic factors. Create ultra-precise audience segments based on criteria like age, gender, income, employment status, and more.
- ContentShake AI: Semrush offers an AI-powered writing tool called ContentShake to create product descriptions, catchy headlines, and completed blog posts for your content marketing. It also suggests relevant keywords and includes them in your content in just one click.
Backlinks are one of the most important ranking factors for Google SERP, and Semrush has one of the most robust backlink checker tools in the market. With this tool, you can analyze your backlinks and even discover where your top-ranking competitors are getting their backlinks from.
Semrush Pros
Provides one of the biggest databases (25.9 billion keywords and 43 trillion backlinks).
Identifies link-building opportunities for your outreach campaigns.
Offers a comprehensive toolkit of 55+ tools for complete online marketing.
Semrush Cons
Offers data only for Google search engine. No data from Bing, Yandex, or YouTube.
Beginners might feel overwhelmed due to a lot of features and data.
It is one of the most costliest online marketing tools on the market.
Additional charge/user in every paid plan.
Semrush Pricing
It offers a 7-day free trial, then $19.99/mo.
Amplitude Analytics
Best for Product and Growth Analysis
Amplitude Analytics equips ecommerce store owners with powerful behavioral analytics and AI automation features to perfect their product offerings. You can start with an ecommerce dashboard template or create a custom one to monitor the events relevant to you.
Amplitude Analytics Features
- Detailed Event Tracking: Analyze user interactions with your store through events such as add-to-cart, upsell selected, completed purchases, and more. Do a detailed sales funnel analysis to identify conversion drivers and understand customer drop-off points during checkout.
- Monitor Trends and Spot Anomalies: In Amplitude, you can track trends for your user events and highlight anomalies (increments or dips) based on historical data. Powered by machine learning, Amplitude runs a Root Cause Analysis (RCA) to understand the reason behind the anomaly.
- User Retention Analysis: Understand how often users return to your store after their initial purchase. The data is presented in bar graphs and charts and helps you detect repeated buyers, non-returning buyers, and more. You can even group your retention metrics based on marketing channels, operating systems, and country.
- A/B Testing: Split-test your products based on detailed product analytics and user behavior data to understand what works with your customers. You can create multiple product pages with slight variations and test them in Amplitude to gain actionable insights.
- Dynamic Audience Segmentation: Create targeted audience lists based on user profile demographic, geographic, and economic factors. You can further segment the audience lists based on purchased products, average order value, repeat purchases, and more.
Amplitude Analytics is one of the best eCommerce analytics platforms for organizations that want to use user data to enhance product offerings and drive business success.
Amplitude Analytics Pros
Native integration with Snowflake data cloud.
Integrates with popular tools like SendGrid, Google Analytics, Slack, Optimizely, and Notion.
Share reports and charts within your organization.
Amplitude Analytics Cons
No searchable list to analyze user profiles in detail.
Compatibility issues with UTM tagging.
No A/B testing in the Plus plan.
Amplitude Analytics Pricing
Plan | Price (monthly) | Offerings |
---|---|---|
Starter | $0 | Starter templates, Foundational product analytics, Session replay, Unlimited feature flags, Unlimited sources & destinations |
Plus | $49 | Unlimited product analytics, Custom dashboards and formulas, Behavioral cohorts, Custom audiences & syncs, Online support |
Growth | Custom pricing | Advanced behavioral analysis, Custom metrics for KPIs, Causal insights & monitoring, A/B or Multivariate testing, Real-time streaming & syncs |
Glew
Best for Multi-Channel eCommerce Analytics
If you run an online business operating in diverse marketplaces, you need Glew to combine data from multiple sales channels under one unified dashboard. This helps you make better data-driven decisions. For example, if you sell on Shopify, Amazon, and your own website, you can collect and interpret sales data from all the platforms on a single dashboard.
Glew Features
- Multi-Channel E-commerce Analytics: Track and analyze sales from platforms like Amazon, Shopify, and more in one unified dashboard, allowing for streamlined decision-making.
- Advanced Customer Insights: Utilize detailed analytics, such as customer behavior, segment performance, and product metrics. These analytics help to identify specific segments, understand purchasing behaviors, and tailor marketing strategies effectively.
