How market intelligence helps ecommerce startups understand their customers

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Date: 3 May 2022

A marketing team review the data from their market intelligence platform

Ecommerce start ups face a wide range of challenges, but the lion's share of these challenges relate to how you can understand the way your customers think. It's easy to talk about the importance of putting yourself in your customer's shoes. The question is, what's the best way to actually do it?

Market intelligence platforms have taken the marketing analytics world by storm in recent years. On the surface, these platforms seemingly offer too much data, which can lead to analysis paralysis. However, with the right approach, this doesn't need to be the case. Start up businesses can leverage market intelligence data to deepen their understanding of customers in multiple ways.

Here are three ways ecommerce start ups are deciphering customer intent and behaviour using market intelligence.

1. Measuring relevance through engagement

How engaging is your content, and is it hitting the right spot with your audience? Common engagement metrics such as shares, likes, and comments can help you uncover winning content formulae. For instance, social media posts that attract a ton of engagement can signal the need to create more posts in the same vein.

However, high engagement doesn't always correlate to higher traffic. In fact, as your traffic increases, engagement levels often drop. This happens because brands and products generally attract their most vocal advocates in the early days. Those people are more likely to engage with your content than the casual customers that arrive later.

Correlating traffic data to sales and engagement will help you understand whether you ought to be worried about engagement trends. For instance, do dipping engagement rates over time point to a decline in product interest, or is this trend normal? Market intelligence reports help you benchmark your metrics against industry-standard reports to give you a clear picture of what you might expect.

You can even create custom benchmarks composed of your top three to five competitors and view your performance in that context. The result is a view of how your customers view your company versus your competition. Traffic reports also give you metrics such as bounce rates and time spent on site, both critical to measuring how well your customers connect with you.

2. Understand platform preferences

Customers these days shop using a range of devices from smartphones to desktops and tablets. Tailoring a unique customer experience is challenging since each medium lends itself well to different features. Design layouts have to change, and some elements might be compromised on different devices.

Figuring out mobile versus desktop usage is critical since it informs the direction you ought to take your company. For instance, if most of your traffic arrives from mobile devices and the majority of purchases occur on mobile, it might be worth ditching your website and switching solely to an app.

Naturally, you must analyse your data and revenues before making such a huge decision – especially given the SEO benefits of web content. However, the data contained in market intelligence reports offer a great starting point from which you can launch a deeper analysis. Your visitors' choice of platform also impacts how you tailor cross and upselling strategies.

Mobile devices might encourage impulse buys (or not, depending on what your data tells you), opening the door to more upselling opportunities. The way you design your product page also matters. Mobile devices have smaller screens and don't lend themselves well to blocks of text.

Using product videos and other forms of content to communicate product features might be a better choice than using a keyword-rich product description. These are just a few examples of how understanding customer platform preferences help you design a better user experience and ultimately boost sales.

3. Build consumer loyalty

Repeat customers offer ecommerce businesses more value than first-time buyers. A repeat customer needs less enticing to purchase a product and trusts your business to a large extent. Thanks to lower acquisition costs, a loyal customer is worth a lot to your business in the long run.

Market intelligence reports help you monitor different loyalty metrics that help you understand what your audience thinks of you, and how you can address their needs better. For instance, you can monitor your company's social share of voice. This metric quantifies the percentage of conversations in your niche involving your brand.

A falling or low social share of voice alerts you to the need to engage your customers more. Alternatively, it might be insignificant if you're not relying on social media to push product awareness. When correlated with traffic and audience engagement metrics, you can create better marketing campaigns to expand your audience reach and keep your customers coming back for more.

Email marketing is one of the best ways of ensuring long-term customer loyalty. You can even create highly engaging emails by monitoring what your competitors are talking about and comparing the content there with the engagement that their social posts on similar topics receive. Armed with this information, you'll have no trouble enticing customers to return and re-engaging with the people who haven't visited you in a while.

Real intelligence

Market intelligence reports give you a full picture of the state of your niche and what's going on in your customers' minds. With these datasets in place, you can create a memorable buying experience that compels people to come back for more. The result is lower customer acquisition costs, higher engagement, and more sales.

Copyright 2022. Featured post made possible by Rene Mulyandari.

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