How to master data-driven decision making for your e-commerce business

How to master data-driven decision making for your e-commerce business | 4-minute read

In today’s competitive e-commerce market, relying on gut feelings and intuition is too risky for e-commerce businesses.

To provide customers with an outstanding customer experience, and to be successful, businesses need to make strategic decisions supported by data.

Data-driven decision making allows e-commerce business owners to make informed choices and drive growth. This can help to optimise business operations, enhance the customer experience, and reduce costs

In this blog we will discuss the power of data-driven decision making for e-commerce entrepreneurs and why it is so important.

The power of data

Intuition in a business can only take you so far. It’s important to base important business decisions on facts and data to confirm your ideas and hunches are true.

For example, you wouldn’t want to launch a new product offering without knowing your customers are interested. Similarly, you would want to launch a marketing campaign that failed to resonate with your target audience.

Data driven decision making is based on objective data and numerical information to support and provide transparency to the decision-making process. Using these trusted insights, e-commerce businesses can make better, more effective decisions.

How to master data-driven decision making

Data may be powerful but how can e-commerce business owners unlock its true potential?

Identify your data sources

To begin, identify your data sources. Make a list of key data sources for your e-commerce business that you can refer to at any time. Common data sources for e-commerce stores include website traffic, customer purchase history, product reviews, and social media analytics.

Use tools for data collection

There are many helpful tools available to help e-commerce business owners collect, read, understand, and manage their business data. Examples of these tools include Google Analytics, CRM software, and social media tools.

How to use data in e-commerce

Here are some ways data can be leveraged for better decision making in e-commerce:

Optimise product offering

Using data, e-commerce entrepreneurs can predict demand, identify customer preferences, and better inform product sourcing. To do this, use website traffic data to see which product categories are most popular and the items customers purchase most often.

Create effective marketin

Data analysis and customer data allows e-commerce business owners to segment audiences for email and marketing campaigns. This helps to optimise ad spend, make marketing personal, and target the right audience.

Streamline inventory

Using sales data and by analysing customer behaviours, e-commerce stores can avoid overstocking and understocking issues to improve inventory management. Furthermore, by accurately controlling inventory levels, e-commerce business owners can free up cash flow and reduce costs.

Data analysis and strategy at Unicorn Accounting

With monthly insights packed with business data performance data, when you choose Unicorn Accounting, we will provide you with clear KPI’s to grow your business.

Additionally, our regular check ins provide you with unlimited advice including opportunities for growth and scaling your business online.

As part of our Virtual Finance Director service, we also provide you with a dedicated accountant that will help you get your business financial management for transparency and accountability in financial decision making.

Why choose Unicorn Accounting?

Ensure you keep on top of your finances and tax obligations by outsourcing to an accountant. This means that you don’t need to worry about your end of year accounts, payroll, or bookkeeping requirements.

At Unicorn Accounting, we are e-commerce accountants who help make your online business a growing success. We offer e-commerce accounting advice, financial management bookkeeping, cash flow statement, and tax filing services to support and scale your business.

Our team of accountants and Xero certified advisors have experience working with both small start-ups and family run online stores to large scale, international retail and e-commerce brands.

If you’ve got an online store, we have the best solution for you. Providing you with a financial arm to your business through our sector experience and skills with innovative technologies. To see how we can help you maximise the scalability of your e-commerce brand all year round, get in touch with Unicorn Accounting today or click here to get a free quote.