- Performance Tracking: Monitor key performance indicators (KPIs) such as lifetime value (LTV), cart abandonment rates, and conversion rates to assess the effectiveness of your sales strategies.
- Marketing Performance Analysis: Pull data from various ad platforms, such as Google Ads, Facebook Ads, and Instagram Ads, to evaluate the ROI of your marketing efforts and optimize ad spend.
- Audience Segmentation: Enhance email marketing and advertising campaigns by leveraging advanced segmentation based on customer behavior and purchase history. Glew has an automated sync with popular email marketing tools like Klaviyo, Listrak, and ActiveCampaign.
- Cohort Analysis: Gain insights into customer retention and lifecycle trends to refine your marketing tactics for improved customer experience.
Glew is suitable for small and medium businesses as it provides data insights into drop-off points, customer demographics, click-through rates of your social media ad campaigns, and more.
However, large businesses that operate on diverse marketplaces benefit more from Glew’s multi-channel eCommerce analytics. It also offers a Commerce Data Cloud that supports popular e-commerce platforms like BigCommerce, Magento, WooCommerce, Shopify, and more.
Glew Pros
Integrates with Amazon, Shopify, WooCommerce, Klaviyo, and 170+ more platforms for seamless data transfer.
Allows you to create custom reports without any coding.
Offers 30+ pre-built customer segments to filter orders, products, customers, and more.
Glew Cons
Limited report customizations with Looker.
Slow data loading speeds.
The custom reports feature is only available for Glew Plus users.
Glew Pricing
Plan | Pricing | Offerings |
---|---|---|
Glew Pro | Custom pricing (Free trial available) | 250+ KPIs, Sync with Klaviyo and Mailchimp, 40 of our top integrations, Daily Email Snapshot, 30 pre-built customer segments, LTV, Net Profit, Top Customers, Top Products and more |
Glew Plus | Custom pricing | No-code custom reporting landscape, Fully managed ETL Data warehouse, Bundled Looker license, Prebuilt LookML for instant cross-integration reporting, 150+ integrations, No separate BI license required, Access to Glew Pro |
Kissmetrics
Best for Conversion Rate Optimization
Kissmetrics offers in-depth reports on KPIs, activity, sales funnels, user searches, cohorts, A/B tests, revenue, and more. These reports help you understand your customer engagement and the profitability of your marketing tactics to optimize your conversion rates.
Kissmetrics Features
- Customer Journey Mapping: Visualize the entire customer journey, from the first interaction to the final purchase. Analyze which elements your users click the most, the time spent on product pages, the time to complete the purchase, and more.
- Cohort Analysis: Kissmetrics offers cohort reports that allow businesses to segment users based on shared characteristics or behaviors. This segmentation helps understand how different groups interact with the site, enabling tailored marketing strategies that resonate more effectively with each cohort.
- A/B Testing: Experiment with different versions of web pages or marketing messages and compare their performance. A/B Test reports help companies identify which elements lead to higher conversion rates and refine them accordingly.
- Identifying Revenue Sources: Track sales and revenue by various categories, device types, and traffic sources. This will help you understand which channels are most effective for conversions, enabling you to allocate your ad budget more efficiently.
- Real-Time Monitoring: Track customer behavior in real-time to adjust marketing strategies or website elements immediately. This agility can lead to a quick boost in conversion rates.
Kissmetrics helps eCommerce businesses enhance their understanding of customer behavior, refine their marketing strategies, and ultimately improve their conversion rates, leading to increased revenue and customer retention.
Kissmetrics Pros
Offers free trial.
Integrates with popular tools like Hubspot, Slack, Shopify, and WooCommerce.
Focused on individual user tracking and data.
Kissmetrics Cons
Does not automatically track key metrics like bounce rate, exits, and time on the page.
Manual efforts are required to exclude internal traffic.
Kissmetrics Pricing
For | Pricing (monthly) | Offerings |
---|---|---|
Small teams | $299 | Up to 2 million monthly events, 2 seats, 5 populations, KPI report, activity report, and funnel report. |
Medium-sized teams | $499 | Up to 5 million monthly events, 5 seats, 10 populations, 5 integrations, expert onboarding, dashboard and cohort reports. |
Large teams | Custom pricing | Custom monthly events, seats, and populations, power report, SQL report, email campaigns, and a dedicated account manager. |
Omniconvert Reveal
Best for Customer Lifetime Value Optimization
Omniconvert Reveal empowers store owners to enhance customer retention and optimize Customer Lifetime Value (CLV) through insightful data analysis and targeted marketing strategies.
