You can know your numbers and still not know what they mean. Analytics is part looking at the correct numbers and part playing the role of detective. Most importantly, data and analysis gives you the opportunity to make an impactful change.
You and the person in charge of the data need to work together to shuffle through the information. There is a lot of data to go through. It's important to start your analysis with a plan. What do you need to know or want to know?
Last week we covered goals, base KPI's to consider, and planning around the numbers.
But what does it all mean?
Part of our job as business owners is to be investigators. We have to understand the numbers and an users/customer/client's perspective without talking to them. We have to make assumptions based on our numbers and trends.
Let's look at a basic issue many small business owners deal with on daily basis. Many businesses have websites. You can track how many people visited the site, how long they stayed on a page, stayed on your site, what items they looked at and so on. You measure this data and consider your conversion rate. A conversion rate is how many users completed your call-to-action. In a retail situation, how many users bought product or completed a sale.
If you are generating a traffic count of 100 users a day, but you are only seeing 5 completed sales, how does that effect your business? Is this a good ratio for you? Do need a higher conversion rate?
If you are not seeing a high enough conversion rate take a look at other data. What are your top exit pages? Is there consistency? You may have an issue with the page. Go through your shopping experience, does the flow feel right? Are there steps missing or are steps not clear. If you have the ability, look at past data. How does this compare? Could it be an issue with an item, or how the item is promoted. Consider picture quality, access to different angles, and so on.
Numbers are never straightforward. There can be multiple interpretations of one set of data. If you would like a plan for how to understand your numbers or training on how to use Google Analytics contact me for a Retail Success Strategy Session. We can create a plan specific to your business.
You can find out more about us and the company at: www.amginnovativeconsultants.com
Check out our new page, Retail Success Packages, with package and pricing info. To schedule your free appointment, you do not need to know what package you want or be a retailer. My Four Pillars of Success can be applied to all industries.