Why should companies collect and analyze customer data in e-commerce?

Marketing is the main key to attracting customers. It is important for business promotion regardless of the type of industry. Collecting customer data allows a company to see a customer's shopping experience. If you want to sell a product or service, you need to understand who your target audience is. Analyzing information about how people interact with e-commerce businesses is the best way to find out how customers behave. It can help you understand their preferences and desires.

Analyzing data about the purchases and interests of your customers will allow you to conduct tailored marketing campaigns and increase the conversion rate of advertising offers.

Why should companies collect and analyze customer data in e-commerce?

Four primary customer data groups to analyze

Customer information is the currency of the 21st century for every line of business in e-commerce.

Companies that collect data remain competitive. It gives them the opportunity to improve their marketing strategies. As a result, they realize more profit.

Customer Data Platform

The last question remains—what data about consumers should be collected? Customer information in online sales can be divided into 4 categories:

1. Personal data. This forms your organization's fundamental understanding of each relationship. The first group (Pll – personally identifiable information) is data that can be used to identify a person (gender, full name, physical address, ID, etc.). The second group (non-Pll – non-personally identifiable information) is information that does not allow for identification (IP address, browser files).

2. Behavioral data. This plays an important role because data offers insight into the customer's experience with your actual product or service. This category includes information about product usage, user clicks, and mouse movement. Information about transactions, purchase history, and average order prices is collected. Analysis of customer behavior allows you to determine the patterns thatpeople create when buying a product.

3. Engagement data. This type of information is about consumer interaction with apps, websites, and different social networks. Here we learn how customers interact with the business through marketing tools. The following are taken into account: page views, email inquiries, likes on social media, e-book downloads, shares, etc.

4. Attitudinal data. The main sources of attitudinal data are satisfaction surveys, interviews, online reviews, analysis of complaints, and support ticket comments. With this data we get information about the emotions and feelings of consumers.

Types of customer data

Customer data analysis is an invaluable tool for choosing a successful business strategy. Why?

Online stores should collect and analyze purchase and customer data to determine the best conversion rate for mailing lists. As a result, we see increased income and improvement in the quality of service. It turns out that this is beneficial for both customers and businesses.

Advantages of collecting and analyzing consumer information in e-commerce:

1. Meeting consumer demands. Use flexibility in choosing prices and product ranges to match the market.

You understand what a person prefers to buy and how much money they are willing to spend on the product.

2. Creating customer categories based on demographic, geographical, and psycho-emotional characteristics.

3. Increase the life value of consumers to reduce the number of customers who leave.

4. Improve your marketing strategy by working through the mistakes of experience.

You know how people react to advertising campaigns. So, you create new ones based on understanding what the client expects.

5. Improving the company's competitiveness in its segment.

Does your business use customer data to create successful business strategies and advertising campaigns? If not, it's time to start and join the battle! Keep in mind that analyzing and collecting information about consumers will help you improve your return on investment.

Consumer data is a direct opportunity to create a bigger business!

Evinent GmbH is a Germany-based company specializing in platform development for mobile devices and delivering B2B/B2C solutions without compromising on outstanding user experience. At Evinent, we take pride in transparency and detailed planning throughout the entire process. Our goal is to empower our customers to increase profits, expand their businesses, and drive growth.
Incorrect Email
Please enter valid phone number or select correct country