It’s a competitive business that you can be involved in, and it’s difficult for entrepreneurs to determine the success of their business. If you’re looking at the performance of your business, you can choose to examine the volume of sales you’ve made, the profits your store has made, and the number of products you’ve sold. These are all fantastic indicators to evaluate. However, numerous other information pieces are useful when running an online business. Some of these can only be accessed through Google Analytics. Through Google Analytics, you’ll be able to gather information about your online store and better assess how successful your online store is.
This article was written to inform you how you can utilize Google Analytics to help your eCommerce business develop. By the end of this article, you’ll be able to comprehend the key metrics to track for your e-commerce business and will know exactly how to evaluate the results yourself.
Why is Google Analytics Important for Your Business?
Google Analytics is a vital tool for e-commerce businesses since it allows you to collect and review in-depth data regarding your customer’s demographics, what they’re looking for, and how they interact with your store. If you use the vast amount of data that Google Analytics offers, you can make informed decisions on enhancing your online store. You’ll be able to confirm your theories regarding your business instead of relying on your intuition.
How to Create an Ecommerce Report on Google Analytics
We’ve now covered the benefits of Google Analytics to your e-commerce business. It’s time to incorporate the Google Analytics tool into your online store.
This process’s first step is enabling ecommerce reports for Google Analytics and your Shopify store. This feature won’t be automatically enabled when you start an account on Shopify. You’ll have to enable this manually. You can add a tiny code line to your Shopify store’s settings. Please don’t fret that it’s not as complicated as it seems; you will find the complete guide on this page.
After entering the code into your Shopify settings, you’ll have to sign in to your online company’s Google Analytics page. Select ‘Admin’ from here, then choose the appropriate view (this is likely to correspond with the title of your site).
After you’ve chosen the option that best matches your online business, it’s time to choose the ‘Ecommerce Settings’ option, then select ‘Enable.
Once you’ve turned on ecommerce reports, you’ll begin cataloging the data from the activity of your ecommerce store. We suggest taking a few days following this step to ensure that you can build an archive of data that you can use later to gain a greater understanding of the e-commerce store you have. Keep in mind that if you cannot access the store’s data, you cannot optimize it.
Understanding Demographics
After you’ve opted into the ecommerce reports, you can begin to analyze the information from your store. One crucial aspect you can examine is the demographics of your customers, precisely the behavior of males and females in your store. It is possible to access this data by clicking on the tab ‘Acquisition’ on the bar on the side in Google Analytics and then selecting ‘Demographics’ as well as the ‘Male/Female.’
When you look at your customers’ behavior on a male/female basis, you’ll get helpful insight into your business’s e-commerce. It could be that you find that males are buying more items from your shop than women do, which can impact your marketing campaigns that are in place to aid in gaining more conversions. Women may be less likely to purchase. However, they contribute a more significant portion of the store’s total revenues. Use this data to improve your e-commerce store and ensure that your business will continue to expand and bring in more revenue in the coming years.
Understanding Customer Behavior
Another area of the tab ‘Acquisition’ that could interest you is ‘Behavior.’ this can help you better know your customers. The most beneficial bill is ‘New vs. returning.’
This section will give you an extensive description of how new customers (first first-time customers) and returning visitors (visitors who have previously visited your store) are interacting with your store’s online presence and your merchandise. You’ll be able to monitor the extent of the difference in the conversion rates. This will allow you to determine the number of points of contact you’ll need to establish with returning customers before they buy. If you notice that visitors who are new to your store have a higher conversion rate, you can add more impulse buys to your shop, allowing you to make the most of these customers.
Shopping Behavior
The section on shopping behavior in Google Analytics will provide insight into certain aspects of your store that can be improved. You can get this information by clicking ‘Conversions’ on the left-hand right side of Google Analytics and selecting ‘Ecommerce.’ From here, you’ll have the ability to see:
It is essential to review the data and see the striking patterns that are evident. Can you determine any significant decreases in the engagement of customers that could be attributed to a specific aspect that you have in your shop? If, for instance, you observe an enormous drop in employment at the Checkout Abandonment phase, then it could be due to the payment service you’re using. Suppose you’re dealing with lots of international customers. In that case, it’s recommended to select a certified global payment service provider like Paypal as well as Shopify Payments — this can help prevent customers from abandoning the transaction at the checkout phase. Make sure you review the data, as they can provide you with actionable data that you can apply to enhance your business.
Transaction Performance
The section for transaction performance within Google Analytics will help you to gain a better understanding of your company’s conversion rate. The conversion rate of your business is a fantastic indicator to gauge — it will reveal the proportion of shoppers who visit your site and make purchases. It’s accessible by clicking on the tab ‘Conversions’ located on the left-hand side of Google Analytics, then ‘Ecommerce”, and then finally the ‘Transactions’ tab.
When analyzing your conversion rate, you need to be aware that the standard conversion rate of an e-commerce company is about 2.2%. Don’t get discouraged even if yours is less. You might find you have a higher conversion ratio in a niche market because fewer stores compete with you in terms of sales and traffic. However, If you’re running an online store in a highly competitive market, such as a business selling T-shirts, you might find that your conversion rate decreases to at or below the 2% mark.
Try to improve your conversion rate as time passes, which will allow you to earn more money to expand your e-commerce business even more. The conversion rate may not change overnight, but you can utilize the valuable data of Google Analytics to guide you toward this final goal.
