Ecommerce Analytics Playbook
Data analytics is changing the way Ecommerce companies operate and work. Data is available for each and every move a customer takes from the time he browses a product to the time he provides feedback. This is both good and bad! The huge volume of data can be a challenge because determining what is important from it can be time-consuming. However, processing and analyzing it the right way could bring out insights that will help the company stay ahead of the competition. Data-driven decisions bring in more revenue, helps in understanding customer patterns and behavior, quantifies the customer value and forecasts potential opportunities.
Here is a list of 22 dashboards that cover this entire domain. It can be divided into six categories:
All the sales and forecast related reports from different dimensions - customers, geography, products and platform
The important KPIs for a product/subscription including product cycle and journey are covered in this.
The necessary insights about a customer - from the time they become lead to the final(or repeat) purchase are tracked here.
The most important dashboards for tracking the marketing strategies of the company are included.
This category contains two of the most important financial dashboards - Profit & loss and the cashflow report.
Company’s operation related reports - the inventory ageing, stock and backlog are included in this.
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They help in monitoring the marketing performance of the companies, thus giving a clear understanding of where the company stands and how it should proceed in future. With the increase in importance of inbound marketing, more focus has been given on social media and email marketing, and website analysis.A dashboard on marketing mix has also been included to get an overall picture. These reports could help the marketing managers to decide on which area to focus while planning the future strategies. It could also help them in stopping/eliminating the spend on channels which are not profitable.
This dashboard contains the complete end-to-end information required to plan a marketing budget and forecast its impact on sales and most importantly, the ROI. It also lets the business analyze where it went wrong with its current marketing strategy. The simulation part of the dashboard helps businesses predict the future return due to their spending on various channels. This is crucial for decision making.The dashboard answers the below questions:
1. How is the return on the current marketing investments?
2. How does change in budget impact sales?
3. Which sectors is the company overspending/ underspending?
4. How profitable is the company over the year?
Coupon Trends Analysis
The Coupons dashboard monitors the performance of coupons – an important marketing tool for the Ecommerce companies. It helps in analysing the effectiveness of the current coupon strategy, thereby providing insights for making future plans. It also tries to identify opportunities for the business to increase sales by attracting more customers.The Coupons dashboard answers the below questions:
1. Is the current coupon strategy successful?
2. Is Couponing growing or slowing?
3. Which coupon is doing the best?
4. Is the discount given too much or too little?
Social Media Marketing Analysis
Social Media has become one of the most powerful mediums for businesses to connect with the audience to build their brand, increase the sales, and drive website traffic. In recent days, social media and other inbound marketing techniques have grown to occupy a large chunk of the marketing plans of the company. The Social Media dashboard has the following three views:
1. The Overview dashboard, as the name suggests, gives an overview of the current social media presence of the company.
2. The Conversions dashboard tracks how user interest gets converted to transactions and generates revenue.
3. The Customer insights dashboard provides insights that help in identifying the preferences of the target audience.
The website analysis dashboard helps businesses monitor the traffic and talks about the KPIs that decide the success of current online marketing strategy. It answers the below questions:
1. Source - From where did leads hear about us - the path of traffic?
2. Which are the top keywords?
3. How is the traffic on site?
4. Are the ad campaigns effective? What about Industry competitiveness?
5. Is the customer happy with the website – design and content?
Email Marketing Analysis
Emails are one of the most cost effective marketing tools that allow the business to connect personally with their target audience. This dashboard compares the current email campaigns of the business to draw insights that could help them plan better strategies for the future. It answers the following questions:
1. Does the email design and content resonate with the audience?
2. How much revenue does email campaigns generate?
3. Is the current cost of campaigns acceptable?
4. Which campaigns are performing the best?
5. Has the total number of subscribers increased with time?
Webinar Analytics Report
Webinars have become a key part of the marketing strategy toolkit. They are said to be the best way to engage the audience. The dashboard includes various KPIs to measure the impact of webinars on the business. It answers the below questions:
1. How many people registered for/ attended the webinars?
2. How many new customers were acquired as a result of the webinar?
3. Were the webinars successful in retaining audience?
4. How effective were the webinars conducted over the time period?
5. Did the attendees enjoy the webinar?
No business can reach heights without a steady stream of happy and satisfied customers. Understanding the customer needs helps in serving them better. Customer insights dashboards monitor the current customer acquisition trend, retention and churn rates and look at the various possibilities of customer segmentation. It could help draw strategies that could lower the acquisition costs, raise the retention rates, provide streamlined and more effective customer service, thereby increasing revenue and profits.
