This is a guest post from our friends at RevTap, the analytics app for Shopify stores.
With fewer people stepping into stores and more consumers choosing to shop online from the safety of their homes, even the biggest retailers are moving online. Platforms like Shopify have simplified this move for everyone. However, this means that there’s increased competition and selling online has gotten harder, with so many options for shoppers to choose from.
As an online brand, you need to focus on one of the most important factors that can help you succeed: your customers. By understanding who your customer is, what motivates them, and what their needs are from your store, you can cater to what they need and be able to acquire new customers and retain them.
Your store’s data is a treasure trove of information about your customers. Using this data, you can understand your customers and use it to improve your strategy. Let’s get into why you need to use customer data and 6 ways you can easily turn customer data into growth strategies.
Consumers are changing the way they shop. According to EY, customers are cutting down on spending for non-essentials. Within one segment of customers, 78% of them are shopping less frequently and 64% are only buying the essentials.
The change in spending also varies across different products. Customers are avoiding certain products and choosing to buy certain others. For e-commerce businesses, this would cause a direct impact on your inventory and you may find yourself in loss due to the product being overstocked. By recognizing these new consumer trends and adjusting your strategy according to customer behavior, you can position your business for success.
However, you can’t learn what your customers want through consumer behaviour reports available online. Your consumers have varying needs and expectations from your brand, unique to your brand. Online reports and guides won’t be able to give you this kind of customer insight.
To truly understand your own customers, you need to tap into your own store’s analytics and turn this data into actionable insights.
Each shopper has different motivations when shopping from you. Some are discount hunters, others are looking for products that create value and have no complaints about pricing, others are brand loyalists.
You need to be able to understand the motivations of each kind of shopper that frequents your store. With this, you can better cater to different shoppers, providing discounts, setting up different kinds of recommendations, etc.
Apps like RevTap are built to help you tap into your store’s data to understand your product performance, growth, marketing, and customer behavior.
Your customer analytics will also help you understand different purchase behaviors. This will help you understand the different purchasing patterns that your shoppers have. You can tie this back to the channels that these customers come from and increase or decrease your investment within each channel accordingly.
For instance, you may find that referred customers have a higher AOV while customers that come to your site via Facebook ads spend less. Using this information, you can decrease your ad budget, optimize your Facebook ads, or double down on your referral campaign.
Customer segments are a great way to identify and group different kinds of shoppers based on their behavior and interests. You can then use this data to deliver more nuanced experiences for different kinds of customers.
By segmenting your customers, you can create better marketing strategies, set up personalized messages, plan your inventory, and predict future sales. For instance, you may find that a certain segment of shoppers only purchase discounted items. You can send them personalized messages when you launch a new discount instead of sending the discount to all your customers.
On the other hand, you may have a large loyal customer base. You can further segment this audience into loyal shoppers who buy at full price and loyal discount shoppers who buy on discount, sending different kinds of emails for each segment.
If you don't have strategies to bring back your existing customers, you are losing out on easy revenue. 80% of a store’s future profits will come from just 20% of its existing customers. Unfortunately, many businesses overlook their existing customer base and focus only on new customer acquisition.
Using your store’s analytics, you can monitor your lapsed and at-risk customers. Your analytics will let you know the shopper's last purchases and even identify buying cycles. You can then connect your analytics with your email marketing app to set up personalized campaigns that recover your lapsed and at-risk customers in a timely manner.
On average, only 2.72% of eCommerce website visits convert into a purchase. Somewhere between landing on your site, viewing your products, adding them to cart, and successfully checking out their order, a majority of your store visitors are dropping off.
Shoppers have different reasons for dropping off your online store. Some may change their mind about shopping, others may have dropped off due to a bad user experience, while others may have abandoned their cart due to high shipping costs.
By analyzing your conversion flow, you can understand at which point shoppers are dropping off and figure out ways to improve that aspect of your store. You can test different tactics to get shoppers to stay and complete a transaction and tap into your analytics to see if these tactics make an impact on your conversion.
For instance, you may find that a majority of shoppers drop off after viewing a product. You can experiment ways to decrease product view drop-offs by placing personalized recommendations on your product page or implementing an exit intent that promises a discount.
Tap into your analytics to look at how your products are performing. Your product analytics can tell you how your products are selling, how customers are buying them, which products are commonly abandoned or refunded, etc. Using this data, you can optimize your product’s pricing, set up discounts within abandoned cart messages, and reconsider certain items in your inventory.
For instance, you may find that a specific product is abandoned often. You can experiment and discount its pricing to see if shoppers are buying it or reduce its initial price to see if that reduces abandonment.
In another instance, you may find that a certain product is being refunded often. Due to this downward trend in the product’s sales, you would notice that the product is defective and be able to remove it from your inventory before another customer has a negative experience.
Finally, you can also use the age-old tactic of understanding customers, by surveying and getting direct feedback. It’s a time-consuming task but by talking directly to a select group of loyal customers, you can gain new insights about your store, what their expectations are, and what they would like to see.
However, when using this method, it’s important to note that only a handful of customers will respond and the process of collecting feedback will take a lot more time than just tapping into your analytics.
Consumer needs are changing and it’s crucial to keep up with them to succeed. You need to keep an eye on these changing behaviours on their store and among customers across different online platforms to understand how you can cater to them.
By enabling a holistic analytics platform on your eCommerce store, you can monitor your analytics more closely, see how customers interact with your store and use this insight to improve your store.
RevTap taps into your customer data to understand how your store is performing and how customers are shopping, interacting with your store, and flowing from the landing page to checkout. This insight can be turned into actionable strategies to help you improve areas of drop-offs and send better marketing messages.
About the author - Chintan Maisuria
Chintan Maisuria is the founder of RevTap, a Shopify analytics app. He has 9 years of experience in growth hacking and marketing. He first started his own growth marketing company to help startups grow and scale their business. He later used this knowledge to create a Shopify app that simplifies store analytics for eCommerce businesses and allows them to use their store data to make better decisions.