– Many ecommerce brands lack understanding of their numbers and where improvements can be made in their business.
– Existing BI tools in the market only aggregate stats from multiple platforms without providing meaningful insights or explanations.
– The future of ecommerce tools lies in those that can effectively translate data and provide actionable recommendations to marketers.The key action item is to invest in ecommerce tools that can provide meaningful insights and actionable recommendations based on data analysis.There have been many recent conversations about ecommerce brands not knowing their numbers or where gains can be made in their business. Some key areas that need attention include:
– Custom Dashboards
– Ad spend reporting and UTM tracking
– Attribution modeling
– Understanding Blended ROAs
– Using and integrating zero party data
To be honest, after examining many of the available tools, it seems that they simply aggregate statistics from multiple platforms without actually providing any meaningful insights or explanations behind the numbers. There are very few business intelligence (BI) tools available to help small businesses succeed. These tools merely transfer data from one platform to another and expect marketers to figure it out on their own. Furthermore, each tool tracks data differently, with different values and weighting. Additionally, some tools are unable to track users who have enabled browser tracking blockers, which is becoming increasingly common.
Most of the key performance indicators (KPIs) displayed by business apps primarily benefit the business or the tool itself, and most of them are not relevant. Moreover, these KPIs do not allow users to delve deep into the reasons behind their significance. The concept of ROAs is widely misunderstood. Should it really be compared on a one-to-one basis with different time periods? Should it also be applied to the spending of returning customers? Furthermore, why does Shopify display the return customer rate in terms of orders rather than as a percentage of revenue? It is important to note that the impact of advertising expenditure may not be realized for up to 45 days. However, we typically only assess ROAS numbers on a weekly or monthly basis, by which point we have already increased our ad spend and budget.
Many people emphasize the importance of analyzing data, but the truth is that most individuals do not know how to interpret it, let alone understand it. The future of ecommerce tools lies in those that can effectively translate and explain the meaning of data to marketers, providing actionable insights with confidence. This will require a shift in mindset and a willingness for marketers to learn how to comprehend and utilize data effectively. #ecommerce #marketing #customerjourneyhttps://www.linkedin.com/in/jivanco