Omniconvert Reveal Features
- Customer Analytics: Segment your customers based on RFM factors to find your Ideal Customer Profile (ICP). Determine your top customers based on revenue, historical CLV, and total number of placed orders. Implement pre and post-delivery NPS surveys to enhance customer experience.
- eCommerce Metrics: Reveal offers insights about your top-performing customer segments, products, brands, and categories. This helps you develop new customer retention strategies and boost business profitability.
- Product Performance: Identifies and reports your best and worst-performing SKUs based on CLV. These reports help you enhance customer retention and offer value with better product offerings and effective marketing strategies.
- Facebook Audience Builder: This tool helps improve Facebook, Instagram, and Google Ads by creating dynamic custom audiences based on first-party data. By targeting the right audience with personalized offers and messages, you can improve your ROAS.
- Email Marketing Sync: Reveal syncs with your email marketing tools to create personalized drip campaigns. It identifies and tracks your top customers and helps you reach them with automated emails.
Omniconvert Reveal, with its dynamic audience builder and key metrics, can effectively enhance the Customer Lifetime Value (CLV) of your e-commerce store. This will eventually lead to higher profitability and improved customer loyalty.
Omniconvert Reveal Pros
Omniconvert offers a complete toolkit for eCommerce data analysis.
Drag and drop user interface for creating tests, surveys, and popups.
Improve and monitor retention rate, customer lifetime value, and Net Promoter Score.
Omniconvert Reveal Cons
Integrates with only a few tools, such as Google ads, Gorgias, etc.
Pricing information is not available.
Omniconvert Reveal Pricing
Omniconvert follows goal-based pricing. Plans will depend upon the following goals:
- Monitor and improve NPS
- Increase the conversion rate
- Improve the Customer Lifetime Value (CLV)
Comparison of Best eCommerce Analytics Tools
Here is a quick comparison of the eCommerce analytics tools based on specialized focus and pricing.
eCommerce Analytics Tool | Specialized Focus | Pricing (monthly) |
---|---|---|
Supermetrics | Data aggregation across various BI tools. | $29 |
Woopra | Tracking customer journey. | FREE |
Mixpanel | Tracking events (user interactions) and providing insights. | FREE |
Google Analytics | Deep data analysis of goals and funnels. | FREE |
Semrush | Complete market and competitor analysis. | 19.99 |
Amplitude Analytics | Product-related analytics. | FREE |
Glew | Multi-channel eCommerce analysis. | Pricing on request |
Kissmetrics | Conversion rate optimization. | $299 |
Omniconvert Reveal | Improve customer lifetime value. | Pricing on request |
What is eCommerce Analytics?
eCommerce analytics involves gathering and analyzing data from online stores to guide business decisions. It tracks metrics like sales performance, customer behavior, and website activity.
Such deep insights help eCommerce businesses refine marketing strategies, improve customer experience, and boost profitability.
Importance of eCommerce Analytics
The importance of eCommerce analytics is listed below.
- Make Informed Decisions: eCommerce analytics tools provide data-driven insights at your fingertips. These insights give you an edge in strategic marketing and sales decisions.
- Gather Insights About Customers: All the eCommerce analytics software we discussed above tracks user behavior-related events and segments them based on demographic, geographic, and economic factors. Such insights help you create personalized marketing campaigns for higher conversions.
- Measure Performance: Track key performance indicators (KPIs) like user acquisition, retention, and increase in sales revenue and evaluate the success of your marketing initiatives and ad campaigns.
- Gain Competitive Advantage: In a rapidly evolving eCommerce industry, leveraging analytics can give companies a significant edge over competitors by allowing them to adapt quickly to changing consumer preferences and behaviors.
- Optimize Ad Spend: You can manually track the most successful marketing campaigns, traffic channels, and ad creatives, which allows for better resource allocation.
- Identify Trends: Monitor trends and patterns in customer behavior to create future marketing strategies.
- Enhance User Experience: eCommerce analytics platforms excel at tracking user journeys and understanding customers’ pain points. This helps streamline processes and improve overall satisfaction.
