EXE CU TIVE E D G E
In the race to utilize
the online space,
marketers may be focusing
more on advertising
and less on analysis
of the data
that could potentially
increase sales.
has created for marketers to lay their hands on for
analysis. Despite that, in the race to utilize the online space, marketers may be focusing more on advertising and less on analysis of the data that could
potentially increase sales.
In our opinion, understanding the customer
behavior becomes more complex in business-toconsumer companies and more so in a 24/7 e-commerce business that sells technology products in an
increasingly commoditized industry. A strong analytics foundation may make e-commerce a thriving and
successful channel of sales. Businesses, therefore,
are increasingly creating customizable campaigns
for their installed base customers and improving
sales effectiveness through e-commerce.
For example, pricing and merchandising decisions need to be taken in real time, and the need to
have real-time insights is ever-increasing. To make
these decisions faster and better, marketers would
need to quickly analyze their digital marketing strategies by mining data exhaustively and cost effectively
through advanced analytics.
KEY DRIVERS OF INCREASED REVENUES
An organization’s ability to achieve its goal of
increased revenues and margins would depend
heavily on its ability to improve three key drivers: 1)
volume of customer traffic to the online store (number of visits); 2) customer conversion (percentage of
conversion); and 3) basket size (revenue per average order size). Analytics has a very important role
to play in this value chain. So while organizations
may have the best talent with an analytical mindset
and eagerness to apply it, we need to equip data
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