5 Ways of Using Data Analytics in Ecommerce

July 24, 2023

According to a recent market-research report, the amount of data people have collected across the universe will increase by 61% by the year 2025. This data should hit 175 zettabytes within the next two years. The ecommerce sector accounts for a huge part of all the data that businesses collect.

Ecommerce involves lots of data, including customers’ social-media activities, Web-browser histories, and geolocation services. This data also includes the products that customers have abandoned in their shopping cart. Although gathering consumer data is very important, analyzing it to uncover insights is what matters most.

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Ecommerce companies utilize data analytics mostly as an opportunity to learn more about the purchasing behaviors of their customers and detect various trends and patterns across the marketplace. Once they’ve gathered this data and understand its importance to the business’s well-being, they can devise their business strategies based on gut instinct. Thus, data analytics for ecommerce stores could be a crucial aspect of every business.

Tailoring your products or services to your customers’ preferences and interests increases your chances of making more sales. Ecommerce data reveals lots of insights that business owners can use to transform their business. If you understand how to leverage the power of data visualization, you stand a better chance of elevating your business performance.

This article focuses on five different ways in which you can use data analytics for ecommerce stores and transform your business. Let’s dive in.

1. To Enhance Personalization

A personalized shopping experience is a secret of success that many businesses across the globe have employed in transforming their brands. Ecommerce data can enable you to cultivate a more personalized shopping experience that can contribute to the well-being of both your business and your customers. Approximately 86% of consumers say that personalization plays a significant role in their buying experience. However, when personalizing experiences, you must always be aware of social-media advertising regulations.

Usually, Millennials constitute a significant part of the population that is most interested in purchasing products online. Depending on what they intend to buy, consumers most often consider shopping online with the aim of getting personalized suggestions. With the aid of their ecommerce data, a company can easily establish a 360-degree view of the customer. This helps companies to segment their customers based on their purchasing behaviors.

With this information, any company can easily send personalized email messages that offer discounts or tailor unique marketing strategies using free templates, filling in the right data for each potential buyer and, thus, delighting the recipient. Also, depending on the nature of the customer data that an ecommerce store collects, companies can launch products that suit specific customer needs. This data can help transform your business game and increase revenue generation.

2. To Increase Sales

Today, big data plays a key role in helping companies to customize their product recommendations and coupons, making them fit the interests and desires of their actual customers. With personalized recommendations and coupons, companies are likely to get more traffic, which would also likely increase the number of sales their systems record. The data they collect across the store can help them run precise marketing campaigns and remind customers that they’ve left something in their cart.

Since customers can submit orders from anywhere, a company would likely record more sales by making the online purchasing process extremely easy. However, before trying to tailor your purchasing process to your customers’ needs, you must compile data from a variety of different sources to learn more about their needs. When you collect data from many different sources, you can learn more about your customers’ secrets.

When you standardize data from different parts of an ecommerce store, you can easily gain helpful insights that could impact the growth of your store. Data visualization can help you learn more about data trends and the nature of the customers who visit your store. Getting access to the right data and extracting insights from it is not difficult.

3. To Improve the Shopping Experience

Ecommerce companies have a constant supply of data that keeps their store running. All the data their systems generate triggers other needs such as predictive analytics, which aids in anticipating how consumers are likely to behave in the future. Most retail Web sites track the total number of clicks per page and the total number of products customers have added to their cart.

Prescriptive analytics aids companies in developing new strategies to reduce cart abandonment and the time it takes to make purchases. Ecommerce stores can utilize their learnings from predictive analytics to predict different inventory needs, depending on seasonal changes. Since companies can use ecommerce data to predict their customers’ characteristics and behaviors, it becomes easier to get their customers’ attention.

The key to improving your shopping experience is understanding your customers’ needs and preferences. This data can help you make better decisions that contribute to the continued development and growth of your business. All these insights are available from the ecommerce data that you collect, which you can access at any point within your business.

4. To Predict Trends and Forecast Demands

Analyzing customer demands is not just a matter of understanding a business’s present state. Success in the ecommerce sector depends on stocking the correct inventory that you’ll need in the future. Data visualization can help when you’re preparing to address emerging trends, planning marketing campaigns, identifying the parts of the year when business is booming, and handling any events that might occur.

It’s no secret that ecommerce companies compile large sets of data every day. Through the proper evaluation of your sales data, you can easily plan your inventory accordingly, anticipate the peak periods, streamline your general business experience, and anticipate demands across the industry. This is why most ecommerce sites advertise large markdowns on social media during peak shopping periods to help get rid of excess products.

To optimize pricing decisions, ecommerce sites can offer limited discounts to increase the number of sales they record. The data you’ve collected can help you understand when to offer discounts, the period over which the discount should last, and the discounted price you can offer. Once you uncover all of this information, you’ll find it easier to make decisions that are perfectly aligned with your business strategy.

5. To Deliver Dynamic Customer Service

Customer satisfaction is a basic aspect of doing business that every business owner should consider, especially if they want to retain customers over the long term. Companies with competitive product prices often tend to suffer because of a lack of exceptional customer service. Acquiring new customers is not easy and is one of the most expensive aspects of a business, so you should do everything possible to keep the customers you have happy.

When you have an established list of loyal customers, they are likely to spend up to 67% more on purchases in comparison to new customers. Any established company offering incredible customer service increases its chances of getting referrals, thus creating a constant revenue stream. Every business should prioritize the art of providing great customer service and keeping customers happy and satisfied.

Ecommerce data can help you detect any existing operational problems or problems with the products you deliver to customers. Your analytics data can help you define the key areas that need fixes and make it easier for you to spot customers’ main areas of interest. Once you have identified customers’ key areas of interest, you can make the necessary changes to ensure that your business is moving in the right direction.


Ecommerce data is one of the richest sources of information that business owners should consider. A recent market study tells us that people will make approximately 95% of their purchases via ecommerce by the year 2040. So companies need to take note of these statistics and make the appropriate changes to their modes of operation. Business owners can benefit greatly by changing to an ecommerce model.

However, do not forget that data visualization is at the center of all these operations. Once you have collected data from your ecommerce store, you need to analyze and find meaning in it. Data visualization can help you to successfully determine what the data means and how to implement your learnings in your ecommerce-business strategies. As a result of your learnings, you might find it easier to transform your business and achieve the next level of success. 

Senior Digital Marketing Executive at Middleware and The Next Scoop

Ahmedabad, Gujarat, India

Srushti VachhrajaniSrushti is an ambitious, passionate, out-of-the box thinker who has vast exposure in digital marketing. Her key focus is serving her clients with the latest innovations in her field, leading to fast, effective results. Working beyond expectations and delivering the best possible results is her professional motto. In addition to her work, she loves travelling, exploring new things, and spending quality time with her family.  Read More

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