– The brand collects data through emails and browsing data, but their conversion rate is only 2%.
– The company has evolved its product to help brands understand their customers better and make more informed advertising decisions.
– There is a need for greater transparency into the customer journey and better allocation of resources for improvement in ecommerce brands.Rethink the data being collected and take a deeper look at the customer journey to improve conversion rates.Brand: We collect data.
Me: Is it relevant to the customer journey?
Brand: Yeah, emails that we send people info from, and we collect browsing data to know what people look at. You know, the usual stuff.
Me: So with that browsing intent and those emails, what’s your conversion rate?
Brand: (Confidently) It’s just under 2%.
Me: So 98%+ of the people don’t check out every day?
Brand: Well, yeah…
Me: I think we should rethink what data you’re collecting and take a deeper look at what your customer journey looks like. If you have the right data and you know what people are looking for and why, you should be able to convert more than 2%, no?
As a company, we’ve gone through an evolution of our product.
Problem: Visitors were signing up, but brands didn’t know why or what they were interested in unless they purchased.
Solution: Allow brands to collect more data during sign-up to better understand their customers.
Then we noticed something more troubling.
Problem: Brands didn’t understand the fundamentals of advertising and were taking a quantitative-only approach to their largest expense.
Solution: Incorporate a data layer on top of ads to help brands make advertising decisions with more data than existing ad platforms. Provide recommendations on what actions to take.
This only exposed a bigger problem: ROAs isn’t a function of the ad, it’s a function of the entire customer journey.
Problem: Brands didn’t know what parts of the customer journey were preventing growth. So they kept cycling through agencies to tell them. But agencies don’t know these kinds of things.
Solution: Create reporting that can point people in the right direction to take the data they have and provide suggestions on where to focus in the customer journey.
Today, every single e-commerce brand has room for improvement. There isn’t one single company that is doing everything 100% right.
It’s impossible to build something to automate all of this, but it is possible to help brands and companies have greater transparency into the customer journey and better allocate capital and internal resources towards improvement.
If you don’t know, you can’t template. If you can’t template, you can’t improve.
#ecommerce #data #strategyhttps://www.linkedin.com/in/jivanco