Companies are understanding the need of analyzing data. With data tools becoming more refined, it is now easier to get a grasp of the vast amount of information available to us. This overwhelming amount of data can be transcribed and translated into understandable metrics. This process breaks big data into pieces of information that we can work with and get insights from. But how can big data improve CRO (Conversion Rate Optimization)? We will look at it in this article.
Conversion rate optimization (CRO) for data driven processes
As an e-commerce business your main goal is to sell. There are many techniques, tools, ideas, strategies, and thoughts on how you can get more sales. In this article, we will look at what big data and CRO actually are. We will dive into how they complement each other, and how you can utilize both to eventually create more conversion for your business.
CRO stands for Conversion Rate Optimization, but what is this exactly? CRO is a process in which you increase the percentage of purchases or any other desired action (for example subscribing to your email list) on your website or application. This process involves improving your website as well as the user experience of your website. The hypotheses created after this analysis will then have to be tested with a split A/B test. These tests will then provide the information you need to optimize. This constant process has the aim to keep on identifying optimization opportunities.
Do you want to read more about improving your CRO, read more here.
Big data explained
Everything we do online leaves a digital trace. The more people that are leaving traces online and the more data that is stored, the more information there is to work with. It is called big data for a reason. In 2018 there were around 33 zettabytes (ZB) in the world and this number is predicted to grow to 175 ZB in 2025. That is a mindblowing amount of data. Simply having a phone in our pocket already leaves a trail of information. It traces for example where we are, how many steps we take, and when we unlock our phones.
Big data allows companies to make decisions based on facts instead of assumptions, and this is a very powerful way of moving forward and creating new strategies. But how do companies make sense of this vast amount of information? First, you have to figure out what key information you need; and then where you can obtain this information. We will look at it below.
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Big data approaches for more informed decisions
Let’s look at where you can find the information you need to create a data strategy that will help optimize your business performance and CRO. In order to move forward, we advise you to look at this process strategically. We will look into five pillars you can use to gain information that help you better understand your customers, internal processes, ways to monetize, and your products and/or services.
1. Better understanding your customers
You can use data to get to know your customers better. This data might be gathered directly from your website, or based on your target market. Investigating your target market as well as market trends will allow you to understand the wants and needs of your customer better. That is why we always recommend first looking at the data of your target market and/or customers.
2. Getting insights on your products and/or services
You have created your service and/or your product. Whether it has been created recently or a while ago, it can not hurt to gather data on the function and experience of your product and/or service. This is because the world is rapidly changing and there might be ways to make your product and/or service smarter, better, and more optimized. You might get insights about an additional value you can add, that you didn’t know about if you hadn’t looked at new data.
3. Improve internal processes
Your business has internal processes. Whether you work for yourself or you have multiple people working for you, things are done in a unique way in your business. But is this the most functional and right way? Data will tell you. Researching internal processes of operations, marketing, and manufacturing processes will give you information that might indicate necessary changes to some of these processes for the better. A couple of changes can save you a lot of time and money. Definitely worth looking into.
4. Use data to monetize
As an e-commerce business you want to make money. Rather than guessing what works and what doesn’t, we recommend looking at data to see if you are monetizing your business in the right way. Where are you making money and where are you losing it? Look at your business as an asset and use your data to make your asset grow even more.
5. Bring the data together
Once you’ve looked at all the categories above, it is important to write down which parts are interesting to research for you right now. You can divide them into interesting research topics for long-term and for short-term gains. Try to set goals that are concise and measurable. The information that you want to gather should be easy to obtain and to decipher.
Which business challenge would you want to address? What measures of success can you identify? How can you be more successful? In order to get to know about this, which data do you actually need? Setting measurable goals will help you with the next steps; to obtain the data and make sense of the information in front of you.
CRO and big data together
Data has become one of the most valuable and important business assets for companies. We have looked into where you can search for data and which questions you should ask yourself to set the goals you would like to measure. After this, it is important to look at any data gathering complications. What are the laws around data gathering and how can you best use technology and skills to obtain the right information?
After having the right data in front of you, you want to look at implementation. How do you translate the data into a strategy? What are the most important things to look at? What changes will optimize your website and/or application? How can you improve your CRO (read more about CRO for E-commerce businesses here)? Let’s look at how you can calculate a conversion rate and make sense of the numbers in front of you.
How to calculate conversion rates to improve CRO?
You can calculate the conversation rate by dividing the number of conversions by the number of visitors on your website. You can then multiply the results by 100 to get a percentage. We advise you to calculate this number before and after you implement the data analysis changes. This way, you can make sense of the numbers in front of you. Then what is a good conversion rate? We aim somewhere between 1 and 2% for e-commerce businesses.
Do you want to know more about improving your CRO rate?
Do you want to learn more about data strategies and improving conversion rates? Reach out and get in touch today and book a call with us. We’ll be happy to assist you in further growing your business.