The Importance of Data Collection in Ecommerce & How to Use it


The Importance of Data Collection in Ecommerce & How to Use it

Gathering data about your customers can assist you in improving nearly every aspect of your business, especially in the overcrowded world of ecommerce.


Though gathering it is really just the easy part. Once you have it, you have to know how to use it.


Why Is Data Collection Important?


Data collection can give ecommerce businesses a wealth of information. With this information, you can learn more about your customers (current and potential) and what causes them to buy. There are so many different metrics to collect, but if you know how to bring together the ones that signal a strong intent to purchase you will have an advantage. This knowledge can be highly beneficial to optimizing not only the performance of a Shopify shop, but also its growth and ability to find and reach new customers.


Data collection is essential to learn what customers want from your store. By collecting data on customers and analyzing it effectively, you will quickly identify areas for improvement.


How Can You Collect Data for Your Business?


1. Use Third-Party Data Sources


Data collection can be complex without the proper tools. Fortunately, many third-party tools exist that you can use to collect information about your customers.

One way to collect data about your customers is to use a third-party data source. Data sources collect data about users such as Google and Facebook. By using these data sources, you can use your data for advertising campaigns and learn about your customers' interests.


However, third-party data is getting less and less useful by the day. Apple and Facebook’s recent changes to data collection and tracking across apps have made it so that marketers can no longer just throw money into a campaign and reach the right audiences. Google promises to soon follow with updates to their operating systems and search. It is important to no longer rely on third-party data sources as your main for getting data.


2. Use Data Collection Tools


Data collection tools can reach users that you might not usually get. These tools can also collect data faster and more efficiently.


One of the best data collection tools is Hotjar, a free website analysis tool. It can provide you with heat maps and surveys to gather valuable information about what users are looking at, what they are clicking on, and how they are using the website.


If you want to collect data from mobile devices, you can use the Mobile App Analytics tool from Google. This tool allows users to measure app activity on the mobile side.

You don’t even have to look hard to find the right data collection tool. Google Analytics is one of the most versatile tools to monitor your customers' actions and is readily accessible for easy usage.


3. Collect Data Directly from the User


Another way to get information about your customers is to collect data directly from the User. This is the best kind of data because it is data that your competitors cannot get their hands on, giving you an advantage. Often, this is referred to as first party data - where information about customers is compiled through software and systems the company itself owns.


You can capture customer information by collecting and analyzing data from each customer interaction. This typically requires the User to fill out a form before proceeding but can manifest in many different ways such as tracked user behavior, post purchase surveys and interviews, and even purchase history or demographic information.

You can also opt to collect information not directly associated with the User. For instance, you can use a cookie on each page and then place a cookie on a user's hard drive if they visit your site.


How to Use the Data You Have Collected


The data collected can help you strengthen relationships with your current customers, better market to potential customers, and reach new customers.


A great way to utilize customer data is to optimize the customer journey. Looking at the data that has been produced by your marketing campaigns and efforts, you will be able to see where customers are engaging and improve your marketing funnel.


Engagements are the most meaningful data points you can collect. Each customer has a number of engagements across your different marketing channels. In order to optimize your funnel, you must build, present, and drive those engagements in such a way to increase the probability of conversions. What is the strongest and most effective pathway customers reach the purchase decision with your product?


Customer data can also allow you to make personalized offers. Knowing if a potential customer is likely to buy or less likely to buy allows you to offer special savings and deals to push them to convert, or even higher prices if you know they will buy and you want to increase your margins. Even personalized phrases that rely on localization or other characteristics can feel more welcoming to a customer who is browsing on your site.

Part of the Baotris strategy is to come up with other ways to make your marketing dollars (and ours) more effective when working for your store. The analysis of experiments is paramount to a successful digital marketing campaign.


Final Words


Data collection requires you to be responsible for all the information that you have about your customers. It is essential to ensure that you have consent from your customers before you collect their data. GDPR laws in European countries are becoming the norm elsewhere with privacy at the forefront of everyone’s minds so when you collect data, do so ethically and lawfully.


The more data you have, the easier it will be to improve your business and provide better customer service.


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