It’s that time of the year again. Gifts, romance, trips, holidays, proposals, engagements, you don’t want to miss out on the love. Love is in the air.
If you own an e-commerce store online, this is one of your favorite times of the year. People are buying gifts, and your business seems to be booming. However, you might realize at the end of the Valentines spectacle that all you did was make the same amount in sales like every other month. It gets worse, and you might try to capitalize on February 14th and get carried away, missing out on many other opportunities.
In digital marketing, you must learn how to read trends and interpret them well. Data drives the world today. Data is factual and based on real events. Data analysis takes away the element of guesswork and surprise from your business, and you make intelligent decisions based on tangible information.
Understanding consumer behavior
How can you use data analytics to improve your store presence online, and revel in the beauty of Valentines? While most people would spend many resources advertising and marketing their stores online to beat the February 14th rush, you shouldn’t. That is what everyone else does. Take a step from the herd mentality and do something different. Here’s how:
Everyone is excited about February 14th. All manner of products are being hawked online. The problem is that most people focus their attention on the D-Day. Most of the purchases and planning goes on before and after Valentine’s day. It gets even worse when February 14th falls on a weekday. People are working. So, the chances are high that other than the casual dinner, where you have to be back home in time to rest well and rise early to beat traffic, most people do the actual celebration on the coming weekend.
For an online business, your focus should not be limited to the business element of Valentines’ Day. Go further, research and study trends from previous years. Given the economic constraints that most people are experiencing, the lush dinners and expensive dates are slowly taking a back seat. Of course, there will be some flowers here and there, but many people see more value in tangible gifts. Things that they can hold onto and cherish for a long time, hold more value.
This is the data you will find from studying behavior trends online. Therefore, while most stores will have cashed in all their chops by February 13th, you can use this information to get your products moving a few days after the hype is over.
How analytics can help you build a stronger online store
There is no magic in analytics. It is pure science, with facts, figures and, results. Think about data analytics as an ace up your sleeve, giving you insights into your online business and customer experiences beforehand. You can use the information at your disposal to reinvigorate your marketing strategies and product promotion to find the ideal product mix that will boost your business. Let’s have a look at how you can build a robust e-commerce store around Valentines, with the help of business intelligence and data analytics.
- Fraud detection
Imagine a situation where you want to buy a gift for your loved one. You have chosen the perfect gift, but they are selling out fast. Just before you buy one of the last few in store, you have a glitch, and by the time the money is out of your account, the items are sold out. Such a bummer, right?
Analytics has in the recent past stepped up the fight against fraud especially in e-commerce. Based on previous customer traits, it is easy to identify an abnormality in transactions. We have tools that can detect suspicious purchases, and alert the customer, requesting their express approval before the transaction can be processed.
In so doing, both your business and the customer will be satisfied. The customer gets to beat the rush and get their gift just in time for Valentines, while your store is not held up in unnecessary delays holding up your cash reserves. Besides, such instances often end up in poor customer ratings and reviews, which will hurt your business. On the bright side, your customer will be grateful you reached out for clarity, which is a significant confidence boost your company will earn.
- Efficient supply chain
People prefer to buy gifts online for several reasons. Two of the key factors that push buyers online are variety in prices and products and convenience. These factors, combined, point to the need for a robust supply chain. Think about the number of hits your website is getting, irrespective of the number of purchases made. Are all the products you are advertising online available in store, and in the quantities, you have announced on your website?
If this is not the case, you are risking delayed delivery and very low customer satisfaction. Like most businesses today, you probably have an Instagram and Facebook page where you drive sales and marketing. You might also have someone trending your products on Twitter, and a dedicated YouTube channel. All these are good places to generate traffic for your online store. However, it would be quite a disappointment for your customers to find the products sold out, after all the hype you created on social media.
Analytics is the key to establishing an efficient supply chain. You cannot have stock running out at the wrong time. At the same time, you cannot have too much stock because this will increase your spending on inventory and handling. Analytics helps you establish a healthy balance between supply and demand. You can learn from trends, and forecast future sales in preparedness for Valentine’s Day.
- Personalized recommendations
In business, it is easier to sell to repeat customers than to new ones. From your repeat customers, you can get more customers through referrals and recommendations. Personal recommendations go a long way in internet marketing. Your repeat customers are like your brand ambassadors.
How does analytics come in? Each time someone clicks on any of your products, they will also see some related products that are recommended. If the products are complementary, there is a good chance they will want to have a look and probably buy the two items. Using a recommender system is perfect for your business because each time the customer returns to your website, they can see the new items in stock and those that are relevant to them, based on their purchase history.
- Intimate customer insight
Your customers do not always interact with your website in the same manner. You have customers who are always looking for deals and offers, who explore your website hoping to cash in on the deals available. You also have those customers who are specific about what they are looking for, and they will go straight to that section, at times without looking at the home page. Such customers probably have their preferred page saved as a bookmark on their devices.
Through data analytics, you can understand the customer behavior and how they interact with your website. You will also learn how to improve your website so that you can cater to the needs of each customer effectively. From the landing page, there is so much you can do to improve sales, and get the customer to buy from your store.
With the information at your disposal, you have a better understanding of the customer, their behavior, and demographics. This is rich content that you can use to create a successful product and sales strategy and align your website and products in a manner that allows you to meet your business goals and revenue targets. It is from this information that you will also know how to choose the right promotion to increase your conversion rates.
- SEO support
One of the most critical aspects of business growth online is to master SEO. You have to strive to get quality, organic traffic. The higher this traffic, the better your chances of getting good conversions.
Web analytics supports your SEO needs in many ways. From the data you have, you can create quality, targeted content that will earn you an audience on search engines. Since it is the season for gifts, referrals, and offers, you can also track the referrals and learn more about the quality of backlinks associated with your business.
Valentine’s day is a time when people show how much they care to their loved ones. It is also about big business and big data. Considering how dynamic customer behavior is, you need to understand the data in your possession and make decisions about your marketing strategy and the growth potential of your store. Essentially, all your efforts will go towards ensuring your customers are happy, satisfied and more likely to shop again or recommend your store to their friends, families, and peers.