How to Increase Sales for Ecommerce with Data-Driven Strategies

A shift in the eCommerce industry was a long-awaited thing and thanks to the pandemic, it has supercharged the brands to adapt to this shift. And data is much needed & helpful factor responsible to bring the shift. Data is an invaluable asset for your eCommerce business and using it the right way would give out immaculate results.

It serves as a valuable source that gives out essential insights on your customers, how they behave, and what they purchase. Analyzing the data is the first skill you’ll have to acquire for your eCommerce business to succeed. And once you master the data analysis, the next thing is to come up with data-driven strategies. In simple words, your eCommerce sales growth strategy should be based on concrete data and real numbers.

Ecommerce marketers today are ready to invest in data acquisition and are adapting to this data-driven approach to boost their sales and conversions. Sources like websites, social media platforms, CRM (Customer Relationship Management), and other tools are great for data acquisition. Acquiring data is not the issue here, but it’s how you analyze it in a way that helps you to optimize your sales performance.

Before we go into data-driven marketing, let’s look at the benefits.

Benefits of Data-Driven Marketing:

• Marketing works on facts and not on guesswork. Today, marketing is more of a science than art, and making informed decisions requires taking data-driven actions.
• Customer behaviors like buying cycles, seasonality, product use cycles, etc. are pretty much connected with your products and help prepare a data-driven marketing strategy.
• Customer behavior data are key for finding new customers like them. It can show what triggers them to buy: promotions or any other offer. This will be your basis for creating future offers that will be helpful to reach each customer subgroup.

Here’s how to analyze and create a data-driven strategy that helps increase your eCommerce sales.

How to Increase Sales for eCommerce With Data-Driven Strategy

Once you have set up your online store, next is to boost sales and conversions by improving the user experience for your customers. And in this article, we’ll see what steps you should follow to adapt to the data-driven marketing strategy to increase eCommerce sales.

1. Centralize Your Data:

As mentioned, there are various sources for companies to collect customer data, which is the best thing as it helps you to have varied and detailed information. Having such mass data in fragmented pieces is not the best idea. Thus, you’ll need to find a way to centralize all the data because not doing so won’t give you a comprehensive view of customers. Also, you’ll miss out on many important points if you don’t centralize your data.

And the best way to do that is to keep it centralized in your CRM tool. Doing so will help you keep track of your customer’s behavior from start to end and help you clear things like behavior, customer journey, and their preferences.

2. Create Buyer Personas:

The majority of marketers claim that they don’t know their customers fully. This is a huge problem for marketers as they waste their time and effort at nothing. And buyer personas can help you understand your customers better so you can offer them the right product at the right time.

A buyer persona is nothing but a profile of your target customers created based on age, gender, demographics, shopping behavior, preferences, and history, etc. By creating buyer personas, you can put the customer data you have collected to good use that helps you get a clear picture of your marketing efforts. Also, you’ll better understand what your customers from different segments really want and what’s the best way to reach out to them.

Moreover, 71% of companies that exceeded their revenue generation goals have done so through creating buyer personas. And 90% of the companies have claimed that they better understood their customers after creating buyer personas. So, you must invest time and efforts in buyer persona creation based on the customer data you accumulated to bolster your business growth.

3. Analyze Customer Acquisition Cost:

Customer Acquisition Cost(CAC) is nothing but the amount you invest in potential customers to convince them to buy your products. This is a fundamental metric that every marketer should pay attention to for boosting sales and conversions.

The CAC value is calculated by dividing all the costs you have incurred to acquire customers and the number of customers acquired. Knowing the CAC value for your eCommerce business is critical and helps you get a clear picture of your ROI (return-on-investment). Moreover, it helps you figure out the value of a new customer acquired.

4. Analyze Customer Lifetime Value:

Another aspect to analyze to prepare a data-driven strategy is the customer lifetime value. It shows what value your customers offer over the period. Over the period means the entire duration of your relationship with your customers and not just one purchase.

Analyzing such data is interesting particularly if you are selling recurring products or services e.g. businesses based on a subscription model. It may seem simple at first, but in reality, it is way more complex to track CLV data.

In general, here’re some rules to find CLV,

• Identify and track all touch-points like transactions.
• Analyze the value of all these touch-points by integrating CRM.
• Evaluate revenue gain for each transaction.
• Multiply the average life as a customer with the entry value.

Summing Up

In a nutshell, a data-driven marketing strategy is helpful in many ways for your eCommerce business to improve customer experience and boost sales and conversions. It helps increase personalization, boosts customer engagement rate, and improves your reach. For a successful data-driven marketing campaign, you must first centralize your data, create buyer personas, analyze the customer acquisition cost, and customer lifetime value. You’ll be amazed to see the results once you start using data at full scale.

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