Are You Data-Driven Or Driving In The Dark?
As we continue to progress into the digital age, one thing is becoming clearer—if a business doesn’t collect and use data to its ADVANTAGE, it will always be at a DISADVANTAGE. This fact is even truer in the e-commerce industry. Decisions about marketing, shipping, customer service, and even client acquisition all come back to data. At CoolMarket, using data is one of the ways that we’ve maintained our position as Jamaica’s top e-commerce marketplace.
So, what does it truly mean to be data-driven in the e-commerce industry? Let’s take a look at data in e-commerce on an international level to see how we can up our game on the Jamaican frontier
Data Analysts Are Valuable
Forget the notion that only banks, insurance companies, and manufacturers need a data analyst. Instead, having someone whose full-time job revolves around crunching numbers and isolating data that will help your business make better decisions will only get more imperative as the e-commerce industry continues to develop. Take for example Data Labs by Yotpo, a service that uses data from more than 559 million shoppers, 163 million orders and 21 million customer reviews to help e-commerce businesses make better decisions. The service isolates the most actionable advice, which in turn helps the businesses grow in the right direction. Ten years ago, a service like this would have been useless, but NOW it is in HIGH DEMAND.
Emotional Targeting Is Key
It’s a well-known fact that consumers make purchasing decisions based on how a product makes them feel. However, many e-commerce businesses seem to focus only on the numbers, and what the numbers may be telling them, including how to use emotions to increase their conversion rates. When it comes to optimizing your business’ sales funnel, more is involved than just using “best practices” and relying solely on Google Analytics. Instead, all these optimization tactics should be viewed through the lens of emotional targeting. How does my product make the consumer feel? Is this what they want to feel in order to make a purchase? Understanding the reason why people make decisions lies in the data—you just need to know how to extract it.
Ultimately, when it comes to data, you should remember that each e-commerce store is different. Therefore, the growth approach that each business takes should be customized. This customization is only possible after digging into the data and allowing the info to paint a picture of what is happening behind the scenes of the e-commerce business. With that data, you’ll be able to make better decisions for your business in all areas, like customer service, marketing, shipping, and product fulfilment.
What do you think it means to be data-driven in the e-commerce industry? Let me know in the comments below.