What every candle e-commerce business should know about customer data

 

The Covid pandemic has led to the creation and demise of many businesses. Some of the one created originated throughout lockdown as people had extra time on their hands. An example of these are candle companies that started out as a hobby but later became a productive e-commerce business. 

E-commerce involves the sale of products or services online and due to the restrictions and lower cost, it was one of the most lucrative options for small Irish candle companies. Another beneficial factor of e-commerce involves the amount of data obtained virtually. 

Data has provided the marketer with valuable insight into the mind of the consumer. Improving the way a business can promote to, sell to and communicate with their customers, but how should a business use this data effectively in order to improve their marketing strategy? 

We have previously covered how Google Analytics is important for your business but how effective is data analysis? 

What are the pros and cons of data analysis when it comes to an e-commerce candle business?

Pros of customer data analysis:

1) Establish/ Monitor Demands and Trends

Data provides us with specific information which can then be used to the marketer's advantage. 

D8Candle E-commerce

 

One example would involve if D8Candles used customer data to analyse the percentage of sales for specific products. Others could involve the time most purchases are completed, the locations which has the highest percentage of conversions and the products which are more popular than others. All this data can be used to streamline production, improve marketing efforts on specific areas, gain product demand insight and help with new product development. 

Today's fast-paced life means that trends are inclusive in all the things we do. These are highly effective for marketers and businesses for brand promotion and positioning. By looking at data in an effective way you can follow specific trends, adjusting your products accordingly not only possibly improving sales but increasing your chances of earned media. Such trends would involve the use of specific eco-friendly materials for your products, associating your business with world-wide issues in solidarity of societies being affected by crisis. 

2) Creation of personalised content through CRM systems  

Customer relationship management systems allow for the storing and processing of consumer data in order to create a more personalised ad and communication efforts by a company. There are various programmes for specific needs, these include HubSpot, Salesforce and Monday.com. These are usually used for large companies that have vast amounts of customers and money. Similar services can be used for start-ups and SMEs which don't expect a huge database. Mailchimp is an example of a software that can help with processing your customer data. 

It's purpose is for email marketing, but it can also help segment your users and their preferences when implementing your email marketing tactics. For example: you can see that a customer or set of customers have a preference for a specific candle. By using this data you can target them with a new product that you think will attract them, by offering a discount or sample or pre-sale purchase. Mailchimp has built-in analytics that will then help you see the effectiveness of the email. It also has personalisation settings, using first name or surname mention in the email, giving the customer a sense of personal human interaction. 

3) Improve user experience

User experience is so vital that it is a factor in every online marketing strategy. The customer centric approach is what most successful business strive for and for start-ups and SMEs it's no different. We looked at how Big Data is growing in popularity and some of it's use but how can we use customer data to improve user experience?

Let's look at how we could improve the user experience in relation to purchase.

FieldDayIreland could monitor their consumer buying process. By setting up metrics like page exit, heatmaps and clicks on google analytics they can follow the consumer process and note where a customer has decided to leave and test new ways to facilitate the buying process. These could included changing the words on the CTAs, adding or removing content and changing payment methods. 

Optimised payment methods enhance user experience.

4) Improve your ROI

Income is the lifeline of any business. As a marketer or business owner you must ensure your costs are low and profits high. Through consumer data analysis you can justify and spend money in places that are more likely to turn a profit. 

Field Day use of words and tactics that appeal to their consumers

One example of using customer data to improve your ROI would involve using specific words that your customers are more likely to react to, addition of limited-time promotions and engagement levels. These can be continuously monitored and implemented in future strategies based on results, helping lower spending on tactics that less likely to drive a conversion or purchase. 

Cons of customer data analysis:

1) GDPR and data usage

Under the European GDPR  (General Data Protection Regulation) law established in May 2018 a business must have consent to obtain data, use it for the purpose intended and remove if asked to do so by the person. It is the responsibility of the business to adhere to these rules or they could face a fine. 

Cookies are effective for targeting ads based on user preference and past navigation searches

Some issues with data and obtaining in come from the misinformation of the use of data. As a business you should clearly state the purpose of the data being gathered. Some might be to enhance the user experience, other might be to analyse product demand efficiency and quality. By stating the purpose you are removing doubt from the customers mind and improving your chances of gaining data from them.

2) Negative data processing due to disorganisation

Due to the nature of data and all the sources it can come from, maintaining it all organised ensures that it can be used to improve your marketing tactics. Since SMEs have relatively low numbers of customer compared to multimillion dollar companies, their main sources of data will come from their website, social channels and email subscribers. Each location can be a source of data relating to an overall customer demand and expectation which the business can then use to create or improve their marketing campaign. 

3) Difficulty understanding data

Data has its benefits but for some it might feel like a needle in a haystack sort of situation. Due to the quantity and numbers of sources some people, especially the non-tech savvy, it can be a daunting task and many don't know where to start. YouOnMarketing have been helping business like yours flourish in the digital world. We offer great tips and great support when it comes to helping you achieve your goals. Our special team of experts will help you sort out your data sources, show you which are more beneficial and use it to improve your digital marketing strategies. 

Contact us Today!  And bring the Zen to your e-commerce business.