ECommerceProduct Management
November 13, 2019

Why Customer Behavior Analysis Matters For Your E-Commerce Store

With millions of e-commerce stores around the world catering to different customer needs, one of the absolutely important things as part of your online store’s smart approach to be customer-centric. But what does this mean? Is knowing the types of customers and creating personas for your store good enough? If you ask the e-commerce gurus, the answer would be that there’s still more to be done.

The reason why knowing “who” your customers does not suffice when it comes to being customer-centric is that you need to know their behavior. You need to be able to know how your customers are interacting with the online store and what will they be expecting in the future.

Customer behavior analysis

To know and analyze your customers’ behavior, you will, of course, need data. This data ranges from which pages are most visited how long users stay in a session and what is the conversion rate to the abandoned rate. With the help of an expert team combined with appropriate analytical tools, you can analyze reports on customer behavior and make the right decisions.
As per McKinsey’s research, businesses which use customer behavior data to make designs outperform their competitors by nearly 85 % in sales growth and more than 25 % in gross margin.

Business Benefits of Analyzing Customer Behavior

At this point, you might probably agree that customer behavior analysis is useful. But exactly how does it provide business benefit? Don’t fret because we will share with you five key benefits that are linked with the store revenue.

1. Data-Driven Marketing (aka Smart Marketing)

Long gone are the days when you could just advertise and your audience will follow. With people having just about countless options for every need to choose from, it becomes crucial to be able to monitor the changing needs and accordingly create strategies to reach out to both existing and potential customers. By using the customer behavior data, the marketing team can look at the different paths used by customers for journeys such as awareness, purchase, and retention. Similarly, they can have a close look at the timing to know on which days and times are actions such as purchase are occurring. Based on all this information, timely and effective campaigns can be set up that aim at bringing in more to the store.

As shared by Attomdata, organizations that have data-driven marketing have six times more chance to profitable each year as compared to their competitors.

2. Ecommerce store development

Improvements are always necessary to stay fresh and of course, keep the store growing in terms of revenue. When your customers come to your ecommerce store, you always want them to feel wowed when it comes to the look and feel, functionality, overall performance and so forth. Now, there are hundreds (or more) ways to develop or redevelop your website from a technical perspective. Which way do you go? Which feature(s) would actually make your customers’ life easier? Data is the answer.

Using the analytic reports, you can identify the points in the customer journeys that might be ambiguous in some way. Thereafter, you can see what kind of development and design changes to do so that the goals you set for the store are achieved.

Case Study:

Considering that most of the online stores today have anywhere between 1 to 3% of conversion rate, Kiva knew it had to play it smart.

A non-profit organization, it had made a goal of increasing the number of donations made by first-time users. By carrying out A/B testing for two designs, they saw how their second design was leading to more conversions. After implementing the second design, Kiva saw nearly 11.5% increase in the donations on the home page. This is the power of data. (Case Study Source)

Monitoring Success

In addition to identifying technical and creative opportunities, customer behavior data also is useful as it monitors the success or failure of the changes you make on the website. For instance, let’s say you have added the ability for customers to be able to save the product on the cart page in case they wish to not continue with the checkout process. You can then create a click event on the “Save” button to see how many are saving it and how many are still abandoning the cart.

3. Content strategy and development

Undoubtedly, the quality of content matters. As a matter of fact, if the website content is not clear or enough, other aspects such as design, functionality, and others have a good chance of going unnoticed. In order to measure the quality of the content which can be the blogs, videos, tutorials, product descriptions and so forth, one of the best ways is to study the customer behavior.

Are users visiting the blogs? If so, for how long? Are users viewing the videos you are sharing on the online store? If not, what can be the reason?

Thanks to customer behavior analysis, you will find all the answers. Based on the information, you can understand which content is useful versus not and then accordingly, develop an effective content strategy.

4. Enhancing user experience

Earlier in the blog, we had mentioned about how the eCommerce stores that take up a customer-centric approach are the ones who have a higher chance of beating the competition. Therefore to be customer-centric means to create a customer experience which is smooth, convenient and personalized as much as possible.

For enhancing the customer experience on your eCommerce store, you could do just about countless things including following the leading eCommerce stores’ (like Amazon and Netflix) strategy. But by using customer behavior, you can identify the core areas that need enhancement.

Let’s take an example. In the analytics report, you see that a good percentage of customers are abandoning the cart. At the same time, you notice that one of the slowest. Bringing together both of this crucial information, what you get is a possibility that slow speed is leading to cart abandonment. This then leads you to work on site performance optimization to improve the purchase journey.


These days, one of the leading strategies of a great experience is of course personalization. Don’t you just love when you see only what you want and what you may be interested in? For implementing personalization, you will certainly need to track customers’ behavior.

Fact to know: Every year, Netflix’s “recommended” feature leads the company to save roughly around $1 Billion (Reference).

5. Staying with the right customers’ in the long run

Your eCommerce store may be having 100,000 users and 1000 customers. But that does not mean that your business strategies for the store will include the needs and expectations of all those 1000 customers. Besides, this is practically impossible! What you need to do is to identify the key customer groups that will drive conversions for the store and based on their behavior, develop your strategies.

Also, lets not forget the potential customers. With the help of data, you can “listen” closely to the users and then create ways for the users to become long run customers of your store.

Looking ahead

The competition is getting fiercer. Customers’ needs and expectations are changing quickly. To make sure that you are taking the right steps for the continuous growth of your eCommerce store, we encourage you to leverage the valuable insights from customer behavior analysis. Only when you know your existing and potential customers inside out, will they continue the journey with your store!

If you are a business with an eCommerce store, have you analyzed your customers’ behavior? How has the experience been? We would love to hear from you!

If you are looking for a dedicated team which can take care of the nitty-gritty of customer behavior analysis while you focus on the insights, we can help you. Click here to start discussing!