4 reasons why you need to get better at analyzing data

Posted by Chris Gentile on May 23, 2017
Financial paper charts and graphs on the table.jpeg
 
Data plays an integral part in just about every business today, especially in e-commerce. However, the thing about data is that it’s completely useless if you don’t know what to do with it.

 However, if used properly, data is more than just a heaping pile of numbers and characters – it is a powerful tool for companies to make educated decisions that can amplify efficiency, increase revenue, and help overall operations in general. It’s a valuable way to gain insights into how your website’s visitors are behaving. And it can also give you the support you need when you tell your bosses their ideas for the next big campaign are garbage (we don’t advise this, and aren’t liable if you lose your job).

1. To avoid human bias through statistical findings

That whole idea about telling off your boss wasn’t just a joke. While crucial business decisions often flow from the top down in a company, we should never forget that the market is king. Every company should listen to what their market’s users are telling them by analyzing the data. Make decisions based off of this. This is arguably one of the most important reasons why companies hire digital agencies like ours – to analyze this data and make comprehensive, unbiased strategic recommendations based on the results.

2. To acquire meaningful insights from the data

Last month, we ran several A/B tests for an all-inclusive vacation company, one of which explored ways to bring users back to their abandoned cart. We hypothesized that our retargeting efforts would encourage users to purchase what they left in their cart. In the end, we learned that this particular company’s users did not end up purchasing what they originally wanted to, even after our retargeting. However, because the test was also designed to salvage the sale, users ended up shopping for other vacations and actually ended up buying more. So while our initial hypothesis was incorrect, we learned great insights about this site’s user behavior patterns and their need to easily browse and shop across the site.

Users still wanted the option to shop more based on visits to the specials page.

3. To make critical decisions based on findings

That same vacation company we ran A/B tests for ultimately ended up implementing our recommendations on their website, and they did this because our analysis of the data determined it was a winning test. But pushing a test to 100% can make some companies a little uneasy, and rightly so… it’s quite a process to push code sometimes. However, when you’re confident that the findings (good data) justify the action (website optimizations), it’s all worth it. Critical decisions aren’t as difficult to make with the help of a proper data analysis.

Analyzing your data will help you when you get to those difficult crossroads.

4. To know your users… duh!

While this seems like a no-brainer, it’s definitely worth remembering. You should always want an in-depth analysis of your website’s data to get a feel for the users you’re trying to reach out to with your products and services. For every e-commerce company, this is one of the few ways you will get to interact with your users. So take this time, and listen to what they are telling you in the form of their actions on your site. Get to know your users by analyzing the footprints they leave behind.

Analyzing your data will help you know your users that much better!

The importance of analyzing your data can't be stressed enough. While there's plenty of ways to go about your analysis, just be sure that your decisions are ultimately based off your findings.

Topics: Test and Optimization, analytics, data

Written by Chris Gentile