Given that choice, business leaders prefer to make decisions based on data about campaigns, products, and performance rather than relying on anecdotal information or customer opinion. This fact leads to new data tools for e-commerce operators.
For example, Cart.com. The e-commerce data and analytics company has raised more than $380 million in funding since its launch in November 2020 through March 2022. Perhaps realizing the difference in the e-commerce market, investors are eager to fund companies.
The funding allowed Cart.com to acquire eight in less than two years. The company will build a platform to unify data collection and provide the necessary insights for data-driven decision-making. Of course, Cart.com is not the only option. However, its rapid growth shows how problematic data is for some e-commerce businesses.
Cart.com was started as a data analysis and analysis company.
Often, business owners and managers find themselves in one of two data problems: an ocean of information or a desert of no data.
Information-rich companies collect data from many sources. They may include Google analytics, member surveys from Lifetimely, e-commerce marketing analytics, and ad performance data from Google Ads, YouTube, and others. Additionally, they may have network support signals to consider as well as offline data.
The problem is to understand how this disparate data works together to affect the business, as these companies are drowning in waves of metrics and KPIs.
At the other end of the spectrum are data mining companies. They don’t have accurate performance metrics or enough models to understand and make decisions. As such, they will not be familiar with marketing campaigns or profitable products.
The need to compete in a changing market exacerbates the data problem. Selling products was easy when e-commerce was new. But now it’s even harder.
“Now we see big brands like Procter & Gamble Company and Unilever investing in advanced research to win in e-commerce. We’re seeing e-commerce and data analytics teams start to step up as they realize the huge opportunity,” said Mike Black, head of marketing at e-commerce analytics and intelligence firm Profitero, during N Interview in May 2021.
While this may be good news for the big brands described by Black, it is not the case for many e-commerce businesses that cannot invest in their own data analysis and growth teams.
The intellectual space of e-commerce, if you want, can be solved in many ways.
First, many data intelligence tools are available, especially at Cart.com and Profitero. Companies with available funds can invest in these people or suppliers.
Second, e-commerce platforms are expected to improve data analysis capabilities. Cart.com is also an e-commerce site. One of the benefits of using its store service is its compatibility with its data analysis platform.
Third, create a data plan. Sometimes being in a sea of information or a desert of no data comes from not knowing what needs to be measured and why.
Here, the business can focus on its most important needs now. For example, a new e-commerce business may want to know where its customers come from. It can focus on its data needs with that.
Another e-commerce business, perhaps continuing its growth, may want to know which channels (advertising, organic search, affiliates, email newsletters) generate the most valuable customers. Do people coming through affiliate links spend more than people who click on ads or vice versa?
A mature e-commerce business can build a KPI dashboard with just a few metrics, such as:
- Percentage of traffic from first-time visitors,
- exchange rate,
- Redemption cost.
As competition increases, which it almost always will, data-driven business insights can be a significant competitive advantage. E-commerce businesses can use emerging software services or disciplined attention using data intelligence.