Key Performance Indexes (KPIs) in eCommerce Analytics
E-commerce businesses should track several Key Performance Indicators (KPIs) to assess their performance and identify areas for improvement.
Here are some of the most critical KPIs to monitor:
Average Order Value (AOV)
Measures how much a customer spends per order. You calculate it by dividing revenue by the number of orders. For example, if your AOV is $50 and your customer acquisition cost is $30, you make approximately 66% profit/order.
Higher AOV allows flexibility in offering discounts and absorbing customer acquisition costs. Strategies like upselling and bundling can help increase AOV.
Conversion Rate (CR)
Tracks the percentage of website visitors who become customers. It is calculated by dividing total orders by total traffic, multiplied by 100. A 2% CR means 2 out of every 100 visitors make a purchase.
Optimizing CR (e.g., by simplifying website design or fixing technical issues) boosts revenue without needing more traffic.
Shopping Cart Abandonment Rate (SCAR)
Measures the percentage of visitors who add items to their cart but don’t complete the purchase. A high SCAR might indicate issues like a complicated checkout process or unexpected shipping fees.
Use eCommerce analytics tools to identify why your customers are abandoning their carts and implement solutions. For example, offering one-page checkout and flexible payment options can directly boost sales.
Customer Retention Rate (CRR)
Indicates customer loyalty by showing the percentage of repeat customers. A store with a 70% retention rate retains 70 out of every 100 unique customers. High retention rates imply satisfied customers and reduce reliance on costly acquisition efforts.
Sales Revenue
Tracks total revenue generated over specific periods (weekly, monthly, etc.). Analyzing monthly revenue trends can help identify seasonal demand spikes. This KPI is a growth indicator reflecting product adoption and brand success.
Customer Lifetime Value (CLV)
Estimates the total revenue a business can expect from a customer throughout their relationship. A higher CLV means greater profitability and supports investment in customer retention strategies.
For example, a CLV of $500 indicates a high potential return on the $50 spent to acquire that customer.
Customer Acquisition Cost (CAC)
The cost incurred to acquire a customer. You can calculate it by dividing total marketing expenses by the number of customers gained. If you spend $1,000 on ads and gain 100 customers, your CAC is $10.
You should compare your CAC with your AOV to understand if your marketing efforts are cost-effective.
Return on Ad Spend (ROAS)
Measures the revenue generated per dollar spent on advertising. It is calculated by dividing campaign revenue by ad spend.
A ROAS of 5x means every $1 spent generates $5 in revenue. This metric helps marketers assess ad performance and decide where to allocate budgets for the best returns.
How to Choose the Right eCommerce Analytics Tools?
Here are the key points to consider when choosing the right eCommerce analytics tools:
Define Your Goals and Requirements
Before choosing an eCommerce analytics tool, you should clearly understand the key insights you want to track and the business objectives you want to achieve.
OKR vs KPI is an ongoing debate, and understanding these two metrics can help you choose the perfect eCommerce analytics software for your business. These metrics help you evaluate your store’s performance and growth potential.
Integration Capabilities
Integrations extend the functionalities of your eCommerce analytics tool. The more integrations, the more metrics you can track and the more precise insights you can gather about your business.
Ideally, eCommerce analytics tools should seamlessly connect with your existing eCommerce platforms, CMSs, marketing tools, data sources, and data warehouses. This gives you a unified view of your data and lets you draw insights from multiple channels.
Data Accuracy and Real-time Analytics
Real-time data allows you to make quick business decisions. Prioritize solutions that track customer behavior across all channels and touchpoints, enabling a deeper understanding of customer journeys.
In the dynamic world of eCommerce, tools that provide precise, up-to-the-minute analytics offer a significant competitive advantage.
Scalability
As your business grows, your eCommerce analytics tool should offer robust features, such as the ability to add new data sources, users, and functionalities as needed.
A scalable solution ensures that as your data needs expand, your analytics capabilities can keep pace without requiring frequent tool upgrades. You can even consider open-source web analytics tools, as they are highly scalable and offer transparent code for API connection.
Comprehensive Reporting and Visualization
To extract actionable insights, your eCommerce analytics tool must offer intuitive interfaces, customizable dashboards, and easy-to-read reports for faster decision-making.