Customer Segmentation Dashboard (RFM Analysis)
RFM analysis is a technique for segmenting the consumers based on the time of their last purchase, their purchase frequency, and how much they have spent. It has the following views:
1. Customer Segmentation Dashboard gives the Cohorts identified through the analysis.
2. Categorical Customer Segmentation Report provides details of categories.
3. Customer Segmentation Plot shows the distribution of customer cohorts.
4. Geographical Customer Segmentation dashboard tells about how customer segments are scattered geographically.
Customer Churn Dashboard
Since lost customers equal lost sales, customer churn is a significant metric. Also, it is more expensive to acquire a new customer than to keep the existing one. This dashboard helps track the churn and retention rate and identifies the risky customer segments via their behavior. It answers the below questions:
1. What is the current churn rate?
2. How many customers are likely to leave in the near future?
3. How is churn risk – based on income, gender, age and location of customers?
4. Which customer segments are likely to leave?
5. Does previous purchase affect the churn rate?
Customer Spend Analysis
Customer spending patterns are powerful predictors of future demand. They help assess the market potential, geographically identify customers who are willing to spend more and predict the contribution to sales if the business could retain the customers. This dashboard tries to analyze how the customer is currently spending and also gives the users a choice to view the data according to a specific product / product category/ mode of payment. It answers the below questions:
1. How is the spending pattern of customers changing with time?
2. How is the sales per user changing over the months?
3. Do consumers who got acquired via different sources spend differently?
4. How is the sales varying with customers from different regions?
Customer Cohort Analysis
Cohort Analysis helps the business identify the patterns and changes in consumer behavior. It gives insights on when customers leave, when they purchase more and whether the current marketing strategies are working or not. It answers the below questions:
1. How many customers continue to be active users in the next 12 months?
2. Are new customers coming back more often than existing customers?
3. Can the lifetime value of a customer be predicted?
4. How is customer behavior with loyalty programs? How are the discount-based cohorts contributing to sales?
Sales KPIs are considered as the most important KPIs for any business. Sales dashboards help the managers and other executives of the company to monitor the sales and profits from different sources at a single place, helping them in setting the sales targets for the team. Without accurate data at fingertips, further demand forecasts and resource planning will be difficult for the sales team. The reports in this category provide a detailed analysis of the revenue, thus providing deeper insights for the team to work on
Sales Forecasting Dashboard
With the advent of technology, sales forecasting has become a less complicated, but a more accurate process. Only with an accurate demand forecast, the company can plan its sales and marketing strategies for the year. The dashboard answers the following questions:
1. What is the total forecast for the selected time period?
2. What is the accuracy of the prediction?
3. How are the actual sales and the forecast value changing over the selected time frame?
4. How is the forecast value changing with time across regions and categories?
Geographical Sales Analysis
E-commerce has slashed the geopolitical boundaries and now business is free to sell anywhere across the world! Understanding how the sales, market trends, likes and dislikes of users vary with the region can help the business gain an edge over its competitors. This dashboard tries to analyze the performance of the business region-wise. It tries to understand how the sales, returns, customers, AOV and product preferences vary across regions. The dashboard has three tabs:
1. Summary Overview - It gives an overview of region-wise variation in sales.
2. Detailed Analysis – A detailed region-wise analysis is made in this dashboard, including the product purchase trend across these regions.
3. Refunds and Returns – This dashboard talks about how the return and refund trend varies across regions.
Sales, offers, discounts and coupons are important tools for any E-Commerce, especially for increasing the market share. A clear picture of the current inventory and having a good inventory management system is necessary to use these tools in the most effective way. This is also critical for the company’s working capital management strategy and for achieving operational efficiency. The set of dashboards in this category helps in taking decisions vital for the smooth operation of the business.
Inventory Aging Report
This report tells about how quickly the inventory moves. It helps in identifying the slow moving products, thus helping in inventory purchase decisions and inventory planning. The insights from the dashboard could guide the business on when to lower the price of aged products or when to launch offers and discounts to push the products out of the shelves. It answers the following questions:
1. How much of the inventory is going to get aged?
2. For the inventory aged over a year, how is it varying over time?
3. Which warehouse has more fresh stocks (or aged stocks) piled up?
4. Which product is fast moving and which is slow moving?
No business can survive without proper financial management.F unds are needed for the day-to-day operations, expansion plans and for all other goals of the business. Financial dashboards help to track expenses, sales and profits in detail and helps the company to have an effective cash management system. The dashboards in this category track all the relevant finance related KPIs , thus assisting the business in taking important financial decisions.
Cash Flow Dashboard
This dashboard monitors the amount of cash leaving and entering the business. It splits the entire activities of the business into operating , investment and finance. The cash inflow and outflow are monitored based on these categories. The dashboard also has a simulation tab that helps in budget planning.It answers the below questions:
1. How is money distributed across operations, investing and financing?
2. Is the cash flow positive?
3. What is the Year-over-Year percentage growth in cash flows?
4. How to plan a budget?
Profit & Loss Dashboard
Profit and loss statement or the income statement is one of the significant financial reports that summarizes the revenue and expenses over time to ascertain profit or loss of the company.The dashboard has two tabs - the summary view and the statement.It answers the below questions:
1. How has the profit grown over time? How does the revenue, cost and profit vary over time?
2. Which are the components of cost and how are they varying with time?
3. What is the change in net sales (profit) in comparison to the previous year?
4. How much of the expenses are unpaid?
Product ratings influence E-commerce purchases. Understanding what products customers like, and what they are likely to purchase helps in planning future strategies. Identifying top profitable products, top profitable bundles, top non-performing products help in realizing what works and what does not.
Product Performance Report
This dashboard monitors the current performance of a product / products (based on the filter) and helps in identifying and top profit- generating and revenue-generating products. It also compares the sales and profits made this year with last year to analyze the growth of the company. The dashboard answers the below questions:
1. Is the business growing steadily? Has it achieved its target profits?
2. How has the sales trend changed from last year?
3. Which are the top-selling products?
4. Which are the top-profit generating products?
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