What is Data Analytics?
The field of data analytics is primarily focused on finding answers to questions about data. This involves devising methods to process, clean, and organize structured data so that statistical analyses can be run and key insights can be found. By finding answers to these questions, a Data Analyst is able to produce actionable insights that can yield immediate improvements for a company or business. This process involves using a combination of computer programming, statistical analysis, and data visualization software.
What is ecommerce?
ecommerce, short for electronic commerce, pertains to the act of purchasing or selling services or goods on the internet, as well as the money and data that must be transferred to complete these transactions. In many instances, ecommerce involves selling physical products online, but the term is broad enough to encapsulate a variety of commercial transactions that occur via the internet.
Since the first ecommerce transaction in 1994, at which time a man sold a CD to a friend through his website NetMarket, ecommerce has continued to evolve. Now, it is easier than ever for customers to discover new products online, and to purchase them using online marketplaces or retailers. In 2021, it is estimated that 87% of shoppers use the internet to begin their product searches. The use of ecommerce continues to benefit sellers of all sizes, from independent vendors to small businesses to large corporations, who can now sell services and products to a much larger audience than is possible with in-person retail.
ecommerce analytics is a field that combines data analytics and ecommerce. It involves collecting data from any source that can potentially impact a business, and then using this data to better understand online shopping trends and customer behavior. Skilled ecommerce Analysts apply metrics to the entire customer purchasing journey, from discovery to acquisition to conversion to retention. The ultimate goal of ecommerce analytics is to provide both small and large businesses with as much information as possible to make the best professional decisions.
This article will explore the role data analytics plays in ecommerce.
How is Data Analytics used in ecommerce?
The field of data analytics plays a crucial role in several aspects of ecommerce. Here are just a few of the ways ecommerce analytics provides businesses and customers with an improved shopping experience:
- It lowers costs. By applying metrics pertaining to what is most profitable and what is not, businesses can stop wasting money on services or products that aren’t generating profits.
- Data analytics informs businesses about what customers really want. When studying customer data, valuable insights are often hidden behind the numbers. Trained Data Analysts are able to anticipate customer needs by studying their purchasing history, and can use this information to aid with product launches and brand development.
- It helps formulate better business strategies. Data analytics offers important insights into how customers interact with a website. It can indicate their go-to brands, as well as their shopping preferences. In addition, by studying shopping patterns, it’s possible to predict when spikes in demand will occur so that measures can be taken to prepare.
- Data analytics allows businesses to better manage inventory. Before the emergence of data analytics, it was challenging for businesses to anticipate how much of a product may be required at a given time, like on Black Friday. By studying shopping trends over time, data can provide a formula for supply and demand that helps a business prepare for how much of a product to stock and how to price items.
- It improves customer acquisition. By applying data analytics to information on website visitors, it’s possible to learn how they discovered a business’s website. Acquisition data offers information about the various marketing channels that bring the largest number of visitors to a site, as well as the channels that are most important for driving conversions or sales. By looking at social media posts, email campaigns, blog posts, and paid ads, a business can get a clear idea of which marketing channels are doing the most to bring in profits, and which are least effective.
- Data analytics provides a clearer picture of a business’s audience. ecommerce analytics can unearth a wealth of information about audience members, such as their age, occupation, gender, income, and even what language they speak. In addition, insights into the type of device customers are using to shop can be analyzed to provide them with a more pointed shopping experience through tailored advertisements.
- It provides helpful information about conversions. Data analytics can also shed insights into conversion rates, or at what point customers acted on a website’s call-to-action. ecommerce analytics can be used to let a business know not just when but how online users become actual customers. It’s possible to learn how long it takes to transform a typical user into a paying customer, as well as if customers are making repeat purchases. Once information such as this is gathered, a business can use it to create a more targeted marketing message, as well as to offer discounts or sales that would resonate most with those currently shopping on the website.
- Data analytics leads to better customer service. Businesses that have good customer service tend to have higher conversion rates as well as retention rates, both of which lead to increased profits. When the average customer service response speed is calculated, measures can be taken to provide faster help. In addition, by sending customers questionnaires and asking for their feedback, improvements can be made to the quality of service.
- It helps with buyer sentiment analysis. Another way data analytics factors into ecommerce pertains to gathering and mining data from customer reviews. This technique typically involves using natural language processing to ascertain what consumers think of a specific service or product.
- Data analytics can be used to detect fraud. When patterns are found in customer behavior, it’s possible to detect suspicious transactions. This allows ecommerce business owners to notify the customer to ascertain if it is indeed them completing the transaction. They can then hold off on processing the transaction until confirmation is given.
In 2021, there is a greater reliance than ever on purchasing and selling products online. Data analytics continues to be a valuable tool that helps businesses prosper in the competitive ecommerce sector. By using data analytics, both small and large businesses can do a better job connecting with and serving customers, and generating more profits.
Start Learning Data Analytics with Hands-On Classes
Are you interested in learning the basics about data analytics? If so, Noble Desktop’s data analytics classes are a great starting point. Courses are currently available in topics such as Excel, Python, and data analytics, among others skills necessary for analyzing data. In addition, more than 130 live online data analytics courses are also offered from top providers. Courses range from three hours to six months and cost from $219 to $27,500.
For those who want to learn specifically about the field of ecommerce, Noble has small group ecommerce classes available as well, with a focus on topics such as digital marketing.
Those who are committed to learning in an intensive educational environment may also consider enrolling in a data analytics or data science bootcamp. These rigorous courses are taught by industry experts and provide timely instruction on the best practices for handling large sets of data. Over 90 bootcamp options are available for beginners, intermediate, and advanced students looking to master skills and topics like data analytics, data visualization, data science, and Python, among others.
For those searching for a data analytics class nearby, Noble’s data analytics Classes Near Me tool provides an easy way to locate and browse the 400 or so data analytics classes currently offered in the in-person and live online formats. Course lengths vary from three hours to 36 weeks and cost $119-$27,500.