Always opt for platforms that deliver ready-to-consume insights and offer team collaboration features, ensuring that critical data reaches the right stakeholders on time.
Pricing Structure
Look for eCommerce tracking tools that align with your budget while offering balanced features. A pricing model that scales with your business provides long-term value without overburdening resources.
Considering these parameters – goal alignment, integration, data accuracy, scalability, reporting, and cost, you’ll be well-equipped to select the right eCommerce analytics tool that drives growth and supports your business objectives.
Future Trends in eCommerce Analytics
Technological advancements and changing consumer behaviors increasingly shape the future of eCommerce.
Here’s an elaboration on key trends that are expected to dominate the industry:
Augmented Reality (AR) and Virtual Try-On
Augmented reality is revolutionizing online shopping by allowing consumers to visualize products in their own environment or on themselves before making a purchase.
For instance, beauty brands like L’Oréal and Sephora have implemented AR tools that enable customers to try on makeup virtually. This not only enhances the shopping experience but also reduces return rates, as customers can make more informed decisions about their purchases.
Custom Shopping Experiences
Personalization is becoming a cornerstone of eCommerce. By leveraging data analytics, businesses can tailor the shopping experience based on customer location, language, and shopping habits.
Showcasing local deals or products that resonate with specific demographics enhances customer satisfaction and loyalty. AI-driven personalization, such as customized recommendations based on previous purchases, is also gaining traction.
Chatbots for Enhanced Customer Interaction
Chatbots are increasingly being utilized to improve customer service and interaction. These AI-driven tools can handle inquiries, provide product recommendations, and assist in purchasing, offering 24/7 support.
For instance, WordPress brands like WPAstra use chatbots to guide customers through their shopping journey, making interactions smoother and more efficient.
Social Media Integration
As social media continues to be a powerful marketing tool, integrating shopping features within these platforms is essential. Social commerce allows brands to sell directly through social media channels like YouTube, Instagram, and Facebook, enhancing visibility and reach.
User-generated content and influencer partnerships amplify brand exposure, driving traffic and sales through authentic recommendations.
Voice Commerce
Voice-activated shopping is increasing, allowing consumers to search for products and complete purchases using voice commands. This trend aligns with the growing use of smart speakers and virtual assistants like Amazon Alexa and Google Assistant.
According to eCommerce data statistics, the global value of voice assistant e-commerce transactions is expected to reach $20 billion.
For example, Amazon has integrated voice shopping into its ecosystem, enabling users to add items to their cart and place orders effortlessly.
Short Videos for Product Promotion
Incorporating short videos on eCommerce websites is an effective way to engage customers. Video content can showcase product features, provide tutorials, or share customer testimonials, capturing attention more effectively than static images.
Platforms like YouTube Shorts, TikTok, and Instagram Reels have popularized short-form video content, making it a valuable tool for brands to connect with their audience and drive conversions.
Buy Now, Pay Later (BNPL) Options
The demand for flexible payment options is increasing, with Buy Now, Pay Later services gaining popularity among consumers.
BNPL allows customers to make purchases and pay in installments without incurring interest, making it easier to afford higher-priced items. This trend boosts sales and enhances customer satisfaction by providing financial flexibility.
These trends highlight the evolving landscape of eCommerce, driven by technological innovations and a deeper understanding of consumer needs.
On a side note, top-class customer service will never go out of fashion. So, you can connect your eCommerce analytics tool with an eCommerce helpdesk software like Zendesk or Happyfox to provide an excellent after-sale service to your buyers.
FAQs
Yes, Google Analytics is good for eCommerce businesses. It lets you monitor performance metrics, including user behavior, traffic sources, and conversion rates. It is free and integrates well with other Google services, creating a comprehensive toolkit for your eCommerce analytics tracking.
No, Google Analytics is better than Shopify Analytics because Shopify Analytics offers only basic metrics such as total sales, conversion rates, average order value, and customer return rates. If you need advanced metrics like customer journey tracking or cart abandonment analysis, then you need Google Analytics for your eCommerce store.
Shopify Analytics is a built-in reporting tool designed specifically for merchants using the Shopify eCommerce platform. It provides essential insights into store performance, helping users understand customer behavior and sales trends without needing extensive technical expertise.
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EditorRashmi Sharma is an editor at Geekflare. She is passionate about researching business resources and has an interest in data analysis.