Given the unabated growth of online retailing, one company has begun to challenge the dominant mid-market analytics provider, writes Glynn Davis of RetailInsider.com
Retailers increasingly need to adopt new data analytics software in order to tap into online revenue growth as the capability of Google Analytics capability has reached a plateau.
At a breakfast event held in London earlier this month Ivan Mazour, founder and chief executive of e-commerce intelligence platform provider Ometria
, suggested: "Google Analytics gave retailers new capabilities and new concepts.
"But this growth curve has flattened out and retailers can get nothing more from it. There is therefore a need for an integrated e-commerce analytics capability."
Mazour believes Ometria can help retailers by removing the silos of information in retailers' businesses and joining this data up in such a way that they can carry out valuable analysis, offering insights that can be applied to their organisations to improve sales and profitability.
Speaking at the event, Dr Mike Baxter, digital transformation consultant, suggested the likes of Ometria enabled retailers to benefit from 'data triangulation' - involving products, customers and profit - whereby they utilise the rich data accruing online to focus on their best customers and best selling products rather than the much-vaunted long tail as epitomised by Amazon.
Triumvirate of customer knowledge
To this end he believed retailers should firstly look at click propensity and adjust the way products are displayed in order to push up sales of these items.
Secondly, they should identify their highest revenue products - based on maximum margin rather than things like highest sales figures. This will help them find the 'hero' products.
Thirdly, the best customers have to be identified on the basis of the recency of purchase, frequency of purchase and their monetary value. Creating a matrix from this triumvirate of customer knowledge makes it possible to segment them into various categories, most notably the most valuable 'hero' shoppers.
In order for retailers to undertake this data triangulation most effectively Baxter said it is critical they hold it in an integrated way. "They need to be able to pull it in from lots of sources and align it," he said. "They should also not focus on the mass of noise but instead on the bits that will give them the most benefits."