As an e-commerce retailer, the large majority of your marketing efforts and time are focused on bringing in new customers to grow your business. However, during an economic downturn, the likelihood of getting new customers decreases, which means you need to focus on retaining your existing customers and keeping them loyal to the brand.

By using customer data analytics, you can target your most valuable customers and make it through the pandemic.

Key Metrics for Customer Analytics

Customer analytics is essential for every marketing effort a business pursues. However, most marketers are interested in succeeding in a few fundamental elements, including:

Customer Retention

For any business, repeat customers are one of the most valuable assets they have. In fact, repeat customers account for 40% of the revenue of a brand. That’s why businesses should focus on customer retention to reduce Customer Acquisition Cost (CAC) as well as Repeat Purchase Rate (RPR), which shows how many customers came again to your business to make a repeat purchase.

If your RPR is low, you will need to start putting more effort into engaging your customers.

Even though you may see customers visiting your site, they may not necessarily be engaging in it. You can see how much interest your website garners by viewing customer analytics like time on page and bounce rates.

If the bounce rate is high and time on page is low, you should consider adding value to different touchpoints along the customer’s journey. There are several ways to increase customer engagement and retention, including creating a more engaging UI/ UX, performing SEO on your website, as well as data-driven techniques.

Below are some questions you need to ask to get insight into customer’s tastes and behavior:

Which channels drive the most new customers?

The answer to this depends on the type of business you are running. Hence, it is important to look closely at data analytics before spending your time and money on expensive customer acquisition tactics, if you don’t know whether they are worth it. Customer analytics can help you find whether new users are coming from influencers, affiliates, search, or social media. This will help you understand where to spend the money on your marketing efforts.

What pages provide the most customer engagement and value?

Customer analytics can allow you to segment different pages and touchpoints based on how much value they add to your business. You can find this out through page value to find out which page contributed more to your revenue. Once you understand the value of these channels, you can assign priority to them.

Which customers are the most lucrative?

You will find that some customers are more likely to make more purchases than others. You can look at the customer lifetime value metric to find out who these customers are and what behaviors they exhibit. Once you have identified this, you can create your future marketing plan based on the average order value, more regular purchases, review of products, and referrals.

What behavior results in a high retention rate?

Customer analytics allows you to segment your customer base so that you can find out which page or content the customers interacted with the most and how you can improve retention in the future. This could help define your larger marketing strategy.

What features create a premium customer experience?

Customer analytics can help you find out what features are particularly preferred by the customer. These could be a referral program, a popup form, customer support options, different payment methods, or something else. Hence, it is important to track their performance regularly.

Where do you lose customers?

Customer analytics can also help you identify areas that need improvement. Pages that have high bounce rates and low conversion rates can tell where customers are spending the least amount of time and which garner low customer satisfaction. You can use A/B testing to collect data on what changes to implement that will result in better performance.

Cloudcafe Can Help You Increase Customer Retention

Customer analytics is one of the most important assets of a business. However, you need to track, analyze, and use them regularly to maximize their potential.

By using statistical techniques and data analysis, Cloudcafe can help give you clear insight into the likes, dislikes, and behavior of your customers, which can be used to create marketing and sales campaigns that can make your customers come back for more.

Reach out to us today.

About Cloudcafe 

Cloudcafe is the eCommerce evolution of Aurora Digital which was established in 1998 by Sanjeev Srivastava. Bringing together talent, creativity, and foresight, Cloudcafe utilizes local and offshore development teams to deliver end-to-end solutions. By leveraging high-end technical consulting, custom software development, and our own software, we provide more insight and achieve an all-around better customer experience for our clients. 


Cloudcafe brewing cloud solutions for the digital commerce age.

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