Importance of Digital Analytics
Did you know.....E-Bay is the world's largest marketplace!?!? Started with just one computer programmer, now it has over 15,000 employees.
The Internet is the main culprit
Here is why:
Internet has made purchasing things accessible and at a click of a "button" consumers can purchase OR sell items at a second. Businesses are the biggest WINNERS as they overcome geographical limitation, gain new customers with search engine visibility, lower costs, eliminate travel time and costs & remain open 24/7.
"Digital Analytics is the analysis of qualitative and quantitative data from your business and the competition to drive a continual improvement of the online experience that your customers and potential customers have which translates to your desired outcomes (both online and offline)"
- quoted by Avinash Kaushik
#1. Customers
Have you heard of the saying that the customer is always right?! Well, thats true! Customers are the most important element of a business. Because...CUSTOMER = PROFIT. This means that businesses must focus on the customer needs and wants, which puts the customer in full control . The business must be able to understand what the customer wants in order to rake in $$$. eBay for instance, has a search engine, which enables the customer to tailor make their preferences, this means the customer can SAVE TIME and effectively search for their products. As such, businesses must constantly innovate and stay relevant.
#2. Continual Improvements
Measurement:
Quantitative and qualitative data analysis is paramount in this sector as it measures the customer base of eBay (whether there is an increase in customer OR a decrease in customer). It is focus on obtaining business objectives and tracking consumers.
Reporting:
To make it into lay man terms so the business can access their performance objectives and whether they are achieving it. (By doing this, eBay would be able to access their position in the market and know what their competitors pricing). This would be a critical factor in business decision making.
Analysis:
Do you even think the world's largest marketplace keeps up with the trend? Well
Test:
Problem?? no problem. Testing allows you to find different solution to the problem and find the right answer and even discover new things.
Stay with me peeps....
#3. Quantitative and Qualitative Data
Quantitative allows you to track your customers what their searching for, what they want, what they need, what they like. BUT just quantitative alone, ain't getting you no where. (that's old school) Now, in recent times, Quantitative comes together with qualitative data. This means that eBay can track customers profile and their habits holistically. For instance, what color blouse you just bought?? eBay would even know...
#4. Measuring Outcomes
eBay must have a business objective and a measurable outcome. As an online business, eBay utilizes online information support efficiently. They are able to contact the customer or even assist with the customer's demand with a "click of a button". This would help with macro conversion so that eBay will know when customer purchases are met. From day one, eBay has successfully met their measurement outcomes and therefore have been a proven success in the online world.
Therefore, all these factors are crucial to attaining a successful business in the 21st century, where digital commerce is in trend. Don't forget to leave some of your ideas and views on the comment box below!! :)