e-commerce analytics: giving brands continuous insights to improve efficiency
It’s no secret that e-commerce continues to boom in the post-pandemic world, with e-commerce sales expected to surpass $5 trillion worldwide in 2022 (Statista). With increased competition and a more selective consumer audience, brands are continually looking for an edge to drive efficient revenue growth.
Customer acquisition is becoming more expensive, thanks to tightening privacy regulations and the elimination of third-party cookies. As a result, according to the Future of Commerce report, cost per click for paid search ads saw an increase of 15% between the second and third quarter of 2021 alone.
BRANDS LACK VISIBILITY INTO THEIR OWN DATA
According to the Shopify eCommerce market credibility study, 41% of brands surveyed plan to increase investment in their paid and organic search in 2022. Aside from rising costs, brands also lack visibility into consumer behaviors, internal performance, and return on marketing spend.
As a result, there is an opportunity for software solutions providing a unified analytics platform to increase efficiency for e-commerce companies by enabling them to aggregate their data onto a single dashboard and allow further visibility into high-value customer segments, monthly performance tracking, as well as marketing metric tracking for KPIs such as ROAS, CPA, and CPO.
This unified view of company data is an emerging trend that is replacing previously manual processes such as google sheet tracking, which can become increasingly complex as brands balance a number of software vendors across their tech stack including Shopify, Klaviyo, and Gorgias amongst other well-known players.
CURRENT MARKET OPPORTUNITY IS PRIME FOR GROWTH
While there are a number of active players currently providing this type of analytics software including Daasity, Glew, Peel, and Polar Analytics to name a few, no clear winner has been crowned in this rapidly growing category.
We believe this sector represents a great opportunity for emerging vendors to equip brands with the tools and insights necessary to successfully navigate the ever-changing landscape of ecommerce.
Sources: Statista, Shopify: The Future of Commerce Report
(https://enterprise.plus.shopify.com/rs/932-KRM-548/images/FOC_PDF_FA.pdf)
