E-commerce Analytics. Why is Data Analytics Important?

Every year more and more companies decide to invest in business analytics. Effective data analysis is especially important in the e-commerce industry. So you should take care of it, even if you cannot afford to have a separate IT department responsible for data collection and analysis in your company. Why is e-commerce analytics so important? How can you use it to increase your company’s profits?

E-commerce Analytics – Why is it so important?

Running an online store is a time-consuming and difficult task, but it can be very profitable. Some online stores generate high sales without any special efforts – sometimes it is enough to run an effective advertising campaign or find a suitable niche. Usually, however, the huge competition on the Internet makes most online stores not very popular at all. If this also applies to your store, you need to change something. But what? An e-commerce analyst can help you find the answer to this question.

Analytics is admittedly neglected by many entrepreneurs, so you can use it to your advantage. By using popular e-commerce store analytics tools, you can quickly find out what your store is missing and what you can improve to gain new customers. Analyzing your online store’s website also helps you discover the elements that have the greatest impact on your current sales performance. Regular analysis of the site thus leads to increased conversions and improved factors that directly affect the response of potential customers.

In-Store Analytics will help you understand where your Customers are

If you run an online store, you’re well aware of how many different places potential customers can come to your store from. The easiest way to get to your site is, of course, to type in a link and open your store’s website, but the vast majority of customers get there in other ways. If your store’s website is optimized, much of your traffic can come directly from Google search results.

If you run regular ad campaigns, customers may come to the site after clicking on an ad (such as on Facebook or Instagram). Perhaps you work with another company or blogger who has added a link to your product on their site? The source of website traffic is one of the most important areas of an online store’s business that must be analyzed regularly. If you know how your customers get to the store’s website, you can focus on promoting in the places that generate the most traffic and improve the spheres that have not helped you gain customers so far.

Online Store Analytics will show you the most effective forms of Promotion

Popular e-commerce analytics tools help to identify the most effective marketing channels and to choose the most effective promotional activities. Online store owners are well aware of the importance of marketing, yet they often use promotional strategies that are not adapted to the specifics of their business.

Online store analytics will show you how internet users react to blog articles and individual products and categories in the store. Statistics also show how many people are reaching the site from social media. Some tools also indicate the popularity of particular keywords and tags. Using these will help you increase traffic to your site. Constant monitoring of trends on the Internet, in turn, is an effective hint when it is worth focusing on promoting seasonal products or introducing a new product to the store.

E-commerce Analytics and Customer Segmentation

Conversion rate is one of the most important customer information for any online store. Thus, e-commerce analytics allows you to see how high the conversion rate is for specific products and allows you to draw conclusions about which products sell best. Conversion optimization depends heavily on segmenting your customers and tailoring your marketing efforts to each group.

Some internet users will come to your site but will not be interested in making a purchase. However, this doesn’t mean you should abandon them. Remarketing activities or improving certain parts of your offer can make hesitant customers complete the transaction the next time they contact your store.

Web Analytics – E-commerce Data Analysis Tools

To effectively learn about user behavior, you need accurate data analysis. Many tools are used for this purpose. The most popular and most important for every online store is of course Google Analytics.

However, you can get useful data also thanks to such tools as Google Tag Manager, HotJar, Crazy Egg, Optimize Google and Ubersuggest, among others. If you additionally conduct advertising campaigns in social media, Facebook Analytics will also come in handy.

Google Analytics

Google Analytics is the most popular data analysis tool for online stores. Like most tools from Google, using Google Analytics is free. The primary function of Google Analytics is to see where Internet users are coming from to your online store’s website. You can see what products are most popular, what cities and states have the most customers, and what devices are used to make purchases from the store.

Analytics even allows you to see details such as the gender and age of shoppers, as well as what time of day a purchase occurred. What’s most helpful, however, is other data. Namely, how long it took the user to make a purchase, and whether they did so on their first visit to the store, or whether they returned to the store’s website several times before making a purchase. You can set up to 20 goals in Google Analytics and analyze a very large amount of data.

Google Tag Manager 

Another very useful tool is Google Tag Manager or Google tag manager. It is a free tool that allows you to manage your scripts in a very easy way. All you need to do is add code snippets to your website or application (such as Google Analytics code).

By using Google Tag Manager, you can quickly add various codes to your site that allow you to collect relevant data about user behavior. Google Tag Manager is therefore a tool that allows you to configure the tools used for analytics, without the help of a professional programmer.


Do you want to know how potential customers respond to the content on your site? How do they navigate through it? Then HotJar is another tool you should use. The tool allows you to analyze user behavior in terms of its usability.

Thanks to HotJar you can check what part of descriptions the users read and what information they hover their mouse over while making purchase decisions. In HotJar you will find various heatmaps and conversion funnel analysis, as well as form analysis and other information about user behavior on the website.

Analytics E-Crazy Egg

Crazy Egg is also a tool that you can use to analyze user behavior on your website. Like HotJar, Crazy Egg also gives you access to heatmaps (heatmaps make it easy to analyze mouse movements on your site) and session recording.

Crazy Egg is also a practical tool for conducting A/B testing. In combination with other tools, Crazy Egg will give you a very broad spectrum of information about how your customers make decisions.

Google Optimize

Analytics for an online store should also include checking the effectiveness of different solutions. One of the devices that make this possible is Google Optimize. This very practical tool allows you to conduct various experiments on the store’s website.

In the Google Optimize panel, you can select several types of experiments including multivariate tests, A/B tests, and redirection tests. The tool also gives you the possibility to edit HTML code and CSS and JavaScript elements without making permanent changes. In this way, you can test different solutions without having to constantly make backups.

Analytics in an Online Store – what data do you need?

You already know why data analytics in an online store is important. You know what tools you can use to collect the necessary data. Now it only remains for you to decide what you actually need to improve your online store marketing.

The most important types of data you need to pay attention to include keywords that lead users to your website, traffic sources, conversion rate, bounce rate, CAC – customer acquisition cost, and customer lifetime value (LTV).

Conversion Rate

A conversion is any desired action performed by a user on a website. It is one of the most important types of data for businesses because the desired action may be to make an order in the first place.

Conversion rates for online stores usually range from 1 to 5-6%. However, the values may vary depending on the industry. In Google Analytics, conversion rate information can be found in the conversions report. However, first you need to define the goals, which are the desired actions.

Bounce Rate

Bounce Rate is a term that is used to describe users who came to a website and left without performing a specific action. A high bounce rate can signal several problems on a page such as taking too long to load, too complicated a structure, inappropriate targeting for an ad campaign. It may also mean that the website is not very attractive for internet users.

CAC – Customer Acquisition Cost and Customer Lifetime Value (LTV)

Customer acquisition cost is the amount of money needed to acquire a customer. CAC is an extremely important indicator for all online stores because of the profitability of the business and to the evaluation of the effectiveness of marketing activities.

However, Customer Acquisition Cost data is only of practical use when compared to Customer Lifetime Value (LTV), i.e. the profit that can be generated by a new customer. Customer lifetime value (LTV), on the other hand, is a designation used to determine the total profit that each individual customer can generate.

It is calculated on the basis of the sum of profits from purchases made by a specific group of customers converted using the arithmetic average. When the two factors are combined, you can get an approximate amount that can be spent to acquire one customer.

With e-commerce analytics, you can increase the popularity of your online store website. The use of various tools will allow you to learn about the customers’ purchase path, the number of conversions, and the sources of traffic on the website. However, the most important thing is to draw conclusions and use the collected data in your promotional activities. The sooner you take care of your online store data collection and analysis, the sooner you can use it to grow your business!