Numerous retailers have been leveraging new technologies to improve the performance of their online stores. Case in point, a Valuate Reports study on big data shows that the recent growth in the e-commerce sector has increased investments in big data analytics tools. This is because with tools like predictive analytics, for example, online retailers can better anticipate future customer buying patterns and boost revenue.
One in particular that’s being used by many online shops is WooCommerce. According to a 2023 Startup Bonsai report, over six million live websites currently utilize WooCommerce. Although the open-source flexible software solution is commonly used to create online e-commerce stores, it also has an extensive set of built-in analytics—which delivers various advantages to retailers. For one, WooCommerce gathers important sales data that lets you learn about your customers.
All that considered, this article will provide a more in-depth discussion of the five important benefits that data analytics in WooCommerce offers for your online store:
Fosters more secure online payments
Online payments should be safe and convenient, especially as most e-commerce sales are made through a mobile platform. But as it is, a 2022 LexisNexis Risk Solutions report illustrates that digital wallet payment scams are a rising concern in the e-commerce sector. Fortunately, WooCommerce Payment was developed in partnership with Stripe, a payment processing platform. With Radar, Stripe’s fraud prevention tool, WooCommerce can detect real-time fraud on every payment through an eCommerce website. Radar can likewise block payments if needed, right before charges are placed. With this, WooCommerce can secure your store’s online transactions.
Enables a more-informed dynamic pricing
Dynamic pricing, which allows businesses to set a product price based on factors like demand, supply, and inventory, can generate better profit margins. However, market conditions like competition can change rapidly. A 2021 IEEE Access article on ‘Implementing Big Data Analytics in E-Commerce’ explains that, with data analytics, e-commerce companies can assess competitors’ prices in real time. With that in mind, leveraging WooCommerce’s Google Shopping plugin enables you to identify all your competitors’ pricing. As a result, you can decrease the price of your goods and services when necessary or hike the price of items that are needlessly low. In doing so, your customers can purchase products at prices that are right for them.
Improves a customer’s shopping journey
Retailers can boost their online stores’ performance (and simultaneously enhance a customer’s shopping journey) through WooCommerce. This is because WooCommerce is an online platform that has an integrated reporting and data analysis tool. Here, you can gather essential customer statistics to create better marketing campaigns. Based on the insights offered by WooCommerce, one of the strategies you can employ is deploying competitor ads. As a feature on competitor ads by Ayima Shares, you can start by selecting competitors that provide relevant services that overlap with your business. Then, choose target keywords that you can strengthen your campaign with. Lastly, make sure that your customers respond well to your ads by ensuring that you craft thoughtful ad copies. You can utilize WooCommerce to view how well these ads are performing and make adjustments that can improve your customer’s shopping journey.
Enhances consumer behavior patterns analysis
With WooCommerce’s data analysis tool, you can understand a customer’s information and activities to meet your needs. In an article on digital services published in SpringerLink, business experts highlight how data analytics can be used by companies to spot and predict patterns of customer behavior that are otherwise not easily detectable. Notably, a 2023 Nexcess article on WooCommerce states that the platform allows you to create customer profiles to sell even more. This is because you can better anticipate and accommodate the interests of your consumers.
Delivers efficient and unique customer service
The data analytics in WooCommerce delivers new ways for online stores to support their customer service initiatives. As the referenced SpringerLink article pointed out, internal computer systems that incorporate marketing analytics can produce creative customer interfaces. These touchpoints increase service interactivity and can thus bolster a customer’s satisfaction levels. Data analytics in WooCommerce can also reduce the response time when serving a customer, especially since automated emails can be sent to users efficiently. Now, according to a 2022 Shopmagic write-up, WooCommerce sends automated emails that can encourage repeat orders. These emails can also help boost online store sales, retain and strengthen customer relationships, and even recover abandoned carts.
The advantages of big data for your e-commerce store are seen through WooCommerce’s robust suite of built-in analytics. Fortunately, this tool makes data analytics more accessible and optimizable for any size company.