How Traffic Analytics Increases Ecommerce Profits

Attracting traffic is essential to the health of every e-commerce business. However, heavy traffic does not necessarily lead to sales on its own. To boost your revenue, you need to design pages that are optimized to convert. Next, you need to figure out the best ways to attract visits from buyers who are genuinely interested in buying your products.

To make sure you are attracting the right website visitors, once they are on your site, you need to measure their behavior. In this direction, traffic analysis gives you insight into the minds of people who visit your website.

In addition to measuring simple metrics like conversion rates, traffic analytics also reveals audience behavior that indicates possible product improvements. Here are some key ways traffic analysis can increase your profits and help you understand your audience better.

Track product demand

Most e-commerce businesses face seasonal variations in product demand. Anticipating these fluctuations can help you better plan your working capital and cash flow. Product demand metrics like most visited pages and on-site product searches will help you understand what your audience is looking for.

While these data points reveal demand, you need to dig deeper into the patterns of these signals. For example, from which channels is the most traffic coming and which products is this audience looking for the most? Correlating traffic channels, audience demographics, brand awareness growth, and the nature of traffic (organic and paid) with product demand will give you insights that can reduce costs.

For example, if the majority of paid traffic is viewing low value products, you can model the impact of this demand on your business. You can either raise prices to see what happens to demand, or pause your campaign and focus more on organic traffic.

Meanwhile, correlating the time of year to product searches will help you understand seasonal variations and find ways to generate demand during these times. For example, is your audience looking for accessories or product alternatives that you don’t yet sell? Introducing these products will help you increase your sales during lean times and plan shipping supply chains effectively.

Improve SERP performance

Organic traffic is the best kind of traffic in e-commerce. Whether you generate it from social media posts or search page rankings, organic traffic will help you reduce customer acquisition costs and increase audience lifetime value.

Analyzing traffic channels and SEO will give you insight into the best keywords driving traffic to your website, as well as your competitors’ sites. You’ll see which keywords are driving the most traffic and how your ranking compares to related keywords. These days, competition is high for SERP (Search Engine Results Page) positions and you need to keep an eye out for other businesses operating in your category.

For example, are your competitors posting content that addresses a topic you haven’t thought of? The best way to establish a lasting advantage over your competitors is to create a moat around the most searched keywords and related searches. This way, you will manage to stay on top of your customers’ minds no matter what they are looking for.

Traffic analytics reports also give you insight into upcoming search trends that you can take advantage of. You can use paid search analytics tools that break down all the information you need, or you can do more manual work and leverage free tools like Google Trends.

Identify sales opportunities

Cross-selling and up-selling are huge profit drivers in e-commerce. Most cross-sells tend to have low prices, but as sales volumes increase, they have a huge impact. Accessories, add-on products, or even service offerings are examples of low-margin cross-selling that leave an outsized impression on your bottom line.

Upselling is a tactic that small e-commerce businesses often overlook, but no technique does more to increase average order value. Bundling products or recommending accessories before payment will significantly increase your revenue.

For example, if you run a pet store, suggesting a dog jacket or dog toys with the purchase of a dog bed will add more value to your customer. Shampoos and other pet accessories are high-margin products that will keep your customers coming back for longer.

You can also launch subscription products on your e-commerce platform and test audience responses by looking at traffic patterns. If you witness multiple repeat visits and short payout times, you have a winner on your hands and you should double that offer.

Measure omnichannel performance

E-commerce businesses sell across multiple channels these days. Even if you’re a small business, you’re probably selling on your website and social media, at the very least. Channel traffic reports and engagement metrics will help you determine where you should invest your time.

Also monitor your competitors’ traffic channels, but don’t rush to imitate them. Consider audience characteristics before following a trend. For example, if a competitor generates a ton of traffic from TikTokbut sells to a different demographic than yours, establishing a presence on this platform may not be the best bet.

Traffic analysis gives you insights beyond just numbers. You need to dig deep and understand the ancillary audience traits and correlate them to the channels you drive traffic and orders from.

You won’t always receive a one-to-one match between channels and audience qualities, but you never know what benefit you’ll discover.

More sales through better analytics

E-commerce business owners often fail to deepen their traffic patterns. To gain an advantage, you need to correlate traffic data with other data sets to draw conclusions that will impact your business. Not only will your sales increase, but you will also create impactful experiences for your customers.

Charles J. Kaplan