In a world where every action in eCommerce generates data, turning that information into useful decisions is not always as simple as it seems. In this article, I want to explore how companies can overcome the most common challenges in data management. To do this, I draw on conversations with industry leaders and practical examples. Join me to find out more!
Just like any process, data in eCommerce has a lifecycle that directly impacts how well it can be used to make strategic decisions. This cycle includes eight key steps:
Think of this like a production line. Each step in the cycle is important, and if someone along the line lets errors slip through, the final product (your business decisions) may be flawed. Understanding this cycle can help you identify which part of your process needs optimization.
Let’s break down the biggest pain points companies face at each stage.
The main sources of data for an eCommerce business usually come from:
Real-world case:
A clothing eCommerce store realized they were relying solely on Google Analytics for decision-making. When they explored other sources, such as their CRM (with insights on returning customer behavior), they discovered loyalty patterns that allowed them to fine-tune their email marketing campaigns and boost sales by 20% in just two months.
Concrete suggestion:
Map out all your available data sources. Tools like Segment or Zapier can help you automatically centralize this information.
A lack of centralized data is a common issue that causes inefficiencies in many companies. Are you using shared spreadsheets to handle all your metrics? If so, you’re likely wasting time and increasing the risk of errors.
Real-world example:
A regional marketplace invested in implementing a data warehouse with Snowflake. By integrating all their information into one place, they were able to speed up their sales reporting and more accurately predict which products would be in high demand during certain seasons.
Recommended tools:
The most successful leaders I interviewed had one thing in common: they knew what to measure and how to measure it. However, challenges include poorly defined key metrics and the well-known issue of “data silos,” where different departments don’t collaborate effectively.
Real-world case:
A beauty products startup defined three key metrics to measure their success:
By focusing on these metrics, they were able to prioritize actions that doubled their customer retention.
Practical tip:
Use intuitive dashboards in tools like Tableau, Looker, or Microsoft Power BI so every department can view the same indicators in real time.
Good visualization can be the difference between spotting a critical trend or missing it entirely. However, many small businesses don’t have access to sophisticated tools or rely too heavily on third parties to interpret data.
Real-world example:
A food eCommerce company simplified their data reading process by conducting a visual audit of their reports. They replaced unnecessary charts with interactive visuals built using Power BI, which helped them identify that 30% of their returns were due to a recurring logistics error.
Suggestion:
Train your team to use a visualization tool—even something simple like Google Data Studio. Having the autonomy to create clear charts can drastically speed up your decision-making.
Looking ahead, several technologies and approaches are redefining how eCommerce businesses manage data. Here are some of the most promising:
Managing and leveraging data in eCommerce is no easy task—but the rewards are massive. Take a moment to reflect on your own organization and ask yourself:
The time you invest in improving how you use your data will translate into a clear competitive advantage. ✨ The time to act is now! 🚀
If you have questions or want help with your strategy, I’d love to hear from you!
