Data-Driven Decisions refer to making decisions for your business based on past and current business performance by applying data science solutions. These decisions help companies operate in an organized manner. We use data science solutions to extract data from Shopify API about its customers, orders, and products and help the business decide its operations. Knowing about your customer’s personas and their buying patterns from the data allows data science companies to help their partners reach out to their customers with the right kind of products. Businesses can also excise budget restrictions and allocate them to the right resources.
Benefits Of Data-Driven Decision Making
1. Business Owners Can Make Informed Decisions
Business decisions have scientifically evolved since the introduction of data science solutions for businesses. Justifying your choices based on the numbers that your Shopify eStore has recorded has been proven beneficial.
For instance, if you want to make decisions based on customer preferences or product movement around any season, you navigate through your consolidated eStore data and run an analysis about which products to push. Using such robust data science solutions can help you make informed decisions to lure in more traffic to your store.
2. Predict Future Business Performance
Business data gives you an idea about a business’s past performance and helps predict future performance. Such robust data science solutions can help companies make better decisions, especially in the lucrative and competitive eCommerce arena.
For example, Data about trends and seasonality in sales of products gives you an idea about the success of your Shopify store.
3. Personalize Suggestions For Customers
We collect data about what products piqued the interest of customers based on their past purchases and recommend products in newsletters or recommendations on the website.
The most relevant example of these suggestions is the Amazon algorithm that makes suggestions and prompts you to purchase.
Let’s assume that you’re looking for a new laptop. So, you navigate to a Shopify eStore and look for laptops that meet your needs.
But you don’t go through with the purchase; instead, you abandon the cart. Later, as you stream songs online, read an e-book, listen to the podcast, and see ads for the same laptop.
Once you go through with the purchase, you see suggestions for swanky laptop skins and other accessories. This is how data science solutions make personalized suggestions to your customers and pitch your Shopify store.
4. Catching The Timing Of Business Events
Data reveals patterns of customer behavior in interacting with your business. These paternalistic data help you decide your outreach connection with your customers. For example, finding the time difference between a customer’s transactions helps determine when to interact with those customers and send them promotions.
5. Raises Efficiency Of Business Operations
Business information gives us the full picture of a business and hence takes appropriate decisions at the right time. For example, you can spend promotional budgets on only potentially converting customers and avoid non-potential ones.
What Kind Of Shopify Store’s Data Is Helpful?
- Orders
- Customers
- Products
- Promotional Strategies
- Online Stores
- Social Media Pages
How To Use Shopify Admin To Make Data-Driven Decisions For Your Business?
Data Mining From Various Sources Of Product Availability
We would consider data from web stores and social media stores like Amazon, Facebook shop, etc., and find how your product performs on various platforms.
Analyzing The Data Present In The Analytics Section
Adding tags will help you find specific information about your orders-this allows Shopify to find factors attributing to your sales.
Utilize the Marketing section of Shopify to integrate social media channels and track revenue and orders from these sources.
Track The Promotional Strategies Performance From Discount Section
The Discounts section gives us information about promotions initiated for your store by you. It also helps in tracking the status of coupons and how many have been used by customers.
How To Raise Revenue Through Your Shopify eStore Data?
Personalized Promotions For Customers’ Personas
Create customers’ personas based on their interactions with your store. We consider RFM for this approach, which accounts for their recent purchases, number of orders, and revenue. And this helps us classify our customers for their various RFM values and design promotions to pique their interest in buying from your website.
Create Upselling And Cross-Selling Opportunities Based On A Combination Of Products In Customer Orders
A detailed analysis of orders gives us an idea about product sales. It identifies the product relationship to find which products can be sold together. These orders give us the product price range, which interests a customer, and you can suggest other products of a similar price range or try recommending higher price range products of similar product types.
Analyze Channels Of Customer Acquisition To Focus On High-Yielding Channels
Customer acquisition is an essential task for business and budget-draining operations for a business. Marketers have to work on multiple channels to engage customers for the company. Analyzing the money spent vs. customer acquisition figures would help make wise decisions on money matters and raise effectiveness by only focusing on high-yielding channels.
Use Seasonality And Trends In Sales Patterns To Design Promotions For Selected Products And Maintain Inventory Surplus
Product Orders help us in finding trends and seasonality factors for products. These analytics help us in focusing our promotional efforts on specific products rather than all. It achieves the goal of saving money on both fronts: Promotions and Inventory as we can keep product stocks based on sales predictions
Utilize Customer Location Information To Design Promotional Content
Location plays an equally important role in sales. Some products are more popular in a specific area than others. Focusing our attention on location and product placement for any customer increases the chances of sales.
Find Customer Value-Based On Average Order Value To Focus On Plans On Raising Customer Value
Analytics are crucial to determine your current market position in terms of sales. Using Shopify’s Analytics section gives you information about average order value, which helps find customer value, and deduct the cost of goods sold from the sales price. And this lets you know your cash flow and enables you to prepare appropriately for deciding your budgets for various activities.
How To Retain Your Customers?
It is believed that 80% of business comes from 20% of customers. It is essential to retain your customers to sustain your business.
Categorize Customers Based On Their Purchase, Whether They Are New Or Existing
By devising separate plans for different categories of customers, companies ensure a personalized approach that will benefit them in the long run. There are different types of approaches required to retain your old vs. new customers. New customers are still vulnerable to their loyalty towards your business for future business. So to engage them, we can create loyalty programs to ensure their future purchases. Existing customers are loyal but need to feel they are essential to you as a business. They should receive promotions from time to time to fulfill their expectations.
Concentrate On Customers Who Are Generating Higher Revenues
Customers who have been giving you the most significant piece of your business should be heard for their opinions on your business customer service arena. Continuous customer support enriches their future engagement with your business.
Find Customers With The Highest Number Of Orders
Some customers make smaller contributions to your revenue but overall have helped you in improving your business position. These customers require different marketing approaches and need to be engaged frequently to pique their interest in your business.
Recommend Products Based On Customer Choices
Time is an essential factor in securing your customer’s orders. Highlighting the products of preference based on past interactions can significantly increase the chance of purchase. We can recommend products based on their web history, past purchases, etc., to help your business secure one more client purchase successfully.
Conclusion
We have proved that your business data acts as an engine to get your store sales on track for eternal success. Data-driven decisions help management personnel take the right steps to acquire and retain your customers and maintain, manage, and raise your business fuel — revenue. Zealousweb has helped many businesses design their business strategies on data-driven approaches for creating websites with fascinating UI/UX designs that reduce bounce rate efficiently. Marketing strategies that consider your customers’ full-business scenario, customer acquisition channels, and designing content accordingly effectively engage your customers.
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