Online shopping has become an increasingly popular option for consumers, especially during the pandemic. However, not all online shopping experiences end in a sale. In fact, according to Shopify, online merchants lose $18 billion a year due to cart abandonment. But how can businesses prevent this loss and increase revenue? The answer lies in business intelligence monitoring.
BI professionals can use data to identify where customers came from, how they navigated through the website, and where they abandoned their carts. By analyzing this data, BI professionals can pinpoint the exact problem areas and take action to improve customer experience and ultimately maximize revenue.
Here are some key ways in which BI professionals can use data monitoring to achieve these goals:
Identifying the Source of Traffic
One important metric that BI professionals use to track performance is the source of traffic. Knowing where customers are coming from, whether it’s through Google search, email links, or social media posts, can help businesses understand which marketing strategies are working and which ones are not. By focusing on the most effective sources of traffic, businesses can maximize their ROI.
Pinpointing the Problem Areas
BI professionals can also visualize the journey a customer takes when visiting a website, allowing them to identify where the customer dropped off and why. For example, if a customer abandons their cart at the checkout page, a BI professional might create a tool to monitor the loading speed of that page. If it’s too slow, the company can dedicate resources to improve website speed and keep the customer in the future.
Tracking KPIs and Metrics
In BI, some of the most important metrics are Key Performance Indicators (KPIs), which are quantifiable values that track progress towards a business goal. KPIs are closely linked to business strategy, and strong KPIs might include the average value of each online transaction, customer retention, or year-over-year sales. BI professionals use metrics to support KPIs and ultimately achieve business objectives.
Enabling Rapid Monitoring
One of the key benefits of BI monitoring is the ability to receive live or close-to-live data. This means that decision makers can know right away if there’s a problem, such as a steep rise in abandoned carts or a shortage of inventory on a popular product. By knowing about problems immediately, businesses can fix them quickly and avoid further revenue loss.
In today’s competitive e-commerce landscape, businesses need to make data-driven decisions to maximize revenue and improve customer experience. BI professionals play a crucial role in achieving these goals by using data monitoring to identify and solve problems quickly. By understanding the importance of metrics, KPIs, and rapid monitoring, businesses can leverage the power of BI monitoring to stay ahead of the competition and achieve their objectives.