Data for Decisions – Why?

When it comes to decisions in e-commerce, you should always make these based on data and not gut, since there are powerful tools today, there is no reason to guess or just go with the gut.

Data

There is an example from Klarna on how wrong it can end up when decisions are made on gut. When Klarna worked on improving their invoice payment they made an assumption based on the developers of the product and what they preferred in house.

When they presented the new invoice solution of paying online, they had assumed that customer want to pay in the following way:
Autogiro -> Pay as today -> Pay with a click

But when they looked at the data after the launch, it turned out that the customers preferred:
Pay as today -> Pay with a click -> Autogiro

Remember that ”Common sense can be unreliable”, always wait with large decisions until you have data to use in the decision process.

Google Analytics

To collect the data, the most common one is Google Analytics, a tool to analyse and keep track of the traffic and user habits on the web pages, where you can see anything from demographics, sex, bounce rate, conversion, and a lot more, if you have set it up right.

The three areas that you should focus on when using your tool to analyse to constantly develop is Learn – Take action – Measure.

Have in mind when you add your GA script that it must be present on all pages where you collect data. It is important that you have made a correct setup to avoid mixing data if you have several different versions on the web page for different countries.

The hierarchy in the account is the following:
Account
Property
 - (Country site Sweden)
 - (Country site Norway)
View Data
 - Raw data
 - Exclude internal traffic
 - Only mobile & tablet users

The other breakup on the account is:
Dimensions – Describe characteristics of data from users
 - Device, Landing Page, and Products

Metrics – Metrics are quantitative measures in numbers from users, sessions, and interactions.
 - Sessions – Page views – Bounce rate*

*A bounce happens when a user:
- Clicks on another site
- Clicks on the Backspace key
- Writes a new URL
- Closes the window

This is only a preview of the things in Analytics, which is an enormous tool with different layers of complexity. A few of you might still wonder why you should look at this to find something useful.

The answer – It depends on your business, which data is important for your trade industry. If you have a more informative site where you present different services to B2B companies you often want to take a closer look at bounce rate, source, and which pages the visitor actually visit.
If you are an e-retailer, conversion, demography, sex, and age could be more interesting. If you don’t have an expert at Analytics, it is time to find or educate someone to manage it in the future. Get in touch with us if you want to learn more.

Erik Rosell

Erik Rosell Support / Test, Sajtanalytiker